Inductive Proximity Sensors Market Size, Share & Trends Analysis Report By End-User (Industrial, Automotive, Aerospace and Defense, Packaging, Other End-User Applications) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2022-2030

Market Overview

The global inductive proximity sensors market size was valued at USD 1,035 million in 2021. It is projected to be worth USD 1,985 million by 2030, registering a CAGR of 7.5% during the forecast period (2022–2030).

Many automation applications make use of proximity sensors. They detect objects without making physical contact with the target or object being sensed. As a result, they are known as non-contact sensors. The most prevalent proximity sensors are photoelectric, capacitive, and inductive sensors. Inductive proximity sensors are utilized to detect metallic items without touching them. The coil and oscillator create an electromagnetic field in the vicinity of the detecting surface, which is the operational mechanism of these sensors.

Automation offers enhanced quality, standardization, and dependable products within the specified time at a much lower cost. As proximity sensors play a significant role in monitoring and producing efficiency tasks, the market for proximity sensors is witnessing an expansion. Overall, the demand for inductive proximity sensors is expected to witness significant growth in the analysis period due to a rise in the need for smartphones and other mobile devices as well as rising applications in consumer electronics, industrial automation, automotive, aerospace, and defense, pharmaceutical, and packaging, among others. The Industrial Internet of Things (IIoT) demand is also expected to drive market growth.

Market Dynamics

Global Inductive Proximity Sensors Market Drivers

• Growth in Industrial Automation

Rising automation in the gas and oil industry to raise productivity and reduce the cost of investment by cutting down the human labor required to conduct operations in a harsh environment is expected to drive the studied market. For instance, inductive proximity sensors provide a durable, reliable solution for measuring variables on offshore oil rigs. These sensors are also suitable for enduring harsh sea conditions, such as salt water, which can be corrosive and damaging to equipment. As a result, the use of inductive proximity sensors to correctly measure the final positions of pipe handlers and other moving components on the rig without affecting performance is increasing.

When improving product quality or production efficiency, manufacturing engineers prefer automation solutions to error-proof and strengthen their application. In stamping applications, that often leads to adding sensors to help detect the presence of a material or a feature in part being formed, for example, a hole in a part; This is also called "In-Die Sensing" or "Die Protection." Automation provides better product quality, efficient use of materials, and reduced factory lead time, among other benefits. Inductive proximity sensors have a crucial role in the monitoring and production tasks with accuracy that improves the overall efficacy of the process; thus, the market for inductive proximity sensors is witnessing an expansion.

• Rise in Demand for Non-Contact Sensing Technology

Proximity or non-contact sensors are widely applied as displacement detectors because of their durability and safety compared with contact sensors (such as limit switches and reed relays). For most instances requiring accurate, non-contact detection of metallic objects in machinery or automation equipment, inductive proximity sensors are chosen. Non-contact sensors have a long life, fast response, high reliability, dependability, and consistent performance. Owing to these benefits, non-contact sensors such as inductive proximity sensors are witnessing significant demand in factory automation, process and control, manufacturing, engineering, and automation.

Furthermore, with the growth of the IoT, the factory, plants, and processes are getting automated where things operate with non-contact sensing technology. Moreover, a company such as Sick AG offers an inductive proximity sensor that offers non-contact detection in pipe bending machines. The IME12 inductive proximity sensor signals if the pipe is at the accurate location to start the processing sequence as the sensor is non-contact and is free from wear. Overall, the increasing demand for non-contact sensing technology in the forecasted period is expected to drive the growth of the studied market.

Global Inductive Proximity Sensors Market Restraints

• Limitations in Sensing Capabilities

Most inductive proximity sensors in use today have limited sensing distances, which introduces dangers such as equipment vibration, which could cause the sensor body to travel too far away from or come into contact with the sensing object. According to Omron, such occurrences are projected to account for roughly 20% of facility shutdowns.

The proximity gap is opened until the sensor turns off at the maximum target approach, but the target is not detected on the following approach cycle. The proximity sensor gap is set to turn on when the target approaches, but the operation becomes intermittent later on. Further, the inductive proximity sensors can detect only metallic devices, whereas other sensors can detect any materials.

In addition, the sensing range of an inductive proximity sensor depends on the type of metal that is being detected, its shape, size, and coil size used in the design. Due to the above reason, the inductive proximity sensor has distance limitations for sensing. For instance, Nonferrous targets such as aluminum create a reduction factor in standard inductive proximity sensors. The sensors are less sensitive to these targets, which reduces the overall detection range.

All these factors regarding the sensing capability and usage of inductive proximity sensors only on metallic objects are hindering the growth of the studied market. Moreover, with the ongoing development in technology, new sensor technology is emerging as an alternative to inductive proximity sensors such as photoelectric sensors, among others, which will also impede the market growth.

What Are Future Key Opportunities in Global Inductive Proximity Sensors Market?

• Growing Shift Toward Industry 4.0

The growing shift toward Industry 4.0 is fueling the need for Proximity sensors. For instance, in 2019, Bosch announced an innovative plant for electronic components and is set to invest USD 120 million in this new plant in central Mexico. This highly modern Industry 4.0 plant will manufacture critical parts for connected mobility. Further establishment of such plants in the region would provide more opportunities for the proximity sensors market. The increasing demand for IIoT augments the need for equipment that aids in collecting and monitoring data and converts it into actionable sequences with the help of IIoT. 

Proximity perception in areas such as autonomous vehicles or uncrewed aerial vehicles (UAVs) usually aims at autonomous driving or flying. Thus, they address more considerable distances and speeds and avoid contact and interaction with objects and humans. With such innovations, the demand for these sensors for application in drones, automated delivery systems, and robotics is expected to increase further. For instance, Amazon is already testing drone delivery under its Prime Air Delivery service. Such innovations and increases in applications are expected to drive the demand for proximity sensor technology over the coming years.

Regional Analysis

By region, the global inductive proximity sensors market share is divided into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

Asia-Pacific accounted for the largest market share, valued at USD 410 million in 2021. It is estimated to reach a value of USD 840 million by 2030 at a CAGR of 8.3% during the forecast period. Due to emerging countries like China and India, Asia-Pacific will grow faster than other regions. In addition, the region is home to essential vendors like Omron Corporation, Panasonic Corporation, and Autonics Corporation. Panasonic Corporation's broad range of inductive proximity sensors for metallic sensing applications contains numerous options like 2-and 3-wire DC type, compact size with essential functions, and a built amplifier for high-performance sensing that can handle high-speed operations.

Automobile manufacturers attempt to meet the demand for electric cars (EVs) and low fuel consumption by producing lighter-weight vehicles and preferring aluminum over iron. As mixed production lines comprising both aluminum and iron grow, demand for the same sensing distance proximity sensors with sufficiently long sensing ranges.

The European economy held the second-largest share, valued at USD 275 million in 2021. It is estimated to reach a valuation of USD 530 million by 2030, with a CAGR of 7.5% over the forecast period. Industrial automation in the region has been experiencing growth in the adoption rate since the last decade, with industries and companies spending heavily on new technologies. The region has been the most prominent adopter of industrial automation, owing to the increasing investments in the Industry 4.0 revolution.

Segmental Analysis

The global inductive proximity sensors market share is divided by end-user and regions.

Industrial, automotive, aerospace and defense, packaging, and others are among the five end-user applications of the global inductive proximity sensors market. The industrial segment holds the largest market share by end-user application and was valued at USD 440 million in 2021. It is estimated to reach a value of USD 880 million by 2030 at a CAGR of 8% over the forecast period. The aerospace and defense end-user vertical segment will witness the highest CAGR of 9.41% over the forecast period. 

The growing industrial advancement forces industries such as manufacturing to adopt inductive proximity sensors for their industrial automation. These sensors can endure harsh sea conditions, like salt water, which can be corrosive and damaging to equipment. As a result, placing inductive proximity sensors can adequately monitor the ultimate positions of pipe handlers and other moving components on the rig without affecting performance.

Huge enterprises have been employing inductive proximity sensor technology for a few years; better technology has led to its broad acceptance by all tier organizations to expedite operations, improve industrial automation, and revolutionize the production landscape of various companies. Another element driving development is the number of vendors enabling industrial automation and the rise in demand for the Industrial Internet of Things (IIoT).

Impact of covid-19

Due to the outbreak of COVID-19, the worldwide supply chain and demand for many items have been disrupted, influencing inductive proximity sensor use in the first half of 2021. Given the disruptions in the distribution network, the raw material prices have increased, impacting the overall pricing of the inductive proximity sensor.

The inductive proximity sensor can be used in healthcare, among other industries, aiding the COVID-19 safety-related issue. Research has found that an inductive proximity sensor can be used for social distancing, alarming, etc. Furthermore, the demand for automation is expanding in government-designated critical industries such as food and beverage, manufacturing, and healthcare, owing to a scarcity of labor and the need for remote monitoring and working, which has boosted the demand for inductive proximity sensors.

Many vendors in the market are utilizing technology to contain the spread of the coronavirus and thus, are developing various electronic devices. In April 2020, Estimote developed a new product designed specifically for curbing the spread of COVID-19. The device known as Proof of Health wearable includes passive GPS location tracking, proximity sensors powered by Bluetooth and ultra-wide-band radio connectivity, a rechargeable battery, and built-in LTE. It aims to provide contact tracing, monitoring the potential spread of coronavirus from person to person at the level of a local workplace.

Also, NOUS Home Automation has developed an Infra-Red touchless thermal scanner, which can tell the temperature in seconds and does not require any human to operate it. The thermal scanner has a proximity sensor, so it gets activated from a certain distance and has features like a start and alarm when a person with fever comes into its radius. These significant use cases will drive market growth in the coming years.

Recent Developments

• March 2021- Autonics Corporation constructed a new R&D Center in Seoul, South Korea, a 9-story building with three underground floors with a total gross floor area (GFA) of 22,633 square meters. The company confirmed solidifying its position as a globally trusted automation company and offering new solutions and services to customers through the new facility.
• September 2020- Balluff GmbH introduced new inductive sensors for explosion-protected areas with CSA's approval that are appropriate for use in the USA and Canada. These allow object detection and positioning in explosion-hazard areas with dust and gas atmospheres throughout North America. These are available in M12, M18, and M30 form factors.
• August 2020- Hans Turck GmbH and Co. Kg introduced the new Inductive safety sensors with two OSSD (output switching signal device) outputs that enable wear-free position and range monitoring in safety-related applications, such as on presses, cranes, fairground machinery, or machines covers. The new product series comprises the flush mountable M12, M18, and M30 threaded-barrel devices, each with a considerable assured switch-on distance, robust metal housing, and a wide temperature range from -25 to 70 °C.