Early 2009, orders to sensor companies dropped sharply due to the fallout of the economic recession. Shipments started again to pick up in the fourth quarter, and the newly strengthened market in 2010 marks the beginning of an upturn that will continue until at least the end of 2010, iSuppli noted.

The growth of MEMS sensors in cars is expected to increase from about 8.12 per vehicle in 2009 to more than 11.5 by 2014.

iSuppli said it expects mandates to continue to be the main market driver, with electronic stability control (ESC) systems to become obligatory for vehicles in the United States by 2012 and in the European Union by 2014. Similarly, tire pressure monitoring systems (TPMS) are set to become mandatory in Europe by 2014.

Inevitably, ESC mandates will foster the sales of gyroscopes, accelerometers and high-pressure sensors, while TPMS mandates will take MEMS pressure sensor shipments close to 137.9 million by 2014, up from just 42.9 million in 2009, the market research firm outlined.

"The revitalized automotive MEMS market in 2010 is being driven by the exceptionally strong performance of MEMS pressure sensors, which are used in key applications to measure tire pressure and engine performance," commented Richard Dixon, senior analyst for MEMS and sensors at iSuppli.

He continued: "According to reports from at least half of the sensor supply industry, shipments are running at three times the historic average, bolstered by a strong production pickup in passenger vehicles coupled with inventory replenishment."

iSuppli indicated that North America will account for the largest share in the consumption of shares with about 40 percent of the total in 2010. Europe comes next with about one-third share.

In the sensor supply chain, iSuppli observed that Robert Bosch GmbH and Denso Corp. continued to dominate in 2009, generating $355 million and $203 million, respectively. Other major revenue earners included Freescale Semiconductor Inc., with $139 million; Sensata Technologies, with $115 million; Analog Devices Inc. (ADI), with $95 million; and Panasonic Corp., with $85 million.

By courtesy of Automotive DesignLine