April 22, 2024

Sensor Market will grow at highest pace owing to increased adoption in IoT devices

Sensors play a key role in collecting and transmitting real-time data to be further analyzed and acted upon. They find wide applications across sectors such as automotive, healthcare, industrial, consumer electronics and others. Factors such as growing adoption of Internet-of-Things (IoT) enabled smart homes and cities, development of autonomous and electric vehicles using advanced driver assistance systems and rising focus on industrial automation are fueling demand for sensors globally.

The Global Sensor Market is estimated to be valued at US$ 261.41 Mn in 2024 and is expected to exhibit a CAGR of 6.0% over the forecast period 2024 to 2030.

Key Takeaways
Key players operating in the sensor market are EverZinc, S. Zinc, Numinor Chemical Industries Ltd., Hanchang, Silox India Private Limited, Metal Powder Company Limited (MEPCO), Toho Zinc Co., Ltd., Hakusui Tech Co., Ltd., Pars Zinc Dust Manufacturing Co. (PZD), and Jiangsu Shenlong Zinc Industry Co., Ltd. The growing demand for sensors from various end-use industries such as consumer electronics, automotive, healthcare, industrial and others is expected to drive the market during the forecast period. Moreover, technological advancements in sensor technology leading to the development of miniaturized, energy-efficient and cost-effective sensors will further fuel their demand over the coming years.

Market Trends
The rising adoption of IoT across multiple industries is a major trend in the sensor market. IoT integrates physical devices and sensors that are connected to internet which helps in collecting and sharing data. This has increased the demand for various sensors such as temperature, motion and pressure sensors. Another key trend is the development of smart cities which require extensive deployment of sensors for applications ranging from traffic management, environmental monitoring to public safety.

Market Opportunities
Development of smart homes represents a major growth opportunity. Smart homes rely on various sensors and connectivity to provide enhanced comfort, convenience, security and energy efficiency. Growing consumer inclination towards home automation solutions will drive related sensor investments. Furthermore, ongoing advancements in autonomous vehicles provide opportunities for sensor manufacturers. Autonomous driving requires extensive sensing using radar, LiDAR and other vision sensors to safely navigate road conditions without human intervention.

Impact of COVID-19 on Sensor Market Growth
The outbreak of COVID-19 posed significant challenges for the Sensor Market Size . Globally imposed lockdowns and movement restrictions disrupted supply chains and postponed projects involving sensor installation. Sensors deployed in various industries like automotive, manufacturing were impacted due to halting of operations. However, the pandemic also saw increased demand for sensors used in medical devices and applications like temperature sensors used in thermal scanners. Contactless biometric sensors for access control saw higher adoption from offices, businesses aiming for safety. Remote asset monitoring using IoT sensors gained prominence from industries aiming to operate remotely during lockdowns. The healthcare sector extensively used oxygen saturation, ECG and other vital sensors for remote patient monitoring. As lockdowns ease globally with vaccination drives, the sensor market is recovering steadily with resumption of projects and supply chains. The market is expected to witness higher growth owing to increased focus on hygiene, safety and adoption of advanced technology. However, prolonged impact of pandemic in some parts of world remains a challenge.

Geographic Regions with Highest Concentration of Sensor Market
In terms of value, the Asia Pacific region holds the largest share of the global sensor market currently. This is attributable to presence of established manufacturing bases of sensor technology leaders and large semiconductor fabricators in countries like China, Taiwan, South Korea and Japan. The availability of raw materials, workforce and manufacturing infrastructure at competitive costs drives sensor fabrication in the region. Another major factor is the large customer base of sensors in industries like consumer electronics, automobiles which are majorly located in Asia Pacific. North America is the second largest sensor market driven by technological advancements and higher spend on research and development activities especially in the US.

Fastest Growing Regional Sensor Market
The sensor market in Middle East and Africa region is projected to witness the fastest growth during the forecast period. This is attributed to ongoing industrialization and infrastructure development projects across the region. Countries like UAE, Saudi Arabia are investing heavily in developing smart cities integrated with IoT based solutions requiring massive deployment of sensors. Furthermore, oil & gas industry hitherto dominating the regional economies is increasing digitization and automation using array of process sensors. Growing population, urbanization and focus on energy efficiency will further fuel demand of sensors in residential & commercial sector. Initiatives by governments in the region to diversify economies and develop non-oil sectors offers immense potential for sensor market to grow exponentially in the coming years.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it