Pressure Sensors are set to produce huge revenue for their manufacturers in 2015. The Pressure Sensors industry manufactures devices that measure fluid, gas and mechanical pressure. These measurements are needed in a broad range of downstream manufacturing industries. Each of these industrial needs is for a unique process control application.
Pressure Sensors Key Markets:
- Oil & Gas
- Consumer Electronics
- Medical Device
Pressure Sensors Industry Key Statistics:
- Projected 2015 Revenue – $1.95 Billion
- Projected Annualized Growth 2015-2018 – 4.1%
- Projected 2015 Profits – $159.58 Million
- Businesses – 137
Pressure Sensors Market Segmentation:
- Automotive – 63.3%
- Industrial – 14.9%
- Medical – 12.7%
- Consumer – 5.2%
- High End – 3.9%
It’s a Globalization Story. One of the key drivers for Pressure Sensors growth is through exports. Exports have increased at a 2.6% annualized rate over the past 5 years and are now 69% of the industry revenue. The entire Pressure Sensors industry is highly globalized. Low-end imports from China and Mexico continue to increase. High-end imports of sophisticated micro electro-mechanical systems come to America from Germany and Japan. MEMS pressure sensors with microprocessors and electrical components allow for a greater range of functionality and efficiency. These MEMS are for the industrial manufacturing market and extreme environments.
This clearly is pointing to a shrinking United States manufacturing footprint. With an expanding global business, U.S. manufactures are beginning offshore manufacturing in Mexico and China. This is an effort to stay competitive and to move closer to the increasing demand from their markets on the low-end pricing spectrum.
The Asia-Pacific region represents the fastest growing market for pressure sensors. This is due to the Asia-Pacific countries ramping up their investments in manufacturing. This includes new plant construction, expansions, and industrial equipment. The growth is all to keep pace with the growing middle class in this region. The rise in the middle class has increased the consumption of goods and services, as well as, increased car ownership rates. U.S. manufacturers of pressure sensors have increased their exports to the Asia-Pacific region, and moved manufacturing to that region in order to be closer to the demand base. This fierce competition and expansion is spurring larger industry firms to acquire smaller competitors to increase scale and to decrease per-unit production cost.
The Pressure Sensors industry is in the mature phase of its life cycle. It is characterized by growth that directly correlates with the overall economy. For example, during this latest global recession (2008-2013), the pressure sensors manufacturing segment declined. This mature industry is also poised and projected to grow at 4.1% over the next four years.