MEMS, a pivotal technology predominantly used in the automotive industry, serves to enhance vehicle features. While the automotive MEMS technology has been widely adopted for vehicle control, safety, comfort, convenience, powertrain, and infotainment, vehicle safety is the key factor that majorly impacts the demand for MEMS in the automotive industry.

A few major brands in the automotive MEMS market witnessed a regulatory blow in 2014-15, resulting in passive market dynamics. However, the market has recovered rapidly and is currently growing at a significant pace.

The major applications of automotive MEMS include airbags, tire pressure monitoring, navigation, and electronic stability. However, according to FMI’s market research, the industry is currently witnessing a growing number of applications, which is expected to continue with the advent of technology and increasing research prospects. The market is thus foreseen to grow at an impressive pace over the forecast period 2016-2026.

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Automotive MEMS Market: Key Drivers

• Consumer Inclination toward Enhanced Vehicle Features

A growing population of carowners is seeking enhanced vehicle features for better safety, comfort, and stability within cars. This being a prime driving force for boosting the market growth globally, vehicle manufacturers on the other handare constantly upgrading vehicle models with state-of-the-art features through MEMS technology.

• Strict Government Regulations

Various governments are implementing stringent regulations setting the standards for vehicles’ fuel efficiency and emission standards. As a result, major players in the market are increasingly striving to meet the standards through adoption of MEMS, thereby escalating the demand for automotive MEMS in the market. China and India are particularly expected to grow into attractive markets during the forecast period.

Key Restraint to Widespread Adoption of Automotive MEMS

• Inadequate Awareness

Lack of awareness among drivers and vehicle technicians about the evolving technical mechanism of MEMS is identified to be a key challenge to market expansion.

• Regions with Adverse Climatic Conditions

Studies depict that harsh climatic conditions such as heavy snowfall or rainfall may negatively influence the functioning of MEMS systems in vehicles. Moreover, it is not feasible to replace the entire MEMS system, if it faces a minor fault. This is expected to be a major challenge that might reflect a shift in consumer behaviour.

Automotive MEMS: Notable Trends in the Market

• The most extensively sought after MEMS application remains safety through the detection of an accidental possibility through air bags control. However, apart from safety, the trend reflects growing demand for performance-based sensors. One of the key players already working on this is InvenSense Inc.

• Currently, the market is trending with a number of other application developments, including tyre pressure sensing, rollover and skidding detection, vehicle’s dynamic control, parking brakes sensing, anti-theft sensing, efficient engine management, traffic density signalling, and superior navigation.

• Autonomous driving sensors are also trending at a high pace.

• Manufacturers are concentrating on developing new, safer, smaller, and cost-effective MEMS sensors, which could efficiently replace the older ones.

• A number of companies are researching on the development of next generation MEMS technology, which would effectively address the issues related to adverse climate and exhaust.

• The demand for MEMS microphones, which signal drivers about noise ratios.

Automotive MEMS Market: Segmentation

FMI’s research on the global automotive MEMS market offers a 10-year forecast, segmenting the market according to type, applications, and regions.

On the basis of type, the automotive MEMS Market is further segmented into pressure sensor, accelerometer, gyroscope, flow sensor and others.

Based on the application, the automotive MEMS market is segmented as safety and chassis, powertrain, body and convenience, infotainment, and other applications such as engine management system, peripheral pressure sensors, fuel injection systems, seat occupancy, and oil pressure sensing.

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As per the regional analysis, the global automotive MEMS market is segmented into seven key regions, including North America, Latin America, East Europe, West Europe, Asia-Pacific excluding Japan, Japan, and Middle East & Africa.

Automotive MEMS Market: Regional Outlook

With some of the top OEMs in the industry, including Ford Motor Company, General Motors Company, Volkswagen, Chrysler, and Peugeot, North America and Western Europe currently lead the global automotive MEMS market.

Moreover, these regions have strong communicating channels and are increasingly hosting miniaturisation R&D. The focus of N. American and W. European manufacturers on integrating MEMS systems in vehicles keeping their basic mechanisms intact, is estimated to play a role in pushing the market growth in these regions.

The market is anticipated to witness remarkable growth in developing economies, including China, India, South Africa, and Brazil. FMI predicts these regions to gain substantial market shares over the forecast period.

Key Players in the Global Automotive MEMS Market

The prominent players in the global automotive MEMS market include Robert Bosch GmbH, General Motors Company, Analog Devices Inc., STMicroelectronics N.V., Sensata Technologies Inc., Panasonic Corporation, Infineon Technologies AG, Delphi Automotive PLC, and Freescale Semiconductors Ltd. (previously NXP), Denso Corporation, and Murata Manufacturing Co. Ltd.

Some of the key players are currently expanding their production plants internationally, for gaining better presence on a global level. Recently, Denso Corporation has announced the construction of a new plant based in Cambodia in order to cater to the MEMS-related requirements in that region.

With the aim of expanding the customer base, few of the prominent players in the automotive MEMS market are setting up their production plants in the foreign market thereby further boosting the market revenues. For instance, on February 20, 2015, Denso Corporation, one of the prominent players in automotive MEMS market confirmed the plans of constructing another plant in Cambodia that would cater to the automotive industries in the region.

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