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The smart sensor market size is estimated to grow at a CAGR of 12.74% between 2023 and 2028. The market size is forecast to increase by USD 51,427.89 million. The growth of the market depends on several factors, such as increasing demand for smart temperature sensors, increasing implementation of smart sensors in various manufacturing industries and rise in demand for smart sensors in the development of smart cities. Our report examines historic data from 2018 to 2022, besides analyzing the current market scenario.
This report extensively covers market segmentation by type (pressure sensor, temperature and humidity sensor, flow sensor, touch sensor, and others), application (automotive, industrial automation, consumer electronics, and others), and geography (APAC, Europe, North America, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges.
Smart Sensor Market Forecast 2023-2027
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Our researchers studied the data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
Growing demand for smart sensors has become a major driver in the market in focus, particularly due to their crucial role in the creation of smart cities. These sensors play a crucial role in gathering real-time data from diverse urban areas, allowing cities to improve productivity, sustainability, and quality of life. For instance, companies such as Bosch have created intelligent parking sensors that can recognize vehicle occupancy and assist cities in optimizing parking spaces, easing traffic, and lowering emissions. The US's Smart Cities Initiative invests in sensor technology to enhance public safety, energy management, and transportation. Government programs also play a significant role.
Additionally, the monitoring of pollution levels is made possible by air quality sensors from businesses such as Aeroqual, which promotes better urban settings. This expanding pattern highlights the significance of smart sensors in determining the future of cities all around the world. Hence, owing to such factors, the market in focus is expected to grow during the forecast period.
The demand for MEMS technology is on the rise, which is a notable trend in the global smart sensors market. Due to their small size, low power requirements, and adaptability, MEMS sensors are becoming essential components in a wide range of applications, which is primarily driving this trend. To improve safety features through accelerometers and gyroscopes, manufacturers such as Bosch have used MEMS sensors in their automobile systems. Government programs that encourage IoT usage also advance this trend.
Moreover, the National Institute of Standards and Technology (NIST), a branch of the US government, has made investments in MEMS sensors R&D for uses ranging from environmental monitoring to medical equipment. MEMS technology is positioned to play a crucial role in expanding the capabilities of smart sensors globally as businesses continue to prioritize efficiency and connection. As a result, the market in focus is expected to grow during the forecast period
The market in focus is challenged greatly by protracted regulatory approval procedures. The strict safety, privacy, and compatibility regulations enforced by multiple government bodies frequently cause manufacturers of smart sensor technologies to have lengthy delays in getting their devices certified for market access. For instance, the Federal Communications Commission (FCC) in the US requires stringent testing and certification for wireless smart sensors to make sure they don't obstruct other technology. Launches of new products may be delayed by this process, which might take months.
Additionally, the General Data Protection Regulation (GDPR) of the EU mandates strong data protection safeguards for sensors that gather personal information, which complicates and extends the time required for compliance. Long clearance processes make it difficult for businesses to keep up with changing consumer demands, which hinders innovation and market competitiveness. Such factors will impede the growth of the market in focus during the forecast period.
The market share growth of the pressure sensor segment will be significant during the forecast period. Due to its numerous uses in different industries, pressure sensors have emerged as a dominant sensor type in 2023 in the growth of the global smart sensors market. For instance, they are essential for maintaining tyre pressure in cars, assuring safety and improving fuel economy.
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The pressure sensor segment was the largest and was valued at USD 10,722.40 million in 2018. Pressure sensors are used in the industrial sector for process monitoring and control, from heating, ventilation, and air conditioning (HVAC) system optimization to maintaining accurate control in production settings. Additionally, pressure sensors are essential in the rapidly expanding IoT industry for monitoring ambient conditions and fluid levels in smart cities and smart farm applications. Hence, owing to the rising applications in automotive, healthcare, industrial, and IoT applications, the demand for pressure sensors is positioned to grow and therefore, play a key role in propelling the growth of the global smart sensors market during the forecast period.
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APAC is estimated to contribute 47% to the growth by 2028. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. APAC is attracting new projects in various industries, such as automotive, consumer electronics, and industrial automation. The installation of smart grid test beds in Thailand, advanced metering infrastructure in the Philippines, and home energy management systems in Singapore are some examples. Renewable energy integration is another key area propelling the smart grid market in APAC, which is expected to increase the demand for smart sensors in the region during the forecast period. South Korea and Japan are expected to attract high investments in smart grid technology during the forecast period. Indonesia, the Philippines, and Malaysia are the other lucrative markets for transmission and distribution equipment manufacturers.
In addition, APAC is one of the key regions contributing to the growth of the global automotive industry. Manufacturers such as Honda Motor Co. Ltd. (Honda), Nissan Motor Co. Ltd. (Nissan), Toyota Motor Corp (Toyota), Tata Motors Ltd. (Tata Motors), and Hyundai Motor Co. (Hyundai Motors) have started investing in the development of manufacturing units in this region. Automotive and manufacturing companies are increasingly opting to use smart industrial sensors due to the adoption of the Industrial Internet of Things (IIoT), which is expected to drive the growth of the regional market during the forecast period.
In 2020, the outbreak of the Covid-19 pandemic adversely impacted the growth of several end-user industries in the region. However, the regional market has recovered and grown due to the removal of lockdown restrictions in Q4 2020, as well as the initiation of large-scale vaccination drives for COVID-19. This led to the growth of the regional market in 2021 and 2022. Moreover, owing to the extensive demand for the installation of IoT devices across numerous industries and growing initiatives for smart cities and smart grid technologies in the region, the regional smart sensor market is expected to grow during the forecast period.
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.
ABB Ltd.- The company offers smart sensors namely Ability Smart Sensor.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
ABB Ltd., Airmar Technology Corp., Analog Devices Inc., Balluff GmbH, Eaton Corp. Plc, Emerson Electric Co., General Electric Co., Honeywell International Inc., Infineon Technologies AG, Legrand SA, Microchip Technology Inc., NXP Semiconductors NV, Robert Bosch GmbH, Sensirion AG, Siemens AG, STMicroelectronics International N.V., TDK Corp., Vishay Intertechnology Inc., TE Connectivity Ltd., and Texas Instruments Inc.
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The smart sensor market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Smart Sensor Market Scope |
|
Report Coverage |
Details |
Page number |
188 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 12.74% |
Market Growth 2024-2028 |
USD 51,427.89 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
12.49 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 47% |
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., Airmar Technology Corp., Analog Devices Inc., Balluff GmbH, Eaton Corp. Plc, Emerson Electric Co., General Electric Co., Honeywell International Inc., Infineon Technologies AG, Legrand SA, Microchip Technology Inc., NXP Semiconductors NV, Robert Bosch GmbH, Sensirion AG, Siemens AG, STMicroelectronics International N.V., TDK Corp., Vishay Intertechnology Inc., TE Connectivity Ltd., and Texas Instruments 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 the 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. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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