MEMS automotive sensors to recover in 2010, says iSuppli

According to the market analyst, global shipments of automotive mems sensors are projected to reach 591.2million units in 2010, up 17.8% from 502mn in 2009. While early 2009 saw orders to sensor companies all but dry up from the ensuing fallout of the economic recession, shipments picked up rapidly in the fourth quarter, exceeding even the high point reached in 2007. However, the newly strengthened market in 2010 marks the beginning of an upturn that will continue until at least the end of the forecast period in 2014, iSuppli data indicates. iSuppli analyst, Richard Dixon, PhD believes that the revitalised automotive mems market is exemplified by the exceptionally strong performance of mems pressure sensors, which are used in key applications to measure tire pressure and engine performance. Dixon said: "According to reports from at least half of the sensor supply industry, shipments are running at three times the historic average, bolstered by a strong production pickup in passenger vehicles coupled with inventory replenishment." iSuppli estimates about half of the year's requirement for mems pressure sensors has been satisfied in the first four months alone of 2010, with major Tier 2 companies now reporting inability to make and ship the sensors quickly enough and with Tier 1's indicating a shortage of parts in many areas of the supply chain. Dixon continued: "As a result of these developments, mems suppliers are busy exploiting whatever advantage they enjoy at the moment, even though a healthy scepticism abounds on prospects facing the industry down the road and especially in 2011. And should sales continue at this level - with indicators so far not showing signs of the market slowing down - a potential overheating could ensue, raising the spectre of a possible second slump later this year following the decline of 2009."