Automotive MEMS to Hit a New Record in 2014

Driven by car safety requirement, automotive MEMS sensor is projected to rise by 9.2%, the largest growth from 2012 to 2017, reaching $2.8 billion in 2014, comparing with 7.4% increase this year, according to market researcher IHS.

Car safety has become one of the major driving forces for automotive electronics. Currently, increasing countries are promoting car-safety mandates to fully maturity and achieve maximum saturation in various parts of the world; as such, electronic stability control (ESC) and tire pressure monitoring systems (TPMS) are available to more vehicle manufacturers.

IHS says ESC mandates are maturing in the United States, Europe, Australia, South Korea and Japan; while TPMS is deepening in penetration and saturating in the U.S., Europe, South Korea and China. The implementation of these laws laid the foundation for the rosy prospect of automotive semiconductor despite the sluggish vehicle sales in China and Europe caused by weak economic performance in 2012.

In addition to the bright future, IHS says automotive MEMS sensor also shows other trends:

First, high-value mandated safety components continue to see larger-than-normal price erosion. For instance, inertial sensors for ESC systems undergo price erosion of up to 6.5% yearly; while pricing for tire-gauging TPMS sensors can slide as much as 9% in a year’s time.

Second, combo sensors flood ESC market. Combo sensor, with the most significant application of collocation of gyroscopes and accelerometers, lend significant price advantages and are gaining rapidly in importance.

Third, emerging markets, especially China generates larger opportunity to automotive MEMS sensors. China is scheduled to implement TPMS by mid-2050; the low penetration of sensors in domestic market adds more fuel to the bright future.

Fourth, cylinder pressure sensors (CPS) will gain traction for a long time. CPS, measuring the pressure within a vehicle engine’s combustion chamber for better control of emissions, has been available for use in diesel engines, and is set to get access to gasoline engines.