Sensor Market

Surging demand for smart sensors in loT-based devices to boost the market growth

The IoT has taken the evolution of sensors to an entirely different level. The IoT platforms deliver intelligence and data using a variety of sensors, making it possible for devices to function autonomously and for the whole ecosystem to become smarter. By integrating a set of sensors and a communication network, devices share knowledge and enhance their effectiveness and functionality.

Additionally, increasing sensor compatibility with the Internet of Things (IoT) platform is gradually becoming a prerequisite for facilitating remote monitoring and control. The IoT-connected devices have opened massive opportunities for sensors in several applications like industrial, medical, consumer electronics, automotive, etc. According to Cisco’s Annual Internet Report, by 2023, there are expected to be nearly 30 billion network-connected devices and connections, up from 18.4 billion in 2018. By 2023, IoT devices are expected to make up 50% (14.7 billion) of all networked devices, up from 33% (6.1 billion) in 2018.

Such an increase in IoT devices would enhance the sensor market CAGR across the globe in the recent years.

However, the surge in the adoption of navigation & electronic compass systems in the transportation & logistics sectors is another factor driving the growth of the sensor market revenue. These devices are connected via satellite navigation systems to track logistics & transportation assets in real-time. These technologies are also used extensively in route guidance and vehicle asset information, further promoting product consumption.

The Global Global Sensor Market Industry is significantly impacted by the proliferation of smart city initiatives worldwide. Urban areas are increasingly leveraging sensor technology to enhance infrastructure, improve public services, and optimize resource management. Sensors are deployed in traffic management systems, waste management, and energy conservation efforts, contributing to more efficient urban living. As cities aim to become smarter and more sustainable, the demand for sensors is expected to rise, supporting the market's growth trajectory. This trend aligns with the broader movement towards urbanization and the need for innovative solutions to address urban challenges.

The Global Global Sensor Market Industry is witnessing substantial growth due to the increasing adoption of sensors in the healthcare sector. Wearable health devices, equipped with advanced sensors, are becoming commonplace, enabling continuous monitoring of vital signs and health metrics. This trend is supported by the rising prevalence of chronic diseases and the need for remote patient monitoring solutions. As the healthcare industry continues to innovate, the demand for sensors is expected to surge, contributing to the overall market growth. The integration of sensors in healthcare applications is likely to enhance patient outcomes and streamline healthcare delivery.

The Global Global Sensor Market Industry is projected to experience robust growth over the next decade. With a compound annual growth rate (CAGR) of 13.95% anticipated from 2025 to 2035, the market is expected to expand significantly. By 2035, the market size is estimated to reach 1052.6 USD Billion, reflecting the increasing adoption of sensor technologies across various sectors. This growth is driven by factors such as technological advancements, rising demand for automation, and the need for enhanced data collection and analysis. The future of the Global Global Sensor Market Industry appears promising, with numerous opportunities for innovation and expansion.

The Global Global Sensor Market Industry is experiencing rapid growth driven by technological advancements in sensor technology. Innovations such as miniaturization, improved sensitivity, and enhanced connectivity are enabling sensors to be integrated into a wide array of applications. For instance, the rise of the Internet of Things (IoT) has led to increased demand for smart sensors in various sectors, including healthcare and automotive. As a result, the market is projected to reach 250.2 USD Billion in 2024, reflecting a growing reliance on sophisticated sensor solutions to enhance operational efficiency and data accuracy.

The Global Global Sensor Market Industry is significantly influenced by the rising demand for automation across various sectors. Industries such as manufacturing, logistics, and agriculture are increasingly adopting automated systems to enhance productivity and reduce operational costs. Sensors play a crucial role in these automated systems by providing real-time data for monitoring and control. This trend is expected to contribute to the market's growth, with projections indicating a market size of 1052.6 USD Billion by 2035. The integration of sensors in automation processes is likely to streamline operations and improve decision-making capabilities.

The Global Global Sensor Market Industry is also propelled by the growing need for environmental monitoring. Governments and organizations are increasingly focusing on sustainability and environmental protection, necessitating the use of sensors for monitoring air and water quality, as well as other environmental parameters. For example, sensors are employed in smart cities to track pollution levels and manage resources efficiently. This heightened awareness and regulatory pressure are likely to drive the market forward, as the demand for reliable environmental data continues to rise, supporting the industry's expansion.

By Region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. The Asia-Pacific sensor market accounted for USD 87.69 billion in 2021 and is expected to exhibit a significant CAGR growth during the study period. This is due to the increased demand for sensors in the automotive industry. For instance, as per the International Organization of Motor Vehicle Manufacturers (OCIA), the total production of automobiles in India increased to 30%, total production of automobiles in China increased to 3%. Indonesia's total automotive output (including cars and commercial vehicles) increased to 63%.

Further, the major countries studied in the market report are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: SENSOR MARKET SHARE BY REGION 2021 (%)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

The Europe sensor market accounts for the second-largest market share due to the rise in the purchase of camera modules and smartphones. This is expected to contribute to market development over the forecast period. Further, the Germany sensor market held the largest market share, and the UK sensor market was the fastest-growing market in the European region.

The North America sensor Market is expected to grow at the fastest CAGR from 2022 to 2030. Technological development and innovative technology adoption rate increased the popularity of advanced solutions in the region. Further, the automotive, consumer electronics, and healthcare industries show superior adoption of the sensor and products in the region. Moreover, US sensor market held the largest market share, and the Canada sensor market was the fastest-growing market in the North America region.

Major market players are spending a lot of money on R&D to increase their product lines, which will assist the sensor market is growing even more. Market participants are also taking a range of strategic initiatives to grow their footprint globally, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Sensor industry must offer cost-effective items to enhance and survive in an increasingly competitive and growing market environment.

One of the primary business strategies manufacturers adopt in the sensor industry to benefit clients and expand the market sector is manufacturing locally to reduce operating costs. The sensor markets major players, such as Robert Bosch GmbH (Germany), ABB Group (Switzerland), STMicroelectronics NV (Switzerland), and others, are working on expanding the market demand by investing in research and development activities.

Robert Bosch GmbH, commonly comprehended as BOSCH, is a German international engineering and technology company headquartered in Gerlingen, Germany. Robert Bosch launched the company in Stuttgart in 1886. Bosch's core operating areas are scattered across four business sectors mobility, consumer goods, industrial technology and energy and building technology. In March 2021, Robert Bosch GmbH's Bosch Sensortec announced the launch of the BME688 sensor, which combines humidity, gas, temperature, and barometric pressure sensing with Artificial Intelligence (AI). The BME688 detects the presence of many gases, including VOCs, hydrogen, and carbon monoxide, in the part per billion (ppb) range.

Also, Renesas Electronics Corp is a Japan-based company that manufactures and distributes semiconductor components and other products for use in automotive, healthcare, computer peripherals, connectivity, home appliance, and industrial end markets. In June 2022, Renesas Electronic Corporation announced the development of sensor solutions for IoT applications. Renesas is also launching the ZSSC3281 sensor signal conditioning (SSC) IC for highly accurate amplification, digitization, and sensor-specific correction of sensor data in addition to the new HS4XXX family of relative humidity and temperature sensors.