Magnetic sensors are riding the "wave." How can domestic enterprises take off along with the trend?

From the Industrial Revolution to the Electric Power Revolution, and then to the Information Technology Revolution, technological advancements have continuously propelled human society into a new era. The only constant is that in these three technological revolutions, Western countries have firmly occupied the position of global technology leaders. Today, humanity stands on the eve of the fourth technological revolution, and a new technological revolution is creating the next "profound change unseen in a century."

In this "profound change," will the global technological landscape shift? The astonishing DeepSeek has already provided a different answer in the field of artificial intelligence. Meanwhile, in the manufacturing sector, along the industrial chains of emerging industries such as new energy vehicles, embodied intelligence, and photovoltaics, and in the magnetic sensor track, which has long been dominated by "international giants" for the majority of the global market share, a story of a Chinese local enterprise starting, developing, and leading is unfolding.

With the explosive demand for intelligent sensing, how can domestic enterprises seize this era - defining opportunity?

For humans, the regulatory function of the nervous system is an essential condition for the normal operation of the human body. Similarly, for intelligent agents such as robots, sensors are the foundation of all intelligent behaviors. Among various sensors such as pressure sensors, image sensors, inertial sensors, acoustic sensors, and automotive radars, magnetic sensors are not well - known to everyone, but they are a crucial link in the industrial chains of AI power supplies, new energy vehicles, robots, etc.

Put simply, a magnetic sensor is a device that converts changes in magnetic properties caused by external factors such as magnetic fields, currents, temperatures, and light into electrical signals. It is widely used to measure physical parameters such as current, position, and direction. As the "sensing center" of modern electronic systems, theoretically, magnetic sensors are needed in all fields that require monitoring of current, position, etc. In actual scenarios, as a key sensing - layer device, magnetic sensors can be applied in many fields such as high - density power supplies, photovoltaic inverters, automotive electronics, wearable devices, and data centers.

As technology has developed to date, magnetic sensors have formed two major technological routes, namely Hall - effect sensors and magnetoresistive - effect sensors (xMR). The magnetoresistive effect is further divided into the anisotropic magnetoresistance effect (AMR), the giant magnetoresistance effect (GMR), and the tunnel magnetoresistance effect (TMR).

Among them, Hall - effect sensors have a long history of use and are a common magnetic sensor technology. However, TMR technology can fundamentally achieve breakthroughs in all indicators of magnetic sensors and is applied in scenarios that require top - notch magnetic sensing technology, such as high - power - density energy conversion, aerospace, high - end equipment, embodied intelligence, quantum computing, and super - computing centers, which are cutting - edge technologies and high - growth industries. In the future, guided by the main directions of technological upgrades such as higher sensitivity and lower power consumption, TMR technology based on quantum mechanics will prevail.

The technological route is "changing lanes," and the market demand for magnetic sensors is about to experience a "major explosion." Statistics show that the global sales of the magnetic sensor industry reached RMB 119.2 billion in 2024 and are expected to reach approximately RMB 293 billion in 2029, with a compound annual growth rate of 19.7%.

Taking the "three - electric system" of new energy vehicles as an example, magnetic sensors can be applied in fields such as battery thermal management, motor control, and motion assistance. With the arrival of the major transformation in the automotive industry, both the number of magnetic sensors used per vehicle and the value per vehicle have increased significantly. According to the "2025 Sensor Industry Research - Global Sensor Sub - market Landscape and Breakthrough of Domestic Substitution" released by Shenqitou, a market research institution, traditional fuel vehicles use about 30 magnetic sensors, while in hybrid or pure - electric vehicles, the number of magnetic sensors increases to about 50, and the value of magnetic sensors per vehicle also increases from RMB 120 to RMB 250.

In addition, the global electricity consumption needs to double in five years to meet the demand of AI. With the explosive growth of the demand for AI power supplies, TMR sensors, as a key link in its industrial chain, will also experience leap - forward development. It is predicted that the global sales of TMR magnetic sensors will reach approximately RMB 33 billion in 2029, with a compound annual growth rate of 26.5% from 2024 to 2029, higher than the overall industry level.

However, like other components with chips at their core, the localization rate of TMR magnetic sensors is low, and the proportion of imports in the high - end market reaches 90%.

There are significant technological barriers in the production and manufacturing of TMR magnetic sensors. Its production process involves sensor chip design, wafer production, sensor modules, solutions, etc. Among them, the sensitive core is the core of the entire sensor. International leading companies generally adopt the IDM (Integrated Device Manufacturer) production model, while domestic enterprises mainly focus on Fabless (no wafer - manufacturing, only focusing on design) and contract manufacturing.

At the same time, customer resources are the lifeline of survival in the component industry. Large customers' requirements for quality and preference for supply - chain stability require component manufacturers to independently control the entire production and manufacturing process. However, whether it is independently mastering the design and production of chips or forming a production chain that integrates the entire industrial chain, component manufacturers need to have in - depth accumulations in capital investment and professional knowledge, which is not easy to achieve.

Therefore, the global magnetic sensor market has long been monopolized by international giants. As a major consumer of magnetic sensors, China's market share has also been held by international large enterprises for a long time.

However, a turning point is quietly occurring. With the use of magnetic sensors in emerging fields such as new energy vehicles, new technologies and product services are beginning to emerge, and the rigid market pattern is loosening. A Chinese enterprise is breaking through the market blockade with its IDM model and establishing its unique market position.

This magnetic sensor company "breaks through the encirclement" by building an IDM model with independent control of the entire industrial chain

The "China Sensing Valley" in Bengbu, Anhui, is one of the top ten MEMS parks in China. It is home to more than 200 sensor - related enterprises, and the sensor manufacturing center of Crocus Technology is located here.

Crocus Technology was founded in 2013. Its chairman, Wang Jianguo, has spent his entire academic career focusing on magnetism and has 24 years of R & D and production experience in related fields. Starting a business from the academic field, the pursuit of excellence in technology is the entrepreneurial spirit inherent in Crocus Technology from its "genes."

The founding team began researching the magnetic sensing TMR technological route during their studies. When initially exploring the market, facing the mature Hall - technology route in the magnetic sensor market, the team developed and designed a new TMR magnetic sensing solution for emerging fields such as new energy vehicles, which was well - received.

In a relatively mature industry, replacing the old solution with a new technological route has opened up a situation for Crocus Technology.

At present, Crocus Technology has a full range of products including current sensors, position sensors, speed sensors, switches, and financial magnetic heads. It has achieved international leading levels in the key performance indicators of products such as industrial - grade current sensors, automotive - grade current sensors, and magnetic encoders, and some products have even directly surpassed global leaders. It is worth mentioning that according to Frost & Sullivan, based on its 2024 revenue, the company is currently the top - ranked Chinese company in the global magnetic sensor industry, and its production and sales scale has exceeded that of some international large enterprises.

As mentioned above, in the magnetic sensor industrial chain, chip manufacturing is one of the most difficult technological aspects to break through. Many enterprises can only become low - end contract manufacturers due to the lack of this ability. Wang Jianguo, the chairman of Crocus Technology, learned about Sensitec, a German magnetic sensor enterprise, early on. This company was once IBM's wafer - manufacturing factory and has been deeply involved in the R & D and industrialization of magnetic sensor technology for more than 20 years. Its magnetoresistive sensitive core, with characteristics such as high precision and high reliability, has successfully entered the supply - chain systems of many global top - notch encoder manufacturers. After founding Crocus Technology, Wang Jianguo always kept an eye on Sensitec and finally defeated many competitors in 2021 and successfully completed the acquisition of Sensitec.

Subsequently, Crocus Technology can fully utilize Sensitec's wafer production capacity and has achieved the IDM full - chain integration ability covering chip design, wafer manufacturing, packaging and testing, and terminal solutions, officially competing with international first - tier large enterprises.

Equally important, led by Sensitec's good international reputation and brand recognition, Crocus Technology has begun to have opportunities to contact many international top - tier large customers. As of now, the name of Crocus Technology has appeared on the long - term cooperation lists of many large enterprises.

Of course, when cooperating with top - tier customers, technology or brand alone is far from enough. Service is the end - point of all value creation.

Crocus Technology attaches great importance to in - depth binding with customers and has participated in the product R & D of customers at an early stage. Chairman Wang Jianguo said bluntly that Crocus Technology's development roadmap is deduced by helping customers formulate their roadmaps. In addition, in Crocus Technology's R & D department, R & D personnel spend an average of 30% of their time with customers, truly implementing the principle of "letting those who hear the gunfire make decisions."

In the twelve years since its establishment, with the magnetic sensing technology originating from the laboratory, Crocus Technology has gradually formed an R & D team of more than 130 people centered around overseas - returnee professionals. It has established R & D bases in five locations including Bengbu, Ningbo, Wuxi, Germany, and Portugal, and has built its own "magnetic sensing empire" globally. According to relevant data from research institutions, in 2024, Crocus Technology ranked second in the global sales of TMR magnetic sensors.

Currently, artificial intelligence, robots, new energy, etc., as representatives of the new round of technological revolution and industrial transformation, are reshaping the global industrial and economic landscape. Facing this era - defining opportunity, domestic technology companies have flocked to the international market and evolved from the previous "following" stage to the "leading" stage. Undoubtedly, such changes will also draw enterprises like Crocus Technology in the industrial chain into the international market to participate in international competition and ultimately achieve the status of a new - generation "international giant" by creating value for global users.

Looking back on the entrepreneurial journey, Chairman Wang Jianguo said that the manufacturing industry cannot rely on speculation, and solid value creation is the prerequisite for success. Guided by such a simple and plain value system, Crocus Technology has established a leading market position in the industry.

In the future, as the pace of the transformation from electrification to intelligence accelerates, the demands for sensing and controlling current, position, accuracy, etc. in various fields will become clearer, and the magnetic sensor market has great potential. As a manufacturing enterprise with a strong academic background and an advanced service model, what is the ceiling for Crocus Technology's development? Long - term value creation will provide the final answer.

This article is from the WeChat public account "36 Krypton." 36 Krypton published it with authorization.