Frost & Sullivan: Higher Demand From Automotive, Consumer Electronics Verticals Drive Sensor Manufacturing Contracts
BEIJING, March 25, 2013 /PRNewswire/ -- The Chinese sensor contract manufacturing and export market had taken a hit from the European debt crisis but managed to stay buoyant due to the strong domestic demand from the automotive, consumer electronics and process industries. The Government's initiatives and stimulus packages aimed at stoking local demand will further assist market growth.
New analysis from Frost & Sullivan ( http://www.sensors.frost.com), Chinese Sensor Contract Manufacturing and Exports Market, finds that the market earned revenues of $2.62 billion in 2012 and is expected to reach $4.92 billion by 2019 at a compound annual growth rate of 9.4 percent.
Automotive sensors, such as brake and tire pressure sensors, are crucial for vehicle safety. This criticality of sensors, along with the rising purchasing power of citizens, is boosting the uptake of automotive sensors in China.
"Meanwhile, high demand for mobile phones and computers has increased the sales and the manufacturing contracts of acceleration and vision sensors," said Frost & Sullivan Measurement & Instrumentation Research Analyst Leo Jia. "The requirement of different types of sensors in railway high-speed and infrastructure has multiplied manufacturing contract orders."The export market, however, has not fared as well as the domestic market due to the rising value of China's currency. Owing to the thinning profit margins and fluctuating exchange rates, exporters need to win long-term purchase orders to insulate themselves against these changing market dynamics. In 2012, there was a significant slowdown in demand from both local and foreign original equipment manufacturers (OEMs). Further, the anticipated downturn in the sensor contract manufacturing industry compelled participants to re-evaluate their business strategies. With the global economy still battling poor form, participants may experience a further dip in exports.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV