Dec 11, 2008
Undaunted by Auto Market Decline
iSupply: Future of ESC-Related Industries Looks Bright.
According to the research institution iSuppli, slumps in auto sales have resulted in declining demand for auto electronic products, except in the area of ESC (Electronic Stability Control). Business opportunities have increased for suppliers of Micro-Electro-Mechanical Systems (MEMS) – the principal component of ESC.
A report from iSuppli shows, although the prevalence rate of ESC in 2006 was only 28%, it is now a common device in new cars with the prevalence rate expected to reach 57% by 2012.
The report indicates that due to US regulation of ESC installation in every new car, Europe is bound to follow suit soon. As a result, ESC and MEMS markets have not been affected by the recession and have continued to grow.
iSuppli believes this will create business opportunities for at least six new ESC makers. They can develop or sample after the gyroscope needed in ESC. At the same time, there will be four more manufacturers to develop acceleration sensors. The truck market will be the first to feel the impact from these new businesses, followed by OEM businesses for large vehicles.
The micro-electro-mechanical acceleration sensor is the chief component in ESC. It measures the degree of lateral sliding, such as the oversteer or understeer of a moving vehicle.
VTI Technologies is the leader on the micro-electro-mechanical acceleration sensor market. Its 2007 earnings accounted for 53% of market share. VTI provides micro-electro-mechanical acceleration sensors to Continental Automotive Systems, the biggest ESC supplier.
On the gyroscope market, the maker to keep an eye on is Panasonic (PC-US) whose 2007 profit and market share ranked No.4, with total shipments surpassing those from Silicon Sensing Systems. The biggest advantage of Panasonic lies in the good quality and low price of its new gyroscope. With this advantage, the ranking of Panasonic’s profit and market share will continue to move forward.
Source: TAITRA