The global sensor market (henceforth, referred to as the market studied) was valued at USD 77.16 billion in 2020, and it is expected to reach USD 128.56 billion by 2026, registering a CAGR of 8.86%, during the period of 2021-2026.
- The sensors market is being driven by the increasing requirement for sensor-rich applications. The developments of sensors that offer precise and accurate measurements repeatedly have been critical in driving the demand in novel applications. For instance, in case of drones, accurate measurement of barometric pressure is necessary for improving the stability and landing accuracy of flights. Moreover, industrial automation and the demand for miniaturized consumer devices, such as wearables and IoT-connected devices, among others, across regions, are among the major factors driving the sensors market. ?
- Industry 4.0 revolution, in which machines are becoming more intelligent and intuitive, is increasing the need for the industrial applications of sensors. The new machines are designed in order to be more efficient, safe, and flexible, with the ability to autonomously monitor their performance, usage, and failure. These applications, therefore, spur the demand for sensors that are highly sensitive. Besides, the smart city initiatives have pushed the acceptance of smart homes that incorporate the usage of smart devices. Increasing urbanization, as well as the need to manage the infrastructure and assets, is encouraging countries across the world to invest in multiple smart city projects. According to the Consumer Technology Association, the global spending on smart city developments is expected to reach USD 34.35 billion by 2020.?
- The market is witnessing innovations, which is set to further create competition in the market. For instance, Missouri University of Science and Technology is developing an electronic sensor that can detect viruses by analyzing someone’s breath. This can be used in future to manage the spread of an epidemic like coronavirus. A Dubai and Detroi-based startup, Derq, is developing a system, which uses a combination of sensors on roads, artificial intelligence, and computers in cars to notify drivers of potential hazards.
- In August 2019, MIT developed a new underwater sensor and communication system that neither requires batteries nor uses power. This could help set up an underwater IoT, which would allow for real-time sea temperature and marine life monitoring.
Key Market Trends
Emergence of Automation and Industry 4.0 to Drive the Market Growth
- Governments across regions, such as Germany, the United States, China, and India, are focusing on smart manufacturing techniques by increasing automation and industrial control systems (ICS), to create a connected automated environment and increase the operational efficiencies. ?
- For instance, the Department of Heavy Industries (DHI), India, is currently spreading awareness regarding Industry 4.0 to drive the Indian Manufacturing to a “Smart and Intelligent Manufacturing”.
- Companies, such as STMicroelectronics and Honeywell, are offering an array of sensors that are specifically designed to support industrial applications and address the demanding requirements of the Industry 4.0 revolution. For instance, Infenon's DPS310 is a low-power digital barometric pressure sensor that offers weather monitoring applications for IoT deployments.?
- Industry 4.0 (smart manufacturing) is being widely accepted and incorporated across industries, such as healthcare, oil and gas, mining, automotive, and semiconductor. For instance, Infineon, a key player in the semiconductor industry announced to invest USD 105 million over the course of five years (2017-2022) in its plant in Singapore to turn it into a smart factory. ?Robot Manufacturers, such as KUKA, automated their plants, in order to reduce the number of issues on the work floor, as well as reduce the operational cost.
Asia Pacific to Account for a Highest Market Share
- India is fast leapfrogging the deployment of several emerging sensors and IoT technologies. India offers an opportunity to deploy these emerging technologies at a larger scale to bring economies of scale. Newer IoT-based opportunities and ecosystems are developing every day. The Government of India is taking multiple steps to push the adoption of emerging technologies with innovative initiatives, including Digital India, Make in India, Smart Cities, etc. These initiatives are further expected to boost the sensors market in the country.
- The political push for industrial modernization in China creates an enormous demand for smart manufacturing products, like smart sensors and wireless sensor networks. International suppliers of sensor technologies are currently in a gold-rush mood in China. China’s industry has a huge demand for high-end machine tools, smart sensors, and other technologies.
- The impact of the fourth industrial revolution is seeing increased demand for sensor applications across value chains and processes in multiple industries. Sensors in Japan will be in high demand to tackle societal problems. Japan’s aging population is expected to increase the demand for more sophisticated healthcare and elderly care services.
- Also, the South Korean company Hyundai Mobis, is going to enhance the automobile system with biometric heart-rate measurement by the end of the year. The system uses sensors to detect passengers with greater accuracy.
The major players include ST Microelectronics,Texas Instruments Incorporated,Honeywell International Inc.,Infineon Technologies AG, and Sensata Technologies among others. The market is fragmented due to the high competition between top players in the industry. Hence, market concentration will be low.Some of the key developments in the market are:
- March 2020 - TE Connectivity has integrated its sensor products into Analog Devices’ MeasureWare hardware measurement kits and software studio tools. The integration will allow TE customers to easily develop precision sensor applications even without a deep understanding of precision analogue or sensor design.
- Jan 2020 - Infineon Technologies presented the world’s smallest 3D image sensor for face authentication and photo effects on smartphones. It has developed with Pmdtechnologies AG, new REAL3 single-chip solution that measures 4.4 x 5.1 mm and is the fifth generation of successful time-of-flight deep sensors
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1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Intensity of Competitive Rivalry
4.2.5 Threat of Substitute Products
4.3 Industry Value Chain Analysis
4.4 Industry Policies
4.5 Market Drivers
4.5.1 Decreasing Cost of Sensors
4.5.2 Emergence of Automation andÂ Â Industry 4.0Â
4.6 Market Restraints
4.6.1 Higher Installation Cost
5 MARKET SEGMENTATION
5.1.1 Pressure Sensors
5.1.2 Temperature Sensor
5.1.3 Position Sensor
5.1.4 Level Sensor
5.1.5 Image Sensor
5.1.6 Chemical Sensor
5.1.7 Torque Sensor
5.2 End-user Industry
5.2.3 Process Industry
5.2.4 Consumer Electronics
5.2.6 Aerospace and Defense
5.2.7 Other End-user Industries
5.3 By Geography
5.3.1 North America
22.214.171.124 Rest of Europe
126.96.36.199 Rest of APAC
5.3.4 Latin America
5.3.5 Middle East and Africa
6 COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 TE Connectivity
6.1.2 Qualcomm Technologies Inc.
6.1.3 Panasonic Corp.
6.1.4 Bosch Sensortec GmbH
6.1.5 GE Measurement & Control
6.1.6 Sensata Technologies
6.1.7 Infineon Technologies AG
6.1.8 Honeywell International Inc.
6.1.9 Texas Instruments Incorporated
6.2 Investment Analysis
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
Secondary Research Information is collected from a number of publicly available as well as paid databases. Public sources involve publications by different associations and governments, annual reports and statements of companies, white papers and research publications by recognized industry experts and renowned academia etc. Paid data sources include third party authentic industry databases.
Once data collection is done through secondary research, primary interviews are conducted with different stakeholders across the value chain like manufacturers, distributors, ingredient/input suppliers, end customers and other key opinion leaders of the industry. Primary research is used both to validate the data points obtained from secondary research and to fill in the data gaps after secondary research.
The market engineering phase involves analyzing the data collected, market breakdown and forecasting. Macroeconomic indicators and bottom-up and top-down approaches are used to arrive at a complete set of data points that give way to valuable qualitative and quantitative insights. Each data point is verified by the process of data triangulation to validate the numbers and arrive at close estimates.
The market engineered data is verified and validated by a number of experts, both in-house and external.
REPORT WRITING/ PRESENTATION
After the data is curated by the mentioned highly sophisticated process, the analysts begin to write the report. Garnering insights from data and forecasts, insights are drawn to visualize the entire ecosystem in a single report.