Market and Technology Trends

High-end Inertial Sensors 2024

Jul 2024

Geopolitical dynamics and rising defense and aerospace demands propel the high-end inertial market to $3.7 billion in 2023

YINTR24414

Key Features

Latest updates on high end inertial sensors market volumes and revenues for 2023.
Overview of best future growth opportunities and key market drivers for these sensors.
Detailed view of the ecosystem product released-wise and funding-wise.
Detailed analysis of high-end inertial sensors solutions market shares included.
Broad overview of technology trends provided.
Key comparisons between all technologies available for these kinds of sensors and roadmap for the future.

What’s new?

2019-2029 forecasts in units and revenue for high end inertial sensors

Report objectives

This report is an update of Yole Intelligence’s best-selling “High-End Inertial Sensing” report, first released in 2008 and last released in 2022. This latest edition is an updated version with typical parts explored:

The market is quantified for accelerometers and each gyroscope technology. The leading companies’ yearly shipments and revenues are estimated.
Market metrics are provided for each grade of gyroscope: each application is positioned according to performance level and corresponding market size.
Applications are described synthetically in order to provide rapid access to key information (functions, specifications, technical solutions, trends, and market evolution) and a graphical representation of the industrial chain. Market trends are also given according to the applications.
Technology has always been Yole Intelligence’s focus, and in this report, the main technologies are discussed and compared. The main trends are described (this version includes a slight focus on photonic integrated circuits for fiber optic gyros).

The high-end inertial business is a “tough” market to dissect. The different technologies, levels of integration, performances, and the numerous applications of major markets all lead to a complex description of this broad market. In addition, as we deal with critical applications (defense & aerospace), the availability of various data is limited since many players are reluctant to discuss and disclose information about these sensitive markets.

This report combines Yole Intelligence’s best knowledge of high-end/high-performance inertial sensor industry. Yole Intelligence regularly participates in industry conferences and tradeshows worldwide and has close relationships with most market leaders. This report synthesizes the status of the 2023 high-end inertial sensor industry thoroughly.

Defense and aerospace applications lead the market

High-end inertial sensors are used in various markets and applications. Configurations range from simple single-axis, low-cost setups in industrial applications to multi-axis, highly integrated systems (IMU, AHRS, INS, IRU) in aerospace and defense. The market is estimated at $3.7B in 2023, with the majority (48%) coming from defense and aerospace applications.

The defense and aerospace market is the primary driver of the high-end inertial industry: in this sector, inertial sensors play a crucial role in navigation and stabilization. Demand has increased due to worldwide conflicts and the need to replenish stocks. Navigation for land vehicles, drones, and GPS jamming scenarios presents opportunities.

Despite the impact of the COVID pandemic on the civil aviation sector, the market is recovering. It appears there is a return to business as usual. Higher demand for passenger transportation and aircraft fleet renewals contribute to growth. Urban Air Mobility (UAM) is an emerging sector where inertial sensors are essential.

The rail sector uses inertial sensors to reduce installation and maintenance costs. Challenges include certifications and cross-border agreements. Industry 4.0 adoption drives the need for autonomous applications like AGVs.

Overall, the high-end inertial sensing industry is poised for growth, with applications spanning defense, aviation, rail, and industrial sectors.

The high-end inertial industry is still driven by the same three main players

The high-end inertial sensor market exhibits fragmentation on the application side, while consolidation occurs on the player side. Three major players dominate the market. Additionally, numerous smaller players are specialized in specific technologies and markets. The large companies maintain their market influence through extensive portfolios of high-end technologies with significant added value. However, their presence in protected defense and aerospace programs may limit their agility in addressing emerging markets or customized product requirements.

The estimated market for high-end inertial systems in 2023 is $3.7B, with the USA contributing 64%, Europe and the Middle East at 28%, and Asia and RoW at 8%.

Established players face two potential threats: technology-related risks from startups (developing novel technologies like photonic FOG or refining existing ones like MEMS) and market-related challenges. While some markets (especially defense-related) are relatively captive, newer markets (such as industrial applications) require different product characteristics.

To anticipate future changes and threats, players have engaged in mergers and acquisitions (M&A) to expand their product portfolios and facilitate market access. For instance, the initiation of a voluntary tender offer from Honeywell to acquire Civitanavi reflects this trend. Additionally, iXblue’s merger with ECA formed Exail, enhancing their naval systems capabilities.

Smaller players, in comparison to the top three, have limited influence within the supply chain. Consequently, some are reconsidering their strategies by forming partnerships with other industry players.

In recent years, there has been a surge in product releases across devices (accelerometers, gyroscopes, and IMUs) and technologies.

Perspective on technologies

Various gyroscope technologies cater to specific applications based on requirements. The market approaches new technologies lacking proven field experience cautiously, especially for legacy or strategic applications. While adopting new sensor technology takes time, this caution doesn’t apply to newer or commercial applications with lower performance demands.

Mechanical gyroscope technologies are becoming outdated, and their market presence is diminishing.

Ring Laser Gyroscopes (RLG) are mature, robust, and reliable for navigation, making them the top choice due to their established track record. Opportunities exist for RLGs in the industrial sector.

Hemispherical Resonator Gyroscopes (HRG) offer excellent scale-factor stability and are well-suited for aerospace applications. They also serve as potential alternatives to RLGs in non-captive markets.

Micro-Electro-Mechanical System (MEMS) gyroscopes are popular despite some limitations. Integrated IMU/INS systems benefit from aiding sensors, enabling new manufacturing, energy, and transportation applications.

Fiber Optic Gyroscopes (FOG) represent a maturing technology, though advancements include size reduction. Silicon Photonics could impact FOG performance, and they are gradually replacing RLGs.

Cold Atom Technology gyroscopes can detect gravity fields, although they tend to be bulky. However, their high performance compensates for their size, and ongoing advancements may reduce their dimensions over time.

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High-end Inertial Sensors 2024

Geopolitical dynamics and rising defense and aerospace demands propel the high-end inertial market to $3.7 billion in 2023

Defense and aerospace applications lead the market

The high-end inertial industry is still driven by the same three main players

Perspective on technologies