MEMS Technology in Automotive Sensors

Integration, miniaturization and low cost are expected to push wider adoption of MEMS automotive sensors

Sensors ensure the smooth and safe operation of vehicles and are the automation-enabling components in today’s smart cars. There are more than 100 kinds in the automotive industry. They are found in the engine, chassis, body and lighting, used in monitoring temperature, pressure, flow, position and velocity, and for distance and light intensity detection.

As more safety, security and comfort features are introduced to vehicles, the number of sensors increases, requiring enhanced levels of sensitivity, reliability and stability without size and weight constraints. Manufacturers’ answer to this is MEMS technology because it offers all the benefits of integration, miniaturization and low cost.

The global MEMS market, valued at $11.5 billion in 2020, will reach $16.9 billion by 2026 at a CAGR of 6.7 percent, according to Global Industry Analysts. The automotive industry’s share was 15.1 percent, with a projected CAGR of 5.9 percent by 2026.

In China, the automotive MEMS market is expected to be on the scale of $3.9 billion in the same year. It is dominated by foreign suppliers such as Bosch, Delphi, Infineon, Honeywell and Toshiba, with only a handful of Chinese companies involved. The latter includes QST and Senodia, but other large-scale manufacturers are anticipated to venture into this category in the coming years.

Growing sensors market

Automotive, industrial and communications are the top three applications for sensors, each having over 20 percent share globally, according to Sohu News.

The fast development of new energy vehicles and advanced driver assistance systems has created a huge demand for sensors. The automotive sensors market, which reached $24.3 billion in 2020, is projected to hit $47.5 billion by 2026, achieving a CAGR of 13.6 percent, according to the latest report from MarketsandMarkets.

China’s hub status

China will be the largest production base for sensors by 2024, with a share of as much as 38.51 percent, according to the Puyang Optoelectronic Industrial Technology Research Institute, a state-run firm based in Henan Province.

In 2022, the Chinese automotive sensors market was estimated to have realized $416 million and 15 percent CAGR since 2017, according to the China Auto Industry Association. The same growth rate is expected in the next two years.

In response, some Chinese companies are investing in these sensors. Ruian Kefeng spent $216 million in 2021 for its smart auto sensors project in Wenzhou, Zhejiang. The production base has an area of 308,000sqm, with the first phase of mass production already in full swing and the second was scheduled to have commenced in late 2022. This will enable the manufacturer to turn out 40 million sets annually, with total production value of $305 million.

There are about 300 suppliers of automotive sensors in China, mostly small- and medium-scale businesses offering entry-level and midrange products. The major Chinese players include Baolong, HGTECH, Olive and Jewel Technology.

The majority of Chinese suppliers also have sensors for other applications such as industrial and communications equipment, consumer electronics devices and medical products. Automotive sensors account for 10 to 50 percent of their shipments.

Many factories are in Jiangsu, Guangdong and Shanghai and others in Beijing, Zhejiang, Shandong and Fujian.