North American Pressure Sensors Markets

Abstract

Mature Markets and Technologies Signal Strong Competitive Dynamics

North American pressure sensor manufacturers are challenged by tight end-user budgets, scarce demand for enhanced products and services, and diminished customer confidence; all symptoms of technological and market maturity. To sustain revenues, economies of scale are critical and manufacturers must drive costs down in this competitive market. Overall market growth is expected to stabilize soon, as end-user capital spending improves and plant system upgrades and integration become necessary in a healthier economy.

This Frost & Sullivan research service examines the North American pressure sensors markets and its sub segments: bourdon tube gauges, electronic pressure sensors, microelectromechanical system (MEMS) pressure sensors, vacuum pressure sensors, and other pressure sensors. The service analyzes the total market size and growth, as well as its three country sub segments. It discusses prevailing market trends and the competitive issues and challenges, with strategies suggested to tackle them.

MEMS Promises Significant Potential, Especially in Process Control

As Bourdon tube gauges are approaching the status of commodity products, they are steadily being phased out by the technologically advanced MEMS. "The MEMS sensors market will continue to strengthen, as technology evolution and legislative mandates create further opportunities in different industries," says the analyst. The continuing reduction in price is also creating a wider target-user pool in existing MEMS markets.

Under-penetrated process control industries, including chemical, petrochemical, as well as food and beverages, are providing a larger market 'pie'. The construction of new, more automated plants in these industries is giving rise to increased revenues and demand for accurate, reliable, and cost-effective pressure sensing solutions. Stringent regulations and a greater acceptance of new biotech medicines are giving the pharmacy segment a boost, while increased demand for MEMS arises from the automotive and aerospace segment, as they continue to use sensors in their processes.

Industry Focus and Product Line Expansion Vital for Success

To stay ahead in a world moving toward systems integration at all levels; it is imperative that vendors acquire a deep knowledge of the industry verticals. This increases their credibility with customers, as they are viewed as 'solutions providers', not just 'sellers of equipment'. "The successful manufacturer not only has technological expertise, but has successfully mastered distribution channels, knows key vertical industry markets well, and keeps costs at a minimum," says the analyst. Customer service and support will be a key differentiating factor, since competition is also based on price, not on performance alone in this market.

The development of product lines helps safeguard against weakening revenues, owing to price drops and declining demand in individual product segments. Companies need to be more discerning and balance their product mix. Manufacturers may also exit markets experiencing flat to negative growth rates and shift toward those dealing with more profitable technologies.