Analysis of the Dimensional Metrology Market in the Automotive Industry

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)

• 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


• 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)

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

Reve

nu

e (

$ M

illi

on

)

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

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


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


• Mitutoyo

• WENZEL

• Micro Vu Corp

• Mitutoyo

• Quality Vision

International


• LS Starrett

• Mahr GmbH

• Mitutoyo

• Carl Zeiss

• Perceptron


• Carl Zeiss

• Creaform


• Mitutoyo

• GOM mbH

• Steinbichler Optotechnik

Measurement

Gages

Inline

Metrology

Customized

Solutions*

Key Industry Participants


US

Europe

India

Maturity Development Growth Decline

Time

Ma

rket

Va

lue

• 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


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


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


Mega Trends

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


Mega Trends (continued)

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 Increasing Decreasing

1.2 M


Market Overview

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 Increasing Decreasing

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.


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.


Details of the Full Analysis

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


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


• 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)


• 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



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






• Percent Revenue Forecast by Product 103

• Revenue Forecast by Product 104

• Market Share 105


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


ODS Segment Analysis 112

• ODS Segment Key Findings 113










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


VMM Segment Analysis 126

• VMM Segment Key Findings 127










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


Measurement Gages Segment Analysis 140

• Measurement Gages Segment Key Findings 141











Inline Metrology Segment Analysis 151

• Inline Metrology Segment Overview 152

• Market Drivers and Restraints 153

• Market and Technology Trends 154



• Distribution Channels 157

• Market Cycle Analysis 158

• Percent Revenue Forecast by Region 159

• Revenue Forecast by Region 160




Powertrain Key Solution Area Analysis 164



• Powertrain Key Solution Area Overview 165




BIW Key Solution Area Analysis 169

• BIW Key Solution Area Overview 170

• Market Share—Horizontal Arm Machine 171


o Competitive Environment 173

• Market Share—White-light Scanners 174


o Competitive Environment 176

North America Analysis 177

• North America Key Findings 178








Europe Analysis 184

• Europe Key Findings 185






Asia-Pacific Analysis 191

• Asia-Pacific Key Findings 192








Rest of World Analysis 198

• Rest of World Key Findings 199






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


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?


Interested in Full Access? Connect With Us

Name Ariel Brown Corporate Communications

(+1) 210.

[email protected]

Research Authors

Aravind Govindan Senior Research Analyst

Measurement and Instrumentation

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Ariel Brown Associate Corporate Communications

210.247.2481

[email protected]

mailto:[email protected]

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https://www.linkedin.com/company/frost-&-sullivan





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