The global magnetic sensor market size was valued at USD 2.71 billion in 2021 and is projected to reach USD 5.17 billion by 2030 at a CAGR of 6.68% from 2022 to 2030. Electronic control systems in both commercial and passenger vehicles are composed of magnetic sensors. As a result of the fact that these systems increase safety and improve driver comfort, their adoption has increased dramatically. These cutting-edge sensing components ensure a high level of dependability and economic and performance effectiveness.
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The increasing adoption of magnetic sensors in advanced applications, such as autonomous vehicles, is anticipated to stimulate the global magnetic market's expansion. The magnetic sensors used in these systems are highly effective, highly accurate, dependable, sturdy, and of simple construction. Magnetic sensor manufacturers are increasing their investments in various magnetic sensing technologies, such as 3D sensing, tunnel magnetoresistance (TMR), and giant magnetoresistance (GMR), in order to strengthen their domain expertise and market position. In addition, these companies are expanding their magnetic sensor product lines by introducing newer products to meet the needs of a variety of end-use markets. For example, Allegro MicroSystems LLC (US) introduced ATS19580 in February 2020, a fully-integrated, back-biased GMR transmission speed and direction sensor for automotive applications. The sensor contributes to a reduction in system size, complexity, and expense, resulting in an increase in fuel economy.
Significant technological advancements in sensing techniques, coupled with the increased integration of magnetic sensors across multiple industry verticals, are anticipated to stimulate market expansion. High penetration of sophisticated, feature-rich smartphones and tablets has necessitated the need for advanced sensing components, a development that is anticipated to have a positive impact on the market in the coming years. Non-Destructive Testing (NDT) and medical R&D have also made extensive use of magnetic sensors.
Despite the fact that the widespread use of magnetic sensors in automated vehicles, consumer electronics, and healthcare devices results in an increase in the shipment of these sensors, price erosion significantly restrains the sales growth. This is partially a result of the rising number of sensor manufacturers and their intense competition. Several businesses are focusing their R&D efforts on developing cost-effective alternatives to existing magnetic sensing technologies, such as position, speed, and angle sensors manufactured using MEMS and 3D sensing technology. Aggressive R&D efforts result in the rapid innovation of new portable, consumer, and Internet of Things (IoT) applications, which in turn results in pricing pressure, particularly for high-volume applications. Therefore, manufacturers are required to reduce the potential cost of magnetic sensors. This price decline not only hinders revenue growth in the extremely competitive magnetic sensor market but also reduces suppliers' profit margins. The greatest obstacles for companies operating in this market are expanding their manufacturing capacities, delivering products of higher quality, and reducing the overall cost of production.
As hybrid and electric vehicles are more digitally connected than conventional vehicles, they are gaining popularity. In addition, they reduce the consumption of fossil fuels like gasoline and diesel, mitigate global warming and environmental damage, and provide superior fuel economy. In addition, COVID-19 has caused a decline in demand for hybrid, electric, and autonomous vehicles in the automotive industry. In the post-COVID-19 era, demand for hybrid, electric, and autonomous vehicles is likely to exceed that of all other vehicle types. This increase in demand can be attributed to changing lifestyles, governments encouraging the adoption of green vehicles to reduce CO2 emissions, and the introduction of innovative technologies. Pollution-free operation is one of the most significant advantages of electric vehicles. In addition, several of the world's largest automakers, including General Motors (USA), Ford (USA), and Renault (France), are expanding their hybrid and electric car operations. Power electronics is a crucial hybrid technology that accounts for 20% of the total cost of hybrid vehicles. This creates significant growth opportunities for magnetic sensors in applications involving position, velocity, and angular detection and measurement.
This magnetic sensor market is segmented on the basis of technologies, applications, regions and competitors. The market is segmented by technology into Anisotropic Magneto-Resistive (AMR), Tunnel Magnetoresistance (TMR), Hall Effect, Giant Magneto-Resistive (GMR), and others. Among these technologies, the Hall Effect segment accounted for a sizable revenue share in 2018 and was valued at close to USD 640.0 million; this segment is anticipated to maintain its dominance throughout the forecast period. This is because they are simple to implement, have a compact design, and offer a variety of output options and operating voltages.
The TMR segment is anticipated to have the highest volume-based CAGR of greater than 14.5% over the forecast period. Bio-sensing and Magnetoresistive Random-Access Memory are among the numerous industrial applications for TMR sensors (MRAM). The technology is gaining popularity due to its high output and sensitivity, as well as sensing capabilities comparable to Wheel Speed Sensors (WSS) utilised in Anti-lock Braking Systems (ABS). In addition, AMR sensors are anticipated to grow in popularity over the foreseeable future due to their inherent characteristics, such as greater magnetoresistance, lower cost, and high flexibility.
During the projected period, the automotive industry is anticipated to be the segment that generates the most demand. In 2018, various automotive applications employed approximately 1.5 million magnetic sensors. Additionally, the segment commanded the lion's share of the market's revenue for magnetic sensors that year. Key regulatory bodies around the world are shaping the segment's growth by emphasising the adoption of electric and hybrid vehicles in order to address rising concerns about environmental pollution.
The increased incorporation of magnetic sensors in consumer electronics is anticipated to have a positive effect on the market expansion. These sensors are essential components of devices such as tablets, smartphones, scanners, printers, laptops, flat panels, and cameras. They are also incorporated into gaming controllers and other intelligent products.
In recent years, robots have become increasingly popular in factory automation. For more accurate, repeatable, and precise motor movements, factory automation solutions require both linear and angular position sensing. Magnetic sensors are increasingly used for angular and linear sensing, safety switches, and proximity detection in an effort to increase the productivity of production lines.
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Asia-Pacific led the market in terms of revenue and volume in 2021, which can be attributed to the region's thriving automotive and consumer electronics industries, as well as the presence of prominent sensor manufacturers in China and Japan. The region's demand for magnetic sensors has increased due to the increased demand for automobiles and high-tech smartphones.
Connected cars have risen to prominence in North America as customer purchasing decisions have become increasingly dependent on the communication capabilities provided by various automakers. The miniature magnetic sensors aid in providing these capabilities while preserving the vehicle's fundamental functionality. Sensing components for a variety of use cases, including position sensing, flow rate detection, and speed sensing, are gaining popularity in the region.