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The sensor market size is estimated to grow by USD 274.2 billion at a compound annual growth rate (CAGR) of 17.89% between 2022 and 2027. The growth of the market depends on several factors, including the rise in demand for IoT technology-based devices, rise in demand for sensors in the development of smart cities, and an increase in the usage of smartphones. Some of the key applications of sensors include the automotive, healthcare, consumer electronics, and industrial automation industries. This market research and analysis report includes in-depth analysis of key drivers, trends, and challenges during the forecasted period.
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The rise in demand for IoT technology-based devices is the key factor driving the growth of the market. IoT technology facilitates the connection of many smart gadgets to facilitate their operation and share data between them. Various smart gadgets, such as smartphones, tablets, and wearables collect important data from the device, which is then used to improve the user experience. The growing need for data analytics and analytics integration is likely to drive the use of IoT-based devices.
Moreover, IoT plays an important role in improving process automation and improving operational efficiency in various industries. IoT is also improving its skills in cold chain monitoring for temperature-sensitive food and pharmaceutical products. Accordingly, the increasing use of IoT-based devices is expected to drive market growth and trends during the forecast period.
The rise in the adoption of wearable devices is one of the key trends that shaping the market. A wearable device is an electronic device designed to be worn on a consumer's body and equipped with intelligent operational capabilities. Smart devices such as smartwatches, smart bracelets, and headphones are examples of wearable electronics. In the consumer electronics industry, wearables have overtaken smartphones in popularity. These gadgets allow users to perform common tasks such as checking messages and measuring physical activity.
Moreover, the sensor market is likely to be driven by the increasing use of wearable medical devices in developing economies. Sensors offer several advantages, including high accuracy, compact size, and low sensitivity to electromagnetic radiation, making them ideal for use in portable medical-grade devices. Due to the increasing usage of wearable devices, the global sensors market is expected to grow significantly during the forecast period.
Increasing usage of network-embedded systems is the key challenge that affects the growth of the market. Advances in digital telecommunications technology have led to the creation of integrated networks. Embedded networking refers to the network and topology, hardware devices, and communication/data-exchange protocols needed to link and transmit information across embedded systems. Today's embedded systems offer a variety of wired and wireless communication alternatives for integrating network functionality into devices.
Moreover, network-integrated systems are currently used in a wide variety of smart devices and electronic products, and they are linked with other devices to provide valuable communication and measurement knowledge information. through wireless sensor networks. On the other hand, embedding sensors into a gadget increases the cost and shortens the life of the device. Hence, this issue is expected to impede the growth of the global sensors market during the forecast period.
The market industry report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market forecasting report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
The market share growth by the CMOS segment will be significant during the forecast period. Complementary metal oxide semiconductors (CMOS) are known for their small form factor and integration capabilities. The growing use of CMOS sensors in smartphones, tablets, cameras, and other consumer electronics is an important driver for this segment.
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The CMOS segment showed a gradual increase in the market share of USD 52.98 billion in 2017 and continued to grow by 2021. The proliferation of IoT devices and applications requires a variety of sensors, including CMOS sensors, to enable data collection, monitoring, and control in a variety of environments. The rising popularity of virtual reality (VR) and augmented reality (AR) technologies rely on CMOS sensors to track user movements and interactions. Therefore, continued advancements in semiconductor manufacturing, leading to higher resolution, improved sensitivity, and improved performance of CMOS sensors, are expected to fuel the growth of the segment during the forecast period.
Sensors play an important role in the electronics industry by enabling devices to perceive and respond to changes in their environment. Sensors such as accelerometers, gyroscopes, ambient light sensors, proximity sensors, and fingerprint sensors allow various features to be performed, such as screen rotation, gesture control only, automatic brightness adjustment, and biometric security. The widespread adoption of electronic devices including smartphones, tablets, wearables, smart home devices, and IoT devices is creating significant demand for sensors to enable features in these products. The application of sensors in electronic devices enables energy-saving and environmentally friendly practices, in line with the growing consumer demand for sustainable products. Thus, such advantages are expected to propel the growth of the electronic segment of the global sensors market during the forecast period.
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North America is estimated to contribute 39% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Sensors play an important role in converting physical parameters into measurable signals, enabling data collection and facilitating control and automation processes. North America is a global hub for technological advancements and innovations. The region's strong research and development ecosystem, coupled with a highly skilled workforce, drives continuous improvement and the development of cutting-edge sensor technologies.
Moreover, this region is at the forefront of smart manufacturing and Industry 4.0. Sensors play an important role in industrial automation, predictive maintenance, and data-driven decision-making in manufacturing processes. North America has a thriving healthcare sector, driving sensor adoption in medical devices, wearables, and remote patient monitoring solutions. Hence, these factors are expected to fuel the demand for sensors thus expected to boost the regional sensors market growth during the forecast period.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Our market trends and analysis report includes data that is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Sensors are devices that detect and respond to physical or chemical stimuli and convert them into measurable signals. The market is dynamic, and driven by various factors influencing sensor technology across diverse sectors. In medical equipment, biosensors and motion sensors enhance diagnostic capabilities, while gas sensors ensure safety. Market drivers, including the surge in IoT platforms and network-connected devices, contribute to the intelligence and effectiveness of sensor applications. Cisco's Annual Internet Report forecasts exponential growth in IoT-connected devices, especially in logistics and transportation sectors. The sensor market revenue is propelled by advancements in satellite navigation systems and navigation & electronic compass systems. The Internet of Things (IoT) has revolutionized various sectors, including vehicles, robotics, agriculture, and infrastructure. With continuous developments, IoT-enabled devices like level sensors play a crucial role in collecting and transmitting data for analysis and decision-making.
Segmentation reveals the significance of image sensors, optical sensors, and humidity sensor technology. In the industrial IT & telecom, aerospace & defense, food & beverages, and construction verticals, sensors play a crucial role. The Asia-Pacific sensor market, including major countries like Indonesia, South Korea, and Australia, leads in technological development. Europe, with Germany, Italy, Spain, and the UK, witnesses a thriving sensor market. North America, particularly the US and Canada, shows an innovative technology adoption rate, especially in the image sensors segment and anti-terror equipment, addressing security lapses. Humidity sensors find applications in moisture-sensitive industries like food and beverages and textiles, providing route guidance and vehicle asset information for efficient product consumption.
The market growth and forecasting report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Market Scope |
|
Market Report Coverage |
Details |
Page number |
187 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 17.89% |
Market growth 2023-2027 |
USD 274.2 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
16.25 |
Regional analysis |
North America, APAC, Europe, Middle East and Africa, and South America |
Performing market contribution |
North America at 39% |
Key countries |
US, China, Japan, Germany, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., Amphenol Corp., ams OSRAM AG, Dwyer Instruments Inc., Honeywell International Inc., Johnson Controls International Plc, Microchip Technology Inc., NXP Semiconductors NV, OMRON Corp., Panasonic Holdings Corp., Qualcomm Inc., Robert Bosch GmbH, Rockwell Automation Inc., Siemens AG, Sony Group Corp., Spectris Plc, STMicroelectronics International N.V., TE Connectivity Ltd., Texas Instruments Inc., and Infineon Technologies AG |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market analysis and report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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