CLEVELAND, OH -- Global demand for light vehicle original equipment manufacturer (OEM) automotive sensors is projected to advance 7.4 percent annually to $14 billion in 2010, more rapidly than vehicle production itself. According to The Freedonia Group, sensor demand grows hand-in-hand with electronics demand, which itself has exceeded overall light vehicle production expansion significantly during the past decade.

While some electronics systems are maturing in developed countries, sensor applications are expected to see continued growth, as these technologies continue to be applied in safety and security, drivetrain and emission control applications. Growth in emerging markets is being driven by the introduction of electronic systems designed to improve safety, efficiency and emissions control, says the Cleveland-based industry research firm.

The automotive OEM sensor industry in developed markets such as North America, Europe and Japan is a study in contrasts, with new sensing technologies exhibiting strong growth prospects while well-established products face flat or declining prospects. Emerging markets typically have more basic sensor needs, as they continue to embrace technologies focused on safety, drivetrain systems and emissions systems. Sensor suppliers face a continuing mandate to deliver more capability at lower cost. Given the current state of the OEM auto industry, this dictate is unlikely to change anytime soon, says The Freedonia Group.

Engine and drivetrain applications represent the largest, most well established category in sensor use, although future growth will be significantly slower than in other areas of the vehicle platform. New sensor applications focused on improved fuel efficiency represent a bright spot in this category, as OEMs worldwide react to rising fuel prices. Safety and security applications promise the greatest growth potential for OEM automotive sensors, propelled by new products that are either mandated by regulations or market driven. Key areas of growth include tire pressure sensors in the U.S., pedestrian warning systems in Europe, and airbags and automatic seatbelts in many emerging markets. Emissions control-related sensor demand has been healthy in recent years, and future growth prospects remain good. A large portion of the value in this category resides in oxygen sensors, which continue be used in greater quantities on a per vehicle basis and are becoming increasingly sophisticated.

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