sr10.1108/srSensor Review0260-2288Emerald Group Publishing Limited10.1108/sr.1999.08719cab.007e-non-articleSecondary articleCompany newscat-ENGGEngineeringcat-EEEElectrical & electronic engineeringThe European market for position sensors (Report 3689) technological improvements and advances in manufacturing to spur sales in position sensor markets01091999193© MCB UP Limited1999Position sensing.peer-reviewednoacademic-contentyesrightslinkexcludedThe European market for position sensors (Report 3689) technological improvements and advances in manufacturing to spur sales in position sensor markets

The European market forposition sensors (Report 3689) technological improvements and advances inmanufacturing to spur sales in position sensor markets

Keywords Position sensing

Technological evolution is the main driving force behind growth of theEuropean position sensors market, valued at revenues worth US$924.0 million in1998 and expected to rise to US$1.27 billion by the year 2005.

The European position sensors market has been established for many years witha number of novel technologies using optical and laser techniques developingmore recently. Demand has remained high due to the drive towards increasedefficiency, improved manufacturing techniques as a result of technologicalimprovements and a decline in costs. Growth rates have risen annually over thelast few years and, assisted by the expected increase in prices and sustainedhigh demand levels, are expected to continue to rise.

According to Victoria Whiting, Research Analyst at Frost & Sullivan,advances in manufacturing, product miniaturisation, greater acceptance of newertechnologies and improved price-performance ratios represent further factorscontributing to accelerating revenue growth in the total European market forposition sensors.

"The move towards heightening product efficiency and efforts to reduce costshas resulted in increased factory automation especially in less advancedEuropean markets," adds Andreas Themis, joint author of Frost & Sullivan'slatest study.

Competition in the European position sensors market remains fierce and keycompetitive issues comprise price, product performance and the quality of salesservice. Some companies are beginning to apply aggressive pricing strategies inorder to maintain their share of the market, whilst others are focusing onoffering comprehensive technical support and advice to find the best solution tomeet their customers' needs.

Victoria Whiting continues: "Competition amongst the different technologiesin the position sensors market can be quite intense.

"While magnetic, capacitive, inductive, ultrasonic, photoelectric andsometimes encoders can all compete for a number of proximity sensingapplications, a high proportion of sensors are designed for specificapplications and consequently specific niche markets. (see Figure 2).

Figure 2 The European Market for position sensors -percent of revenues by product type in 2005

"The different technologies offer different technical advantages and some aresimpler and cheaper to produce and maintain. A good example of a technologylosing market share to a competing technology is illustrated by the gains madeby L/RVDTs (Inductive Position Sensors) over potentiometric position sensors"Victoria Whiting continues.

"Companies that are aiming to succeed in the future European position sensorsmarket should begin to focus on providing improved services to their customers,offer highly competitive prices and undertake research and development to try todiscover new applications for position detection. It is also becoming increasingessential for a company's product portfolio to include a range of qualitystandard sensors that fulfill the varying requirements of industries," saysAndreas Themis.

Demand for advanced position sensors is rising amongst end-users for awidening variety of measurement, detection, inspection and control applications.These new sensor types claim to exhibit greater accuracy, reliability withminimal maintenance and easy installation.

Optoelectronic sensors - including photoelectric, fibre optic and lasertechnology -- accounted for the lion's share of overall revenues in the totalposition sensors market. Relatively new to the position sensors market, theseuse light beams in different wavelengths according to the application such aslasers that can detect smaller objects at large distances with greater accuracywhilst being unhindered by electromagnetic interference.

Substantial growth in unit shipments occurred due to high demand levels andgreater awareness of the benefits of optoelectronic technology although revenuegrowth had been somewhat hampered by the price decline.

Ranking in second position is the market for inductive position sensors,which also includes linear variable differential transformers (LVDT), rotaryvariable differential transformers (RVDT) and variable-reluctance transducers,although the majority of revenues are derived from sales of inductive proximitysensors.

Growth in this market is being driven by the continuing high levels ofdemand, technological advancements characterising this sector, particularly inL/RVDTs, and the discovery of new applications for this type of position sensor.

Meanwhile in the encoders and resolvers market, overall market growth mainlyderived from increases in sales of optical encoders, particularly rotary types.

ln its review of national markets, Frost & Sullivan's study confirmsGermany's dominance, currently accounting for over 41.0 per cent. This isfollowed by France and the UK, accounting for a combined revenue share of over25.0 per cent in 1998.

Report Code: 3689, Publication Date: January 1999, Price: US$3,950. Furtherinformation from Sullivan House, 4 Grosvenor Gardens, London SWIW ODH, UK. Tel:44 (171) 915 7824; Fax: 44 (171) 730 3343, or Munchener Strasse 30, 60329Frankfurt/Main Germany. Tel: 49 (69) 23 50 57; Fax: 49 (69) 23 45 66.