Magnetic sensor market grows 22% in 2011, says IHS

Press release; Jessie Shen, DIGITIMES [Tuesday 7 August 2012]

Playing a critical role in diverse applications such as cellphone navigation, automotive efficiency and solar energy generation, magnetic sensors increasingly are becoming an essential part of consumers' daily lives, causing market revenues to surge by 22% last year, according to IHS iSuppli. Global revenues for magnetic sensor ICs in 2011 expanded to US$1.5 billion, up from US$1.2 billion in 2010.

"The magnetic sensor market consists of Hall-effect and magneto-resistive semiconductor ICs that are used to track rotational speed and linear angles in machines and devices, or to detect and process magnetic fields to establish positioning," said Richard Dixon, principal analyst for MEMS & sensors at IHS. "The sensors are utilized in a wide range of applications - from electronic systems and motors in cars, to compasses in cellphones and tablets, to the monitoring of current in solar inverters, to brushless direct-current (DC) motors in a range of medical systems such as ventilators, dialysis machines and centrifuges."

The largest portion of the magnetic sensor market in 2011 was the automotive segment, with revenues reaching US$731.3 million, up 13% from US$648.9 million in 2010, IHS said. Growth was more robust in the joint wireless-consumer space, increasing by a stunning 50% to US$549.9 million in 2011, up from US$347.7 million in 2010, IHS indicated.

Two other segments also made respectable, if less spectacular, contributions: the industrial-military-energy-medical sector, with US$153.3 million, up 6% from US$145.3 million; and the data processing segment, with US$64.6 million, up 2.5% from US$63.0 million.

Another solid double-digit climb, projected at13%, is in store for 2012 when sensor revenues hit US$1.7 billion, IHS said. By 2016, revenues will amount to some US$2.3 billion, equivalent to a five-year CAGR by then of 9.3%.

The market drivers for magnetic sensors can be classified into various categories, IHS noted. For instance, safety applications for the sensors include airbags in vehicles and fault detection in solar panels. Magnetic sensors can also be found to aid new functionality, comfort or intelligence - utilized in automotive seat-position memory, improved heading resolution for navigation systems in cars and cellphones, and quieter motors in medical equipment. Energy efficiency is likewise a major market driver of the sensors, found in intelligent fans in cars, as well as in higher-efficiency motors for industrial manufacturing and automation.

Other implementations for magnetic sensors include their use in data processing and peripherals, such as fax machines and printers; in consumer electronics, such as in white goods like coffee machines for water-level detection; and in various military, agricultural and transport applications.

The top suppliers of magnetic sensors last year were Asahi Micro Devices from Japan; Allegro MicroSystems of Massachusetts, part of Sanken Electric; Infineon Technologies of Germany; Micronas of Switzerland; Melexis of Belgium; and NXP Semiconductors of the Netherlands. Together the six suppliers accounted in 2011 for 80% of the magnetic sensor IC market, according to IHS.