Maintaining reasonable price levels and profits simultaneously is posing a significant challenge to suppliers of accelerometers. End-users of accelerometers are extremely price sensitive especially in the automotive and white goods market. The price pressure permeates down to the lowest level in the supply chain resulting in concerted efforts to develop more affordable motion sensitive materials. Stiff competition among the suppliers has compelled drastic price reductions in order sustain demand from a relatively small customer base. With prices of accelerometers falling between 3-5 percent annually, maintaining regular investment in research and development activities has become all the more challenging.

This research analyzes various drivers and challenges factors that are expected to influence growth in the North American accelerometers market. It focuses on the latest technological and pricing trends in the market. The study also highlights the key application and end-user segments that are poised for growth in the future.

Increasing Demand for High Performance and Reliable Accelerometers

Technological considerations, quality, reliability, after-sales service, and brand reputation are some of the key factors governing purchasing decisions in the accelerometers markets. Reliability is particularly important since most applications are safety related and accelerometers need to convey accurate data within a reasonable time frame. In addition end-users that purchase in bulk especially in the automotive and industrial sector insist that suppliers manufacture high volumes and deliver on time. "The micromachining fabrication process enables acceleration sensor manufacturers to mass-produce their sensing technologies and at the same time lower prices to commercially accepted levels," says the analyst.

Direct sales staff and extensive network of distributors are also likely to play a key role for success in the accelerometers market. In response to this, manufacturers and suppliers are offering additional services such as designing and engineering logistics solutions in order to strengthen and maintain long-term relationships with their customers.

Product Differentiation to Uphold Market Response for Accelerometers

Although product differentiation is challenging given the lack of variance in technology trends, it has become critical for long-term success in a competitive accelerometers market. Manufacturers of accelerometers need to look beyond incorporating micro electro mechanical systems (MEMs). "For example, end-users for high-end applications in the aerospace, industrial and patient monitoring are opting for wireless sensors," observes the analyst. Miniaturization is also an emerging trend that will enable accelerometer suppliers to penetrate untapped markets. These accelerometers are highly sensitive and ultra low noise products and are finding acceptance in a range of applications that include automotive, security, office equipment, gaming, white goods, and consumer electronics.

Related Reports:
Aerospace Products and Parts Manufacture
Guided Missile & Space Vehicle Manufacturing in the US - Industry Risk Rating Report
Russia Aerospace & Defense Industry - Porter’s Five Forces Strategy Analysis
The Unmanned Aerial Vehicles (UAV) Market 2009-2019
Aerospace & Defense Report
The Global Aerospace Industry Report
Global Impact of Recession on Aerospace and Defense Industry
Active Electronically-Scanned Array Radars - Worldwide & Regional Market Forecasts (Systems, TRMs, MMICs) to 2015
Bell Helicopter Textron, Inc.
U.S. Aerospace and Defense 2009 Go-to-Market Strategy Guide