Markets and opportunities for MEMS/MST in automotive applications

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Markets and opportunities for MEMS/MST in automotive applications

Grace, R.H.

The automotive industry was one of the earlier adopters of MEMS/MST behind the military and industrial control sectors. The market holds great promise for MEMS/MST companies wishing to participate because of the large number of current and even larger number of ever increasing new applications. Many older technologies that have secured a position into an automotive system are being replaced at a rapid rate by MEMS/MST solutions. The automotive sensor market is expected to grow at 5.2% CAGR from 6.103 billion US Dollars in 1999 to 9.361 billion US Dollars in 2008. This growth rate is significant less than the overall MEMS growth rate of 21 %. Major opportunities for high growth opportunities exist in adaptive cruise control distance sensors, air quality sensors, torque sensors, parking aid sensors, load sensors and pressure sensors. Companies wishing to be successful with automotive manufacturers and tier one suppliers must provide the value with their product offerings. These customers are buyers of solutions and not technology. The major challenges for MEMS/MST suppliers will continue to be low cost packaging and testing of sensor elements rather than the development of new sensor technology. There are currently MEMS/MST-based solutions for many applications. However, the long design-in-cycle and extended period to achieve full scale production status is the major reason for the low 5.2% CAGR. Another important issue is that suppliers are under contract pressure to reduce their prices. This is evident by the fact that sensor unit volume is expected to increase with a CAGR of 8.2% versus 5.2% in dollars volume over the 1999-2008 time future.