The global automotive sensor market size was valued at USD 19.99 billion in 2021 and is estimated to reach an expected value of USD 48.70 billion by 2030, registering a CAGR of 10.4% during the forecast period (2022 – 2030). Automotive sensors gather, record, and transmit data to evaluate a vehicle's performance. Sensors are tools that recognize environmental events or changes and then produce a corresponding output. They produce an output on display or transmit the information electronically for further processing when they detect physical input such as light, heat, motion, moisture, pressure, or any other entity. It makes use of silicon wafer-based integrated circuit (IC) fabrication technology. It keeps track of and regulates changes in an automobile's chemistry, mechanics, and processes.
The increased use of custom-made electronic equipment is anticipated to fuel the automotive sensor market growth. However, it is expected that the high development costs of automotive sensors will restrain market expansion. In addition, the global automotive sensor market share is anticipated to benefit from technological developments in the auto industry and the growth of the automotive sector.
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Increase in Adoption of Pressure Sensors in the Automotive Industry.
Over time, there has been an increase in demand for pressure sensors, and it is predicted that this trend will continue during the forecast period. Automotive manufacturers should gain from this and see an increase in market share. Pressure sensors are vital elements that lower emissions and fuel use to lower air pollution. They are also used for a variety of passenger safety concerns, including Pressure Monitoring Systems (TPMS), Advanced Driver Assistance Systems (ADAS), and Manifold Absolute Pressure Sensors (MAPS). It also helps deploy airbags, throttle position, weight, and sensing of passengers. In addition, the pressure sensors market is dominated by automotive applications that, hold more than half of the global pressure sensors market based on applications.
Rise in Demand for Automotive Sensors in Hybrid and Electric Cars
Demand for automotive sensors is high for various applications, especially in the hybrid & electric cars. They are widely used in navigation systems (GPS) and advanced driver assistance systems (ADAS). The market for automotive sensors is growing and is projected to perform better, owing to additional features such as vehicle dynamic control (VDC), anti-lock braking systems (ABS), and electronic stability program (ESP) introduced in upcoming vehicles. Micro-electromechanical systems (MEMS) sensors hold the largest market share among various sensors.
In addition, companies are taking steps and launching new products and solutions to enhance sensing technology. Robert Bosch developed low-cost sensors such as the LiDAR sensor for self-driving cars. This sensor works in conjunction with a camera and radar technology. Moreover, Valeo agreed with Mobileye to develop new autonomous vehicle (AV) safety standards based on Responsibility-Sensitive Safety (RSS) and Mobileye’s mathematical safety model. The above factors are expected to create lucrative growth opportunities for the automotive sensor market.
High Development Cost of Automotive Sensors
High costs involved in R&D activities for developing new products pose a difficult challenge, especially for cash-deficient small and medium-sized automotive sensor manufacturers. The high price generated in the overall production process of sensors has allowed the use of these sensors only in high-end cars. In addition, integrating these sensors into viable systems in vehicles is an expensive process. It includes meticulous data generation, analysis, and calibration of various sensors with systems to produce an efficient and value-added product feature. Further, owing to the limited manufacturing of quality sensors, the demand is more than the supply, which restricts the market growth.
Growth in Automotive Sector
Autonomous vehicles are based on data gathered by various sensors, including speed, acceleration, position, and proximity. A centralized control system continuously collects and processes this data, controlling the vehicle's motion without needing a driver. Companies like Google and Tesla invest a lot of money in the research and development of these vehicles, and the technology is currently undergoing testing. Future market growth is predicted to be propelled by successful test results. For instance, Google tested its driverless car in the UK in October 2016 for a 1-kilometer stretch near a train station. A fleet of 40 such vehicles is expected to be accessible to the general public starting in 2021. The demand for sensors is expected to rise due to these companies' significant investments in R&D and manufacturing, and the market will grow over the forecast period.
The global automotive sensor market is segmented by type, application, and region.
By Type, the global market is categorized into pressure sensors, temperature sensors, motion sensors, speed sensors, and gas sensors. The temperature sensor segment was the highest contributor to the market and is estimated at a CAGR of 7% during the forecast period. A temperature sensor is a device that measures temperature through an electrical signal. Typical applications of an automotive temperature sensor include fuel temperature sensor, vehicle in-out temperature sensor, tire and brake disc temperature sensor, water & oil temperature sensor, and ambient air temperature sensor. The automotive sensor also includes a coolant temperature sensor, also known as a coolant temperature switch, which is used to monitor the temperature of car engines. For numerous applications, temperature sensors deliver highly accurate temperature monitoring with low power consumption. Companies have been conducting R&D for advancements in these sensors, as the temperature is a critical indicator of the condition of a process, product, or piece of machinery. The demand for automotive temperature sensors in the automotive industry, owing to the surge in purchasing power of the idealistic population and the high demand for passenger cars, boosts the market's growth.
The pressure sensors segment is the second largest. A pressure sensor is a tool that detects pressure and transforms it into an electric signal, the strength of which is dependent on the amount of pressure applied. Pressure sensors are used extensively in numerous industries, including automotive, manufacturing, aviation, biomedical testing, air conditioning, and hydraulic measurements. Recent developments in pressure sensors are anticipated to accelerate market growth significantly. Much work has gone into creating advanced pressure sensors, promising uses in wearable medical devices and artificial intelligence systems. The requirement of pressure sensors in automobiles by government regulations has also helped to increase demand for pressure sensors, which in turn has boosted market growth.
The speed sensor segment is the third largest. An accelerometer is a device that measures translational or angular acceleration, whereas speed sensors are the machinery used to detect the speed of an object, usually a transport vehicle. Speed sensors are extensively used in measuring the vibration and speed of cars, machines, buildings, process control systems, and safety installations. Such applications drive segment growth.
By Application, the global market is divided into powertrain, chassis, body electronics, safety & security, and telematics. The powertrain segment was the highest contributor to the market and is estimated to grow at a CAGR of 8.8% during the forecast period. The surge in demand for powertrain sensors in the automotive industry for better fuel economy, the robustness of the automotive environment, and a decline in carbon emission are expected to provide growth opportunities for the automotive sensor market. Rigorous fuel efficiency and emission formulated by governments of different countries boosts the growth of automotive sensors. In addition, demand for powertrain temperature sensors has increased, owing to the introduction of new diesel engines. This temperature sensor can measure the temperature of a vehicle's engine coolant. All these factors provide growth opportunities for the automotive sensor market.
The chassis segment is the second largest. An automotive sensor is ideally used in chassis to detect wheel position to enable closed-loop chassis control. These sensors are usually mounted between the chassis and sprung component to measure suspension travel. In addition, chassis sensor is widely used in different vehicle applications, including travel sensors for rear axle steering, wheel speed sensor for advanced electronic stability program, and seat track position sensor for position detection. Robust infrastructure is one of the primary key growth factors for chassis in the global automotive sensors system. Moreover, increasing demand for low-weight chassis materials in hybrid vehicles also boosts the market's growth. In addition, the execution of rigorous regulations for emission control is one of the major factors expected to propel the chassis sensor market during the forecast period.
The body electronics segment is the third largest. Demand for high-end technologies such as collision avoidance, driver assistance, and premium audio systems are the primary growth factors for the market. Technologies such as emergency calls and alcohol ignition interlock create opportunities for the body electronics segment.
By Region, the global automotive sensor market trends are analyzed across North America, Europe, Asia-Pacific, and LAMEA.
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Asia-Pacific was the highest revenue contributor and is estimated to grow at a CAGR of 11.5%. Asia-Pacific includes China, India, Japan, South Korea, and the rest of Asia-Pacific. Asia-Pacific occupies a considerable market share in the global sensors market, owing to an increase in technological advancements and a rise in automotive standards in developing countries such as India, China, and Indonesia. The rapid growth of industrialization, low operating cost, and an increase in population are some key factors responsible for the market growth in the Asia Pacific. Asia-Pacific is the most significant contributor to the automotive industry, with a growing economy and advancements in the regular sensors framework. China, Japan, and India are expected to have considerable market share during the forecast period. Japan and China are technologically advanced countries with high demand for smart sensors.
North America is the second largest region. The North American automotive sensor market is projected to reach USD 9240 million by 2030, growing at a CAGR of 8.4%. North America is studied across the U.S., Canada, and Mexico. The rise in advancements in the automotive industry and connected devices is expected to accelerate the adoption of automotive sensor technology. The U.S. dominated the automotive sensor market and is expected to retain its position during the forecast period. Bulk manufacturing capability and eco-friendly features are the key factors expected to boost the demand for automotive sensors in North America. Advanced technologies are introduced, especially in pressure sensors, and are expected to grow faster than other types of sensors in the region. Technological advancements, high per capita income, and the early introduction of automotive sensors are the key factors that boost the market growth.
Europe is the third largest region. Europe is studied across the UK, Germany, France, Italy, and the rest of Europe. Europe is one of the significant markets for sensor technology. In Europe, smart sensors are widely used in the automotive, building, automation, and consumer electronics industries. These industries have widely accepted smart sensors in Europe, which act as the primary driver for the market. Due to increased demand in the region's automotive industry, Europe is predicted to experience a high growth rate in the sensors market during the forecast period.
Additionally, the region's technological advancements fuel market expansion. Major automotive manufacturing companies are widely focusing on advanced sensor technologies in their vehicles to enhance safety & security. In addition, an increase in demand for position and magnetic sensors has a significant impact on the automotive sector, which helps industry end users increase their market presence in Europe. These factors are anticipated to provide growth opportunities for the automotive sensor market during the forecast period.
A list of key global automotive sensor market companies include