The market for semiconductor magnetic sensors used in industrial and medical applications expanded by 6 percent last year, with green energy initiatives acting as a major growth driver, according to an IHS iSuppli Magnetic Sensor Market Tracker Report from information and analytics provider IHS

Revenue in 2011 for industrial and medical magnetic sensors amounted to $118.2 million, up from $111.9 million in 2010. Although revenue in this segment is small compared to other magnetic sensor areas like automotive and wireless-consumer, the industrial and medical categories will fuel continued expansion for the sensors in the years to come. By 2016, revenue for this particular magnetic sensor segment is forecast to climb to $175.5 million, as shown in the figure attached, equivalent to a five-year compound annual growth rate of 8 percent.

“In the industrial market, a main growth driver for magnetic sensors is renewable energy, such as solar installations, and to a smaller extent, wind turbines,” said Richard Dixon, Ph.D., principal analyst for MEMS and sensors at IHS. “Meanwhile, motors of all kinds consume an estimated 45 percent of all electricity generated worldwide, and huge energy savings are possible by improving their efficiency. And as government legislation comes into play, this is acting as a boon for the sensors, implemented with an eye toward reducing energy consumption.”