Modernization drives demand for smaller proximity and displacement sensors, says Frost & Sullivan
As manufacturers in a variety of fields strive to modernize and automate their production processes, the demand for replacement sensors that measure the proximity and displacement of solids and liquids during processing will rise.
New analysis by Frost & Sullivan (www.sensors.frost.com), World Proximity and Displacement Sensor Markets, reveals this market generated $ 3,146.6 million in 2000 and is projected to reach $4,819.6 million by 2006.
"To maximize replacement and new sales, sensor suppliers will have to ramp up customer education efforts," says Frost & Sullivan Industry Analyst Michael Berger. "Proximity and displacement sensors are not a well-known technology when considering the total sensor market. Potential end users are often unaware of the technology's performance characteristics and possible applications."
Fostering relationships with trade administrations, joining end-user associations and forums and securing long-term contracts with customers should help strengthen communication between manufacturers and end users, which ultimately drives more sales.
Market participants are facing increased competition and the threat of declining profit margins. "Proximity and displacement sensor markets are experiencing high levels of competition, especially since barriers to market entry are low," says Berger. "Given the competitive environment, many companies are using price as a sales strategy."
This Frost & Sullivan study analyzes the markets for inductive, photoelectric, magnetic, capactive, ultrasonic, and potentiometric proximity and displacement sensors. It evaluates market drivers and restraints, tracks demand trends, and provides expert forecasts for each segment. The study covers the U.S., European, Asia Pacific and rest-of-world regional markets.
Frost & Sullivan presents the 2001 Market Engineering Awards to companies that have worked hard to make a positive contribution to the proximity and displacement sensor industry. These market specific awards are presented to Cutler-Hammer, General Electric Company, Hyde Park Electronics, Omron Corporation Inc. and Turck Inc.
Frost & Sullivan is a global leader in international strategic market consulting and training. This ongoing research also includes market analyses on World Image Sensors market and World Magnetic Sensor Market.
Source: Frost & Sullivan
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