According to a new report published by Allied Market Research, titled, “Sensor Market By Type, Technology, and End User: Global Opportunity Analysis and Industry Forecast, 2021–2028”, the global sensor market size was valued at $166.69 billion in 2019, and is projected to reach $345.77 billion by 2028, to register a CAGR of 8.9% from 2021 to 2028. Asia-Pacific region is expected to be the leading contributor of the global sensor industry during the forecast period, followed by North America and Europe.
Incorporation of sensors into any device increases its functionality, accuracy, and efficiency, increasing its automation. This, in turn, contributes to high growth rate in the sensor market. There is an increase in demand for sensors due to their wide usage in consumer electronic appliances. Manufacturers of consumer electronic appliances are incorporating more sensors in their devices to add additional features and keep ahead of other players in the highly competitive sensor industry.
In addition, automotive companies such as Audi, BMW, and Volkswagen are extending their R&D budgets every year to stay ahead in the sensor competition. These vehicle manufacturing companies are increasing number of sensors used in their vehicles to make them more comfortable and increase the overall automation. Rise in demand for automation in vehicles, high competition in the automotive industry, surge in demand for electric cars to control pollution, and increase in trend of driverless cars are a few prime factors that fuel demand for sensors in the automotive industry across the globe.
U.S. is the fastest adopter of technology, owing to which growth of consumer electronic devices, electric & hybrid vehicles, and healthcare monitoring systems, and other upcoming IoT technology-based devices is high. Sensors are used in various consumer electronics to automate and increase usability. Increase in disposable income of people in the U.S. drives sale of these electronics in North America.
The radar sensors segment contributed highest revenue share in global market in 2019, owing to rise in benefits of radar sensors compared to other remote sensing technologies, increase in adoption of radar sensors for various applications, and comfort, safety & assistance features offered by the use of radar sensors. The MEMS segment holds largest share in the market across the globe. Implementation of sensors made with MEMS technology in consumer electronic devices drives the sensor market growth.
Moreover, developing nations tend to witness high adoption of sensors, especially in electronics, healthcare, and telecom sectors. Factors such as growth in trend of Internet of Things (IoT) based products and surge in adoption of wearable devices and innovative applications in the biomedical sector worldwide contribute toward growth of the market.
The global sensor market trends are analyzed across various segments including type, technology, end user, and region. By type, the market is categorized into radar sensor, optical sensor, biosensor, touch sensor, image sensor, pressure sensor, temperature sensor, proximity & displacement sensor, level sensor, motion & position sensor, humidity sensor, accelerometer & speed sensor, and other sensors. By technology, it is divided into CMOS, MEMS, NEMS, and others. On the basis of end user, it is categorized into electronics, IT & telecom, industrial, automotive, aerospace & defense, healthcare, and others.
Region wise, the sensor market trends have been analyzed across North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific contributed maximum revenue in 2019, and is expected to grow at a faster rate as compared to other regions. This is attributed to increase in demand from emerging economical countries such as India, South Korea, and Indonesia.
COVID-19 Impact Analysis
Arrival of COVID-19 has significantly affected the electronics and semiconductor sector. Business and manufacturing units across various countries were closed, owing to increase in number of COVID-19 cases, and are estimated to remain closed in 2021 as well. Furthermore, partial or complete lockdown has disrupted global supply chain posing challenges for manufactures to reach customers. The overall production process is being adversely affected, however, increase in demand from healthcare and automotive sectors is expected to boost growth of the market globally.
Key Findings of the Study
- The electronics segment is projected to be the major end user during the forecast period.
- Asia-Pacific and North America collectively accounted for more than 70.0% of the sensor market share in 2019.
- Asia-Pacific is anticipated to witness highest growth rate during the forecast period.
- U.S. was the major shareholder in the North America sensor market analysis, accounting for approximately 65.0% share in 2019.
The key players profiled in the report include Atmel Corporation, Honeywell International Inc., Infineon Technologies AG, Johnson Controls International PLC., NXP semiconductors N.V., Qualcomm Technologies, Inc., Robert Bosch GmbH, Sony Corporation, STMicroelectronics, and Texas instruments Inc. These players have adopted various strategies such as product launch, acquisition, and expansion to expand their foothold in the sensor industry.