The European market for obstacle sensing technologies is likely to increase substantially to reach EUR194.7m in 2015 at a compound annual growth rate of around 26.7%, according to research out today.
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A report from Frost & Sullivan, a global growth consulting company, suggests the European market to be worth approximately EUR14.4m in 2004
“The critical role played by sensors, and the absence of a definitive sensor that fulfils the equally important requirements of obstacle sensing and classification, has created an attractive market for various competing and complementing technologies,” said Frost & Sullivan research analyst Karthikeyan Vijayakumar.
The report says that vision and short-range radar sensors are likely to experience very strong growth over the next ten years in both the passenger and commercial vehicle segments due to compelling advantages such as lower cost and multifunction capability. The introduction of applications such as emergency brake assist in the new version of the Mercedes S class is likely to enhance the demand for 24 Ghz short range sensors.
Long-range radar sensors are also set for a steady increase in growth, with revenues in 2015 expected to be more than 11 times those in 2004. Currently in the growth phase of their lifecycle, long range sensors are likely to contribute more than 80% of the revenues in the obstacle sensing technologies market in 2015, the report said.
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By GlobalDataHowever, despite steady increases in demand, the market’s revenue growth is not likely to keep pace with the growth in unit shipments. Obstacle sensors are in danger of becoming a commodity product and this is impacting their pricing, which is in turn affecting market revenues, Frost & Sullivan claimed.
“To remain competitive in the obstacle sensing technologies market, suppliers need to keep the mergers and acquisition option open,” says Vijayakumar. “They also need to be present in both the passenger car and commercial vehicle markets segments to avail the benefits brought by economies of scale.”
