Domestically, increased industrial production activity will drive demand
New York, NY (PRWEB) March 08, 2015
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. In particular, the application of microelectromechanical (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. From 2010 to 2015, IBISWorld estimates that industry revenue will grow at a 3.9% average annual rate, including an expected increase in 2015, due to strengthening industrial production and improving consumer spending.
"Exports were also a key driver of industry revenue growth, as foreign industrial and consumer product manufacturers incorporated pressure sensors in their setup and production processes," IBISWorld Economic Analyst Darryle Ulama says in the updated report. However, stronger international competition and the appreciation of the US dollar supported import penetration and prevented higher export growth during the period. Less-expensive and mass-produced pressure sensors imported from Mexico and China increased over the past five years and outperformed domestic manufacturers at the lower-end of the market. As a result of intensifying competition, the industry's operational footprint has shrunk.
Rising demand for pressure sensors in new and existing manufacturing markets is expected to underpin industry growth over the next five years. In the five years to 2020, industry revenue is forecast to rise. "Domestically, increased industrial production activity will drive demand, while rising consumption and car ownership in the Asia Pacific region will further boost demand for industry exports abroad," Ulama says. However, further appreciation of the US dollar and competition from foreign manufacturers will cause import penetration to rise further, limiting higher 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
Operators 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.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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