Brazil is attracting the investment opportunities in Automotive Vibration Sensors

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Published: 06th February 2017
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Brazil, the fifth largest country is the largest consumer market for South America. With the improved quality of life and the GDP topping $10000 per capita, most of the automakers are competing to register their market share. Brazil is set to become the world's third largest car market after China and US overtaking Japan. The industry witnessed 68% increment in sales from 3.4 million in 2011 to reach 5.7 million by the end of 2016. The leading automotive players are planning to invest $25 billion in the country by 2016 with a production capacity of 1.5 million units per year. The government has imposed high taxes on imported cars which was increased fearing flood of foreign made cars. Moreover these taxes have been cut and enforced lower interest to encourage consumer spending. It is the seventh largest automobile manufacturer and fifth largest automobile market in the world.

Brazil is finding an augmenting number of renowned automotive manufacturers setting up their facilities and this number is further estimated to grow in future. The law in the country states that the automotive testing should also be carried out locally when the manufacturing falls in their region. As the production in the automotive sector increases, there will be a steep rise in the demand for the Piezoresistive Vibration sensors which determine their significance in the automotive crash tests. These sensors are kind of accelerometers which are extensively used in the automobile safety testing such as safety air bags, anti-lock braking and traction control system. The Piezoresistive accelerometers also find its application in weapon testing, seismic measurements and turbulence control in airline industry. The automotive units will also generate a demand for capacitive sensors which tends to be a major deployment for testing structural durability.

Vibration Sensor manufacturers are rapidly establishing their subsidiaries in Brazil and other parts of South America with an increased concentration into automotive segment. A German company, Advanced Sensors Calibration (ASC) has seen its first presence in South America this year to ensure closeness to their customer requirements and provide customized local services.

The technology advancement in Non-Contact Displacement vibration sensors are bringing new levels of quality and efficiency in research and development and production lines of automakers around the world. For wide range of automotive testing such as piston, valve design, suspension and braking, non-contact displacement systems help engineers provide better automobile design. These sensors can be put in sets on either side of a car disk brake to constantly monitor its performance. The miniature version of these sensors are used in applications such as inserting a button sensor in a head gasket to measure accurate displacements of the seal when the vehicle is running and also deployed in windshields to test the gaps.

By 2020, each of the vibration manufacturers will compete to bag a major share of projected $430 million opportunity in Brazil. The country will be the fastest growing market in Latin American region followed by Mexico and Argentina. It is estimated to represent more than 30% of Latin American region posing a favorable investment destination for the vibration sensor manufacturers.

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