|Base Year Market Size
|USD 8,290.76 Million
|Forecast Year Market Size
|USD 13389.59 Million
|Fastest Growing Market
The global automotive sensor market size was valued at USD 8,290.76 million in 2022. It is estimated to reach USD 13,389.59 million by 2031, growing at a CAGR of 5.47% during the forecast period (2023–2031).
Automotive sensors gather information to assess a vehicle's performance and then transmit it. Tools called sensors identify environmental occurrences or changes and then generate a corresponding output. As they detect physical input like light, heat, motion, wetness, pressure, or any other entity, they either provide an output on display or electronically send the information for additional processing. It employs integrated circuit (IC) fabrication technology based on silicon wafers. It monitors and controls alterations to an automobile's chemistry, mechanics, and operations.
In the automotive industry, various sensors increase a vehicle's comfort, safety, and fuel efficiency. Temperature sensors, engine sensors, pressure sensors, humidity sensors, exhaust sensors, transmission sensors, and gas sensors are just a few examples of common sensors found in cars. Sensors are frequently used in all types of vehicles, from two-wheelers to heavy-duty lorries. In automotive applications, extreme conditions like heat, cold, or constant vibrations create a high demand for incredibly dependable and resilient sensors.
Customers' increasing demand for higher quality, improved performance, higher comfort, and innovative design and technology has boosted demand for luxury vehicles. Countries such as China, Japan, the U.S., Canada, India, and European Countries serve as significant markets for luxury vehicles. Increased disposable income and improved living standards of individuals in these regions have increased the demand for luxury vehicles.
In addition, high-end vehicles such as BMW 7 series, Audi 8, and Mercedes Benz E-class have more than 100 individual installed sensors. The sensors usually work in cohesion with microcontrollers and embedded systems inside the engine control unit (ECU). Modern luxury cars have a higher number of ECUs integrated into them as compared to conventional vehicles. The increased number of ECUs due to the rising demand from consumers to incorporate more features in the vehicle will simultaneously raise the need for more technologically advanced sensors, fueling the global market growth.
Passenger and commercial cars are on the cusp of a radical evolution thanks to developments in automotive technology. There is a shift from manual to digital operation, supported by the growing electronic content per vehicle. With an increase in the electronic components of electric vehicles, their integration requires using different sensors in such vehicles. The demand for automotive sensors is predicted to increase shortly due to rising vehicle output, technological advancements, industry standards, and shifting consumer preferences.
The exponential increase in the number of sensors deployed in vehicles also leads to extensive associated risks. In 2015, numerous vehicles faced a technical glitch of accidental deployment of airbags. The following concern raises doubts about the reliability of these sensors. In order to meet high-quality standards, the manufacturing processes are minutely monitored. The failure rate of sensors should be at most ten parts per million (PPM) by the end of their life cycle. Reliability is crucial in applications such as airbags and braking systems as these factors increase the development costs of the sensors, hampering the market growth.
The automotive market is witnessing large-scale growth in developing advanced vehicles, such as autonomous cars and connected vehicles, due to rising concerns by individuals for more safe and more secure driving and having provisions for sharing the internet with other devices both inside and outside the vehicle. The rising problem is to provide the driver with advanced driving features such as notification of speeding, safety alerts, and automatic notification of crashes. It will be a significant opportunity for auto-sensor manufacturers as many sensors are expected to be deployed in these future vehicles.
Furthermore, the recent technological trends driving the use of sensors can be attributed to the rising demand for ADAS systems. The components are enabling the new generation of vehicles with features such as adaptive cruise control, adaptive light control, automatic braking, parking assistance, blind-spot detection, collision avoidance systems, driver fatigue detection, and lane departure warning systems, which is forcing the sensor manufacturers to broaden their portfolio of sensors, especially position and proximity sensor. Such factors are anticipated to create opportunities for market growth.
Based on region, the global Automotive Sensor Market is bifurcated into North America, Europe, the U.K., China, Asia-Pacific and Japan, South America, and the Middle East and Africa.
China is the most significant global Automotive Sensor Market shareholder and is expected to grow at a CAGR of 6.27% over the forecast period. China is the powerhouse of the global automotive industry, being the largest market and the most potent producer of automobiles globally. The growing economy and rise in disposable income, along with governmental support, have pushed the automotive industry in China to unprecedented heights. In addition, China is one of the largest manufacturers of automotive sensors and is expected to show a positive growth rate in the future. The primary factor behind this is the continuous growth in the production of passenger cars and increasing disposable incomes. Foreign OEMs also prefer to invest in the Chinese market due to the country's offering of better production at a lower cost. China controls 85% of the world's cobalt supply, a constituent in automotive sensors. Therefore, sensor manufacturers in China are thriving as there is an abundant and constant supply of raw materials for semiconductor manufacturing, driving the market growth.
Asia-Pacific and Japan (APJ) is anticipated to exhibit a CAGR of 4.97% over the forecast period. The Asia-Pacific and Japan (APJ) automotive market is primarily controlled by the South Asian countries consisting of some of the most prominent automotive manufacturers in the world. APJ is home to several major automotive manufacturers worldwide, including Toyota Motor Corporation, Honda Motors, Hyundai-Kia, and Nissan. In addition, Asia-Pacific holds an essential position in the global automotive value chain. Another primary reason contributing to the growth of the market in APJ is the sustainability and recovery of the economy by the countries within this region during the global economic crisis of 2008-09, which led to continuous growth in automobile production and sales globally. Asia-Pacific and Japan, in general, are rich in raw materials required to produce the semiconductors used to make sensors. On the other hand, Kazakhstan is also a large producer of gallium, a semiconductor material. Therefore, the availability of cheap raw materials provides for better production of sensors.
The Automotive Sensor Market in North America is considerably growing and competitive owing to the presence of some of the major market players operating in this region. Likewise, the market is experiencing rapid growth in North America due to significant players, and efforts are being made by federal bodies to commercialize sensors in vehicles. The intense competition among the automotive players, efforts made by the federal bodies to increase road safety standards, improved economy, and advanced manufacturing activities in the U.S. and Canada are expected to propel the growth of the Automotive Sensor Market in the region. Consequently, this increase in the deployment of sensors in vehicles is expected to bolster the Automotive Sensor Market in North America.
In addition, Europe is home to several autonomous vehicle OEMs such as Volkswagen Group, Groupe PSA, Bayerische Motoren Werke AG, Fiat Chrysler Automobiles, Navya, AB Volvo, and Daimler AG. In addition, major component manufacturers such as Continental, Robert Bosch GmbH, Delphi Automotive PLC, Infineon Technologies, and TE Connectivity are headquartered in Europe. Moreover, these players are collaborating to escalate the development of higher automotive sensors. Europe is the center of modern and technologically innovative cars, which has resulted in the significant adoption of automotive sensors in European vehicles. Also, strict government regulations on safety and carbon emissions in Europe drive the market, making it one of the fastest-growing regions.
The automotive industry in the U.K. is an essential part of the country's manufacturing sector due to its heavy contribution to its GDP. The U.K. is Europe's second-largest vehicle market and fourth-largest vehicle manufacturing market. The country is also the second-largest producer of luxury cars after Germany. Massive governmental support and increased investments from leading automobile manufacturers such as BMW Group, Ford, and Jaguar (U.K.) have radically transformed the country's automotive market.
|By Vehicle Type
|By Sensor Type
|By Mode of Sales
|Continental AG TE Connectivity Sensata Technologies Inc. Robert Bosch GmbH Denso Corporation ZF Friedrichshafen AG BorgWarner Infineon Technologies Hella GmbH STMicroelectronics NXP Semiconductors Melexis CTS Corporation Analog Devices Inc. Allegro Microsystems Inc.
|U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
|China Korea Japan India Australia Taiwan South East Asia Rest of Asia-Pacific
|Middle East and Africa
|UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
|Brazil Mexico Argentina Chile Colombia Rest of LATAM
|Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
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The global Automotive Sensor Market is bifurcated into vehicle type, sensor type, technology, application, and mode of sales.
Based on vehicle type, the global Automotive Sensor Market is bifurcated into conventional vehicles and electric vehicles.
The conventional vehicles segment dominates the global market and is expected to exhibit a CAGR of 4.62% over the forecast period. Conventional vehicles are automobiles using the internal combustion engine (ICE) for propelling the vehicle. The growth of the automobile industry greatly influenced the Automotive Sensor Market. Moreover, fuel vehicles have evolved from simple transportation mediums to fully automated and advanced vehicles. In addition, the diverse range of sensors, such as pressure, torque, temperature, and infrared sensors, has presented various opportunities for vehicle manufacturers to innovate and expand the landscape of the automobile market on a global level. The segment is further sub-segmented into passenger cars, light commercial vehicles, heavy-duty trucks, and buses.
Based on sensor type, the global Automotive Sensor Market is divided into pressure sensors, gas sensors, position sensors, temperature sensors, speed sensors, level sensors, inertial sensors, proximity sensors, flow sensors, knock sensors, force sensors, torque sensors, humidity sensors, and others.
The temperature sensor segment is the most significant contributor to the market and is expected to exhibit a CAGR of 7.03% over the forecast period. Automotive temperature sensors measure the temperature of a vehicle's working mechanism's fluid, gas, and other physical components. The sensor usually consists of a thermistor, thermocouple, resistance temperature detector (RTD), and an infrared device. These sensors typically register the temperature of coolants, fuel, and air. They are majorly used in engines, exhausts, and seats. The different types of sensors are used in applications such as the powertrain, chassis, and vehicle body.
Based on technology, the global Automotive Sensor Market is divided into MEMS and non-MEMS.
The MEMS segment is the largest contributor to the market and is anticipated to exhibit a CAGR of 5.80% over the forecast period. Micro-electromechanical systems (MEMS) integrate systems with mechanical and electrical functions that use microfabrication processes. Various MEMS sensors have been developed in the last two decades, covering all sensing modes, such as temperature, pressure, humidity, inertial forces, magnetic fields, radiation, and chemical species. These sensors usually exceed the performance of their similar macroscales. In addition, MEMS sensors have a much lower cost per device than their corresponding macro-devices, as their fabrication process employs the same batch fabrication techniques as semiconductor production. The lower production cost and enhanced efficiency increase the demand for MEMS-based sensors.
Based on application, the global Automotive Sensor Market is bifurcated into powertrain, chassis, body, safety and control, and exhaust systems.
The powertrain segment owns the highest market share and is expected to exhibit a CAGR of 5.09% over the forecast period. The powertrain in a vehicle comprises components essential for generating power that is used for propelling the vehicle. The powertrain includes the engine, driveshaft, differentials, and axles. Powertrain sensors measure vehicle parameters such as temperature, pressure, and rotational speed. These sensors play a crucial role in maximizing fuel economy and reducing emissions. The powertrain sensors market is driven by increasing demand for fuel efficiency and lower vehicle emissions.
Based on the mode of sales, the global Automotive Sensor Market is bifurcated into OEM and aftermarket.
The OEM segment dominates the global market and is projected to exhibit a CAGR of 5.10% during the forecast period. OEM is an independent entity that operates as a rebranding company for original manufacturers of products such as automotive sensors. Moreover, OEMs further supply their products to the end users, the automobile manufacturers, and other application areas under their name and brand. As a value-added reseller, OEMs undertake the accountability of product warranty and additionally leverage support and licensing of the product for buyers. Key factors driving the OEM market for automotive sensors are its benefits, such as operating simplicity and robustness, and is less expensive than other channels.