The market analyst predicts that the global automotive MEMS sensor market will grow by 16% in 2012 to $2.31bn.
The big automotive applications for sensors are in systems such as air bags, tire-pressure monitoring and vehicle stabilization control.
"The next few years will bring strong growth in automotive MEMS sensor revenue as vehicle production recovers rapidly and safety system mandates begin to accelerate toward full fitment in the regions of their implementation," said Richard Dixon, senior analyst for MEMS and sensors at IHS.
Market growth this year will be affected by the impact of the Japanese quake on car production.
Automotive MEMS revenues in 2011 are projected to reach $1.99bn, up just 4% from $1.91bn in 2010.
Last year the growth was 28%.
"The March quake in Japan is anticipated to result in a production loss of some two million vehicles this year throughout the car-manufacturing supply chain," Dixon said.
"Although some of this will be recovered in 2011, the loss in vehicle production could entail a shortfall in sensor shipments equivalent to some 20 million units this year."
In the years ahead automotive safety mandates on electronic stability control systems (ESC) that require multiple MEMS sensors also will help the market in the US, Canada, Australia, Europe and eventually Japan.
To learn more about the latest developments in the MEMS market, see the IHS iSuppli report entitled: "2012 Sees Automotive Sensor Market Back to Healthy Growth Pattern."