Flow sensors continue to dominate intelligent sensors market.

LONDON--(BUSINESS WIRE)--Jan. 9, 1996--The anticipated large increase in the European market for intelligent (defined as microprocessor-based) sensors, driven by the possibility of two-way digital communications, has so far failed to materialize.

However, there has been a considerable increase in the intelligent sensors market, stimulated by the many user benefits obtainable with microprocessor-based electronics other than two-way communications. Such benefits include decreased maintenance costs from self-diagnostics, decreased inventory costs due to programmability, increased accuracy and, in some cases, lower product prices.

The move towards a world fieldbus standard, work on which began in 1985 with the launching of the IEC/ISA project, appears now, after painfully slow progress for many years, to be accelerating.

A new report by international market research consultancy Frost & Sullivan, the European market for intelligent sensors was estimated to have been worth US$609.0 million (444,700 units) in 1994, expected to rise to US$957.1 million (847,600 units) by the year 2001.

The spectacular fall in price of microprocessors in recent years has encouraged their more widespread use. This has been very marked in their incorporation in intelligent sensors for the process industries and utilities, where clear user benefits, such as greater information availability, grater efficiency, higher product quality and lower total cost (including inventory, installation and maintenance) of ownership are obtained. The possibility of two-way digital communications is an added attraction.

The largest contribution to revenues in the intelligent sensors industry comes from flow sensors, expected to rise from its 1994 level of US$279.9 million (88,000 units) to US$466.9 million (176,200 units). Pressure and differential pressure sensors followed with a 1994 value of US$184.0 million (168,400 units) and level sensors, estimated to have been worth US$105.5 million (56,700 units).

Within the flow sensor sector, magnetic flow has the largest sales, followed by mass flow, then ultrasonic and, with the lowest share, vortex flow. Intelligent vortex flowmeter sales are forecast to have the highest growth rate during the forecast period, due mainly to large substitution effect in the period 1995-7 as manufacturers continue to introduce intelligent versions of their products.

Dr. Lia Paschalidou, Research Manager for Instrumentation & Controls and Engineering at Frost & Sullivan, reports: "In the level sensing sector, ultrasonic and radar are the two largest sectors, accounting between them for more than two-thirds of level sales."

Intelligent capacitive sensor revenues are also set to grow, whereas Frost & Sullivan predict sales of nucleonic and servogauge level sensors to decline. The report states that: "Continuing market competition combined with increasing economies of scale and lower cost manufacturing techniques are forecast to cause prices of all the intelligent sensor types analysed to fall over the study period. Average price fall will vary from about 1 percent to 6 percent per year."

Frost & Sullivan is an international high-technology research firm. All Frost & Sullivan reports are based on extensive interviews with marketing and technical experts from selected companies in each market segment. Primary research is validated by thorough analysis of available secondary research. Frost & Sullivan is the leading publisher worldwide of high-technology research reports.

Code: 1984-40 Publication Date: January 1996

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