The global automotive oxygen sensor and dynamic sensor market size was valued at USD 30 billion in 2021 and is predicted to reach an expected value of USD 48.16 billion by 2030, growing at a CAGR of 5.4% during the forecast period (2022-2030). Automotive oxygen sensors, often known as lambda sensors, are instruments that gauge the amount of oxygen present in exhaust gases. Because improper fuel burning can harm the exhaust system's internal components and affect the cars' overall performance, the oxygen sensor significantly impacts the exhaust system's lifespan. During the projection period, it is predicted that the market for oxygen and dynamic sensors will dramatically expand, mainly because more sensors are being replaced.
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Increasing Consumer Preference toward Vehicles with Advanced Features
Due to improving levels of living, there has been an increase in consumer demand for vehicles with modern technology and amenities. In addition, expanding urbanization and population have increased the demand for ecologically friendly transportation options, as metropolitan climates are unfavorable and car emissions continue to rise. Globally stringent regulations enforced by regulatory agencies on the carbon emissions of automobiles are expected to increase demand for automotive oxygen sensors. The increased spending power of consumers and their preference for more reliable, safer, and innovative vehicles is also likely to propel the market forward during the forecast period.
Growing Young Population
The growing young population across the globe would also add to the market's growth. Gen-Z and millennials would be the primary focus of automakers as they are tech-savvy and often want feature-rich products in terms of functions and performance. For instance, the market for automotive sensors is highly prolific in India, being home to the world's largest youth population and consistently emerging as an automotive manufacturing hub for the western automotive industry.
Increasing Concerns over Sensor Replacement/Repair
Incorporating a higher number of sensors and other electronic components increases the complexity of aftermarket repair and maintenance, as there is a lack of skill and expertise to repair these new systems. In conjunction with price increases, this growing complexity of automotive systems is restricting the global market for automotive oxygen and dynamic sensors.
Another major factor restraining the market is the replacement. As most of the sensors are at intricate places in vehicles, it is difficult to repair or replace these sensors easily without disturbing other components. For instance, an automotive oxygen sensor in the powertrain system and the exhaust has varying operating temperature ranges. Therefore, in case of damage, replacement is a big issue.
Technological Advancements in the Automobile Industry
As a result of technological advancements in the automobile industry and the expansion of the automotive sector, sensor manufacturers will be compelled to upgrade their products to match the vehicles, which is anticipated to create immense potential in the future for the global automotive sensor market.
Companies specializing in semiconductors and microelectronics continually create innovative sensor solutions for automotive applications. The emergence of more advanced dynamic sensors, such as the ring laser gyroscope sensor, which delivers more precise information to the vehicle control units, is anticipated to present substantial growth potential for the global automotive dynamic sensors market over the forecast period.
By type, the global automotive oxygen sensor and dynamic sensor market are segmented by oxygen and dynamic sensors. The oxygen sensors are further segmented into zirconia oxygen sensors, wideband zirconia, and titania sensors. The dynamic sensors are further segmented into mass airflow sensor, camshaft/crankshaft position sensor, pressure sensor, exhaust temperature sensor, engine oil level, oil pressure, intake air temperature sensor, and other dynamic sensors.
The dynamic sensors segment accounted for the largest market share and is estimated to grow at a CAGR of 5.5% during the forecast period. Within the dynamic sensors segment, the camshaft/crankshaft position sensor accounted for the largest market share and is predicted to expand at a CAGR of 4.7% during the forecast period. The Camshaft Position Sensor detects camshaft rotation and is mounted near the cylinder head so that the sensor is opposite to the timing rotor attached to the engine camshaft. The engine control can pinpoint the precise location of the crankshaft drive thanks to the camshaft sensor. Among other things, the ignition point and injection point must be calculated using this information. The fuel injection and ignition timing for an automobile can be determined using these parameters to be as inexpensive as possible. Engine stop-start systems have already been commercialized in two separate ways. In one case, the combustion engine restarts even after sitting idle for an hour without being driven. The second option keeps an eye on the engine's movement as it slows down. When the engine starts, the car already knows the crankshaft position and the firing cylinder. Modern camshaft/crankshaft position sensors are in higher demand due to this. These systems are widely used in luxury cars, and with growing sales worldwide, the market for this segment is anticipated to expand at a high rate during the forecast period.
By distribution channel, the global automotive oxygen sensor and dynamic sensor market is segmented into OEM and aftermarket. The OEM distribution channel segment accounted for the largest market share and is estimated to grow at a CAGR of 4% during the forecasted period. Automotive OEMs are facing the challenge of reducing CO2 emissions. Besides emission reduction measures such as hybridization and using all-electric powertrains, engine downsizing has gained momentum and has proved to be the most cost-efficient method to reduce emissions. Engine downsizing has led to high-temperature generation, which has resulted in OEMs' adoption of oxygen and engine dynamic sensors to increase the lifetime of vehicles. The increase in luxury and sports car sales has also resulted in OEMs' high adoption of oxygen and dynamic sensors.
The aftermarket segment is the second largest. The aftermarket demand is primarily driven by an increase in the automobile's lifetime. In the past, the average lifespan of a car was around eight years. An average car is expected to last about 12 years or 200,000 miles. In 2020, the average vehicle age in the United States was 11.9 years. In the European Union, it was 11.5 years; in Japan, it was 13.3 years.
On the other hand, commercial vehicles have higher average life than passenger cars. Passenger and commercial vehicles are exposed to extreme conditions; sensor failure is a great chance. This is expected to drive market growth during the forecasted period. Incorporating a large number of sensors and other electronic components increases the complexity of aftermarket repair and maintenance, as local garages lack the skill and expertise to repair these new systems. This increased complexity of automotive systems coupled with a rise in prices is expected to restrain the market growth.
By vehicle type, the global automotive oxygen sensor and dynamic sensor market is bifurcated into passenger cars and commercial vehicles. The passenger cars segment accounted for the largest market share and is estimated to grow at a CAGR of 4.7% during the forecasted period. The passenger cars segment has seen an increase in used car sales. In some regions, such as the United States and India, the used car sales exceeded new passenger car sales in 2020. This has led to high demand for aftermarket passenger car oxygen and dynamic sensors. Furthermore, there has been an increase in luxury and sports car sales worldwide. During the forecasted period, luxury car sales are expected to rise, which is expected to help the market grow.
The commercial vehicle segment is the second largest. The commercial vehicle segment has also seen a rise in rental service providers, especially in developing regions which is expected to drive the demand for commercial vehicles' oxygen and dynamic sensors. As these vehicles have a longer life than passenger vehicles and are exposed to extreme terrains and weather conditions, they have higher chances of sensor failure. This is expected to drive the demand for the aftermarket commercial vehicle segment during the forecasted period. The expansion of the industrial sector in emerging markets and the development of commercial operations in logistics during the forecasted period are expected to drive market growth.
By region, the global automotive oxygen sensor and dynamic sensor market is segmented into North America, Asia Pacific, Europe, and the Rest of the World.
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Europe accounted for the largest market share and is estimated to grow at a CAGR of 4.9% during the forecasted period. The rising demand for electric vehicles poses a significant threat to the automotive oxygen and dynamic sensors market. This is because the growing EV sales may bring down the sales of internal combustion engines in the long term. Increasing requirements for regular maintenance and the need for upgraded accessories and automotive components to enhance vehicle performance likely to fuel the adoption of sensors and other auto components in the region.
The Asia Pacific is the second largest region. It is estimated to reach an expected value of USD 16 billion by 2030, growing at a CAGR of 6.2% during the forecast period. According to the UN's Comtrade database, China is among the world's largest car parts suppliers, exporting motor vehicle parts and accessories worth USD 34.8 billion in 2018. In 2019, after implementing China 6 emission standards, Harbin Dongan Auto Engine Co. Ltd quickly took over the market with its product first-mover advantages, with full-year sales of 108,500 China 6 engines, accounting for 43.96% of the total sales. In 2019, 246,800 engines were sold, reflecting a y/y increase of 46.07%. It occupied a 1.29% share of the gasoline engine industry market, with a y/y growth of 0.49%. The trends mentioned above in sales of diesel and gasoline vehicles, production and sales of commercial and passenger vehicles, automotive oxygen, and dynamic sensors market will witness nominal growth during the forecast period.
North America is the third largest region. According to the Bureau of Transportation Statistics, in 2020, the average age of vehicles in the United States is at a record high as it stood at an average of 11.9 years, coupled with a rise in several miles traveled by vehicles in the United States. In addition, as most of the market share in the United States is still dominated by gasoline vehicles, manufacturers of automotive sensors can take advantage of the market and focus on developing new innovative technologies to stand against competition from EVs. For instance, Light trucks with a gasoline-fueled internal combustion engine (ICE) were the most popular type of light vehicle in the United States. Here, gasoline ICE light trucks had an estimated market share of about 52 percent in 2020. Although the market has a vast potential for new players, other services, and markets, rising EV adoption is drawing profits over gasoline vehicles. Thus, owing to the trends mentioned above and developments market is expected to witness steady growth.
List of key automotive oxygen sensor and dynamic sensor market companies