Analysis of the Dimensional Metrology Market in the Automotive Industry


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Rapid automation of automotive manufacturing plants is one of the key factors driving the demand for inline metrology solutions in the automotive industry. Several powertrain and body-in-white manufacturers will replace traditional, manual measurement solutions – such as coordinate measuring machines (CMMs) – with inline metrology solutions. Moving forward, , as companies strive to gain a competitive edge by robotizing their manufacturing plants, end-to-end automated inline metrology will be a key solution demanded by leading automotive manufacturers.

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Analysis of the Dimensional Metrology Market in the Automotive Industry

  1. 1. Frost & Sullivan: Greater Emphasis on Automation in Automotive Industry to Drive Investments for Dimensional Metrology Equipment Research PREVIEW for the Analysis of the Dimensional Metrology Market in the Automotive Industry (NDC7-30)
  2. 2. • Hexagon Metrology, Carl Zeiss, Faro Technologies and Mitutoyo are currently amongst the top suppliers, accounting over 65.0% market share. • Companies with the right product mix at affordable prices are likely to sell at a high volumes in price- sensitive economies such as Brazil, Russia, India, China, Turkey, and Philippines. • Regional companies in APAC are likely to gain prominence by selling machines in the domestic market. Companies will need to strike a balance in the breadth of product portfolio and price ranges to meet the varying demands of customers in different regions. • Accelerating the mass production of machineries is likely to increase profit margins. • As with many new technologies, concern exists over the durability of components and systems, particularly within hostile environments; therefore, improvements in technology and the subsequent increase in user confidence is expected only in the long term. Inline metrology will create opportunities for dimensional metrology market participants to enter the automated measurement solutions space. • North America and Europe are likely to remain the research and development (R&D) hubs for the automotive industry and continue attracting demand for high accuracy dimensional metrology equipment for R&D applications. • Asia-Pacific (APAC) holds a key position for opportunity in the global dimensional metrology market in the automotive industry due to the concentration of small- and medium-sized automotive vendors present in this region. • Japan, India, and China are expected to be key target markets for high-end and low-cost metrology machines. Global Level Trends Supplier Level Trends Total Dimensional Metrology Market in the Automotive Industry: Key Takeaway, Global, 2013 Regional Level Trends Key Findings Source: Frost & Sullivan
  3. 3. Source: Frost & Sullivan • Body in white (BIW) is expected to contribute to a 15% CO2 emission reduction by 2020 as key global original equipment manufacturers (OEMs) target at least 100 kg reduction year on year (YoY). • Within each focus area, materials such as advanced high-strength steel (AHSS), aluminum (Al), carbon fiber reinforced plastics (CFRP) as well as innovative joining techniques such as collar joining and friction stir welding (FSW) are expected to contribute up to nearly half of overall weight reduction by 2020. • Finally, platform strategies create a unique opportunity for substitution materials to be applied across a wider variety of vehicle segments, bringing scales of sustainability. Such trends the in end-user industry are likely to increase demand for the latest measuring machines with high accuracies. End User Level Trends Distribution Channel Level Trends • Dimensional metrology manufacturers prefer building personal relationships with key automotive manufacturers. • Leading companies prefer engaging with channel partners to market equipment to medium- and small-sized automotive vendors. • For inline metrology, building strategic relationship with industrial automation companies is likely to create a strong sales pipeline for dimensional metrology market participants. • Increasing digital marketing presence is likely to increase brand visibility. Total Dimensional Metrology Market in the Automotive Industry: Key Takeaway, Global, 2013 Key Findings (continued)
  4. 4. The coordinate measuring machine (CMM) segment is expected to account for 67.8% of the global dimensional metrology market in the automotive industry by 2018. 0.0 200.0 400.0 600.0 800.0 1,000.0 1,200.0 2013 2018 Revenue($Million) North America 30.2% Europe 29.4% APAC 33.2% Rest of World (ROW) 7.2% Total Dimensional Metrology Market in the Automotive Industry: Percent Revenue by Region, Global, 2013 Total Dimensional Metrology Market in the Automotive Industry: Revenue Forecast, Global, 2013 and 2018 5.2% Fact Sheet Note: All figures are rounded. The base year is 2013. Source: Frost & Sullivan
  5. 5. Total Dimensional Metrology Market in the Automotive Industry: Key Conclusions and Future Outlook, Global, 2013 Parameters Current Future Geographic • APAC is the region with the most companies exploring opportunities to sell more units. • With rapid proliferation of low-cost equipment in APAC, more marketing initiatives are needed to sell more equipment. • For price-sensitive end users in APAC, leading companies such as Hexagon Metrology, Carl Zeiss, and Mitutoyo are expected to work with automotive component manufacturers to include more cost-effective inline metrology solutions products to their portfolios. • The presence of numerable target market companies is likely to increase interest from small and medium sized dimensional metrology companies in entering the APAC market with a direct presence; resellers will also be influenced. In turn, future competition will likely increase. Competition • For end users in developed countries, companies are looking forward to manufacturing high-accuracy and application-specific machines. • As the need for enhanced safety, quality, and improved productivity grows in the automotive industry, particularly in the developed economies, metrology vendors’ biggest challenge will not come from industry peers, but from meeting the insatiable needs of the automotive industry. • Building niche products for key application areas such as powertrain and sheet metal is likely to increase unique selling propositions and profit margins. • The market is likely to witness more consolidation, particularly in the inline metrology segment. • Large industrial automation companies are likely to foray into the dimensional metrology market by acquiring dimensional metrology vendors. Technology • Interest in automating inspection activity is likely to increase inline metrology solutions. In-line metrology will note increased penetration. • Another such solution is the X-ray-based products that will gain prominence, which are actively being marketed by Carl Zeiss, Nikon Metrology, and WENZEL Präzision GmbH (WENZEL) for automotive end users. • Advanced fully-automated inline metrology systems will power the next-generation dimensional metrology solutions. • Priority on improvising existing inline metrology products and software packages will be the key demand. Growth Opportunities • Declining profit in hardware sales has pressured dimensional metrology vendors to pursue business opportunities in value-added services such as metrology labs, retrofits, and software. • Customized software packages and cloud computing services are likely to become the most profitable business opportunities for dimensional metrology vendors. Current and Future Parameters Source: Frost & Sullivan
  6. 6. Note: *Customized solutions include solutions such as powertrain and BIW. Total Dimensional Metrology Market in the Automotive Industry: Key Market Participants by Segment, Global, 2013 The majority of key dimensional metrology manufacturers focus on developing integrated technologies to provide high-accuracy and flexible measurement solutions. Vision Measuring Machines (VMM) Optical Digitizers and Scanners (ODS) Total Dimensional Metrology Market in the Automotive Industry Coordinate Measuring Machines (CMM) • Faro Technologies • GOM mbH • Hexagon Metrology • Nikon Metrology • Carl Zeiss • Hexagon Metrology • Mitutoyo • WENZEL • Micro Vu Corp • Mitutoyo • Quality Vision International • Hexagon Metrology • LS Starrett • Mahr GmbH • Mitutoyo • Carl Zeiss • Perceptron • Hexagon Metrology • Carl Zeiss • Creaform • Hexagon Metrology • Mitutoyo • GOM mbH • Steinbichler Optotechnik Measurement Gages Inline Metrology Customized Solutions* Key Industry Participants Source: Frost & Sullivan
  7. 7. US Europe India MaturityDevelopment Growth Decline Time MarketValue • The United States is likely to continue as a market for larger vehicles (mid-size cars and pickups). • The small-car market here is expected to grow at 8% from 2010 to 2020. • Such consumer demand coupled with the US government’s initiative to revive domestic automotive manufacturing will ignite further market opportunities for dimensional metrology vendors selling in the United States. • Germany remains an R&D hub for a few leading European brands. o Only European country to show a trend towards longer vehicles, with a 5% share of the global market. Leading dimensional metrology vendors are likely to focus on selling high-precision equipment for R&D inspection purposes. • India will continue to be a market for small and low-priced cars. • End users in this region prefer keeping their capital and operational costs low. • Cost-effective dimensional metrology equipment is likely to remain a key trend. Dimensional Metrology Market in the Automotive Industry: Regional Hotspots Lifecycle Analysis, Global, 2013 • China is likely to follow the United States in selling more mid-size cars. • China’s automotive market is expected to account for 29% of the global market’s compact segment. • Building relationships with regional automotive vendors is likely to enhance market opportunities for dimensional metrology vendors. China India Regional Hotspots Lifecycle Analysis Source: Frost & Sullivan
  8. 8. Key Companies Current Initiatives Future Outlook Hexagon Metrology Increase initiatives to sell 360° Smart Inline Measurement Solutions (SIMS) in developed countries Expected to increase marketing initiatives to sell 360° SIMS to countries such as India, Russia, Brazil, and China Carl Zeiss Expected to focus on selling high-accuracy CMMs, inline metrology, laser inline scanners, metrotomography equipment, and metrology labs services Expected to increase its footprint in APAC with more metrology labs and increase its initiatives in selling metrotomography in developed countries Mitutoyo Expected to sell high-accuracy CMMs and Mitutoyo Measurement Metrology Solutions (M cube) Mexico, Brazil, Taiwan, Netherlands, India, and China likely to become key markets to sell both high-accuracy CMMs and M cube solutions Nikon Metrology Increasing R&D for scanners, laser radar and computed tomography metrology products Expected to increase inline metrology solutions in Europe, North America, and parts of APAC Others Robot-mounted optical CMMs/ scanners likely to become a key trend in this segment APAC likely to remain a key market to sell robot-mounted solutions Perceptron, Faro Technology, Creaform, and GOM mbH likely to remain key market participants Current Initiatives and Future Outlook of Top Companies Source: Frost & Sullivan
  9. 9. Mega Trend New Business Models Next-generation business models will redefine future business propositions and influence future technology and product development. These business models will not only reshape the landscape of the business environment, but they will also influence industry dynamics. An example of a new business model is Value for Many. Implications • Increasing demand for cost-effective metrology services will streamline revenues of several metrology vendors. • Client retention and a wider target market is likely to reduce the impact of fluctuating growth restraints for metrology market participants. • The market experiences a “Value Based from Product Based” transition. • Case Studies: Carl Zeiss Metrology Labs, Renishaw’s acquisition of ACE Innovating to Zero Globally, emissions and greenhouse gas regulations become more stringent each year, and the trend is expected to continue. Additionally, alternate fuel and hybrid/electric vehicle technology is also expected to be favoured by legislations. • Zero emissions, zero accidents, zero fatalities, zero defects, and zero breaches of security can be a reality in the future. This implies zero distraction for drivers. • CMMs with optical scanners, inline metrology, and CT* metrology are areas that deliver high client value as dimensional metrology manufacturers aim towards helping clients achieve zero defects. • Case Studies: Carl Zeiss’ Metrotom 800, Hexagon Metrology’s 360° SIMS and CMM with scanners Key: *CT: Computed Tomography Source: Frost & Sullivan Mega Trends
  10. 10. Smart is the New Green Green products and services will be increasingly replaced by smart products and services with intelligent sensing technology and Internet connectivity, driving better optimisation. • The need for smarter solutions and energy-efficient living will drive and foster clusters of smart communities called smart factories. Smart factories will be measured on the level of intelligence and integration of production, assembling, quality inspection, and packaging. • Quality inspection systems and reports generated using software will be integrated with servers using cloud computing. • Case Study: Innovalia Metrology’s M3 Product and Cloud Computing Mega Trends (continued) Mega Trend Implications Source: Frost & Sullivan Mega Trends (continued)
  11. 11. Forecast Period Market Growth Rate 5.2% (CAGR, 2013-2018) Market Concentration 69.9% (% of market share held by top 5 companies) Executive Summary—Market Engineering Measurements Market Stage Growth Market Revenue $949.2 M (2013) Market Units/Volume (2013) Average Price Per Unit 60,000 Market Size for Last Year of Study Period $1,225.1 M (2018) Base Year Market Growth Rate 5.2% Customer Price Sensitivity 9 (scale:1 [Low] to 10 [High]) Degree of Technical Change 8 (scale:1 [Low] to 10 [High]) Total Dimensional Metrology Market in the Automotive Industry Market: Market Engineering Measurements, Global, 2013 For a tabular version click here.Stable IncreasingDecreasing 1.2 M Note: All figures are rounded. The base year is 2013. Source: Frost & Sullivan Market Overview
  12. 12. Replacement Rate 6.0 Years (average period of unit replacement) Average Product Development Time 2.0 Years Number of Companies that Exited* 0 (2013) Number of Companies that Entered* 0 (2013) Number of Competitors 180- 200 (active market competitors in base year) Attachment Rate 3.0 (current number of units per user – base year) Executive Summary—Market Engineering Measurements (continued) Competitor Overview Stable IncreasingDecreasing Total Addressable Market Total Addressable Market Industry Advancement Marketing Spend as a Percent of Market Revenue 10.0% R&D Spend as a Percent of Market Revenue 10.0% Maximum Attachment Rate 7 (maximum potential number of units per user) *Companies with revenue of more than $1.0 M. Note: All figures are rounded. The base year is 2013. Source: Frost & Sullivan
  13. 13. Executive Summary—CEO’s Perspective 2 Direct sales is expected to continue experiencing significant revenues for key application areas such as powertrain, BIW, and inline metrology solution segments. 3 North America and Europe have a large installed base that drives the demand for replacement. 4 APAC is expected to see the most significant growth opportunities within the dimensional metrology market. 5 Small- and medium-sized metrology companies are likely to add cost pressures on the overall market by offering low-cost products. 1 Inline metrology will become the most desired solution for automotive applications. Source: Frost & Sullivan
  14. 14. Details of the Full Analysis
  15. 15. Section Slide Number Executive Summary 14 • Key Findings 15 • Fact Sheet 17 • Current and Future Parameters 18 • Key Industry Participants 19 • Regional Hotspots Lifecycle Analysis 20 • Current Initiatives and Future Outlook of Top Companies 21 • Mega Trends 22 • Market Engineering Measurements 23 • CEO’s Perspective 26 Market Overview 27 • Market Definitions 28 • Key Solution Areas 32 • Key Questions This Study Will Answer 33 • Market Segmentation 34 • Market Distribution Channels 35 The Full Analysis Features the Following Content
  16. 16. Section Slide Number Total Dimensional Metrology Market in the Automotive Industry - • External Challenges: Drivers and Restraints 36 • Market Drivers 37 o Drivers Explained 38 • Market Restraints 42 o Restraints Explained 43 Forecasts and Trends 45 • Market Engineering Measurements 46 • Forecast Assumptions 49 • Global Dimensional Metrology Market and Research Focus 50 • Revenue Forecast 52 • Revenue Forecast Discussion 53 • Pricing Trends 57 • Percent Revenue Forecast by Region 59 • Revenue Forecast by Region 60 • Regional Hotspots Lifecycle Analysis 61 Table of Contents (continued)
  17. 17. Section Slide Number • Revenue Forecast Discussion by Region 62 Market Share and Competitive Analysis 63 • Market Share 64 o Market Share Analysis 65 • Competitive Environment 66 o Top Competitors 67 o Competition Forecast 69 o Degree of Competition 70 o Market Value Chain 71 o Examples of Strategic Relationship between Dimensional Vendors 74 o System Integrator Relationship 76 o Tier I Companies vs. Small and Midsized Companies 77 o Small-sized Companies’ Role in the Market 78 o Future Market Strategy 79 o Competitive Factors and Assessment 80 Table of Contents (continued)
  18. 18. Section Slide Number Mega Trends and Industry Convergence Implications 81 • Innovating to Zero 82 • Technology Lifecycle Analysis 83 • Speed and Portability in Demand 84 • CT Systems 85 • Smart is the New Green 86 • Evolution of Cloud Computing 87 • Cloud Computing—Impact on Dimensional Metrology 88 • Industry 4.0—The Vision and Its Implications 89 • Industry 4.0 and Dimensional Metrology in the Automotive Industry 90 • New Business Models: Value for Many 91 • Mega Trend Impact on Dimensional Metrology Market in the Automotive Industry 94 CMM Segment Analysis 95 • CMM Segment Key Findings 96 • Market Engineering Measurements 98 Table of Contents (continued)
  19. 19. Section Slide Number • Revenue Forecast 99 • Revenue Forecast Discussion 100 • Percent Revenue Forecast by Product 103 • Revenue Forecast by Product 104 • Market Share 105 o Market Share Analysis 106 o Competitive Analysis—Bridge-type CMM Market Share 107 o Competitive Analysis—Gantry-type CMM Market Share 108 o Competitive Analysis—Horizontal Arm Machine Market Share 109 o Competitive Analysis—Articulated Arm Machine Market Share 110 • Competitive Environment 111 ODS Segment Analysis 112 • ODS Segment Key Findings 113 • Market Engineering Measurements 115 • Revenue Forecast 116 • Revenue Forecast Discussion 117 Table of Contents (continued)
  20. 20. Section Slide Number • Percent Revenue Forecast by Product 118 • Revenue Forecast by Product 119 • Market Share 120 o Market Share Analysis 121 o Competitive Analysis—3D Laser Scanners Market Share 122 o Competitive Analysis—White-light Scanners Market Share 123 o Competitive Analysis—Laser Tracker Market Share 124 • Competitive Environment 125 VMM Segment Analysis 126 • VMM Segment Key Findings 127 • Market Engineering Measurements 129 • Revenue Forecast 130 • Revenue Forecast Discussion 131 • Percent Revenue Forecast by Product 132 • Revenue Forecast by Product 133 Table of Contents (continued)
  21. 21. Section Slide Number • Market Share 134 o Market Share Analysis 135 o Competitive Analysis—Measuring Microscopes Market Share 136 o Competitive Analysis—Profile Projectors Market Share 137 o Competitive Analysis— Multi-sensor Systems Market Share 138 • Competitive Environment 139 Measurement Gages Segment Analysis 140 • Measurement Gages Segment Key Findings 141 • Market Engineering Measurements 143 • Revenue Forecast 144 • Revenue Forecast Discussion 145 • Percent Revenue Forecast by Product 146 • Revenue Forecast by Product 147 • Market Share 148 o Market Share Analysis 149 Table of Contents (continued)
  22. 22. Section Slide Number • Competitive Environment 150 Inline Metrology Segment Analysis 151 • Inline Metrology Segment Overview 152 • Market Drivers and Restraints 153 • Market and Technology Trends 154 • Revenue Forecast 155 • Revenue Forecast Discussion 156 • Distribution Channels 157 • Market Cycle Analysis 158 • Percent Revenue Forecast by Region 159 • Revenue Forecast by Region 160 • Market Share 161 o Market Share Analysis 162 • Competitive Environment 163 Powertrain Key Solution Area Analysis 164 Table of Contents (continued)
  23. 23. Section Slide Number • Powertrain Key Solution Area Overview 165 • Market Share 166 o Market Share Analysis 167 • Competitive Environment 168 BIW Key Solution Area Analysis 169 • BIW Key Solution Area Overview 170 • Market Share—Horizontal Arm Machine 171 o Market Share Analysis 172 o Competitive Environment 173 • Market Share—White-light Scanners 174 o Market Share Analysis 175 o Competitive Environment 176 North America Analysis 177 • North America Key Findings 178 • Revenue Forecast 179 • Revenue Forecast Discussion 180 Table of Contents (continued)
  24. 24. Section Slide Number • Market Share 181 o Market Share Analysis 182 • Competitive Environment 183 Europe Analysis 184 • Europe Key Findings 185 • Revenue Forecast 186 • Revenue Forecast Discussion 187 • Market Share 188 o Market Share Analysis 189 • Competitive Environment 190 Asia-Pacific Analysis 191 • Asia-Pacific Key Findings 192 • Revenue Forecast 193 • Revenue Forecast Discussion 194 • Market Share 195 o Market Share Analysis 196 Table of Contents (continued)
  25. 25. Section Slide Number • Competitive Environment 197 Rest of World Analysis 198 • Rest of World Key Findings 199 • Revenue Forecast 200 • Revenue Forecast Discussion 201 • Market Share 202 o Market Share Analysis 203 • Competitive Environment 204 The Last Word 205 • The Last Word—3 Big Predictions 206 Legal Disclaimer 207 Appendix 208 • Market Engineering Methodology 209 • Additional Sources of Information 210 • Learn More—Next Steps 211 • List of Other Participants 212 Table of Contents (continued)
  26. 26. Key Questions This Study Will Answer Is the market growing, how long will it continue to grow, and at what rate? Which of the dimensional metrology market segments is presenting major growth opportunities? What are the latest key technological trends present in the global dimensional metrology market in the automotive industry? What impact do these trends have on the industry? How will the structure of the market change with time? Are the products/services offered today meeting customer needs, or is additional development needed? Are the vendors in the space ready to go it alone, or do they need partnerships to take their business to the next level? Source: Frost & Sullivan
  27. 27. Interested in Full Access? Connect With Us Name Ariel Brown Corporate Communications (+1) 210. Research Authors Aravind Govindan Senior Research Analyst Measurement and Instrumentation Facebook LinkedIn Group SlideShare Twitter Ariel Brown Associate Corporate Communications 210.247.2481
  28. 28. Global Perspective 40+ Offices Monitoring for Opportunities and Challenges
  29. 29. Industry Convergence Comprehensive Industry Coverage Sparks Innovation Opportunities Automotive & Transportation Aerospace & Defense Measurement & Instrumentation Information & Communication Technologies HealthcareEnvironment & Building Technologies Energy & Power Systems Chemicals, Materials & Food Electronics & Security Industrial Automation & Process Control Automotive Transportation & Logistics Consumer Technologies Minerals & Mining