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The Global Automotive Engine Sensors Market Size is estimated to grow by USD 6,277.47 million between 2022 and 2027 accelerating at a CAGR of 4.84%.
This automotive engine sensors market report extensively covers market segmentation by product (process sensors and position sensors), vehicle type (passenger cars and commercial vehicles), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges.
Increasing demand for off-road vehicles and environmental safety is driving the automotive engine sensors market. The automotive industry prioritizes fuel efficiency, safety, and reduced emissions to enhance the driving and travel experience for consumers. This has led to an increase in engine sensors, such as pressure, position, and temperature sensors, to improve engine operations. Consumer demand for better safety and performance features has increased the preference for automotive engine sensor suppliers, especially in developing regions like APAC where personal mobility is becoming a necessity. The adoption of sensors in mid-end and low-end cars is increasing due to the prospect of mass volume consumption. Rising consumer awareness of alternative fuel vehicles, environmental concerns, and government subsidies for new energy vehicles are driving the market growth. The adoption of automotive engine sensors is expected to increase in mid-end to low-end markets during the forecast period to attract the mass market. Additionally, O2 sensors for the exhaust system are highly valued by consumers globally which is driving the market growth.
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Our researchers analyzed the data with 2022 as the base year and the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing demand for Inertial Measurement Units (IMU) sensors due to advancements in manufacturing technology is a key driver for the automotive engine sensors market. InvenSense and STMicroelectronics have created smaller sensor dies that combine both accelerometers and gyroscopes. These combo sensors are now available in sizes as small as 10 * 10 square mm, and their size is expected to decrease further. Inertial measurement units (IMUs) have also been improved with sensor-fusion software that supports features such as automatic screen rotation, gesture recognition, and free-fall detection.
The integration of data from multiple sensors has eliminated many of the limitations of individual sensors when calculating position and orientation information. Combo sensors have lower production costs compared to discrete sensors. IMU sensors are expected to surpass discrete sensors in unit shipments by the end of the forecast period.
Leading vendors, such as STMicroelectronics and Bosch SensorTec, are investing more in research and development to create advanced versions of IMUs, gyroscopes, and accelerators. The sales potential of this market has motivated vendors to set high standards for sensor products. This increased investment is expected to drive and sustain market growth during the forecast period.
Advances in MEMS packaging techniques is a major trend in the automotive engine sensors market. The MEMS packaging industry has gained immense prominence in recent years and is constantly evolving. The need to reduce packaging size and integrate 9-axis sensors in a single package has increased, especially with the advent of multi-axis accelerometers.
Furthermore, it is crucial for the vendors to achieve standardization in packaging due to the massive increase in unit shipments of MEMS sensors over the last few years. Although it is a difficult task to achieve due to rapid advances in technology in consumer electronic devices, certain vendors are trying to achieve packaging material standardization for various sensors.
A few other trends in the MEMS packaging industry include low-temperature wafer bonding, packing MEMS at wafer dicing level, doped polysilicon, and silicon interposers for packaging, and many others. Therefore, such advances in MEMS packaging are expected to benefit vendors that offer MEMS sensors significantly.
Low profitability for vendors in the global automotive engine sensors market is a major challenge. Manufacturers in the consumer electronics and automotive industries aim to reduce variable manufacturing costs, including raw material costs, through bargaining with suppliers. This bargaining has reduced profitability for engine sensor vendors, who must also lower production costs to remain competitive. The high concentration of vendors in the market has raised concerns about shrinking customer bases and profit margins. Many vendors in this segment are consumer electronics industry players, posing challenges for smaller suppliers lacking critical mass. Thin profit margins have led to serious concerns for automotive electronics suppliers globally and many bankruptcy filings.
A proposed solution for this issue is factoring, which involves financing receivables. The receivables financing company provides two installments, with the first covering 80% of the account receivables and paid upon delivery, while the remaining 20% is paid once the OEM or tier-1 supplier settles the invoice. This presents a challenge for market growth.
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The market share growth by the process sensors segment will be significant during the forecast period. Process sensors monitor temperature and pressure and are widely used for applications pertaining to passenger safety and vehicle security.
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The process sensors segment was valued at USD 20,387.25 million in 2017 and continued to grow until 2021. The adoption of pressure sensors is expected to be highest during the forecast period due to the change in technology. Currently, MEMS technology is most often used in pressure sensors and is expected to move to capacitive ceramic technology because it can work efficiently at extreme temperatures, providing better thermal management. In addition to passenger cars, process sensors gather force in CVs. We expect the growth of the mid and low-segment vehicle market to drive the process sensors during the forecast period.
Over the past decade, the use of sensors in passenger cars has grown significantly, due to changing global markets. US federal emission regulations accelerated this growth and forced OEMs to balance compliance with viability and resilience. This led to the installation of modern, precise sensors, like Manifold Absolute Pressure (MAP) and air-fuel ratio sensors, enhancing the sophistication of car electronics. Advanced sensors, such as driver assistance systems, electronic stability control, and HVAC systems, are also being used for safety and comfort considerations. As demand for passenger cars rises, the automotive sector has expanded, leading to technological advancements and increased demand for engine sensors. Sensors are used throughout the vehicle, including in chassis, body control, and powertrain/drivetrain applications, monitoring variables like temperature, pressure, voltage/current, and vacuum. The demand for automotive engine sensors is expected to increase during the forecast period.
APAC is estimated to contribute 61% 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.
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The production and sales of cars worldwide are led by APAC. In 2018, more than three-fifths of new vehicles sold globally were from this region. Advancements in the Automotive Powertrain market will further boost the revenue of the regional market. Countries such as China and India, which are among the fastest-growing in terms of population, economic growth, and infrastructure development, contribute to APAC's strong market potential.
The socio-economic development of the region, including an increase in job opportunities, commercial and logistics activities, and the establishment of new processing industries and factories, fuels the growth of the regional car market. Sensor companies are also attracted to the region due to its growth potential, with some establishing their own production units. Additionally, the used car market in the region is growing due to factors such as attractive prices, new players, transparency of vehicle history, and various distribution channels. This growth in the used car market further increases the demand for automotive sensors and contributes to the growth of the regional automotive sensors market.
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Although the 2020 COVID-19 outbreak negatively impacted the APAC automotive sensor market, the expected introduction of vaccines and the gradual reopening of international trade will likely increase demand for automotive sensors. Despite the pandemic, the APAC market is expected to remain largely unaffected during the forecast period, thereby contributing to the growth of the regional market.
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the Automotive Engine Sensors Market. One of the major vendors in the market include:
TDK Corp.- The company offers commercial telematics platforms with the latest cutting-edge technology.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified. Furthermore, it is also quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market research 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.
Automotive Engine Sensors Market Scope |
|
Report Coverage |
Details |
Page number |
170 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.84% |
Market growth 2023-2027 |
USD 6,277.47 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
3.06 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 61% |
Key countries |
US, China, Japan, India, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Amphenol Corp., Aptiv PLC, Auto DITEX BG Ltd., Continental AG, Denso Corp., Dorman Products Inc., DRiV Inc., Electricfil SA., HELLA GmbH and Co. KGaA, Hitachi Ltd., Mitsubishi Electric Corp., NGK SPARK PLUG Co. Ltd., NXP Semiconductors NV, PRENCO Progress and Engineering Corporation Ltd., Robert Bosch GmbH, Sensata Technologies Inc, Spectra Premium Industries Inc., TDK Corp., Texas Instruments Inc., and Walker Products Inc. |
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 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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