Automotive Drives Growth in Photoelectric Sensor Market
The photoelectric sensor market grew moderately in 2014. Growth in North America and Europe balanced a contraction in Asia, where leading suppliers suffered weak performances.
A strong driver for more sensors is the emerging Industrial Internet of Things (IIoT), which requires sensor-based measurements for analysis and decision-support purposes.
Almost 80 percent of the photoelectric sensors are sold to OEMs. For that reason, ARC now segments these OEM revenues into 22 different machinery types to present a clearer picture of the OEM market.
For the top suppliers, ARC sees a strong concentration in Europe (particularly Germany) and Japan. Also, both regions host specialized smaller companies. .North America also hosts a number of strong suppliers of photoelectric sensors.
Automotive is the most important end user industry for photoelectric sensors followed by the food & beverage industry. Investments in both industries continue, but ARC expects to see especially strong investments in automotive for 2015.
Regarding the business cycle, we expect a rather sound development during the forecast period, despite political crises in Ukraine and other parts of the world.
OEMs often stick with their current suppliers of photoelectric sensors. This makes it challenging for suppliers to enter new markets that are already well served. In Asia, price still plays an important role, while in Europe, reliability and increasingly embedded intelligence are important buying criteria.
This market study answers some key questions to help new suppliers enter the photoelectric sensor market and existing suppliers grow their businesses, such as:
- How can suppliers best position photo-electric sensors within an information-driven manufacturing value proposition?
- What types of sensor solutions are users looking for?
- Is it more important to focus on solutions instead of simple product business?