Rise in Passenger Vehicle Production to Drive the Growth of the Chinese Automotive Sensors Markets
Shanghai, China, July 28, 2006 – The increasing number of passenger vehicle production in China is expected to drive the automotive sensors market in the country. More stringent emission norms and increased safety concerns are also influencing the market growth to a certain extent.
Frost & Sullivan Research Analyst Amelia Wong says that vehicle manufacturers in China are developing more models with competitive pricing to meet the growing customer demand in the passenger vehicle market.
“More electronic control units and non-traditional sensors are employed into varied new systems in these new car models, though the price issue is still affecting the automakers decision to employ certain high cost sensors in their vehicles,” she adds.
New analysis from Frost & Sullivan (www.transportation.frost.com), Strategic Analysis of the Chinese Automotive Sensors Markets, reveals that revenues in this industry totaled US$304.8 million in 2005 and is expected to reach US$1.49 billion in 2012.
If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the latest analysis of the Chinese automotive sensors markets, then send an e-mail to Alice Chia, Corporate Communications, at firstname.lastname@example.org with your full name, company name, title, telephone number, fax number, and e-mail address. Upon receipt of the above information, an overview will be sent to you by e-mail.
Wong also notes that the Chinese Government has introduced and implemented the Euro norms since 2001, adding that this is expected to lead to an increase in the sales of most types of sensors, including gas and exhaust gas re-circulation valve position sensors. Manifold absolute pressure (MAP) sensors are also likely to benefit from these emission norms.
She also says that the increasing installation of varied new systems such as airbag, antilock braking, and tire pressure monitoring units is expected to lead to a rise in the demand for sensors in passenger cars in China.
“The rising installation of other varied advanced systems in cars is also expected to increase the demand for sensors for use in these systems,” Wong adds.
However, the entry of many multinational sensor companies through joint ventures, subsidiaries, or distribution offices into China has served to intensify competition in the Chinese automotive sensors market. Domestic competitors, as a result, are beginning to offer lower prices, leading to strong price pressures.
“As an added challenge, automakers are increasingly exerting greater pressure on their sensor suppliers for the design and development of advanced sensors,” says Wong. “Most passenger vehicles now incorporate newer technologies in electronics, computer software, and materials. As a result, suppliers must be able to develop and update their products to ensure customer retention.”
In addressing the constant price pressure, sensor suppliers must streamline operations and maximize operational efficiency in order to minimize costs. This can be achieved through adopting just-in-time delivery to minimize inventory, automation to reduce labor costs, quality assurance to reduce waste and scrap, and improved design methodologies to reduce material needed as well as production costs.
Moreover, sensor suppliers can introduce newer products to gain the attention of automakers. While new products have the ability to provide higher profit margins in their introductory stages, competitors are likely to develop their own competing versions in time while the new products are successful. Hence, sensor suppliers need to increase their R&D efforts in developing new products, thereby strengthening their product portfolio.
Strategic Analysis of the Chinese Automotive Sensors Markets is part of the Automotive and Transportation subscription. It provides an overview and outlook of the market. This study segments the market into automotive gas sensors market, automotive pressure sensors market, automotive temperature sensors market, automotive position sensors market, automotive accelerometer sensors market, and automotive level sensors market. This research service includes detailed market opportunities and industry trends evaluated following extensive interviews with market participants. Interviews with the press are available.
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Strategic Analysis of the Chinese Automotive Sensors Markets
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