This market report is a part of: Position Sensors: Global Market Demand Analysis.

This report analyses the global market for linear displacement sensors, including segmentation by sensor types and key applications.

A number of companies in the global position sensor markets are going to gain share, grow revenues and remain profitable. Manufacturing and process control engineers continue to recognize the critical role that these technologies play in the constant – and now more urgent – pursuit of efficiency, accuracy and reliability. The manufacturing markets continue to display a broad-based lack of appetite for large scale automation projects. However they continue to demonstrate their keen interest in highly targeted, low capital risk projects that provide incremental improvement, or enable much sought after market-driven minor innovations. This is evidenced by the persistent, if somewhat tempered, demand for a number of proven sensor technologies, including position. Many position sensor suppliers know this, and some have experienced it as they fulfill on orders to upgrade or extend position solutions in a broad range of markets. The business has been hard to predict, track or trend. In order for position sensor suppliers to maximize their now- and near-term revenue opportunities, they believe that they need fresh market intelligence on their markets.

This research will focus on the critical tactical and strategic issues driving and shaping now- and near-term demand for position sensor implementations.

Some of the questions this report will explore are:

•Which markets and applications present the best near-term opportunities for suppliers based on customer priorities and plans?
•What are customers citing as the most powerful regulatory, cost management and performance improvement factors driving investment in position sensing today?
•What enabling technologies and features are end users, OEMs and other customer groups looking for? How are they ranked in the purchase decision process? How is their ranking changing in the current environment?
•How will customers’ broader product and vendor selection criteria change this year? In 2010? What will these changes mean for suppliers’ position and share?
•How can suppliers employ more effective tactical and strategic sales and marketing efforts to better position their firm, their product portfolio, and service capabilities to compete and thrive in 2010, 2011 and 2012?

This research initiative contains three comprehensive reports that provide insight, analysis and actionable advice to clients seeking to gain market share in their respective position sensor markets, information and insights to penetrate new position sensor markets and/or identify strategic partners or acquisition targets.

This report will provide:

•Definition and analysis of global position sensor market opportunities offering the most potential during the 2009-2013 time period
•In-depth analysis of global proximity and photoelectric sensors market demand for selected products
•Estimates and forecasts for all position sensing products under study
•Equipment OEM, integrator and end-user (as applicable) requirements and preferences covering both technical and commercial factors driving optimal cost to deploy, operational impact and more
•Analysis of the structure of the position sensor supplier community, including leading and emerging supplier market shares, positions, direction and profiles
•Discussion of key issues, forces and trends shaping near-term market growth and development
•Recommendations on best practices for designing more effective sales and marketing campaigns that will help drive business even in these unprecedented economic times.
•Recommendations for suppliers, large and small, that will enable them to take advantage of current adverse conditions and gain share, improve customer service and insure long-term viability.

TABLE OF CONTENTS

Executive Summary

Slide 2              Introduction

Executive Summary ­ Scope & Methodology

Slide 3              Products covered ­ definition
Slide 4              Companies targeted and interviewed
Slide 5              User survey
Slide 6              Strategy survey
Slide 7              Definitions ­ regions, vertical markets and channels

Executive Summary ­ Market Estimates & Forecast

Slide 8              Introduction
Slide 9              EMEA market is the leader for proximity sensing products
Slide 10             APAC is the leader for photo sensing products
Slide 11             EMEA is the market leader for limit switch products

Executive Summary ­ Competitive Analysis

Slide 12             Introduction
Slide 13             Top 5 worldwide proximity suppliers
Slide 14             Top 5 worldwide photoelectric
Slide 15             Top 3 worldwide limit switch

Executive Summary ­ User Requirements, Preferences & Plans

Slide 16             Introduction
Slide 17             User / customer survey demographics ­ even spread among users, OEMs and SIs
Slide 18             Assembly / robotics has highest share but a wide range of industries / applications are represented
Slide 19             User demographics ­ regional distribution
Slide 20             Buying trends ­ regional migration of sensor purchasing
Slide 21             Regional market performance is expected to vary widely during the next two years
Slide 22             Users generally have an overly optimistic view of the economic recovery for their business
Slide 23             Sensor and limit switch use is expected to stay the same, or increase slightly across most user groups
Slide 24             Most users reducing their spend on limit switches are citing much larger contexts for the change
Slide 25             Users are developing new products that use sensors and are open to new sensor products
Slide 26             High rates of citation of price and availability indicate that some consider this a commodity market
Slide 27             User's preferred sensor and limit switch vendors ­ Allen Bradley / Rockwell leads the way

Executive Summary ­ Observations & Recommendations

Slide 28

Scope & Methodology

Slide 30             Introduction
Slide 31             Definitions ­ companies / products covered
Slide 32             Definitions ­ regions, vertical markets, and channels
Slide 33             Additional market segmentation dimensions ­ applications, sales and customer channels
Slide 34             Definitions ­ vendor sales channels and customer purchasing sources
Slide 35             Supplier survey overview
Slide 36             User survey overview
Slide 37             Supplemental supplier strategy survey overview

Market Estimate & Forecast

Slide 39             Introduction
Slide 40             Notes to the forecasts
Slide 41             Overall proximity sensor market regional performance is not expected to vary materially
Slide 42             Inductive proximity sensors markets possess two distinct profiles: military and non-military
Slide 43             Non-inductive proximity sensors offer a solid example of larger industrial sensor market profile
Slide 44             APAC is the leader in Photo Sensing Products
Slide 45             Photoelectric interrupters fared better than most other subcategories of photoelectric devices
Slide 46             Limit switch market performance was fairly even among all regions
Slide 47             Limit switch market is a tale of two technologies
Slide 48             Average factory selling price profiles will vary ­ in some cases materially ­ across segments
Slide 49             Volume (units millions) ­ slide 1 of 2 ­ major markets with a minimum of 10 million units in 2013
Slide 50             Volume (units millions) ­ slide 2 of 2 ­ smaller markets with <5 million units shipped in 2013
Slide 51             Packaging equipment is the leading application for capacitive proximity sensors
Slide 52             Robotics and Auto mfg. are leading usages for non mil / aero inductive proximity sensors
Slide 53             Markets that use metal materials in tough environments drive demand for magnetic proximity sensors
Slide 54             In down markets, security leads the way for magnetic actuated proximity sensor usage
Slide 55             Odd target shapes comprised of challenging materials call for ultrasonic proximity sensors
Slide 56             Packaging equipment still leads the market for photoelectric sensors
Slide 57             Assembly/Robotics is the leader with highest growth projected for photo interrupter sensor usage
Slide 58             The simple and reliable electromechanical limit switch is important in markets with heavy machinery
Slide 59             The solid state technology extends the capability and dependability of the limit switch

Competitive Analysis

Slide 61             Introduction
Slide 62             Structure and direction of the supplier community
Slide 63             Introduction to the following set of competitor share slides
Slide 64             Turck is the leading overall proximity sensor manufacturer
Slide 65             iFM Efector is the leading capacitive proximity sensor manufacturer ­ maybe not for long
Slide 66             Strong partnerships help Turck lead the non mil / aero inductive proximity sensor market
Slide 67             European supplies take all top 5 spots in the magnetic proximity sensor market
Slide 68             Hamlin leads magnetic actuated proximity sensor market ­ seeks to improve in APAC
Slide 69             Schneider leads the market for ultrasonic proximity sensors ­ multiple brands
Slide 70             APAC manufacturers take the first 3 of 4 places in photo sensors
Slide 71             APAC manufacturers take the first 3 of 4 places in photoelectric sensors
Slide 72             Optek is the global and EMEA leader for photo interrupter sensors
Slide 73             Regional factors tend to dominate the limit switch market
Slide 74             Regional factors tend to dominate the limit switch market even without solid state being considered

Competitive Analysis ­ Strategy Survey

Slide 75             Product development strategy summary ­ suppliers currently offering each line
Slide 76             Product development strategy summary ­ share of suppliers releasing new products
Slide 77             Market development strategy summary ­ vertical market strategies are in flux, regional support is not
Slide 78             Supplier channel development strategies changing as suppliers look to recapture margin

Channel Estimates

Slide 80             Introduction
Slide 81             Market estimate ­ customer channel
Slide 82             Market estimates ­ sales channel

User Requirements, Preferences and Plans

Slide 84             Introduction
Slide 85             User/ customer survey demographics ­ even spread among users, OEMs and ISIs
Slide 86             Assembly/Robotics has highest share but a wide range of industries / applications are represented
Slide 87             OEM, System Integrators ­ Engineering management / staff are the leading demographic
Slide 88             End User demographics ­ Technical staff are dominant demographic for end user sensor purchasing
Slide 89             Customer/ user survey demographics ­ moderate overweight to Americas
Slide 90             Buying trends ­ regional migration of purchasing managers
Slide 91             Regional market performance is expected to vary widely during the next two years
Slide 92             Users generally have an overly optimistic view of the economic recovery for their business
Slide 93             Sensor and Limit Sw. use is expected to stay the same, or increase slightly across most user groups
Slide 94             Users are on the lookout for new technologies and new sensors with multitask ability
Slide 95             New sensor capabilities open new opportunities within sensor users' new products
Slide 96             At a minimum, a sensor must be accurate and reliable before users consider other features
Slide 97             Users are increasingly willing to use networked sensor over hard wired ­ wireless is the next wave
Slide 98             DC powered sensors are preferred but there is a growing trend for Solar or Wireless/self powered units
Slide 99             Prewired lead is losing ground in user preference
Slide 100            Stainless steel is the preferred body type material because of its durability in most environments
Slide 101            Reflective photo sensors are preferred for most applications
Slide 102            Photo sensors should include visual indication of power on and target sensed
Slide 103            Proximity sensors should include visual indication of power on and target sensed
Slide 104            Cylindrical shapes are still preferred by proximity sensor users
Slide 105            On-line sources are continuing the trend away from printed material and personal contact
Slide 106            Although trade shows are having lesser importance ­ 2 stand out for user preference
Slide 107            Users had 3 clear leading preferences for trade periodicals
Slide 108            High rates of citation of price and availability indicate that some consider this a commodity market
Slide 109            Notes on User's preferred sensor vendor
Slide 110            User's preferred proximity sensor vendor
Slide 111            User's preferred proximity sensor vendor
Slide 112            User's preferred proximity sensor vendor
Slide 113            User's preferred proximity sensor vendor
Slide 114            User's preferred proximity sensor vendor
Slide 115            User's preferred proximity sensor vendor
Slide 116            User's preferred photoelectric sensor vendor
Slide 117            User's preferred photoelectric sensor vendor
Slide 118            User's preferred photoelectric sensor vendor
Slide 119            User's preferred Limit Switch vendor

Observations and Recommendations ­ Introduction

Slide 121            Introduction
Slide 122            The global position sensor market is still a multi-billion opportunity , and it will grow again
Slide 123            Success in many markets will require continued merger of higher reliability and lower cost
Slide 124            Light, power and wireless are among the key technical developments to consider and balance
Slide 125            Customers prefer well integrated vendors and are open to new technologies
Slide 126            Customers are continuing to sweat assets, as such, replacement/ migration support is key
Slide 127            Suppliers are laboring with broad agendas and thinner teams ­ strategic rationalization continues
Slide 128            Suppliers in the middle of a number of changes, will need to emphasize stability more than ever
Slide 129            Sales and distribution channels

LIST OF EXHIBITS

Estimates & Forecasts

Exhibit 1            Global Shipments of Proximity & Photo-Electric Sensors & Limit Switch by Type
                     (Millions of Dollars)
Exhibit 2            Americas Shipments of Proximity & Photo-Electric Sensors & Limit Switch by Type
                     (Millions of Dollars)
Exhibit 3            EMEA Shipments of Proximity & Photo-Electric Sensors & Limit Switch by Type
                     (Millions of Dollars)
Exhibit 4            APAC Shipments of Proximity & Photo-Electric Sensors & Limit Switch by Type
                     (Millions of Dollars)
Exhibit 5            Global Shipments of Capacitive Proximity Sensors by Vertical Market
Exhibit 6            Americas Shipments of Capacitive Proximity Sensors by Vertical Market
Exhibit 7            EMEA Shipments of Capacitive Proximity Sensors by Vertical Market
Exhibit 8            APAC Shipments of Capacitive Proximity Sensors by Vertical Market
Exhibit 9            Global Shipments of Non-Mil/Aero Inductive Proximity Sensors by Vertical Market
Exhibit 10           Americas Shipments of Non-Mil/Aero Inductive Proximity Sensors by Vertical Market
Exhibit 11           EMEA Shipments of Non-Mil/Aero Inductive Proximity Sensors by Vertical Market
Exhibit 12           APAC Shipments of Non-Mil/Aero Inductive Proximity Sensors by Vertical Market
Exhibit 13           Global Shipments of Magnetic Proximity Sensors by Vertical Market
Exhibit 14           Americas Shipments of Magnetic Proximity Sensors by Vertical Market
Exhibit 15           EMEA Shipments of Magnetic Proximity Sensors by Vertical Market
Exhibit 16           APAC Shipments of Magnetic Proximity Sensors by Vertical Market
Exhibit 17           Global Shipments of Magnetic Actuated Proximity Sensors by Vertical Market
Exhibit 18           Americas Shipments of Magnetic Actuated Proximity Sensors by Vertical Market
Exhibit 19           EMEA Shipments of Magnetic Actuated Proximity Sensors by Vertical Market
Exhibit 20           APAC Shipments of Magnetic Actuated Proximity Sensors by Vertical Market
Exhibit 21           Global Shipments of Photoelectric Sensors by Vertical Market
Exhibit 22           Americas Shipments of Photoelectric Sensors by Vertical Market
Exhibit 23           EMEA Shipments of Photoelectric Sensors by Vertical Market
Exhibit 24           APAC Shipments of Photoelectric Sensors by Vertical Market
Exhibit 25           Global Shipments of Photointerrupter Sensors by Vertical Market
Exhibit 26           Americas Shipments of Photointerrupter Sensors by Vertical Market
Exhibit 27           EMEA Shipments of Photointerrupter Sensors by Vertical Market
Exhibit 28           APAC Shipments of Photointerrupter Sensors by Vertical Market
Exhibit 29           Global Shipments of Ultrasonic Proximity Sensors by Vertical Market
Exhibit 30           Americas Shipments of Ultrasonic Proximity Sensors by Vertical Market
Exhibit 31           EMEA Shipments of Ultrasonic Proximity Sensors by Vertical Market
Exhibit 32           APAC Shipments of Ultrasonic Proximity Sensors by Vertical Market
Exhibit 33           Global Shipments of Electromechanical Limit Switches By Vertical Market
Exhibit 34           Americas Shipments of Electromechanical Limit Switches By Vertical Market
Exhibit 35           EMEA Shipments of Electromechanical Limit Switches By Vertical Market
Exhibit 36           APAC Shipments of Electromechanical Limit Switches By Vertical Market
Exhibit 37            Global Shipments of Solid State Limit Switches by Vertical Market
Exhibit 38            Americas Shipments of Solid State Limit Switches by Vertical Market
Exhibit 39            EMEA Shipments of Solid State Limit Switches by Vertical Market
Exhibit 40            APAC Shipments of Solid State Limit Switches by Vertical Market
Exhibit 41            Global Shipments of Proximity & Photo-Electric Sensors & Limit Switch by Unit Volume
Exhibit 42            Global Shipments of Proximity & Photo-Electric Sensors & Limit Switch by Average
                      Factory Selling Price

Supplier Shares

Exhibit 1             Global Shipments of Photo-Electric/Proximity Sensors & Limit Switches by Supplier Share
Exhibit 2             Americas Shipments of Photo-Electric/Proximity Sensors & Limit Switches by Supplier Share
Exhibit 3             EMEA Shipments of Photo-Electric/Proximity Sensors & Limit Switches by Supplier Share
Exhibit 4             APAC Shipments of Photo-Electric/Proximity Sensors & Limit Switches by Supplier Share

Distribution Channels

Exhibit 1             Global Shipments of Photo-Electric/Proximity Sensors & Limit Switches by Sales Organization
Exhibit 2             Global Shipments of Photo-Electric/Proximity Sensors & Limit Switches by Customer Class

User Survey General

Exhibit 1             Survey User Demographics by Industry/Application
Exhibit 2             Survey User Demographics by Region
Exhibit 3             Survey User Regional Change
Exhibit 4             Survey User Economic Recovery
Exhibit 5             Survey User Future Purchase Estimate
Exhibit 6             Survey User Future Purchase Decrease Basis
Exhibit 7             Survey User Future Purchase Increase Basis
Exhibit 8             Survey User Delivery Requirements

User Survey Photo Questions

Exhibit 1             Photo User Survey - Sensors Used
Exhibit 2             Photo User Survey - Order Qty.
Exhibit 3             Photo User Survey - Photoelectric Technologies
Exhibit 4             Photo User Survey - Indicator Lights
Exhibit 5             Photo User Survey - Package Shapes
Exhibit 6             Survey All Photo User Vendor Preference
Exhibit 7             Survey OEM, Integrator, Other Photo User Vendor Preference
Exhibit 8             Survey End User Photo Vendor Preference
Exhibit 9             Survey Photoelectric User Vendor Preference
Exhibit 10            Survey Photointerrupter User Vendor Preference

User Survey Prox Questions

Exhibit 1            Prox User Survey - Sensors Used
Exhibit 2            Prox User Survey - Order Qty.
Exhibit 3            Prox User Survey - Indicator Lights
Exhibit 4            Prox User Survey - Package Shapes
Exhibit 5            Survey All Prox User Vendor Preference
Exhibit 6            Survey OEM Integrator & Other Prox User Vendor Preference
Exhibit 7            Survey End User Prox User Vendor Preference
Exhibit 8            Survey Capacitive User Vendor Preference
Exhibit 9            Survey Inductive User Vendor Preference
Exhibit 10           Survey Magnetic User Vendor Preference
Exhibit 11           Survey Magnetic Actuated User Vendor Preference
Exhibit 12           Survey Ultrasonic User Vendor Preference

User Survey Limit Questions

Exhibit 1            Limit SW User Survey - Sensors Used
Exhibit 2            Limit SW User Survey - Order Qty.
Exhibit 3            Survey All Limit SW User Vendor Preference
Exhibit 4            Survey OEM Integrator & Other Limit SW User Vendor Preference
Exhibit 5            Survey End User Limit SW User Vendor Preference
Exhibit 6            Survey Electromechanical Limit SW User Vendor Preference
Exhibit 7            Survey Solid State Limit SW User Vendor Preference