The increasing number of passenger vehicles produced in China is expected to drive growth in the automotive sensors market, according to Frost & Sullivan. Research analyst Amelia Wong said that more stringent emission norms and increased safety concerns are also likely to influence market growth. Frost estimated automotive sensor revenues in China at $304.8 million in 2005 and predicted that they will climb to $1.49 billion by 2012.

Wong noted that vehicle manufacturers in China are developing more models with competitive pricing to meet the growing customer demand in the passenger vehicle market. "More electronic control units and non-traditional sensors are employed into varied new systems in these new car models, though the price issue is still affecting the automakers' decision to employ certain high cost sensors in their vehicles," she said.

Euro emission norms have been in place in China since 2001 and Wong said they are contributing to increased sales of gas and exhaust sensors, gas re-circulation valve position sensors, and manifold absolute pressure (MAP) sensors. The increasing installation of airbag, antilock braking and tire pressure monitoring systems is also expected to increase demand for sensors in passenger cars in China.