The top five magnetic sensor suppliers account for 80% of the total market

The top five suppliers of silicon magnetic sensors account for more than 80 percent of the global market, according to IHS iSuppli's MEMS and Sensors report. These sensors are widely used in automotive applications and in digital compasses in smartphones and tablets, such as Apple's iPhone and iPad.

　　In 2010, the top five silicon magnetic sensor suppliers had a combined revenue of $962 million, accounting for 82% of the $1.18 billion market. The top five suppliers are Japan's Asahi Kasei Microsystems, the United States' Allegro Microsystems, Germany's Infineon, Switzerland's Micronas, and Belgium's Melexis NV, as shown in Figure 1.
 

　　Magnetic sensors are used in more than 70 automotive applications, including anti-lock brake systems, electronic steering and throttle control, battery management and vehicle transmission. Digital compasses are also an important market for magnetic sensors and are becoming a standard component in the global positioning system (GPS) of tablets and mobile phones. For example, the iPhone and iPad use electronic compasses for pedestrian and vehicle navigation, and are also used for applications such as location-based services and augmented reality.

　　Asahi Kasei Microsystems (AKM), which ranked first in 2009, retained the top spot in 2010 with revenues of $300 million. Unlike the other four companies, the company has a broad product portfolio but limited exposure to automotive applications. The company holds the top spot because of its large supply of Hall-effect electromagnetic compasses, which are used in a variety of products such as mobile phones, tablets, digital cameras, personal navigation devices, and MP3 players.

　　AKM's 3-axis electronic compasses account for more than one-third of its overall magnetic sensor revenue, with the remaining two-thirds coming from low-cost switches and sensors for consumer electronics and appliances. Here, too, AKM has an undisputed global dominance. Research from IHS iSuppli shows that AKM enjoys huge economies of scale in producing commodity Hall elements and integrated circuits, which are almost unrivaled, while the high-priced electronic compasses helped the company to achieve the No. 1 revenue ranking. The company's revenue increased 58% from $190 million in 2009.

　　The other four major manufacturers also saw strong growth

　　Allegro Microsystems, ranked second, with revenue of $264 million, is also the leading supplier of automotive magnetic sensors. After withdrawing from the consumer switch field, the company has devoted more energy to higher-value automotive products, such as camshaft sensors. Allegro is also strong in the field of battery management current sensors for automotive applications. Among the top five manufacturers, the company's revenue growth was the largest, up 75% from $151 million in 2009.

　　Infineon Technologies ranked third and is the largest supplier of wheel speed sensors. Infineon's revenue in 2010 was $148 million, up 40% from $106 million in 2009. The company is also at the forefront of integrating giant magnetoresistive sensor elements with application-specific integrated circuits (ASICs). ASICs have higher spatial resolution than Hall sensors and are suitable for precision applications such as steering wheel angle measurement. Infineon does not focus on consumer electronics applications.

　　Micronas ranked fourth, with $143 million in magnetic sensor revenue in 2010, and is also the largest supplier of linear Hall sensors. It has a wide product portfolio, mostly for automotive applications, but also increasingly focusing on industrial sensors. Micronas has been developing 3D Hall technology, but lags behind Melexis, which has already taken a place in the market with this new technology. 3D Hall sensors extend the spatial resolution of existing Hall sensors and can compete with higher-performance magnetoresistive magnetic sensors. Micronas' revenue in 2010 increased by 36% from $105 million in 2009.

　　Melexis ranked fifth and focuses on automotive applications. It has recently gained a significant share in the Chinese automotive market. The company had revenues of $107 million in 2010 and also provides commodity Hall switches for mobile phone display management applications. The company is the number one supplier of accelerator pedal sensors and has a position that is unrivaled. In this field, Melexis' Hall sensors and 3D Hall sensors are used in electronic throttle control systems, which are now widely used in many cars. The company's revenues in 2010 increased by 43% from $75 million in 2009, the third highest increase among the top five manufacturers.