Market structure changes and price wars destabilize the temperature sensor industry

Citation

(2000), "Market structure changes and price wars destabilize the temperature sensor industry", Sensor Review, Vol. 20 No. 3. https://doi.org/10.1108/sr.2000.08720cab.004

Market structure changes and price wars destabilize the temperature sensor industry

Market structure changes and price wars destabilize the temperature sensor industry

Keywords: Temperature sensors, Prices

Competition is intensifying in the world temperature sensor markets as small companies face the threat of acquisition by larger established market participants. Meanwhile, commoditization of sensors is likely to spark price wars and shrink profit margins for all market participants.

According to strategic research conducted by Frost & Sullivan (www.frost.com) entitled the World Temperature Sensor Markets, revenues for the total market have climbed from US$1.74 billion in 1998 to US$1.88 billion in 1999. Market growth is anticipated to continue through the end of the forecast period (2006).

"The Internet is becoming a major marketing tool for many temperature sensor manufacturers", comments Frost & Sullivan Analyst Jennifer Dixson.

"Companies can use Web sites to feature new products and provide application information. There is no doubt that providing information via the Web is here to stay, but will temperature sensor customers actually buy online".

"The problem at hand for most Web-savvy manufacturers is how to translate custom design accurately online", says Dixson. "Though there are still important issues to resolve, ultimately the Internet has the potential to level the playing field on which small and large players compete. More and more temperature sensor end users are going global in their manufacturing efforts."

Consequently, these users will need global supply chains to fulfill their orders. It is imperative for suppliers to understand the needs of buyers and offer timely service to their manufacturing facility.

Forming alliances or effecting mergers and acquisitions can allow manufacturers quickly to acquire regional market knowledge and networks. The inability to create such alliances could slow a company's expansion process and ultimately act as a revenue restraint.

This Frost & Sullivan report analyzes the major product markets in the temperature sensor industry, including markets for integrated circuits, infrared sensors, resistance temperature detectors, thermistor sensors, and thermocouples. It evaluates market drivers, restraints, pricing, and demand, and it highlights emerging industry challenges. Report Code: 5922-32; Publication title: World Temperature Sensor Markets; Publication date: May 2000; Price: $3,950

For further press information, please contact: Frost & Sullivan's Public Relations Department. Tel. +44 (0) 20 7915 7824; Fax: +44 (0) 20 7730 3343; E-mail: Benjamin.Barwick@fs-europe.com; or see the company's Web site (www.frost.com) for details on Frost & Sullivan's Media Service.