Magnetic sensors market revenues expand
Palo Alto, CA—Worldwide revenues from magnetic sensor components and modules/subsystems are projected to increase 10-11% per year from $746.6 million in 2003 to more than $1.56 billion in 2010, according to “World Magnetic Sensor Components and Modules/Subsystems Market” by Frost & Sullivan.
Palo Alto, CA— Expanded product portfolios and new market access created by consolidations are intensifying competition among multinational companies and swelling revenues in Frost & Sullivan . As a result, manufacturers are competing by reducing prices and focusing on niche applications.
Consequently, worldwide revenues from magnetic sensor components and modules/subsystems are projected to increase 10-11% per year fromce (SQUID) sensors. The report adds that consolidation among participants in the magnetic sensors industry also affects the competitiveness of the market’s smaller companies.
'Multinational corporations (MNCs) use consolidation to extend their market reach,' says Alok Tiku, Frost & Sullivan’s research analyst. 'While this strategy benefits the MNC and the acquired company, smaller companies lacking resources to fight their large counterparts are finding it difficult to compete.'
Similar products and market maturity have fueled the recent consolidation trend. Subsequently, participants restrained by lack of growth prospects cut prices to retain market share, which decreases revenues.
Another outcome of these trends is stiffening competition among firms catering to niche applications for sensor. For example,to concentrate on their particular sector.
Frost adds that identifying newer markets; creating awareness of sophisticated features and performance capabilities; and using high quality materials to deliver superior performance are likely to help participants counter growth barriers and expand customer base. Eventually, revenue growth in the magnetic sensors market is likely to come from increased use of anti-lock braking systems (ABS) and navigation tools, such as global positioning systems in the automotive industry.
'Participants are moving toward offering complete system solutions, rather than providing discrete components to leverage on such emerging opportunities,' adds Tiku.
Control Engineering Daily News Desk
Jim Montague, news editor