However, recent events suggest demand for detection sensors, which are used to help optimise traffic flows and reduce roadway congestion, is likely to improve over the near term. The main cause for optimism is the recent and unexpected passage of the MAP-21 act by the U.S. congress. The MAP-21 legislation will set aside $105 billion for improvements to America’s surface transportation infrastructure.

“The new funding will impact the detection sensor market in a number of ways,” remarks Michael Arluck, report author and analyst at IHS. “Highways and roads will form a significant component of the program. As such, there is likely to be additional demand for detection sensor products on the back of these transportation projects.”

Arluck continues: “Another positive sign for the industry has been the recent uptick in ITS (Intelligent Transport Systems) consulting work. Such a trend is often a good leading indicator for future demand (perhaps 18-24 months out) of detection sensor products.” In light of these and other factors, IHS has forecast a gradual improvement in the US market for detection sensors, with revenues returning to positive growth in 2012 and growing by a compound annual growth rate (CAGR) of 7.3 percent to $149.4 million in 2017.