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Compiled by: Raghav Soni

Europe represents the largest regional market for temperature sensors, but the debt crisis in the region has softened domestic markets, and thus sensor demand while putting pressure on growth.

Currently, contact-based sensors dominate the market; however, a strong competition between contact and non-contact temperature sensing technologies is expected in the coming years.

The European temperature sensor market would be largely driven by the growing defense and automotive industries after the innovations in process industries would reach saturation.

Technological advancements and emergence of the Micro-Electro-Mechanical Systems (MEMS) technology in temperature sensing are the future opportunities for temperature sensors in Europe.

Aranca’s Views

Source: GIA Report – Temperature Sensor Market, Sensor Online, News Articles,

Demand for temperature sensors in Europe is expected to remain steady.

Approximately 75% of this market centers on four developed nations: Germany, France,

the UK and Italy. Germany leads the market with ~40% of the market share. Market

value of the German temperature sensor market stood at USD418 million in 2014 and is

estimated to grow to USD483 million by 2018 with a CAGR of 3.79%.

Temperature Sensorsmeasure the amount of heat

energy or even coldness that is generated by an object or

system, allowing us to “sense” or detect any physical change to that temperature producing either an

analogue or digital output.

Contact Temperature Sensors are required to be in

physical contact with the object being sensed and use conduction

to monitor changes in temperature.

Resistive Temperature Detectors (RTD) are precision

temperature sensors whose electrical resistance changes as a

function of temperature.

Thermocouples have the widest temperature range of all the temperature sensors from

below -200oC to well over 2000oC.

Non-contact Temperature Sensors use convection and radiation to

monitor changes in temperature.

987

2012 2013

Annual Sales in USD MillionF refers Forecasted

2014 2015F 2016F 2017F 2018F

1012 1044 1083 1121 1157 1192

CAGR (2013–18): 3.20%

The European temperature sensor

market is highly fragmented with a good mix of some large-and

many medium-size companies. Germany

has ~55-60 temperature sensor

manufacturers, highest in Europe followed by

Italy with ~40-45 companies.

The process industry accounts for nearly half of

the total temperature sensor market in Europe. However in Germany, the automotive and other non

manufacturing sectors account for a higher share.

In fact, as of 2013, the processing industry and the

non-processing industry accounted for ~40% and ~60% respectively of the

total German temperature sensor market.

German companies provide advanced

temperature sensor research in several areas thus enabling them to cater to the growing demand for

innovation in the non-processing

industry.

European Temperature Sensor Market: Sales

Primary End-User Market for Temperature Sensors in Europe

Leading Temperature Sensor Manufacturers in Europe

European Temperature Sensor Market: Region wise Salesin USD Million

Oil & Gas/Energy

23.2%

Chemicals & Petrochemicals

19.3%

Mining & Metals

10.1%Others

10.1%

Automotive

8.7%

Food & Beverage

(F&B)

5.4%

Life Sciences

5.4%

Aerospace & Defense

2.3%

Glass

2.0%

Semiconductors & Electronics

13.5%

European Temperature Sensor Market

Leads with 40% Share

The current European market is dominated by thermocouples and RTDs.

High temperature operability makes RTDs first choice for petrochemical and energy sectors.

Thermocouples are majorly used in processes requiring stable sensors and fast responses.

Non-contact IR sensors are widely used in food and beverages and other process industries.

ABB Endress + Hauser WIKA Emerson

JUMO Pyro Controle Omega

Correge NXP

Thermoest

987

2012

France

2013 2014F 2015F 2016F 2017F 2018F

3.2%

3.5%

1,012

1,044

1,083

1,1211,157

1,192

1.9%

3.6%

3.0%

CAGR(2012-18)

Drivers Challenges

Technological Developments: The cost of temperature sensors has been declining with the advent of new types of temperature sensors, which use nanotechnology and micro technology enabling contactless and accurate measurement of temperature.

Maturity of End-User Segment: With companies in sectors such as chemicals looking at other parts of the world for setting up new facilities, the demand for new projects in these sectors is expected to decline. This could create a significant challenge for companies operating in the European temperature sensor market.

Product Substitution: Products with same applications but di�erent technologies may eye the same market due to rapid changes in technological advancement. Non contact temperature sensors such as infrared sensors are undergoing major technological advancements. It is expected that in future it will be eating into the traditional market of thermocouples and RTDs.

Pricing: Pricing products aptly could be a major challenge for sensor manufacturers due to strong competition.

Emerging Applications:The emerging applications of temperature sensors in aerospace and defense industry, such as temperature stabilization in satellites and Heat Ventilation Automation and Control (HVAC), have fuelled the market growth.

Growing Demand:An improvement in economic conditions across Europe, resulting in increased investments in major end markets, such as oil and gas, pharmaceutical and power in the continent, is expected to drive the growth of the European temperature sensor market.

Other Drivers:Vehicle production in developing markets (majorly Eastern Europe), increasing government intervention, consumer electronics, and availability of a strong after market are further driving the demand for temperature sensors.

115 118 122 126 131 135 139

392403 418

435 452468

483107

109110 112

116118

120

119

123127

132

137142

147

254

259

267

278

285 294

303

Germany Italy UK Rest of Europe