Market Trends of Latin America Inertial Systems Industry
This section covers the major market trends shaping the Latin America Inertial Systems Market according to our research experts:
The Growing Demand for Unmanned Vehicles is Expected to Drive the Market
- The booming demand for Unmanned Underwater Vehicles (UUV) is the primary factor driving the market's expansion. UUVs are being widely used in oil and gas exploration. The increasing gas and oil production and exploration activities in Latin America would aid the market's growth. For instance, according to the CIA (The World Factbook), in 2020, Brazil and Mexico amounted to 3% and 2.2%, respectively, of the total worldwide crude oil export value.
- The UUVs are used in the defense industry for deactivating underwater mines, counterattacking, port security, and hull inspection. Underwater drones aid in oceanographic studies for mapping the ocean floor in scientific research. They are also employed in scientific research and defense weaponry, where high precision is required.
- With the rising consumption of oil and gas globally, the UUVs are increasingly being used for oil rig constructions, pipeline inspections, and maintenance activities, thereby fueling the demand for the product. For instance, according to Baker Hughes, Latin America has a total of 152 oil and gas rigs as of October 2021, of which 33 rigs are offshore.
- Moreover, technological advancements such as the introduction of light-powered and compact-sized navigation systems that use ring laser gyros (RLG) and fiber optic gyros (FOG) contribute to the market's positive outlook.
- The global oil industry encountered a sudden drop in demand across various countries due to the severe impact of COVID-19. For instance, according to UNCTAD, global maritime transport plummeted by 4.1% in 2020 compared to the previous year due to unexpected disruption caused by the COVID-19 pandemic. The disorder has principally hampered the supply chain, shipping network, trade volumes, and port in the studied market, temporarily restraining the market growth.
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Automotive Segment is Expected to hold a Significant Market Share
- The advancement of the global lifestyle has resulted in a greater demand for equipment that is easier to use, which has enabled the use of motion-sensing technology that heavily relies on inertial sensors. These sensors are widely used in the automotive industry to improve safety, performance, and cost-effectiveness.
- The emergence of MEMS technology increased automotive production, and high investments in defense, military, and sub-sea vehicles are just a few factors driving the automotive inertial systems market, while high cost and complexity are stifling the market growth.
- The rising demand for automobile safety is boosting the market's growth. Every year, approximately 1.35 million people are killed in road accidents worldwide, according to the World Health Organization.
- Furthermore, between 20 and 50 million more people suffer non-fatal injuries, with many becoming disabled as a result. MEMS accelerometers play a critical role in improving vehicle safety features.
- The current generation of automobiles is heavily reliant on data collected from various sensors installed in the vehicle. Gyroscopes and accelerometers provide critical measurements for improving vehicle control and stability. These sensors are prone to producing significant noise at low frequencies, resulting in low measurement accuracy, particularly under low-dynamic conditions, thereby accelerating market demand during the forecast period.
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