National Press Release

~ Taking a look back at the Sensors Industry in 2008 and its market outlook for 2009 ~

SINGAPORE, Jan. 19 /PRNewswire/ -- In early 2008, the Chinese sensors market was expected to increase by 14.5 percent and generate $6.32 billion. Consumer electronics, automobile, and medical sectors accounts for the three largest segments of the Chinese sensors market while wireless sensors, biosensors, and MEMS sensors markets experience the fastest growth.

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According to Frost & Sullivan's China Manager of Measurement & Instrumentation Practice Shania Wang, the Chinese sensors market growth in 2008 decelerated by approximately 5.5 percent compared with the year 2007, undermined by the shrinking consumption globally, which has caused the export and enterprise investment to fall sharply, particularly in the consumer electronics and automobile sectors.

"Order intake for the next three years is determined largely on the projections for the consumption expenditure globally. The Chinese local market is likely to be further explored, supported by powerful government investment policies and relatively vigorous consumption demand," she says.

She continues to say that the major challenge in this industry in the long term is product differentiation. In the short term, between 2009 and 2011, increasing market maturity, declining technology advances, and intensifying competition in the tough economic environment is likely to raise the weight of price in competition.

"Though most application sectors have suffered from the global financial crisis, the Chinese sensors market is still likely to increase at 15.5 percent in 2009, expanding to $7.30 billion. Good impetus from the medical sector and consumer electronics sector are expected to mitigate the negative influences of the automotive sector, with their service scope strongly expanding from urban to rural areas," says Wang.

Hot sub-sectors for 2009 to 2011 as identified by Wang include miniaturization and integration which are likely to lead the technology trends of medical sensors, while MES sensors and photoelectric sensors will expand their scope. Other sectors include sensors for the automotive and power industry.

"With the recovery of the automotive sector, demand for sensors in safety and security systems, environment-friendly systems is expected to grow strongly supported by the stricter regulations and improving awareness on automotive consumption. Power grids and ecological environment markets are likely to grow stronger with over $146.00 billion industry investments," she adds.

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SOURCE Frost & Sullivan