Even though the economic crisis is dominating the outlook for the discrete sensor market for the next years, there are regional and industrial niche markets that offer the possibility to secure long-term success in the middle of an economic downturn. The worldwide market for Inductive, Capacitive and Ultrasonic Proximity Sensors will decline this year but is expected to strongly rebound next year according to a new ARC Advisory Group study.
The main market drivers are emerging economies, particularly China and India, which are not only seeing increased investment, but also increasingly automated production. The second largest drivers are industries that have a stable demand for investment, since consumption is stable. These include food & beverage and pharmaceutical industries. “Sensor suppliers have struggled a lot during the 1990s and all major suppliers developed strategies like brand labeling, partnerships, and modular design. The current economic climate is increasingly putting these strategies to the test,” according to Analyst Florian Güldner (fgueldner@arcweb.com), the principal author of ARC’s “Proximity Sensors Worldwide Outlook” (www.arcweb.com/res/proximity).
To Produce or Not to Produce – This Is the Question
To lower production costs, sensor suppliers apply a number of methods that basically all deal with the build vs. buy decision. One is modular design that builds on a standardized set of components and interfaces within the sensor that creates reusable subsystems that can be produced in large volumes and used across multiple product families. This also enables suppliers to buy certain modular components built by a third-party supplier. Another strategy is brand labeling where sensor lines or even complete portfolios are purchased. Contrary to this hidden collaboration there are a number of visible collaborations on the market and all aim to complete the sensor portfolio.
Network Technologies
To be an important player in the sensor market, a company needs to address the question of connectivity, since if the sensor is not compatible with the network used in a plant, sales will be lost. Two networking standards have recently emerged in the discrete sensor area. These are CompoNet, promoted and supported by ODVA, and IO-Link, promoted and supported by ProfiBus. Each approaches the low-cost requirements of discrete sensor networks differently. While IO-Link adds intelligence and flexibility into a standard 24V cable, CompoNet focuses on cost and speed. Currently, CompoNet is gaining most traction in Asia (driven primarily by Omron in Japan), and IO-Link is gaining most traction in Europe (driven primarily by Siemens in Germany).
Asia – Emerging and Mature Markets Offer Possibilities
Compared to the developed nations, the Asian automation markets have higher growth rates in investment and are increasingly automating their production lines. There are two reasons for the trend towards a higher share of automated production in Asia: rising wages and urbanization. In Japan there are also possibilities, since the large demand for proximity sensors from Japanese machine builders is not completely satisfied by local suppliers.
For more information, go to www.arcweb.com/res/proximity.
