MEMS, Strain Gauge and Piezoelectric Pressure Technologies set for Higher Growth in the European Pressure Sensors and Transmitters Markets

Frost: Europe. With monitoring and process control playing a pivotal role in ensuring that the processes are within operational limits, demand for process instrumentation is seeing a steady increase. These instruments provide critical process data, real-time, and also help plant engineers take informed decisions. Hence, in their quest for greater accuracy and efficiency, customers are demanding more information for monitoring through devices such as programmable logic controllers (PLCs) and computers, thereby necessitating instruments such as pressure transmitters to pick up and transmit information to such controllers. This growing requirement for information and monitoring is expected to create continued interest and demand for pressure sensors and transmitters across process industries in Europe.

An added factor aiding the growth of the market has been the technological advancements that have made pressure sensors more versatile and reliable. Modern day pressure transmitters are incorporated with added functionality and along with pressure, can also monitor temperature variations, detect leaks and provide feedback to the control system. With end users looking for better asset management, such combination sensing systems will find greater demand in the future as they offer greater value to the customers.

Advances in manufacturing techniques such as micromachining, thick and thin film deposition technique and electrical discharge machining have enabled the development of micron scale pressure sensors, expanding the scope of application of pressure sensors. The hike in demand for the microelectromechanical systems (MEMS)-based sensors is an indication of the growing popularity of the miniature sensors and demand for such sensors will increase further over the forecast period.

However, participants in European pressure sensors and transmitters markets will need to understand that the market is nearing maturity. Consequently, a few notable trends in the market are the general slackening of demand, moderate technology innovation and heightened competition among market participants resulting in greater price pressure. Also, the lack of impetus for fresh investments in Greenfield projects is expected to be a major restraint on the growth of the market.

Importantly, price is the foremost competitive factor cited by the market participants as being key to product success. With established technologies, participants have little scope to differentiate their products, heightening price competition. This is more pronounced in the lower end of the pressure-sensing spectrum that has a larger number of participants and to be competitive, market participants will have to offer systems that add more value to the customers.

With regard to the product trends, the need for online monitoring for better process control and greater reliability is driving the migration of the end users toward electronic pressure sensors. As a result, bourdon tube pressure sensors, which have been in the market for more than 100 years, are facing stiff competition and losing market share to electronic pressure sensors such as the piezoelectric, capacitance and strain gauge sensors.

While Germany represents the largest regional market for pressure sensors and transmitters, its market is approaching saturation, and it is eastern Europe that holds the greatest potential for future growth. In addition, its proximity to the European market and the relatively low manufacturing costs, make the region an attractive alternative to other low-cost manufacturing destinations.

Total revenues in the European pressure sensors and transmitters markets stood at $1,484.8 million in 2005 and are set to reach $2069.6 million by 2012. Among the various pressure sensors and transmitters, MEMS-based pressure sensors and transmitters registered the largest revenue share, cornering an estimated 42.1 per cent of total market revenues in 2005.

Overall, high growth in the MEMS, strain gauge and piezoelectric pressure technologies are likely to ensure the deeper penetration of pressure sensors and transmitters in the European market. With the trend towards digital electronics, software integration and networking systems manufacturers of pressure sensors and transmitters will need to enhance their product offerings to stay competitive in the market.

Strategic Analysis of the European Pressure Sensors and Transmitters Markets Publ 20060104