Magnetic sensor market driven by smartphones and vehicles

The global smartphone and tablet market continues to grow, while at the same time navigation is emerging as a must-have feature. This need for digital compasses, along with declining price points making magnetic sensors affordable for mass-market penetration, has caused the global magnetic sensors market to boom.

V. Sankaranarayanan, Senior Industry Analyst, Measurement and Instrumentation at Frost & Sullivan, comments: “Moreover, the mandatory fitment of magnetic sensors in vehicles due to regulations from the automotive sector has fuelled sale volumes. Opportunities for magnetic sensor vendors in the automotive industry will continue to open up as new applications emerge. Manufacturers are investing in technological advancements and the widening of magnetic sensor application areas. Magnetic sensors have already evolved greatly in terms of sensitivity, size, packaging and flexibility. Miniaturisation, in particular, will be a common trend in the global magnetic sensors market.”

Despite the potential, it may be difficult to for manufacturers to make equivalent revenues. They will face challenges including: intense competition leading to pricing pressures; and manufacturers reducing prices to penetrate markets such as consumer electronics, where a compelling price point is crucial for success.

Innovative product differentiation strategies must be used to meet these challenges. Products must compet on non-price factors too, especially as customers look for unique solutions with tangible benefits. Demand from Asia-Pacific and Latin America is likely to push technology and product development further.