Pressure Sensor Manufacturing in the US Industry

The Pressure Sensor Manufacturing industry is highly globalized and serves a broad range of downstream industrial and consumer product manufacturing industries. Technological advancements that have improved pressure sensor performance, reliability and cost effectiveness have broadened the application of pressure sensors in new markets and supported industry growth over the past five years. “The application of MEMS pressure sensors, which have advanced microprocessor and electrical components that allow for greater functionality and efficiency in a smaller, cost-effective design, have been a key driver of growth in the automotive and medical device manufacturing markets,” says IBISWorld industry analyst Doug Kelly. From 2008 to 2013, IBISWorld estimates that industry revenue will grow at a 0.4% average annual rate, including an expected 1.9% increase in 2013 to $1.8 billion due to strengthening industrial production activity.

Exports were also a key driver of Pressure Sensor Manufacturing industry revenue growth, increasing at a 2.6% annualized rate over the past five years and rising to 69.0% of revenue as foreign industrial and consumer product manufacturers increasingly utilized pressure sensors in their setup and production processes. However, the development of pressure sensor mass production processes and the strengthening of the US dollar also supported increased import penetration. Cheaper and mass-produced pressure sensors imported from Mexico and China increased at a 5.2% annualized rate over the past five years and outperformed domestic manufacturers at the lower-end of the market to capture 72.0% of total domestic demand in 2013. “As a result of intensifying competition and financial distress during the recession, the industry's operational footprint shrank during this time,” Kelly adds.

The industry has a low level of market share concentration. During the past five years, the number of industry firms declined at an average annual rate of 0.6% to 137. Larger companies, such as major player Robert Bosch GmbH, have more resources to allocate to research and development, giving them an edge in providing higher quality products in addition to a wider range of pressure sensors. As a result, firms have engaged in mergers and acquisitions to consolidate intellectual property and reduce price-based competition among domestic manufacturers.

Rising demand for pressure sensors in new and existing manufacturing markets is expected to underpin considerable industry growth over the next five years. Domestically, increased industrial production activity will drive strong demand, while rising consumption and car ownership in the Asia Pacific region will further boost demand for industry exports abroad. However, further strengthening of the US dollar and competition from foreign manufacturers will cause import penetration to increase further, limiting domestic industry growth. For more information, visit IBISWorld’s Pressure Sensor Manufacturing in the US industry report page.