© 2012 Gyroscopes and IMUs for Defense, Aerospace & Industrial Multiple technology changes are fueling booming market growth KVH - CROWS II Sagem Embraer Senlution Saab Training System SeaTel Sensonor Kearfott
© 2012
Gyroscopes and IMUs
for Defense, Aerospace & Industrial
Multiple technology changes are fueling booming market growth
KVH - CROWS II Sagem Embraer Senlution
Saab Training
System SeaTel Sensonor Kearfott
© 2012 • 2
Report Content
Introduction, Definitions & Methodology 5
Executive Summary 17
1. 2010-2017 Market and Competition Overview 38
– Global 2010-2017 gyroscope market
– Gyroscope market evolution by sensor grade (value & volume)
– Gyroscope market evolution by application category (value & volume)
– Gyroscope market evolution by level of integration (value & volume)
– Gyroscope market evolution by geography (value & volume)
– Gyroscope 2011 market Shares (value & volume) and competitive trends
– Accelerometer market evolution by application (value & volume)
– Accelerometer market evolution by level of integration (value & volume)
– Global 2010-2017 IMU market (value & volume)
– IMU 2011 market shares (value)
2. Industrial / Medical / Commercial naval / Offshore Applications 74
– Overview: key specifications, market breakdown and market shares
– Application description, trends, geographic breakdown, value chain and market evolution (value & volume) for: Stabilization systems / GPS
aiding - Mobile mapping / Commercial ship navigation - gyrocompass / ROVs - AUVs navigation for offshore / First responder systems / Drilling
(for oil and gas and mining survey) / Motion Capture - Life science / Other commercial applications
3. Commercial Aerospace Applications 108
– Overview: key specifications, market breakdown and market shares
– Application description, trends, geographic breakdown, value chain and market evolution (value & volume) for: Civil aircraft navigation / AHRS
for general aviation / backup instrument / Flight control for civil helicopters and aircrafts / Flight control - navigation for civil & paramilitary UAVs /
Space satellites, Spacecraft & skyrockets / Other commercial aerospace applications
4. Defense Applications 132
– Overview: key specifications, market breakdown and market shares
– Application description, trends, geographic breakdown, value chain and market evolution (value & volume) for: Platform stabilization (RCWS,
turrets, guns, gimbals..) / Missile guidance / Guided munitions - Bombs / Gyrocompass (ships, artillery…) / Military helicopters navigation -
stabilization / Military fighter navigation and flight control / Military transport aircraft / Defense UAV & UGV navigation – control / Armored
vehicle navigation / Combatant ship navigation / Strategic applications (submarine, ballistic missiles, specific space missions…) / Other defense
applications
© 2012 • 3
5. Gyroscope Technologies 178
– Technology classification and performance trends
– 2010-2017 technology evolution (value & volume)
– Technology evolution per gyro grade
– 1990-2020 pricing evolution by technology
6. Silicon / Quartz MEMS Gyroscopes 203
– MEMS gyro classification, principles and latest trends
– MEMS gyros: industrial chain, cost structure, pricing trends, market shares and production level by competitor
Report Content
7. Fiber Optic Gyroscopes (FOG) 219
– FOG classification, principles and latest trends
– FOG: industrial chain, cost structure, pricing trends, market shares and production level by competitor
8. Ring Laser Gyroscopes (RLG) 232
– RLG classification, principles and latest trends
– RLG: industrial chain, cost structure, pricing trends, market shares and production level by competitor
9. DTG & Other Mechanical, Vibrating Piezo Gyroscopes 243
– DTG & other mechanical, vibrating piezo gyroscopes: classification, principles and latest trends
– DTG & other mechanical, vibrating piezo gyroscopes: industrial chain, cost structure, pricing trends, market shares and production level by
competitor
10. HRG and Emerging Gyro Technologies 255
11. Accelerometer Technologies 261
– Technology classification, principles and latest trends
– 2011 technology breakdown
– MEMS accelerometer market shares
Conclusion and Perspectives 279
© 2012 • 4
Objectives of the Report
• The objectives of this report are the following:
– To provide market data on high performance MEMS gyroscopes and gyroscope-based systems (gyro
assemblies, IMUs…): key market metrics & dynamics
• Unit shipments and revenues by type of sensor
• Average selling price analysis and expected evolution
• Market shares for each category of application, for each technology and for each performance grade
– To provide application focus on key existing markets and most promising emerging ones
• Functions that are used, critical specification requirements, level of assembly and technology choices
• What are the major drivers, how will the market be like in 2017?
– To provide an analysis on the major technology trends:
• Evolution expected for the current technologies: level of performance, price…
• Insight about new technologies: AO / Cold atom, NMR gyros…
– To provide a deep understanding of inertial sensor value chain, infrastructure & players for the inertial
business
• Quasi-exhaustive list of sensor manufacturers worldwide with technology offer
• List of key integrators worldwide
• Industrial chain information for each application: who supplies to who
© 2012 • 5
Introduction New entrants are using game-changing MEMS IMUs to
target emerging markets
• Inertial Measurements Units (IMUs) is a large industry traditionally dominated by defense and aerospace
applications. 2011 was a stable year for IMUs with a market size of $1.75B.
• We expect more dynamic growth in this market near term because of two factors:
– In the defense and aerospace sectors: though the markets in the U.S. and Europe are best described as conservative and
mature, many new programs are being launched in Asia, Brazil, and the Middle East.
– Many new applications are fueling the growth of the IMU market, benefiting from significant technology evolutions, such as the
continuous improvement of MEMS IMUs.
• The IMU market is very concentrated; only a few big companies are dominant. Honeywell, Northrop Grumman
and Sagem are the clear leaders, but many newcomers are coming in to play, looking to enter the market with
low-cost MEMS-based products and a different approach to how things are done.
Honeywell 34.8%
Northrop Grumman
19.4% Sagem 9.4%
Others 36.4%
(detailed in the report)
2011 IMU market share (M$) (Total = $1.75B )
Yole Développement
© Aug. 2012
© 2012 • 6
Introduction Growth opportunities are positively impacting the
gyroscope market
• High-performance inertial sensors and systems is a dynamic market segment, as an ever-increasing number of platforms
require stabilization, guidance or navigation functions. The 2011 market for high-performance gyroscopes was estimated at
$1.29B, growing at a 4.3% annual rate, and is expected to reach $1.66B in 2017.
• However, this growth will not be global. Indeed, the most attractive opportunities will be concentrated in a select few
applications, geographies or technologies:
– Defense applications still account for half of the market and most players expect this to remain about the same, as budget cuts made in the
U.S. and Europe will be partially compensated by strong demand in Asia.
– Commercial aerospace represents close to 25% of the market. After a period of stability, an increasing number of business jet, helicopter and
civil aircraft orders will drive renewed inertial systems growth, starting in 2013.
– The remainder of the market (composed primarily of industrial, naval and offshore applications) will be the most dynamic area. While it will
take time to adopt new technol-ogies in the more conservative areas, new industrial applications are appearing with each passing day,
benefiting from the increasing availability of low-cost inertial solutions.
• This report describes in detail each application in terms of market size, competitive analysis, technical requirements,
technology trends and business drivers.
0
500
1000
1500
2010 2011 2012e 2013e 2014e 2015e 2016e 2017e
2010-2017 Gyro Market ($M)
Industrial/medical/commercial naval/offshore Commercial aerospace Defense
Yole Developpement © Aug. 2012
© 2012 • 7
Introduction MEMS and FOG drive the change in the technology mix
• Currently, optical gyroscope technologies still dominate the market by a wide margin. In
particular, Ring Laser Gyroscopes (RLGs) are largely used in navigation systems and tactical
guidance; one example is the Honeywell HG1700 IMU.
• Although RLGs will be robust for high-performance, Yole Developpement expects two other
technologies to make a large contribution to 2011-2017 growth: Fiber Optic Gyroscopes
(FOGs), which are currently very popular for stabilization applications, and should rapidly
progress to eventually replace other navigation technologies; and MEMS technology, which
will have the largest impact on the industry.
• New applications are enabled by low-cost MEMS sensors, and when it comes to
tactical grade applications, a lot of progress has been achieved in just the past few years in
terms of reliability. MEMS are now accepted in high-reliability environments, and are even
starting to replace FOGs and other technologies in tactical applications. Of course, other
technologies must be considered as well: Hemispheric Resonant Gyroscopes (HRGs) are
making progress and are now designed for navigation; Coriolis vibrating piezo gyroscopes are
finding increasing success in a large variety of end-markets while new disruptive gyro
technologies are still in lab-phase; and finally, DTG and other mechanical gyro technologies
are still used in some retrofit systems for 2-axis stabilization systems or for gyrocompass, but
this trend points to a decline.
• Many factors are shaping tomorrow’s competitive landscape: technology capabilities,
products’ maturity level, geography, value chain, and others. As such, competition trends are
carefully analyzed in this report. Honeywell is still the global leader by far, with great success
in RLG-based systems and successful deployment of MEMS technology. Northrop Grumman,
Sagem and other market leaders are next on the list with a variety of technologies and new
product lines that should have big market impact. Newcomers will play a role as well, from
startup companies developing disruptive sensors, to MEMS manufacturers, IMU integrators
and large end-users willing to pursue internal inertial technologies.
• This report highlights market share analysis by application field and technology, as well as
global company shipments and technology breakdown.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Industrial (>6°/h)
Tactical (0.5-5%/h)
Short termnavigation
(0.05-0.5°/h)
High-endnavigation /
strategic(<0.04°/h)
Shar
e in
val
ue
(%
)
Gyro bias stability
2011 Gyro Market ($M) - Techno breakdown
- Total = $1289M -
HRG / others
Other mechanical / vibratinggyrosDTG
RLG
FOG
Yole Developpement © Aug. 2012
© 2012 • 8
Introduction A report designed to be a reference in the 2012 inertial
sensor industry
• This report is the third update of Yole’s best-selling “IMU Markets” report, which was first released in 2008.
This latest edition is a completely new version, with substantial changes since the last edition:
– The scope of study is broader: stand-alone gyroscopes and assemblies of 2 or3-axis gyroscopes are accounted
for in the market numbers
– The market is quantified for each gyroscope technology, and each company’s yearly shipments are estimated
– Market metrics are provided for each grade of gyroscopes: each application is positioned according to
performance level and corresponding market size
– Applications are described in a more synthetic way in order to provide rapid access to key information (functions,
specification, technical solution, geography, trends, and market evolution) and graphical representation of the
industrial chain
• This report combines the best of Yole’s knowledge in the high-performance inertial sensor industry. Yole
regularly participates in industry conferences and tradeshows worldwide, and has close relations with most
market leaders. This report’s data has been validated by industry experts and augmented by the expertise of
Mike Perlmutter, a recognized expert in navigation. With a totally different format than before, this report
synthetizes the status of the 2012 inertial sensor industry in a thorough and completely new way.
© 2012 • 9
Scope of the report
• « High performance » inertial sensors
– This refers to the applications: we take into account all the inertial sensors
except the consumer / mobile and the automotive applications
– It means that we take into account industrial, medical, aerospace, defense
applications (even industrial applications are considered as “high-performance” applications, as
opposed to consumer ones)
– In some cases: « consumer -grade » MEMS gyroscopes (for instance few °/s bias
stability) are used in industrial applications this is part of the report
• To simplify the representation, the performance level has been divided in 4 parts:
– The only parameter which is considered is the bias stability
• In the 50°/h range: « industrial » grade (but it doesn’t mean that this is industrial applications: for
instance many missile and bomb guidance require moderate bias stability and enter in this category)
ability to get data on angular rates / on motion
• In the 1°/h range: « tactical» grade possibility to get angles
• In the 0.1°/h range: « short term navigation » grade possibility for short term navigation (for GPS
outage) and azimuth detection
• In the 0.01°/h range: « high-end navigation & strategic » grade ability to navigate
– Day to day bias stability is considered for navigation grade, this is the most
significant parameter
– In-run bias stability is used for industrial and tactical grade because:
• In the past 20 years, MEMS has appeared and expressed performance in terms of « in-run » parameters
• Use of inertial sensors is now in conjunction with GPS, meaning that bias repeatability in not significant
anymore (for tactical / industrial grade)
– Other parameters need to be considered as well: depending on the application
other parameters such angular random walk or scale factor will be more
important than parameters
Gyroscope
In-Run (for industrial / tactical)
or day to day (for navigation /
strategic) Bias Stability
Corresponding
Grade
100°/h
5°/h
1°/h
0.5°/h
0.1°/h
0.05°/h
0.01°/h
0.0001°/h
Hig
h-e
nd
navig
atio
n
& S
trate
gic
Definition of application grades
Ta
ctic
al
Sh
ort te
rm
Navig
atio
n
Ind
us
trial
© 2012 • 10
Scope of the report
PRICE level
LE
VE
L O
F IN
TE
GR
AT
ION
IMU = 3 mutually
orthogonal gyros
and accelerometers
Cluster of
gyroscopes
Clusters of
accelerometers &
gyroscopes
INS
(Inertial Navigation
System IMU + Kalman
filter)
Cluster of
accelerometers
Gyroscopes Accelerometers
INS / GPS ( fusion with GPS)
-
-
+
+
AHRH (Attitude and Heading
Reference System
IMU + magnetometer +
software)
IMU market (standalone + IMUs
integrated in systems
such as AHRS, INS…)
Gyro market = Market for standalone gyros / assemblies of gyros
+ market for gyros integrated in IMUs and other
systems (AHRS, INS…)
ADAHRS (Air Data Attitude &
Heading Reference
System fusion with
air data)
GADAHRS (GPS aided ADARS
fusion with GPS)
© 2012 • 12
Civil aircraft navigation Application description
Function:
• Main purpose: navigation system for commercial
aircrafts, cargos and business jets
• Additional feature: to monitor deformations of the body
• Flight test instrumentation systems when testing the
aircrafts (low quantity: <1% of the fleet)
Key specifications
• 0.01°/h bias repeatability
• 0.001°/h for test systems
• Civil aero certification
• Long-term supply guarantee
Inertial solution
• Integrated in IMU/INS with high-perf electromechanical
accelerometers
• Used in redundant systems: 2 INS for narrow-body
aircrafts to 3 INS for large-body aircrafts
• Hybridation with GPS (which is in a separate package
for more flexibility)
Technology trends
• RLG technology dominates, FOG is an alternative
• HRG is emerging
• Slow technology change in avionics because of flight
certifications. Not short term wide adoption of MEMS
• Traditionally: aircraft maker select the primary INS
maker (often Honeywell) and the second source as
alternative (often NG) so that airline companies can
choose. This changed recently in some cases: Airbus
selected only Thales for A350 and only Sagem for
A400M
Key gyro players • Honeywell, Northrop Grumman, Thales, Sagem (HRG
INS named GADIRS)
Airbus A320 Neo
Boeing 787 Dreamliner
© 2012 • 13
Civil aircraft navigation Market data
Major gyro integrators • Gyro integrated in assemblies or IMUs / INS by: Honeywell, Northrop Grumman, Thales, Sagem…
• End-users: EADS Airbus & ATR, Boeing, COMAC, Dassault Aviation, Bombardier Learjet, Embraer,
Boeing…
Geographical
description
• For gyros: North America 85% market / Europe 10% / Asia 5%
• For end-users: North America 50% market / Europe 40% / Asia 10%
Market drivers
• Steady growth of the market for the next 5 years (3-5%/y)
• Retrofit market is significant: it is estimated that 25-30% of the market correspond to upgrades. Indeed
cycle time for such electronics is estimated to 10-15 years, INS are thus changed 2 or 3 times in the life
time of an aircraft
• New platforms successfully got massive orders (A320 Neo, B787 Deamliner, COMAC…) leading to a
boom in the inertial market in 2013-2014 timeframe
• Recovery expected in the bizjet sector, after a bad 2008-2012 period
2 010 2 011 2012e 2013e 2014e 2015e 2016e 2017e
K Units 18.3 18.7 19.8 21.0 22.0 22.9 23.6 24.3
0
5
10
15
20
25
30
Mar
ket
(Ku
nit
s)
2010-2017 Civil aircrafts navigation - Gyro Market (Kunits)
Yole Developpement © Aug. 2012
2 010 2 011 2012e 2013e 2014e 2015e 2016e 2017e
$M 141.3 143.4 151.2 159.5 166.6 172.4 176.7 181.1
0
20
40
60
80
100
120
140
160
180
200
Mar
ket
($M
)
2010-2017 Civil aircrafts navigation - Gyro Market ($M)
Yole Developpement © Aug. 2012
© 2012 • 14
Civil aircraft navigation Value chain
Airbus
Boeing
COMAC
…
Honeywell
Gyroscopes IMU/INS Aircraft maker
Airbus Thales
Sagem
EADS ATR, Dassault Aviation,
Bombardier Learjet, Embraer…
Airbus
Boeing
…
Northrop Grumman
© 2012 • 15
Companies Cited in this Report
Al Cielo, Analog Devices, AOSense, Arazim, Astrium, Autoflug, CASC China
Aerospace, Colibrys, Doosan, Elektropribor, Emcore, Endevco, Epson
Toyocom, Fitzoptika, Freescale, Garmin, GEM Electronica, Gladiator
Technologies, Goodrich / AIS, Hitachi, Honeywell, IAI, iMAR, Innalabs,
InterSense, InvenSense, iXBlue, JAE, Kearfott, Kongsberg, KVH, L3
Communication, Litef, Lumedyne Technologies, MEMSense, Microstrain,
Moog / Crossbow, NG Italia, Northrop Grumman, Optolink , PCB Piezo, Perm,
Physical Logic, Raytheon Anschütz, Sagem, SBG Systems, Schlumberger,
Senlution, Sensonor, Sensorex, Silicon Design, Silicon Sensing System, ST
Microelectronics, Systron Donner Inertial, Tamagawa, Teknol, Thales, Tokyo
Keiki, Tronics, VectorNav, VTI, Watson Instruments, XSens …
© 2012 • 16
Who Should be Interested in this Report?
• High-performance accelerometers and gyroscope suppliers
– Understand the system level technology trends and
requirements for each application
– Evaluate market potential for your components
depending on performance and technology
– Understand the differentiated value of your products and
technologies
– Identify new business opportunities and partners
– Monitor and benchmark your competitor’s
advancements
• IMU module and AHRS / INS suppliers
– Evaluate the market potential of your product portfolio
– Define diversification strategies on new applications
– Find the best technologies to integrate and the best
suppliers depending on your target markets
– Identify new business opportunities and partners
– Have an exhaustive analysis of the competition on a
broad range of IMU field
• Material supplier, manufacturing service companies
– Spot new business opportunities and prospects
– Understand the level of activity of your customers
– Understand what are the applications that will drive the
volumes in 2017
• Integrators of inertial solutions, government agencies
– Find the best technologies to integrate and the best
suppliers depending on your target markets
– Understand what will be the future applications to develop
by taking benefit on the recent advances in inertial
technologies
– Define technology roadmap / evaluate the benefits of
using new technologies in end system, design
architectures for the next generation of systems
– Screen potential new suppliers able to provide new
functionalities, or cost and size savings
• R&D centers
– Evaluate market potential of future technologies and
products for new applicative markets
– Identify the best candidates for technology transfer
• Financial & strategic investors
– Understand the structure and value chain of the high-end
inertial industry
– Estimate the potential of new technologies
(tactical/inertial navigation MEMS, navigation-grade
HRG…)
– Get the list of main key players and emerging start-ups of
this industry worldwide
© 2012 • 17
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