Automotive MEMS Market Overview
The global automotive MEMS market is valued at US$ 1.2 billion as of 2022. The market is expected to grow at a CAGR of 13.4% during the forecast period, and by 2032, the market is expected to hold a valuation of US$ 4.22 billion.
The growing automobile sector might certainly surge the demand for automotive MEMS as these are being employed to enhance vehicle control, convenience, and infotainment features.
If we talk from the safety point of view, automobile manufacturers are investing huge amounts in automotive MEMS because of their ability to assist in the efficient functioning of airbags in the form of mems airbag sensors and tire pressure monitoring. Additionally, there are automotive mems temperature sensors for automotive applications too.
Moreover, the manufacturers operating in the automotive MEMS market are making use of the latest technology to introduce state-of-the-art features, which predominantly make use of MEMS. This might well increase the sales of automotive MEMS during the forecast period.
Hybrid vehicles are making use of automotive MEMS-based sensors, as their application helps in reducing fuel consumption and, at the same time, ensures safety for the passengers. Moreover, hybrid vehicles work on the principle of high-level automation, and the adoption of automotive MEMS would certainly assist in achieving this.
From the manufacturers’ point of view, the automotive MEMS can be manufactured in large quantities with a small investment, which is again a win-win situation for the key players operating in this sector.
Furthermore, stringent government regulations pertaining to road safety and emission standards are expected to further surge the application of automotive MEMS going ahead.
However, a lack of awareness regarding the benefits offered by MEMS technology remains a key factor that is challenging the market growth.
Additionally, it has been observed that the automotive MEMS do not show high efficiency when operating in extreme climatic conditions like heavy snowfall or rainfall. This might well cause an impediment to the market growth of automotive MEMS.
Moreover, the process of designing automotive MEMS is quite complicated and might require a lot of time to be invested.
On a regional basis, Europe is currently the largest market and is expected to retain its position during the forecast period due to a huge automobile industry in the region, and it is expected to grow at a CAGR of nearly 16%. In Europe, Germany is currently the largest market as the nation is believed to be the automotive and automobile hub of the region due to the presence of huge automobile manufacturers.
Asia-Pacific is expected to be the fastest-growing market during the forecast period. Growing investment in the automobile sector and measures taken by the government to improve the existing infrastructure coupled with the increasing disposable income are expected to surge the market growth during the forecast period. The region is expected to exhibit a CAGR of nearly 20% during the forecast period.
The key players operating in the automotive MEMS market are entering into strategic partnerships with manufacturers from the semiconductor industry, as the usage of high-quality semiconductors ensures that the speed and accuracy in the functioning of automotive MEMS drastically increases.
Automotive MEMS Market Value (2022)
US$ 1.2 billion
Automotive MEMS Market Forecast Value (2032)
US$ 4.22 billion
Automotive MEMS Market Expected CAGR (2022 to 2032)
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.
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 hand are 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
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: 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.
The report covers exhaustive analysis on
- Global Automotive MEMS Market Segments
- Global Automotive MEMS Market Dynamics
- Historical Actual Market Size, 2012 - 2015
- Global Automotive MEMS Market Size & Forecast 2016 to 2026
- Supply & Demand Value Chain
- Global Automotive MEMS Market Current Trends/Issues/Challenges
- Competition & Companies involved
- Value Chain
- Global Automotive MEMS Market Drivers and Restraints
Regional analysis for Global Automotive MEMS Market includes
- North America
- US & Canada
- Latin America
- Brazil, Mexico, Others
- Western Europe
- Rest of Western Europe
- Eastern Europe
- Rest of Eastern Europe
- Asia Pacific
- Australia and New Zealand (ANZ)
- Greater China
- Rest of Asia Pacific
- Middle East and Africa
- GCC Countries
- Other Middle East
- North Africa
- South Africa
- Other Africa
The report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts and industry participants across the value chain. The report provides in-depth analysis of parent market trends, macro-economic indicators and governing factors along with market attractiveness as per segments. The report also maps the qualitative impact of various market factors on market segments and geographies.
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
- flow sensor
Based on the application, the automotive MEMS market is segmented as:
- safety and chassis
- body and convenience
- other applications
- engine management system
- peripheral pressure sensors
- fuel injection systems
- seat occupancy
- oil pressure sensing.
On the basis of regional , the automotive MEMS Market is further segmented into:
- North America
- Latin America
- Eastern Europe
- Western Europe
- Asia Pacific Excluding Japan (APEJ)
- The Middle East and Africa (MEA)