Inductive Sensors � Competitive Market in Rough Times
The market for inductive sensors is mature, yet highly competitive, with suppliers constantly searching for new business opportunities. This has created a market that appears settled, but actually has a lot of movement going on beneath the surface. In this environment, relatively minor technical changes trigger sales growth, since there is not a lot of product differentiation.
The global recession will lead to two years of negative revenue growth, with the first signs of recovery expected in 2010. During this phase, the inductive sensor market will experience deep changes. Despite the high degree of competition for business, suppliers in this market also collaborate via brand labeling to be able to fill out their respective product portfolios.
Currently suppliers of inductive sensor have to react to a consolidation of their customers, and prepare to offer solutions for a new customer landscape. This will change business, but the crucial role of inductive sensors in automation will guarantee long run growth.
Increasingly more manufacturing operations are required to handle a greater diversity in product. This has created a need for reconfiguration of machinery and processing equipment. This creates a fast growing market segment of sensors that could be reconfigured from the automation system via a digital network. IO-Link and CompoNet are emerging networking technologies that offer sensor suppliers a migration path to the future.
Strategic Issues
Strategies for the inductive sensor market seek to avoid harmful price competition, wherever possible. This is often difficult, due to the nature of the product and the relative maturity of the market. Supplier strategies discussed in this study include:
- Leverage modular design and brand labeling
- Divide the market into a 2x2 sensing matrix for functional analysis
- Avoid price competition with a complete product portfolio
- Offer solutions instead of products
- Focus on growth markets, regional and industrial
- Help customers to understand industry needs
