Proximity and Displacement Sensors Market

Proximity and Displacement Sensors Market Outlook – 2030

The global proximity and displacement sensors market size was valued at $5.89 billion in 2020, and is projected to reach $14.85 billion by 2030, registering a CAGR of 9.8% from 2021 to 2030. 

The Proximity and Displacement Sensors Market in significantly affected by the emergence of COVID-19, owing to lack in availability of professional and skilled work force to develop and manufacture Proximity and Displacement Sensor devices and applications.

A proximity sensor is a sensor integrated in a system to detect the presence of an object within the vicinity of the sensor. The sensor is featured with non-contact detection that ensures a high degree of reliability and durability. A displacement sensor measures the position or displacement of an object from one point to another. Presently, the market for proximity and displacement sensors is in a progressive phase of its product life cycle. Increase in demand for these sensors in the development of factory and process automation system has witnessed significant proximity and displacement sensors market growth.

Ongoing trend of process automation in factories and continuous growth in the mobile devices market are the major drivers for the proximity and displacement sensor market. In addition, the declining price of sensors is expected to drive the proximity and displacement sensor market growth exponentially. Growth in popularity of contactless sensing applications and increase in interest of automobile manufacturers toward integrating sensor technology in automotive security and infotainment systems are expected to gradually uplift the proximity and displacement sensors market share globally.

The value chain of the proximity and displacement sensors market trends includes various stakeholders, such as manufacturers of components, 3D software developers, original equipment manufacturers utility solution manufacturers, and service providers. Each of these players share a specific value at their point of operation, which, in turn, contributes to the competitive value of the product. R&D activities, innovations, marketing strategies, and aesthetic concerns enhance the overall value associated with the end deliverable by each player in the proximity and displacement sensor market outlook. The proximity and displacement sensors market trends include a surge in digitization and rise in applications of smart technologies across regions.

In moderate case scenario, the proximity and displacement sensors market forecast is anticipated to continue to grow at a constant rate. Application of wireless proximity sensors and displacement sensors in automobiles, manufacturing automation, and mobile devices show a stagnant growth. The market may not evolve in terms of new applications. The automobile market is likely to support the proximity and displacement sensors industry with existing applications, such as intelligent parking system and ground proximity warning system. Manufacturing sectors may exhibit slower growth due to which the automation technologies would foresee lower growth rate. All these factors lead to a gradual proximity and displacement sensors market growth.

Segment Overview

The proximity and displacement sensors market is segmented on the basis of type, end user, and region. By type, the market is segmented across inductive sensor, photoelectric sensor, capacitive sensor, ultrasonic sensor, magnetic sensor, LVDT sensor, and others. On the basis of end user, the market is segregated into automotive, healthcare, manufacturing, food and beverage, and others. By region, the market is analyzed across North America, Europe, Asia-Pacific and LAMEA along with its prominent countries.

Competitive Analysis

The prominent players in the industry are Omron Corporation, IFM Electronics GmbH, Kaman Corporation, Keyence Corporation, Lion Precision, Micron Optics Inc., Panasonic Corporation, Pepperl+Fuchs, Standex-Meder Electronics Inc., and Turck Inc. These key players have adopted various strategies, such as product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations to enhance their market penetration.

COVID-19 Impact Analysis

The COVID-19 pandemic adversely impacts the industry as huge workforce of enterprises across the globe is working from home. This has led to decline in tourism, which, in turn, reduced the demand for proximity and displacement sensors. Although the COVID-19 pandemic forced field work of several major projects to pause temporarily, the market is expected to remain robust with cumulative number of shipments being marginally unaffected in the next three-year period from 2020. 

New projects globally are stalled, which, in turn, have affected the demand for proximity and displacement sensors in several industries, including manufacturing, industrial, and retail. Although market players face minimal impact on procuring raw materials, time and shipping costs are still major concerns, which hamper the market growth. Moreover, rise in investments in development of smart cities has gained importance during the pandemic. Subsequently, the demand for proximity and displacement sensors is anticipated to gain momentum post-pandemic. 

Key market players focus on positioning their companies for a strong recovery after the pandemic. These market players have meticulously planned to strengthen their supply chain to benefit from post-pandemic opportunities. They further focus on availing additional opportunities with expanded market usage of proximity and displacement sensors technology, owing to price considerations, use of proximity and displacement sensors market technology, and additional display offerings using micro-lenses. Hence, market players are anticipated to boost the market growth owing to various opportunities generated post-pandemic. Although COVID-19 has a major negative impact on the growth of the market, the outbreak of COVID-19 is expected to provide numerous opportunities for the market growth during the forecast period.

Top Impacting Factors

Rise in Trend of Factory Process Automation

Factory automation is a major application area of proximity and displacement sensors. Proximity sensor is a crucial part of the automation systems, which is used for object detection and signaling the processor to initiate specific process assigned to it. Manufacturers are looking for factory automation solutions as an optimum alternative, specifically in the areas where manufacturing process requires repeatability and quality standards are stringent, thus driving the proximity and displacement sensors market analysis.

Cost of Automation

The proximity and displacement sensors market seeks factory and process automation as the prime area of application in terms of revenue. Automation involves installation of robotic structures embedded with intelligent sensing technology, which operates with or without negligible amount of human supervision. However, the implementation of fully integral automation system attracts a huge amount of initial investment, which subsequently dilutes the interest of medium- and small-sized manufacturers. However, high cost associated with establishing automation system is expected to provide benefits, such as concurrent task allocation feasibility and enhanced productivity, which can rapidly cover the initial investment cost. Thereby, boosting the proximity and displacement sensors market opportunity.

Emerging Concept of Smart Homes

Smart home is defined as a habitation furnished with technology that observes conditions of a residence and provides proactive administrations. The smart home concept emerged to offer two major facilities, such as safety and security assisted living for residents and luxury amenities. Proximity and displacement sensors are expected to find numerous opportunities in future, such as in home safety & security and assisted living applications, including smoke detection, automated lighting, and air conditioning.

Key Benefits For Stakeholders

• This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the proximity and displacement sensor market analysis from 2020 to 2030 to identify the prevailing market opportunities.
• The market research is offered along with information related to key drivers, restraints, and opportunities.
• Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
• In-depth analysis of the proximity and displacement sensor market segmentation assists to determine the prevailing market opportunities.
• Major countries in each region are mapped according to their revenue contribution to the global market.
• Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
• The report includes the analysis of the regional as well as global proximity and displacement sensor market trends, key players, market segments, application areas, and market growth strategies.

 Proximity and Displacement Sensors Market Report Highlights