The latest forecast by Strategy Analytics suggests that COVID-19 will cause at least an 11% decline in demand for automotive sensors in 2020. However, there is expected to be a strong rebound in 2021 and demand growth in subsequent years will show greater resilience. These are some of the key findings of the Strategy Analytics Powertrain, Body, Safety & Chassis Service (PBCS) service report, “Automotive Sensor Demand Forecast 2018 to 2027: Despite COVID-19, Automotive Sensor Demand Remains Resilient.”
Some $2.6 billion of sensor business could be potentially lost in 2020, according to Strategy Analytics. However, the sensor-rich sectors in climate control, electrified powertrain and safety systems will show resilience to reduced demand in light vehicles. The faster growth rate in those sectors will regain some ground lost in 2020. Where 2020 would see a 15.5% shortfall in demand with the previous forecast in January 2020, 2027 would see a smaller 4.3% shortfall in demand.
However, Kevin Mak, principal analyst in the Global Automotive Practice (GAP), provided some caution to the catch-up in sensor demand: “The forecast assumes a quick rebound in 2021, but there is the risk that there could be a “second wave” of infections and further lockdowns, as well as social distancing hampering productivity and the ability of lower tier vendors to operate.”
“Furthermore, by the 2027 timeframe, there could be further sensor price erosion and a small decline in sensor demand related to combustion engine and emission control systems because of engine downsizing and electrification.”
About Strategy Analytics
Strategy Analytics, Inc. is a global leader in supporting companies across their planning lifecycle through a range of customized market research solutions. Our multi-discipline capabilities include: industry research advisory services, customer insights, user experience design and innovation expertise, mobile consumer on-device tracking and business-to-business consulting competencies. With domain expertise in: smart devices, connected cars, intelligent home, service providers, IoT, strategic components and media, Strategy Analytics can develop a solution to meet your specific planning need. For more information, visit us at www.strategyanalytics.com
For more information about Strategy Analytics
Powertrain, Body, Chassis and Safety (PBCS) Service: Click Here