2012 4 Objectives of the Report The objectives of this report are the following: To provide market data on high performance MEMS gyroscopes and gyroscope-based systems (gyro assemblies, IMUs): key market metrics & dynamics Unit shipments and revenues by type of sensor Average selling price analysis and expected evolution Market shares for each category of application, for each technology and for each performance grade To provide application focus on key existing markets and most promising emerging ones Functions that are used, critical specification requirements, level of assembly and technology choices What are the major drivers, how will the market be like in 2017? To provide an analysis on the major technology trends: Evolution expected for the current technologies: level of performance, price Insight about new technologies: AO / Cold atom, NMR gyros To provide a deep understanding of inertial sensor value chain, infrastructure & players for the inertial business Quasi-exhaustive list of sensor manufacturers worldwide with technology offer List of key integrators worldwide Industrial chain information for each application: who supplies to who 2012 5 Introduction New entrants are using game-changing MEMS IMUs to target emerging markets Inertial Measurements Units (IMUs) is a large industry traditionally dominated by defense and aerospace applications. 2011 was a stable year for IMUs with a market size of $1.75B.
We expect more dynamic growth in this market near term because of two factors: In the defense and aerospace sectors: though the markets in the U.S. and Europe are best described as conservative and mature, many new programs are being launched in Asia, Brazil, and the Middle East. Many new applications are fueling the growth of the IMU market, benefiting from significant technology evolutions, such as the continuous improvement of MEMS IMUs.
The IMU market is very concentrated; only a few big companies are dominant. Honeywell, Northrop Grumman and Sagem are the clear leaders, but many newcomers are coming in to play, looking to enter the market with low-cost MEMS-based products and a different approach to how things are done. Honeywell 34.8% Northrop Grumman 19.4% Sagem 9.4% Others 36.4% (detailed in the report) 2011 IMU market share (M$) (Total = $1.75B ) Yole Dveloppement Aug. 2012 2012 6 Introduction Growth opportunities are positively impacting the gyroscope market High-performance inertial sensors and systems is a dynamic market segment, as an ever-increasing number of platforms require stabilization, guidance or navigation functions. The 2011 market for high-performance gyroscopes was estimated at $1.29B, growing at a 4.3% annual rate, and is expected to reach $1.66B in 2017. However, this growth will not be global. Indeed, the most attractive opportunities will be concentrated in a select few applications, geographies or technologies: Defense applications still account for half of the market and most players expect this to remain about the same, as budget cuts made in the U.S. and Europe will be partially compensated by strong demand in Asia. Commercial aerospace represents close to 25% of the market. After a period of stability, an increasing number of business jet, helicopter and civil aircraft orders will drive renewed inertial systems growth, starting in 2013. The remainder of the market (composed primarily of industrial, naval and offshore applications) will be the most dynamic area. While it will take time to adopt new technol-ogies in the more conservative areas, new industrial applications are appearing with each passing day, benefiting from the increasing availability of low-cost inertial solutions. This report describes in detail each application in terms of market size, competitive analysis, technical requirements, technology trends and business drivers. 0 500 1000 1500 2010 2011 2012e 2013e 2014e 2015e 2016e 2017e 2010-2017 Gyro Market ($M) Industrial/medical/commercial naval/offshore Commercial aerospace Defense Yole Developpement Aug. 2012 2012 7 Introduction MEMS and FOG drive the change in the technology mix Currently, optical gyroscope technologies still dominate the market by a wide margin. In particular, Ring Laser Gyroscopes (RLGs) are largely used in navigation systems and tactical guidance; one example is the Honeywell HG1700 IMU. Although RLGs will be robust for high-performance, Yole Developpement expects two other technologies to make a large contribution to 2011-2017 growth: Fiber Optic Gyroscopes (FOGs), which are currently very popular for stabilization applications, and should rapidly progress to eventually replace other navigation technologies; and MEMS technology, which will have the largest impact on the industry. New applications are enabled by low-cost MEMS sensors, and when it comes to tactical grade applications, a lot of progress has been achieved in just the past few years in terms of reliability. MEMS are now accepted in high-reliability environments, and are even starting to replace FOGs and other technologies in tactical applications. Of course, other technologies must be considered as well: Hemispheric Resonant Gyroscopes (HRGs) are making progress and are now designed for navigation; Coriolis vibrating piezo gyroscopes are finding increasing success in a large variety of end-markets while new disruptive gyro technologies are still in lab-phase; and finally, DTG and other mechanical gyro technologies are still used in some retrofit systems for 2-axis stabilization systems or for gyrocompass, but this trend points to a decline. Many factors are shaping tomorrows competitive landscape: technology capabilities, products maturity level, geography, value chain, and others. As such, competition trends are carefully analyzed in this report. Honeywell is still the global leader by far, with great success in RLG-based systems and successful deployment of MEMS technology. Northrop Grumman, Sagem and other market leaders are next on the list with a variety of technologies and new product lines that should have big market impact. Newcomers will play a role as well, from startup companies developing disruptive sensors, to MEMS manufacturers, IMU integrators and large end-users willing to pursue internal inertial technologies. This report highlights market share analysis by application field and technology, as well as global company shipments and technology breakdown.
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Industrial (> 6/h) Tactical (0.5- 5%/h) Short term navigation (0.05-0.5/h) High-end navigation / strategic (<0.04/h) S h a r e
i n
v a l u e
( % )
Gyro bias stability 2011 Gyro Market ($M) - Techno breakdown - Total = $1289M - HRG / others Other mechanical / vibrating gyros DTG RLG FOG Yole Developpement Aug. 2012 2012 8 Introduction A report designed to be a reference in the 2012 inertial sensor industry This report is the third update of Yoles best-selling IMU Markets report, which was first released in 2008. This latest edition is a completely new version, with substantial changes since the last edition: The scope of study is broader: stand-alone gyroscopes and assemblies of 2 or3-axis gyroscopes are accounted for in the market numbers The market is quantified for each gyroscope technology, and each companys yearly shipments are estimated Market metrics are provided for each grade of gyroscopes: each application is positioned according to performance level and corresponding market size Applications are described in a more synthetic way in order to provide rapid access to key information (functions, specification, technical solution, geography, trends, and market evolution) and graphical representation of the industrial chain
This report combines the best of Yoles knowledge in the high-performance inertial sensor industry. Yole regularly participates in industry conferences and tradeshows worldwide, and has close relations with most market leaders. This reports data has been validated by industry experts and augmented by the expertise of Mike Perlmutter, a recognized expert in navigation. With a totally different format than before, this report synthetizes the status of the 2012 inertial sensor industry in a thorough and completely new way. 2012 9 Scope of the report High performance inertial sensors This refers to the applications: we take into account all the inertial sensors except the consumer / mobile and the automotive applications It means that we take into account industrial, medical, aerospace, defense applications (even industrial applications are considered as high-performance applications, as opposed to consumer ones) In some cases: consumer -grade MEMS gyroscopes (for instance few /s bias stability) are used in industrial applications this is part of the report
To simplify the representation, the performance level has been divided in 4 parts: The only parameter which is considered is the bias stability In the 50/h range: industrial grade (but it doesnt mean that this is industrial applications: for instance many missile and bomb guidance require moderate bias stability and enter in this category) ability to get data on angular rates / on motion In the 1/h range: tactical grade possibility to get angles In the 0.1/h range: short term navigation grade possibility for short term navigation (for GPS outage) and azimuth detection In the 0.01/h range: high-end navigation & strategic grade ability to navigate Day to day bias stability is considered for navigation grade, this is the most significant parameter In-run bias stability is used for industrial and tactical grade because: In the past 20 years, MEMS has appeared and expressed performance in terms of in-run parameters Use of inertial sensors is now in conjunction with GPS, meaning that bias repeatability in not significant anymore (for tactical / industrial grade) Other parameters need to be considered as well: depending on the application other parameters such angular random walk or scale factor will be more important than parameters Gyroscope In-Run (for industrial / tactical) or day to day (for navigation / strategic) Bias Stability Corresponding Grade 100/h 5/h 1/h 0.5/h 0.1/h 0.05/h 0.01/h 0.0001/h H i g h - e n d
n a v i g a t i o n
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Definition of application grades T a c t i c a l
S h o r t
t e r m
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I n d u s t r i a l
2012 10 Scope of the report PRICE level L E V E L
O F
I N T E G R A T I O N
IMU = 3 mutually orthogonal gyros and accelerometers Cluster of gyroscopes Clusters of accelerometers & gyroscopes INS
(Inertial Navigation System IMU + Kalman filter) Cluster of accelerometers Gyroscopes Accelerometers INS / GPS ( fusion with GPS) - - + + AHRH (Attitude and Heading Reference System IMU + magnetometer + software) IMU market (standalone + IMUs integrated in systems such as AHRS, INS) Gyro market = Market for standalone gyros / assemblies of gyros + market for gyros integrated in IMUs and other systems (AHRS, INS) ADAHRS (Air Data Attitude & Heading Reference System fusion with air data) GADAHRS (GPS aided ADARS fusion with GPS) 2012 11 EXAMPLE OF APPLICATION DETAIL: CIVIL AIRCRAFT NAVIGATION 2012 12 Civil aircraft navigation Application description Function: Main purpose: navigation system for commercial aircrafts, cargos and business jets Additional feature: to monitor deformations of the body Flight test instrumentation systems when testing the aircrafts (low quantity: <1% of the fleet) Key specifications 0.01/h bias repeatability 0.001/h for test systems Civil aero certification Long-term supply guarantee Inertial solution Integrated in IMU/INS with high-perf electromechanical accelerometers Used in redundant systems: 2 INS for narrow-body aircrafts to 3 INS for large-body aircrafts Hybridation with GPS (which is in a separate package for more flexibility) Technology trends RLG technology dominates, FOG is an alternative HRG is emerging Slow technology change in avionics because of flight certifications. Not short term wide adoption of MEMS Traditionally: aircraft maker select the primary INS maker (often Honeywell) and the second source as alternative (often NG) so that airline companies can choose. This changed recently in some cases: Airbus selected only Thales for A350 and only Sagem for A400M Key gyro players Honeywell, Northrop Grumman, Thales, Sagem (HRG INS named GADIRS) Airbus A320 Neo Boeing 787 Dreamliner 2012 13 Civil aircraft navigation Market data Major gyro integrators Gyro integrated in assemblies or IMUs / INS by: Honeywell, Northrop Grumman, Thales, Sagem End-users: EADS Airbus & ATR, Boeing, COMAC, Dassault Aviation, Bombardier Learjet, Embraer, Boeing Geographical description For gyros: North America 85% market / Europe 10% / Asia 5% For end-users: North America 50% market / Europe 40% / Asia 10% Market drivers Steady growth of the market for the next 5 years (3-5%/y) Retrofit market is significant: it is estimated that 25-30% of the market correspond to upgrades. Indeed cycle time for such electronics is estimated to 10-15 years, INS are thus changed 2 or 3 times in the life time of an aircraft New platforms successfully got massive orders (A320 Neo, B787 Deamliner, COMAC) leading to a boom in the inertial market in 2013-2014 timeframe Recovery expected in the bizjet sector, after a bad 2008-2012 period 2 010 2 011 2012e 2013e 2014e 2015e 2016e 2017e K Units 18.3 18.7 19.8 21.0 22.0 22.9 23.6 24.3 0 5 10 15 20 25 30 M a r k e t
( K u n i t s )
2010-2017 Civil aircrafts navigation - Gyro Market (Kunits) Yole Developpement Aug. 2012 2 010 2 011 2012e 2013e 2014e 2015e 2016e 2017e $M 141.3 143.4 151.2 159.5 166.6 172.4 176.7 181.1 0 20 40 60 80 100 120 140 160 180 200 M a r k e t
( $ M )
2010-2017 Civil aircrafts navigation - Gyro Market ($M) Yole Developpement Aug. 2012 2012 14 Civil aircraft navigation Value chain Airbus Boeing COMAC
Honeywell Gyroscopes IMU/INS Aircraft maker Airbus Thales Sagem EADS ATR, Dassault Aviation, Bombardier Learjet, Embraer Airbus Boeing
Northrop Grumman 2012 15 Companies Cited in this Report Al Cielo, Analog Devices, AOSense, Arazim, Astrium, Autoflug, CASC China Aerospace, Colibrys, Doosan, Elektropribor, Emcore, Endevco, Epson Toyocom, Fitzoptika, Freescale, Garmin, GEM Electronica, Gladiator Technologies, Goodrich / AIS, Hitachi, Honeywell, IAI, iMAR, Innalabs, InterSense, InvenSense, iXBlue, JAE, Kearfott, Kongsberg, KVH, L3 Communication, Litef, Lumedyne Technologies, MEMSense, Microstrain, Moog / Crossbow, NG Italia, Northrop Grumman, Optolink , PCB Piezo, Perm, Physical Logic, Raytheon Anschtz, Sagem, SBG Systems, Schlumberger, Senlution, Sensonor, Sensorex, Silicon Design, Silicon Sensing System, ST Microelectronics, Systron Donner Inertial, Tamagawa, Teknol, Thales, Tokyo Keiki, Tronics, VectorNav, VTI, Watson Instruments, XSens 2012 16 Who Should be Interested in this Report? High-performance accelerometers and gyroscope suppliers Understand the system level technology trends and requirements for each application Evaluate market potential for your components depending on performance and technology Understand the differentiated value of your products and technologies Identify new business opportunities and partners Monitor and benchmark your competitors advancements IMU module and AHRS / INS suppliers Evaluate the market potential of your product portfolio Define diversification strategies on new applications Find the best technologies to integrate and the best suppliers depending on your target markets Identify new business opportunities and partners Have an exhaustive analysis of the competition on a broad range of IMU field Material supplier, manufacturing service companies Spot new business opportunities and prospects Understand the level of activity of your customers Understand what are the applications that will drive the volumes in 2017 Integrators of inertial solutions, government agencies Find the best technologies to integrate and the best suppliers depending on your target markets Understand what will be the future applications to develop by taking benefit on the recent advances in inertial technologies Define technology roadmap / evaluate the benefits of using new technologies in end system, design architectures for the next generation of systems Screen potential new suppliers able to provide new functionalities, or cost and size savings R&D centers Evaluate market potential of future technologies and products for new applicative markets Identify the best candidates for technology transfer Financial & strategic investors Understand the structure and value chain of the high-end inertial industry Estimate the potential of new technologies (tactical/inertial navigation MEMS, navigation-grade HRG) Get the list of main key players and emerging start-ups of this industry worldwide 2012 17 Available MEMS Reports
Trends in MEMS Manufacturing & Packaging MEMS Cosim+ MEMS Manufacturing Cost Simulation Tool Ferro-Electric Thin Films MEMS Microphone Permanent Wafer Bonding Motion Sensors for Consumer & Mobile applications New! Thin Wafer Handling New! Sensor fusion of acceleros, gyros & magnetometers New! Infrared Detector Market, Applications and Technology Trends New! New! MEMJET Technology Trends for Inertials MEMS New! RF Filters, PAs, Antenna Switches & Tunability for Cellular Handsets Trends in MEMS Manufacturing & Packaging IMU &High Performance MEMS MEMS & Sensors for Smartphones Ferro-Electric Thin Films Motion Sensors for Consumer & Mobile applications CMOS Image Sensors Uncooled IR Cameras & Detectors for Thermography & Night Vision MEMS for Cell Phones and Tablets Uncooled Infrared Imaging: Commercial & Military Applications New! New! New! New! 2012 18 Yole activities in MEMS
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Global Inertial Sensors Market (2013 - 2018) - by Type (IMUs, INS & AHRS) Components (Accelerometer, Gyroscope, GPS, Magnetometer) Applications (Aerospace, Military & Defense) Brochure