The report categorizes the global automotive fuel level sensor market by type of sensors that include resistive fuel level sensor and capacitive fuel level sensor. The report also determines the geographic breakdown of the market in terms of detailed analysis and impact, which includes key geogr
Market driver: increasing demand for telematics to monitor fuel
The increase in the theft of fuel and the necessity for real-time fuel monitoring has led to the development of fuel level sensors equipped with GPS tracking system. The GPS-enabled fuel level sensor is the latest offering in the global automotive fuel level sensor market and is a factor that is driving the market. A person can track his or her vehicle’s fuel level from any place at any point in time using these GPS-enabled fuel level sensors. The GPS-enabled sensor is connected to a tracking device that transmits signals to satellites. These satellites send responses to the vehicle owner’s mobile phone or a computer.
According to Ganesh Subramanian, a lead analyst at Technavio for automotive electronics research, “The need to reduce the fuel expenses in the logistics sector has stimulated the demand for telematics. Fleet management services enabled by telematics have evolved with time. Traditional fleet management solutions offered basic telematics services such as fleet tracking with global positioning system and geographical information systems. Currently, fleet management solutions provide features such as vehicle management, load monitoring, driver management, logistics management, among others. This increasing demand for telematics fleet management has positively impacted the global automotive fuel level sensor market.”
aphies such as APAC, the Americas, and EMEA.
Market trend: growing acceptance of the sensor technology
The demand for sensors has been growing since the last few years. Within a short period, sensors have received widespread adoption in the automotive industry. A smart sensor consists of integrated circuits (IC), which processes the received data as input. The output from smart sensors is much more reliable due to the compensation provided for differential environmental factors. The data processed by sensors is assigned a unique identifier that is transmitted through the Internet or other similar networks. Fuel level sensors connected with GPS to monitor fuel level have high demand in the market. The micro-electromechanical systems (MEMS) and nano-electromechanical systems (NEMS) technologies have made more compact smart sensors.
Market challenge: effect on working capital due to low profitability
APAC accounts for the largest production of automotive components across the world. Low labor cost in Asian countries has caused several renowned and established OEMs to set up their manufacturing plants in the region. Low labor costs helped OEMs to optimize production costs and maintain a good profit margin. But, these Asian countries are gradually losing this cost advantage as the labor cost is increasing. This rise in labor cost is affecting the production costs, and OEMs are not able to make much profit. Manufacturers are operating at low profits and this is affecting their working capital. As a result, OEMs are negotiating with raw material vendors with an aim to minimize raw material costs so that they can offer automotive sensors at competitive prices in the market. Thus, skewed profit margins, thinning working capital, and the struggle to offer sensors at low cost and survive in the competitive market have become major challenges for sensor manufacturers.
Post time: May-22-2019