Pressure Sensor Manufacturing in the US Industry Market Research Report Now Available from IBISWorld

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Rising demand in new and existing manufacturing markets is expected to boost industry performance over the next five years, but competition from foreign manufacturers will continue to limit growth. For these reasons, industry research firm IBISWorld has added a report on the Pressure Sensor Manufacturing industry to its growing industry report collection.

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Rising demand from manufacturing and industrial markets will boost industry growth

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,” adds Kelly.

The industry has a low level of market share concentration. Over 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 rise further, limiting domestic industry growth. For more information, visit IBISWorld’s Pressure Sensor Manufacturing in the US industry report page.

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IBISWorld industry Report Key Topics

Firms in this industry manufacture devices that measure fluid, gas and mechanical pressure in a broad range of industrial process control applications in downstream manufacturing industries. Key markets include automotive and medical device manufacturing, oil and gas, consumer electronics, HVAC, military and aerospace industries.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
IBISWorld
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