The growing world sensor market is driving mainland China makers to step up their production. According to market analyst InTechno Consulting, the global sensor market will grow at an average annual growth rate of 4.5 percent to reach US$50.6 billion by 2008.
The China Sensor Trade Association (CSTA) estimates that mainland China's sensor output rose by 18 percent from 1.7 billion units in 2004 to 2 billion units in 2005. Sales consequently surged to US$3.3 billion in 2005, an increase of 22 percent from US$2.7 billion in 2004. For 2006, mainland China will produce 2.4 billion units of sensors, worth US$4 billion.
Production in mainland China is mainly focused on pressure sensors, temperature sensors, weighing sensors, optical sensors, infrared sensors, current and voltage sensors and proximity sensors.
In Taiwan, manufacturing is concentrated on image sensors, driven primarily by demand from the consumer electronics segments such as mobile phones and digital cameras. Other main findings of this report are:
On Manufacturing Capability
• There are about 1,560 sensor makers in mainland China. The number is expected to increase by 30 percent year-on-year until the end of the 11th Five-Year Plan.
• Taiwan has about 30 sensor manufacturers, and the number is not expected to increase anytime soon.
• The main manufacturing hub for the 43 makers surveyed in this report is Guangdong.
• Types of sensors produced mostly by the surveyed makers are temperature and humidity sensors, tilt sensors, vibration sensors, image sensors and current sensors.
• The majority of the companies utilize more than 60 percent of their capacity.
On Pressure Sensors
• With a supplier base of 300, pressure sensors account for 25 percent to 30 percent of mainland China's total sensor output.
• Output in 2005 was 8 million units, worth US$500 million.
• The growing application is automotive electronics. Pressure sensors for use in automobiles are expected to grow by 30 percent year-on-year.
• The profiled mainland China makers are keen on improving their technology, particularly for the production of sputtering film and silicon-on-sapphire pressure sensors.
On Image Sensors
• Taiwan leads the production of image sensors, partly due to the presence of domestic semi conductor companies
• Image sensor output from the island posted a 30 percent year-on year increase from 62.14 million units in 2004 to 80.8 million units in 2005.
• Sales likewise grew from US$324 million in 2004 to US$347.4 million in2005.
• Camera devices take the top spot in terms of application, while MEMS and automotive applications are gaining ground.
• R&D is centered on smaller image sensors with higher resolutions that are waterproof and shockproof.
On temperature and humidity sensors:
• There are about 70 temperature and humidity sensor makers in mainland China, with output totaling 42 million units in 2005, up from 35 million units in 2004. Output is expected to further rise to 50 million units in 2006.
• Sales will hit US$146 million in 2005 and US$190 million in 2006.
• R&D is geared on improving the yield rate, sensing components, precision and reliability.
Industry Overview
In mainland China, the sensor market is rapidly expanding. The China Sensor Trade Association (CSTA) estimates that mainland China's sensor output in 2005 reached 2 billion units, an 18 percent increase over the 1.7 billion unit output in 2004. Sales climb by 22 percent from US$2.7 billion in 2004 to US$3.3 billion in 2005.
With output and sales expected to further climb in 2006, the sensor segment is considered one of the largest growing electronic component industries in mainland China.
Mainland China's production is centered on such sensors as pressure sensors, temperature sensors, weighing sensors, optical sensors, infrared sensors, current/voltage sensors and proximity sensors. A few mainland China companies are engaged in the production of ultrasonic sensors, MEMs sensors and nanometer sensors. Several research institutes and universities are involved in the R&D of MEMS sensors, while only a number of companies can mass-produce MEMS sensors. Most sensor makers in the mainland compete in the low-end segment.
In Taiwan, on the other hand, the main concentration of production is on image sensors. Booming global demand for popular consumer products, such as mobile phones with cameras, multifunction peripherals and digital cameras, is triggering the demand for image sensors. In addition, sensor application in automobiles is on the rise.
Aside from MEMS and traditional applications, the market for hardware, software, professional and wireless network services for machine-to machine (M2M) communications will stimulate the production of sensors, according to the Wireless Data Research Group. The M2M communication market is set to grow at an annual rate of 27 percent, from US$9.3 billion in 2004 to US$31 billion in 2008.
M2M communication systems, which are one of the major applications of sensors, allow remote monitoring and control of key business processes and functions in areas such as plant operations, maintenance and supply chain management.
Industry Status
There are more or less 1,500 companies and research institutes in mainland China engaged in the production and development of sensors. The CSTA forecasts that the number of manufacturers may jump by 30 percent every year by the end of the 11th Five-Year Plan.
The sensor market in mainland China is gradually growing as new products are being continually developed. However, mainland China sensor makers still lag behind their foreign counterparts in terms of technology and investment.
High-end sensors are mainly sourced overseas, while output of low-end sensors is exported. Sensors produced by domestic companies primarily cater to four sectors: industrial, automotive, telecom and consumer electronics, and special instruments.
The majority of mainland China sensor makers, however, are focused on industrial automation and measuring applications. Some makers, on the other hand, like Shuangqiao, evades the fierce competition in the industrial automation and measuring markets by catering largely to the mainland China government's sensor demand. Its products are mostly used in the military and avionics applications.
Manufacturing, R&D hubs
Beijing, Xi'an, Shanghai, Guangdong, Zhejiang and Jiangsu are the main production bases for sensors in mainland China, according to the CSTA. In Xi'an alone, there are more than 80 companies and research institutes involved in the sensors industry.
In Kunshan, Jiangsu, the Ministry of Science and Technology has established the Kunshan Sensor Industrialization Base. The base turns out an average of 350 million units of infrared sensors, Hall sensors, temperature and humidity sensors, ultrasonic sensors, optical sensors and gas sensors. A total investment of US$167 million has been poured into the 3 million-square-meter base, where there are 25 high-tech companies. It is estimated that the base's output of pyro electric infrared sensors accounts for 60 percent of global output.
Supplier Profile
Audiowell Electronics (Guangzhou) Co. Ltd
Established in June 1999, Audiowell Electronics (Guangzhou) Co. Ltd was initially a manufacturer of buzzer elements. In 2001, the company started developing ultrasonic sensors. A year later, it entered production of ultrasonic transducers. At present, the company offers waterproof and open type ultrasonic sensors, ultrasonic atomizing transducers, transducer elements and piezoelectric elements and transducers.
Audiowell exports 20 percent of its sensor output. It claims that its quotes for ultrasonic sensors is only one-third of its foreign competitors' quotes.
However, due to the fluctuating currency exchange rates and the RoHS compliance, the company is contemplating on increasing its sensor prices by 25 percent.
Audiowell expects its exports share to increase by 25 percent. Among its customers are K.D. Group and Fost.
In 2004, the company posted US$4.5 million in export sales. Aiming to increase export sales to US$5 million in 2005, the company has upgraded its manufacturing facilities and has invested more than US$600,000 in installing additional automated production equipment and testing machines.
Manufacturing Capability
Audiowell can produce 400,000 units of sensors monthly. The company currently runs at 87 percent of utilization. It has a workforce of more than 500 — 360 of whom are production workers.
The company plans to increase its ultrasonic sensor and transducer production. It will also extend its product line to active sensors.
The Global Sources team was able to tour Audiowell's 7,000-square-meterplant located in Panyu, Guangzhou.
The company's standard laboratory is located on the first floor. Covering 60 sqm, the laboratory is manned by seven engineers. The laboratory contains precision impedance analyzers, piezoelectric impedance analyzer system III, laser particle size analyzer OMEC, magnetic density testing equipment and plastic/rubber rigidity tester.
Meanwhile, the company's production workshop has four Tomac machines and four G-CNC 300 digital control lathe sets. The testing room is equipped with an ultrasonic cleaning machine.
The opposite building houses the particle center, where raw materials are processed in trundling and grinding machines. The powdered pieces are dried in ovens and undergo plane grinding. Six workers are in charge of this process. Also located in the building are GTC annular tube stove, sintering oven and two powder sintering lines.
Audiowell has nine assembly workshops. The team toured the production workshop for ultrasonic sensors. In a constant temperature and humidity room, six workers affix the powdered pieces into steel blocks. The finished raw products go through a UV machine twice.
Beijing Bron Science&Trade Co.Ltd
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