As manufacturing processes become increasingly sophisticated, machine builders and other users of proximity, photoelectric and linear displacement sensors in their designs are demanding more functionality from their sensors. But times have been tough for suppliers says VDC. According to their analysts, if suppliers are to boost the low, and at times negative, growth rates of the past four years, it will be necessary for them to deliver new or enhanced technologies to meet the emerging and sometimes specialized needs of production equipment builders serving diverse markets. A past Venture Development Corp. (VDC, www.vdc-corp.com) market study totaled the U.S. market for proximity and photoelectric sensors at $655 million in 2000 and the market for linear displacement sensors at $314 million in 2000.Specifically, says VDC sensor suppliers should:Provide new shapes and smaller sizes,Use advanced housing materials like Teflon, chrome-plated steel etc. to meet durability requirements,Offer support for open and proprietary networking protocols,Incorporate networking interface circuits, andIncrease sensing range and performance.What technologies are becoming attractive to sensor buyers? The best prospects are:Proximity And Photoelectric SensorsCapacitiveLargest Market Segment - Automotive IndustryFastest-Growing Segment - Assembly/Robotics Equipment, Medical Equipment & Petroleum Industry are tiedInductiveLargest Market Segment - Metalworking EquipmentFastest-Growing Segment - Packaging EquipmentMagnetic ActuatedLargest Market Segment - Valve IndustryFastest-Growing Segment – Material-Handling EquipmentPhotoelectricLargest Market Segment – Material-Handling EquipmentFastest-Growing Segment - Automotive Industry UltrasonicLargest Market Segment - Paper/Film ConvertingFastest-Growing Segment - Printing EquipmentLinear Displacement SensorsCapacitiveLargest Market Segment - Disk Drive IndustryFastest-Growing Segment - Semiconductor IndustryInductosyn EncoderLargest Market Segment - Metalworking EquipmentFastest-Growing Segment - Metalworking EquipmentMagnetic EncoderLargest Market Segment - Metalworking EquipmentFastest-Growing Segment – Undetermined—vendors are expanding market efforts beyond metalworking equipmentOptical EncoderLargest Market Segment - Metalworking EquipmentFastest-Growing Segment - Printing Equipment & Textile IndustryInductive Largest Market Segment - Semiconductor IndustryFastest-Growing Segment - Packaging EquipmentLaserLargest Market Segment - Electronics Industry††Fastest-Growing Segment - Electronics Industry††LVDTsLargest Market Segment - Military/Aerospace IndustryFastest-Growing Segment - Assembly/Robotics EquipmentMagnetostrictiveLargest Market Segment - Plastics Manufacturing EquipmentFastest-Growing Segment - Lumber Industry Ultrasonic Largest Market Segment - Food & Beverage IndustryFastest-Growing Segment - Assembly/Robotics Equipment††Exclusive of semiconductor industry portionVDC's is proposing to update its past research. “Proximity, Photoelectric, and Linear Displacement Sensors: North American Market Assessment, Seventh Edition” aims to outline the changing requirements of control environments and help suppliers create strategies to address these important issues by providing granular, relevant market analysis if this industry.