Humidity Sensor Market

Market Overview

The global humidity sensor market size had a revenue holding of USD 5.34 billion in 2021. It is expected to reach USD 17.94 billion by 2030, growing at a CAGR of 14.4% during the forecast period (2022-2030).

A humidity sensor is an electrical device that detects, gauges, and reports air temperature and water vapor content. The humidity sensor works by continuously observing the surrounding environment and notifying the user of any alarming situations. Any change in the electrical currents or air temperature is picked up by it. Some crucial factors for selecting humidity sensors include accuracy, linearity, reliability, repeatability, and response time. The regulation of building ventilation, environmental chambers for testing electronics, clean rooms in the semiconductor and automotive sectors, industrial drying, and process monitoring in the chemical, electronics, food/beverage, pharmaceutical, cosmetics, and biomedical analysis industries are just a few examples of the numerous commercial and industrial applications that use humidity as one of the critical physical variables.

The global market for humidity sensors is expanding due to factors such as rising consumer demand for small-sized humidity sensors, increased personal weather stations installed, and advancements in the automobile industry. However, it is anticipated that the requirement to enhance the humidity sensor's technical characteristics will somewhat restrain market expansion. Furthermore, the global market for humidity sensors is expected to rise with the development and adoption of vertical and precise farming.

Market Dynamics

Global Humidity Sensor Market Drivers

The Demand for Small-Sized Humidity Sensors and Growing Deployment of Personal Weather Stations

The need for humidity sensing technology is on the rise in various applications, such as heating, ventilation, and air conditioning (HVAC) systems, respirators, freezers, and the interior comfort of vehicles. The desire for humidity sensors that are more compact, rapid, and precise while using less energy is boosting the global market for humidity sensors. This demand is driving the market growth. Industry companies are investing in manufacturing miniature humidity sensors as the trend toward miniaturization of electronics continues to gain momentum. In the year 2020, TE Connectivity introduced a humidity sensor that was both precise and compact. This sensor, known as the HTU31, measured both humidity and temperature.

Additionally, brand-new humidity sensors available on the market can be utilized in individual farms or residential weather stations. These sensors are priced reasonably. It is anticipated that the consumer demand for humidity sensors will, in addition to being pushed by enterprises, be driven by the product improvements made by market participants. In light of this reality, players in the sector are investing in new products with more sensitivity and accuracy than their predecessors.

Global Humidity Sensor Market Restraints

The Need to Improve the Technological Specifications of Sensors

A humidity sensor, once it has been deployed, will have a great deal of difficulty. The sensor's performance must be optimized despite the wide range of humidity and temperature to which it is exposed. This is an absolute need. The humidity sensor is also vulnerable to changes in the climate, where it must contend with condensation and high humidity levels. As a consequence of this, the performance of the humidity sensor deteriorates, which prevents the market from expanding.

Global Humidity Sensor Market Opportunities

The Advancements of Vertical and Precise Farming

Due to the surge in popularity of organic food, the need for vertical and precise farming is anticipated to proliferate during the projection period. Additionally, the vertically stacked design of these farms lessens the need for additional building work and land. Further, it reduces the need for machine involvement in conventional farming. As a result, efficient vertical space use and sensible energy use support the expansion of the vertical farming business. For quick and surplus output, vertical and precise farming uses clever and sophisticated technologies. The innovative farming technology, which uses humidity sensors to assess the moisture content of soil and air, offers a good market potential for the development of the humidity sensor industry.

Regional Analysis

The regional analysis of the global humidity sensor market includes North America, Europe, Asia-Pacific, and LAMEA.

The Asia Pacific and North America will lead the regional humidity sensor market

The Asia Pacific is forecasted to hold the predominant share in the regional market while growing at a CAGR of 15.71%. The rapid expansion of industrialization and the rise in population are two primary drivers of the need for humidity sensors. Due to its expanding economy and developments in the standard framework for humidity sensors, Asia-Pacific is the region that contributes the most to the automobile sector. The primary nations that will see significant market expansion throughout the projection period are China, Japan, and India. Due to their excellent technical infrastructure, China and Japan have a high demand for humidity sensors.

In the automotive business, sensors are the technology that is expanding the fastest. The Chinese car industry's expansion and the development of automotive electronics technology present prospects for the market for humidity sensors to expand. China is also one of the top nations for humidity sensors due to farmers becoming more conscious of the need to produce products of higher quality.

North America will likely hold a share of USD 3,888 million and advance at a CAGR of 13.9%. The most significant market share of soil moisture sensors was held by North America, which may be attributed to elements like stringent environmental rules, strong government backing, and initiatives to automate agricultural processes. In addition, it is anticipated that the humidity sensor market in North America will expand as more small- and large-scale farm owners adopt precision farming. For the agricultural industry to prevent erosion and pollution in this area, the agricultural sector requires enhanced soil quality, which calls for high-quality humidity sensors. The market for humidity sensors is also expected to expand due to the Internet of Things (IoT)'s rapid advancements and the surge in demand for smart agriculture.

The majority of residential buildings in the United States have air conditioners, according to the U.S. Department of Energy. Due to the rise in global temperature, this number is predicted to increase during the projection period. Quality analysis of moisture control is provided by the high demand for humidity sensor technology and the need for faster, more precise, and energy-efficient sensors. Leading IT companies in Canada have joined to develop IoT platforms, effectively upgrading infrastructure. Cooperation between GE and Nokia, a renowned provider of communications technology, will install sensors across Canada. This alliance aims to leverage adaptable technology to build a more secure and environmentally friendly environment. A major player like Google, for instance, has plans to build a smart city in Toronto, Canada. This initiative would generate growth possibilities for the humidity sensor market during the projected period.

Segmental Analysis

The global humidity sensor market is classified across product, type, end-user, and region.

Per the Product, the fragments are relative and absolute humidity sensors.

The relative humidity sensor section is forecasted to have the highest revenue holding, growing at a CAGR of 15.1%. A relative humidity sensor measures the amount of moisture in the air concerning the maximum amount of moisture the air can contain while maintaining the same temperature and gas pressure. Because of their simplicity, low cost, and wide range of uses, relative humidity sensors are typically widely available. Relative humidity sensors' simplicity of use and a broad range of applications are critical factors in the market's expansion. Additionally, the price of making a relative humidity sensor is relatively low. It is also accessible in various sizes, forms, and materials. These elements are anticipated to stimulate the relative humidity sensor market over the forecast period.

The absolute humidity sensor section will have the second-largest share. Absolute humidity sensors measure the amount of moisture in the air directly. It is relatively expensive and complicated. It is only offered in ceramic. Absolute humidity sensors are typically utilized in gaseous environments. Because relative humidity is of more value and can be easily integrated into electronics, absolute humidity sensors have few applications. And so, there is a limited market for absolute humidity sensors.

Per the Type, the fragments are digital and analog.

The digital section will likely have the most significant revenue holding, growing at a CAGR of 16.5%. The surrounding environment is monitored by the digital humidity sensor within a predetermined range. The sensor closes the contact whenever the conditions are outside the predetermined range. The contact is reopened by the sensor as soon as the conditions are once again within the acceptable range. The proliferation of the Internet of Things technologies contributes to the growing popularity of digital humidity sensors. As a result, competitors in the market are working to produce digital and miniature versions of humidity sensors. As a result of its ability to create direct output without requiring any kind of output conversion device or system, digital sensors are propelling the expansion of the market.

The analog section will have the second-largest share. The continual visibility to present conditions provided by analog sensors is made possible through the exact readings they provide. The detection range of these sensors is much improved over previous models. Customers prefer analog humidity sensors because of their more advanced operational capabilities. The majority of industrial applications, such as those found in the telecommunications industry, make use of analog humidity sensors. It is anticipated that rising industrialization rates will drive the market's expansion.

Per the End-Use, the categories include residential, commercial, automotive, industrial, agriculture, weather station, and healthcare.

The automotive section will likely develop at a CAGR of 17.7% and have the most significant revenue holding. A humidity sensor is fastened to the underside of the interior mirror of the window so that data can be gathered about the relative humidity levels inside the vehicle. This information is then used to control and manage the humidity level, improving the level of comfort experienced inside the vehicle. The OICA reports that there has been an uptick in the number of sales of automobiles in the market. In 2018, around 95 million cars were sold during a single year. During the period that is being forecasted, it is anticipated that this figure will rise. Because humidity sensors are attached right below the front mirror of the car to maintain an ideal climate, their use in this sector is expected to fuel the market's expansion.

The industrial section will have the second-largest share. Because a high amount of humidity affects the quantity of oxygen in the air and, as a result, the fire rate of a furnace, humidity sensors are utilized in sectors such as the chemical industry, the metal industry, refineries, and other sectors in which furnaces are used. Other applications in the industry include the food processing industry, the paper and pulp industry, and the textile industry. Growing industrialization, particularly in developing nations like China, India, and Mexico, may lead to expanding market prospects. Various sensors are used in factory automation to gather data on each action taken. One widely used sensor for factory automation is the humidity sensor, which is anticipated to open up fruitful prospects for expanding the humidity sensor market throughout the projected year.

Recent Developments

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