In-Depth Report Series on The Automotive Sensor Industry

Magnetic Sensors: Diverse Applications in Automotive, Industrial, Robotics, and Consumer Sectors

Magnetic sensors have diverse applications in automotive, industrial, robotics, and consumer sectors. According to Yole data and forecasts, the global magnetic sensor market was valued at approximately $2.6 billion in 2021 and is expected to grow to $4.5 billion by 2027, with a CAGR of around 9%. Automotive electronics are a significant source of demand growth. Currently, the localization rate of magnetic sensor chips in China is about 5%. We are optimistic about the growing demand for domestic magnetic sensors driven by the rapid intelligent and electric upgrades in China's automotive industry. Domestic companies like Naxinwei, Canrui Technology, and Awinic Electronics are making significant progress in the field of magnetic sensors.

#### 01 Magnetic Sensors for Contactless Position/Current Measurement

Magnetic sensors, based on electromagnetic induction, can detect physical quantities like current/position without contact. They convert physical signals into electrical signals. Magnetic sensors, categorized as non-contact sensors, can be divided into Hall sensors and magnetoresistive sensors:

1. **Hall Sensors:** Based on the Hall effect, these sensors convert changes in external factors like magnetic fields and current into electrical signals via sensitive elements (Hall elements). These signals are then processed by circuits (amplifiers, comparators, ADDA, and control circuits). Hall sensors are currently the mainstream magnetic sensor chips due to their wide range (broader measurement range), small size, long life, vibration resistance, corrosion resistance, and low cost. According to Yole Development, Hall sensors hold nearly 70% of the global magnetic sensor market share, with extensive downstream applications.

2. **Magnetoresistive Sensors (xMR):** Based on the magnetoresistive effect, these sensors can be further divided into AMR (Anisotropic Magnetoresistance), GMR (Giant Magnetoresistance), and TMR (Tunnel Magnetoresistance). Compared to Hall sensors, magnetoresistive sensors have higher sensitivity and measurement accuracy, and lower power consumption. However, they are more expensive and less resistant to environmental influences. Yole Development data indicates that magnetoresistive sensors hold about 30% of the global magnetic sensor market, mainly used in high-precision applications.

We estimate the value of magnetic sensors in a single new energy vehicle to be about $40-60, with smart and electric components each contributing $20-30. In summary, we estimate that a single new energy vehicle uses 80-100 magnetic sensors, including 30-50 magnetic switch sensors ($0.05-0.15 each, total $3-5), 20-30 magnetic position/speed sensors ($0.5-1.5 each, total $20-30), and 20-30 current sensors ($0.5-1.5 each, with some high-current products costing $3-5, total $20-30). Overall, the total value of magnetic sensors in a single electric vehicle is about $40-60, and even higher when considering the module level. For a highly intelligent fuel vehicle, the value can reach $20-30.

#### 02 Competitive Landscape: Dominated by Overseas Brands, Domestic Manufacturers Accelerating Breakthroughs

The magnetic sensor market is currently dominated by overseas brands, with domestic manufacturers gradually increasing their share. The main global players in magnetic sensor chips include Allegro, Infineon, AKM, Melexis, and TDK, especially in the automotive-grade magnetic sensor sector. Domestic companies like Naxinwei, Canrui Technology, Awinic Electronics, Saitro Electronics, Si Rui Technology, Chipone Electronics, and Maxscend Microelectronics are actively developing, but due to a late start, the localization rate of magnetic sensor chips is still low. Based on revenue disclosed by major domestic companies, we estimate that the global market share of domestic manufacturers in magnetic sensor chips was about 5% in 2022, with significant room for growth. Looking ahead, from a product perspective, domestic manufacturers are starting with low-end Hall switches and actively developing higher-end magnetic sensor products like position sensors, current sensors, and speed sensors. From a downstream perspective, domestic manufacturers are expanding from the low-end consumer electronics market to the mid-to-high-end industrial and automotive markets. With the trend of domestic substitution, we are optimistic about Naxinwei, Canrui Technology, Saitro Electronics, and Awinic Electronics gradually expanding their product categories and increasing their market share in the magnetic sensor field, becoming important players in the global magnetic sensor chip industry.

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