Smart Sensor Market Size, Share & Trends Analysis Report By Type (Touch Sensor, Image Sensor, Temperature Sensor, Motion Sensor, Position Sensor, Pressure Sensor), By End-User (Automotive Industry, Consumer Electronics, Industrial, Infrastructure, Healthcare) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global smart sensor market size was valued at USD 97,640.4 million in 2021. It is expected to reach USD 338,147.7 million by 2030, growing at a CAGR of 14.8% during the forecast period (2022–2030).

Smart sensors can detect physical input such as light, heat, motion, moisture, and pressure and then react by displaying an output or transmitting the information in an electronic form for additional processing with signal conditioning, embedded algorithms, and a digital interface. These sensors gather data about the environment with a shallow background noise level while maintaining a very high level of accuracy. Smart sensors can be used in cutting-edge information technology solutions like analytics and machine-to-machine communication. In addition, these devices are utilized in smart grids, smart cities, intelligent environments (forest fire control, snow level monitoring, and earthquake early detection), and the automotive, defense, sports, and electronic industries.

Market Dynamics

Market Driving Factors

Demand for Intelligent Sensors in the Automotive Sector to Foster Market Growth

Sensors have become an essential part of the production process due to their role in automation-enhanced productivity and accuracy. Sensors are used to monitor several parameters, including temperature, pressure, flow, and level, to control the entire process and make it easier to manage using robots. In the automotive industry, intelligent sensors such as pressure and accelerometer sensors are used in vehicles to provide various benefits, including improved safety and increased efficiency in fuel consumption. For example, an intelligent sensor processes data in real-time and alerts the user to engine-related issues. In addition, these make it easier for the vehicle's engine, suspension, braking system, and other controls to communicate. Concerns over motor vehicle safety have prompted manufacturers to rapidly adopt intelligent sensors for various applications, including safety features like airbags. These airbags are superior to standard airbags in their ability to detect collisions. As a result, they reduce the number of accidents and injuries sustained by passengers.

Growing Trend toward the Internet of Things to Boost Market Progress

People are gravitating toward automation-based solutions and services globally dominated by information technology. Due to their innovative and cutting-edge applications, this has resulted in an increased focus on devices based on the Internet of Things. The Internet of Things (IoT) refers to a technology that can deliver the internet or internetworking to almost any application, including mobile devices, microwaves, refrigerators, and even entire buildings. The Internet of Things can connect these different things to a single network using electronic software, sensors, and actuators. It has several sensors, including a touch sensor, a proximity sensor, and a temperature sensor. Machine-to-machine (M2M) and person-to-computer communication can benefit from devices based on the Internet of Things.

Additionally, individuals are aided in capturing and transmitting electronic data by using these devices. For instance, the intelligent sensors used in infrastructure construction are installed on bridges to transmit information about cracks, stresses, and warpages. In addition, these sensors give information to the approaching vehicle about the current weather conditions and send that information to the vehicle via the internet to get it to slow down. In electronics, these intelligent sensors are installed in power grids to monitor the amount of electricity consumed. It is anticipated that during the next five to six years, the growth of the overall smart sensor market will be fostered by the escalating growth of the IoT market and initiatives undertaken by the government.

Market Restraining Factors

Intelligent Sensors Increases Costs and Reduces Lifespan to Restrict Market Growth

Incorporating sensors into electronic devices contributes to increased automation; however, this approach is typically avoided in contexts where it would not be cost-effective due to the additional cost involved. Even though incorporating sensors incurs additional costs and makes the devices more automated, it enables additional features and makes the devices more automated. Consequently, it is avoided in applications that are designed to be cost-effective. Because smartphones, laptops, and cameras all have components that are temperature sensitive, problems with overheating can be caused by the devices' sensors when they are used continuously for extended periods. The sensors in the devices reduce the battery life of the devices because they rely on the device battery for their operation and use the batteries to power themselves.

Key Market Opportunities

Increasing Use of Wearable Devices and Innovative Applications in the Biomedical Industry to Boost Market Opportunities

Recent developments in novel sensor technologies have made it possible to add new and additional features to medical equipment and devices. The doctors use these intelligent sensors to monitor routine check-ups, such as the patients' blood pressure and body temperature. In addition, intelligent sensors measure things like the heartbeat and the amount of oxygen in the blood. Then they send that information to the cloud, where medical professionals can access it. Additionally, these sensors enable telemedicine to provide healthcare in underserved and remote areas. The market for wearable technology is a new market that is developing within the biomedical industry. This industry caters to producing high-tech wearable gadgets, such as sensors that track various kinds of exercise. These sensors gather data regarding respective parameters, then convert it into a digital format and display it on the screen. It is anticipated that the overall smart sensor market will increase due to the growth in demand for wearable devices and the increase in investment made by governments of several countries to improve healthcare conditions. On the other hand, an increase in the use of wearable devices and the development of innovative applications in the biomedical industry are anticipated to present lucrative opportunities worldwide.

Regional Analysis

The global smart sensor market is segmented into four regions, namely North America, Europe, Asia-Pacific, and LAMEA. 

Asia-Pacific is the highest revenue contributor to the global smart sensor market and is estimated to grow at a CAGR of 15.9% during the forecast period. The number of people who have access to the internet and those using smartphones and other intelligent devices is rising due to the proliferation of internet-connected devices. This, in turn, accelerated the use of smart sensors in residences, workplaces, and other buildings, necessitating automatic temperature control. Due to the presence of China and India, two of the most populous nations in the world, this region is home to a significant portion of the world's total population.

The growth of the smart sensor market is anticipated to be propelled by factors such as an increase in the penetration of smartphones and the adoption of smart electronic appliances in Asia-Pacific residential, commercial, and industrial settings. As a result of technological advances, home appliances found in residential buildings, such as washing machines, heating, cooling equipment, and refrigerators, can now be controlled over the internet from a remote location. This encourages more people to use intelligent sensors (that also can be connected to the internet). Intelligent sensors allow users to modify their heating settings using internet-connected devices like smartphones or laptop computers.

North America is the second-largest global smart sensor market contributor and is estimated to reach around USD 27,113.2 million at a CAGR of 13.6% during the forecast period. The rise in the average disposable income of people in North America is the primary factor driving the market for equipped gate driver I.C. The evolution of the energy and power industry toward implementing cutting-edge technology is a driving force behind the expansion of the market for intelligent sensors. The growth of the market for intelligent sensors in North America is driven by several factors, the most important of which are advances in technology, a high income per person, and early adoption of automation.

Segmental Analysis

The global smart sensors market has been divided into type and end-user.  

By Sensor

Based on the sensor, the global smart sensor market has been categorized into touch, image, temperature, motion, pressure, gas, light, and position sensors.

The image sensors segment is the highest contributor to the global smart sensor market and is estimated to grow at a CAGR of 12.9% during the forecast period. Image sensors are used extensively in industrial quality control applications to improve product yield and detect defective units in the production line. These applications are typically found in manufacturing facilities. In addition, the demand for image sensors has significantly increased over the past few years. This is primarily due to the widespread use of image sensors in many electronic products, including camcorders, biometrics, digital cameras, virtual keyboards, video conferencing applications, optical mice, and many more.

For instance, Infineon and Google decided that Lenovo smartphones would use Infineon's REAL3 IR ToF image sensor chip for Google's Tango depth sensing and instant 3D mapping. This agreement was signed after Infineon and Google had already established a relationship. It is anticipated that there will be a rise in the demand for smartphones in the not-too-distant future, which will create lucrative opportunities for the market.

The touch sensors' second-largest segment is expected to grow by 2030 at a CAGR of 10.2% during the forecast period. The sensor manufacturing company recently released a new force touch sensor explicitly designed for mobile devices Peratech is based in the United Kingdom. This distributed force array sensor uses quantum tunneling composite technology to provide an array of single-point sensors. This array of sensors is coupled with a position sensor to measure force and correlate it with the position. In the corporate and educational sectors, touch sensors are widely used for meetings, seminars, and presentations. This is a use for touch sensors distinct from the more traditional application of the technology. The market's growth is anticipated to be fueled during the forecast period by an increase in the adoption of touch-enabled devices in various industries, including retail, hospitality, education, and healthcare. It is anticipated that the ability of touch-enabled devices to assist users in a wide variety of end-user applications will boost the adoption of these devices throughout the forecast period.

By End-User

Based on the end-user, the global smart sensor market has been categorized into industrial, medical equipment, automotive, consumer electronics, infrastructure, and other (avionics and food and beverage) sectors.

The automotive segment is the highest contributor to the global smart sensor market and is estimated to grow at a CAGR of 17.9% during the forecast period. Companies in the automotive industry, such as Audi, BMW, and Volkswagen, increase their spending on research and development annually to stay ahead of the competition. These companies that manufacture vehicles are increasing the number of intelligent sensors installed in their products to make those products more comfortable and increase the level of automation overall. A few primary factors fuel the demand for intelligent sensors in the automotive industry worldwide. These factors include the surge in demand for automation in vehicles, the high level of competition in the automotive industry, the surge in demand for electric cars to control pollution, and the increase in the trend of driverless cars.

The consumer electronics segment is the second-largest segment and is estimated to grow at a CAGR of 11.6% during the forecast period. A highly competitive consumer electronics market, in which players focus on upgrading their products such as smartphones, laptops, and digital recorders, fuels the increase in sensor penetration in consumer electronic products. This increase in sensor penetration has been fueled by an increase in the overall market for consumer electronics. The significant companies following this trend include Sony, Apple, Samsung, Panasonic, and Google. These companies have incorporated advanced image, touch, fingerprint, pressure, and proximity sensors into their products. This, in turn, raises the demand for intelligent sensors, and during the forecasted period, the market is anticipated to expand rapidly.

Impact of covid-19

Covid-19 had some profound adverse impacts on the global advanced ceramics market.

COVID-19 spread across the world from China, making the whole world stand still and to a complete lockdown situation. Covid-19 is an infectious disease that was caused by a newly discovered coronavirus. During the time, the fatality rate among the population above 40 was also high globally. The disease causes severe illness for people suffering from medical conditions like diabetes, cardiovascular disease, chronic respiratory disease, etc.

Considering the situation during that time, it was declared a pandemic which led to numerous countries, including the major economies like China, the United States, India, and others, implementing lockdowns which adversely affected the global economy.

In the first two quarters of 2020, the economic and industrial operations temporarily halted. Almost every manufacturing unit where advanced ceramics is used, such as electrical and electronics, transportation, industrial, chemical, and other End-user Industries (except medical), reduced their manufacturing capacities due to the lack of workers. The lockdown implemented put a halt to global supply chains. This resulted in repercussions in terms of both production and demand for advanced ceramics.

Market Recovery Timeline and Challenges

With time the lockdowns were uplifted, and relaxation was made to the public. Gradually, the economy picked up the pace and started its operations, bringing the demand in the global advanced ceramics market and increasing among various industries. As the situation improved during the initial months of 2021, the economies also strengthened their fiscal policies and initiated their development process; the end-user industries began their activities, bringing the overall ceramics market back on track.

Recent Developments

• May 2022- Infineon and pad technologies develop 3D depth-sensing technology for Magic leap 2 – enabling advanced cutting-edge industrial and medical applications.
• April 2022- Hyundai Motor Group honors Infineon for supply competence and strategic cooperation for electric cars.
• March 2022- Infineon and Sleepiz enabled high-precision sleep monitoring at home based on radar technology.