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The Microelectromechanical Systems (MEMS) sensors for the automotive market is set for rapid growth over the next four-years, according to a new report from iSuppli Corp.The market research firm forecasts worldwide automotive MEMS sensor shipments will grow to 935.7 million units in 2012, rising at a Compound Annual Growth Rate (CAGR) of 12 percent from 474.2 million units in 2006. The automotive MEMS sensor market is therefore set to outgrow the automotive and car electronics segments altogether, iSuppli said.

“Driving the rapid growth of the automotive MEMS sensor market in the United States and Europe is a set of chassis safety-related mandates that makes compulsory the implementation of Electronic Stability Control (ESC) systems and tire-pressure monitors,” said Richard Dixon, senior analyst for MEMS at iSuppli. “Both applications significantly contribute to saving lives on the roads, and tire-pressure monitors also lower fuel consumption.”

Shipments of MEMS pressure sensors for Tire Pressure Monitoring Systems (TPMSs) are expected to reach 179 million units in 2012, up from 43.1 million in 2006. Shipments of MEMS inertial and pressure sensors used in ESC systems will increase to 158 million units in 2012, increasing at a CAGR of 17 percent from 61.6 million units in 2006.

The challenge will be Government mandates that have heralded a greater level of commoditization, which will lead to price erosion in MEMS sensor products, as all suppliers provide products that conform to government specifications, and which accommodate a range spanning the most expensive to the cheapest available vehicle.

This will reshape the competitive landscape for MEMS sensors due to increased competition, according to the market research firm.