The Global Market for Temperature Sensors
|発行||VDC Research Group, Inc.||商品コード||322435|
|出版日||ページ情報||英文 27 Pages
This report analyzes the temperature sensor market, its suppliers, and future trends that will drive revenue growth within the category. The term temperature sensor refers to small devices used to measure temperature in a factory automation setting. Additionally, transducers and transmitters are included in this study, and the distinction between the two has been consolidated. The 2014 Process Sensing & Instrumentation Market Intelligence Program also includes temperature switches in Track 2, Topic 2. These reports are segmented by company, technology, region, vertical industry, sales channel, and customer class. The primary sensing principles covered include infrared, integrated circuit, RTD, thermistor, and thermocouple. Along with analyzing technology usage trends, this report includes data on market participants and share. This report contains forecasts through 2019 and addresses future trends and growth applications within the temperature sensor market.
The global market for temperature sensors will grow at a compound annual growth rate (CAGR) of X.X% through 2019. The market will be significantly impacted by the plunge in oil prices as new projects in the oil & gas and petrochemical segments lose support. Revenue for non-contact electronic infrared sensors will grow at the fastest rate, with RTD and thermocouples maintaining a large share of the overall market. Process automation engineers will continue using all five major sensing categories as the demand for increased process efficiency remains strong. Temperature sensors will cannibalize a small portion of the temperature switch market as engineers look to increase the level of automation in their systems. Notable vertical markets to focus on include food & beverage, oil & gas, and power generation equipment.
[Data available in full report.]
Temperature sensors will evolve into smart sensors over the forecast period and begin to accommodate features such as automatic calibration, remote monitoring and control, and wireless connectivity. Suppliers who can offer an end-to-end solution will fare best as factories look for continuous measurement solutions for process control. Smaller suppliers can differentiate by offering engineering support and developing specific products and packaging solutions for target customers. Despite a challenging global-macro environment, the underlying growth will remain strong as automation trends continue to evolve and progress.
Exhibit 1: The Global Market for Temperature Sensors (US $M)
The global market for temperature sensors will expand to $X.XB by 2019 at a CAGR of X.X%. A total of XX% of the market is related to energy, oil, and petroleum products, which will act as a significant headwind to market growth. The Americas and APAC regions will grow significantly through 2019 as compared to the Eurozone, which will continue to languish. Issues such as deflationary pressures, economic sanctions, and high unemployment will constrain the European economy for some time. While the EU will see sluggish growth for the temperature sensor market, suppliers with existing customer relationships should focus on defending market share. Manufacturers who are seeking to outperform in this segment need to penetrate new markets in countries such as China, Colombia, India, or Mexico and should avoid Brazil, Russia, and Venezuela.
Food & beverage, electric power generation and oil & gas will remain as the top consuming vertical industries for temperature sensors. As evidenced in the exhibit below, the oil & gas sector and related industries - including the chemical and petro-chemical vertical segments - make up a large percentage of the consuming industries for temperature sensors. For this reason, the oil market has a large effect on the market for these sensors.
Exhibit 2: The Global Market for Temperature Sensors by Vertical Market
New technology in oil drilling, such as hydraulic fracturing, has lead to a sea change in global energy markets. WTI Crude has plunged to $60 per barrel and lower, which will act as a tailwind for economic growth and manufacturing in the United States. While low prices for oil bodes well for manufacturing, it will have a deleterious effect on suppliers who are over-exposed to oil & gas customers. Investments in energy will dry up as more projects become economically unviable with each subsequent leg down in the oil market.
The power generation market is radically evolving as CNG turbines are quickly replacing antiquated coal-fired power plants. As the price of natural gas falls alongside oil, projects for CNG changeover will increase. The amount of temperature sensors used in these new projects is extensive, and many applications must be solved with multiple sensors for the needed level of control, redundancy, and safety.
The major application for temperature sensors is pneumatics and hydraulics in the oil & gas sector. Infrastructure build-out in the oil patch has exploded over the past five years, which has been a tailwind for the temperature sensor market. With the recent crash in the oil market, growth and groundbreaking for new projects in the oil & gas segment will stall.
The oil market is the largest and most liquid market in the world. Prices are relatively similar across all regions, with the spread between Brent and West Texas Intermediate differing by only a few dollars. Natural gas is a much different market since gas is more difficult to transport internationally due to the lack of pipeline infrastructure. Gas trading in New York or Chicago could be trading at 3 or 4 times the price in Tokyo and parts of Europe. This economic discrepancy has led to a push to change the energy policy in the US to allow exportation. Inexpensive natural gas can be compressed and cooled, morphing into liquefied natural gas. Cryogenically cooled LNG is the optimum state of matter for the transportation of natural gas. So far, the United States has approved nine export sites for LNG, a radical shift in domestic energy policy. Many of these terminals were originally designed as receiving centers; however, with the proliferation of hydrofracking, these terminals are being overhauled into export sites. The exportation of LNG will accelerate to markets including Europe, Japan, and Greater Asia. Companies such as USA Compression Partners, or Ingersoll-Rand's newly acquired Cameron Compression Division, seem exceptionally well positioned for this development and would represent the type of customer that temperature sensor companies should target in this segment.
Lower costs for energy and power will be a catalyst for the domestic and global economy, especially in emerging markets that are not highly dependent on oil exports. As consumers and manufacturers see lower prices and input costs, they will increase their consumption, which will boost demand. Other factors, such as the strong dollar, will also have a nuanced effect. Virtually all commodities are priced in dollars, which is important for non-US manufacturers. Temperature sensor suppliers, such as those who offer sensors with platinum elements, may see higher relative input costs even though the price of platinum may appear stable. The stability in price is masked by the USD. In these cases, suppliers of platinum RTDs may need to switch to nickel or another element in order to cushion this rise in input costs.
U.S. consumption should rise as the unemployment rate drops and workers see a combination of wage increases and lower prices at the pump. This dynamic will bode especially well for the food & beverage manufacturers with heavy exposure to commodity prices such as Kraft and Pepsi. Temperature sensor suppliers should also focus on organic, gluten-free, and other healthy food manufacturers such as Hain Celestial and White Wave Foods as growth in traditional food & beverage consumption has stalled.
Growth in the Americas, China, and India will remain strong over the forecast period; however, the EMEA region will suffer as the Eurozone continues to see high unemployment and stagnant economic growth. The outbreak of Ebola in Western Africa, turmoil in the Middle East, and sanctions arising from the saber-rattling between Russia, Ukraine, and Germany are just a few of the headwinds that will constrain Europe, the Middle East, and Africa.
XX Commercial in Confidence.