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Strong Growth of Active Speed and Position Sensors in Automotive Market

May 16, 2006

Strategy Analytics also predicts innovations in passive sensor material may slow transition to active sensors.

BOSTON /BUSINESS WIRE/ -- Strategy Analytics released, "Automotive Active Speed and Position Sensors Grow, But Passive Sensors May Make a Comeback," which identifies the advancement of active speed and position sensors in automotive applications. This report from the Strategy Analytics Automotive Electronics Service identifies the drivers behind the growth in demand of active speed and position sensors in the market, producing a growth in demand of 17% CAGR.

Strategy Analytics also found that new innovation in passive-sensor-materials technology will offer a "high-reliability but lower-cost" alternative to active sensors, using strengthening compounds in the resistive track, thereby reducing the rate of wear. If adopted, these innovative materials may create new scenarios of growth opportunities for manufacturers of passive sensors.

The development of active, noncontact-sensing strategies based on Hall effect, magneto resistive, and variable-reluctance transformer technologies is penetrating the established market of passive sensors and increasingly taking market share. Strategy Analytics expects the active-sensor market to grow from its present base of 640 million units to 880 million units by 2012, as manufacturers look to improving automotive system reliability and reduced warranty costs. However, Strategy Analytics highlights the potential pushback by manufacturers of passive sensor elements, because new material innovations will offer longer life and higher reliability, benefiting automobile manufacturers with cost reductions.

"Active sensors are gaining ground over passive sensors in the automotive speed and position sensor space," notes Simon Schofield, senior analyst in the automotive practice. "This is being driven by the need for improved reliability as well as increased functionality and accuracy. Alps Electric, however, is leading the way with developments in resistive contact materials that may offer a life of 1 billion operational cycles, creating new interest in passive sensors for highly embedded situations and functions, which could be critical to reliable vehicle operation."

About Strategy Analytics
Strategy Analytics, Inc., a global research and consulting firm, provides timely insights and strategic business solutions to companies operating at the convergence of information, communications, and entertainment technologies. With worldwide headquarters in Boston, Mass., and principal offices in England, France, and Germany, Strategy Analytics focuses on market opportunities and challenges in the areas of automotive electronics and multimedia, digital consumer, wireless strategies, and enabling technologies.

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