The global smartphone sensor market size was valued at USD 82.41 billion in 2022. It is estimated to reach USD 144.53 billion by 2031, growing at a CAGR of 6.44% during the forecast period (2023–2031).
Sensors are devices or equipment sensing different parameters such as fingerprint, pressure, temperature, and others. Sensors play a vital role in smartphones as these are being integrated into smartphones to gather additional information and data associated with various installed applications. Sensors are a crucial component needed for smartphones to perform a variety of applications. Moreover, applications related to photography and cameras require image sensors to complete the task, and to run gaming applications, smartphones require an accelerometer, gyroscope, and touch sensors. Smartphone sensors are getting more advanced daily, and various new technologies are being incorporated into smartphones. These new technologies include 3D sensing, Lidar, and AR.
|Market Size||USD 144.53 billion by 2031|
|Fastest Growing Market||Europe|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
The global smartphone industry has witnessed exceptional growth with the introduction of new technologies, designs, and features. As per sr analysis, international smartphone shipments are expected to reach around 1.5 billion units by the end of 2023. This growth is expected to increase the manufacture of smartphone sensors during the forecast period. The rising population and the rapidly growing demand for technologically advanced devices have boosted the manufacture of smartphone sensors. Hence, the increasing consumption of smartphones is expected to drive the growth of the global smartphone sensors market during the forecast period.
Further, sensors detect changes in the environment and movement and convert them into electronic signals that can be processed by the phone. These sensors are sensitive to strong magnetic fields, abnormal humidity, and extreme temperatures, damaging their performance. Thus, the demand for sensors has been increasing over the years and is expected to increase further over the forecast period.
5G technology is developing rapidly and is likely to be integrated into smartphone sensors, providing an array of new possibilities for IoT. With the launch of 5G devices and services, the demand for smartphones will increase in emerging markets such as Russia, India, and Indonesia over the forecast period. As per sr analysis, the shipments of 5G-enabled smartphones were expected to reach 1% of the total smartphone shipments worldwide in 2019. 5G-enabled smartphones are predicted to gain market share rapidly, reaching 51.4% by 2023. Further, 5G provides unprecedented speed and coverage and a low response rate required for direct messaging and similar services. Thus, considering the advancements in communication technologies and the commercialization of 5G, the global smartphone sensors market is expected to drive market growth during the forecast period.
The primary components required to develop sensors include raw materials such as silicon, germanium, and steel, among other materials. The increasing demand for sustainable and efficient use of natural materials requires innovative research approaches on an interdisciplinary basis. Economic growth in industrial countries and emerging economies, rising living standards, and the need to maintain economic power require a secure raw material supply. Hence, as a result, the responsible handling of primary and secondary raw material resources is gaining importance. In addition, modern technology allows for more effective mining, recovery, and recycling of raw resources, significantly improving sustainability. This incurs many costs in the research and development of these sensors, affecting the semiconductors' prices. Thus, the fluctuating prices of semiconductors are expected to hamper the global smartphone sensors market growth during the forecast period.
Smart devices allow developers and designers to embed sensors and processors in small-size electronic devices. Sensors help enhance the usability of these devices and improve the quality of experience through data collection and analysis. Over the past decades, smartphone sensors are gaining traction and have been adopted for various applications, including continuous activity tracking and monitoring. The increasing life expectancy of individuals, the rising penetration of smartphones, the development of embedded sensors, and the availability of modern communication technologies have enabled the continuous and remote monitoring of an individual’s health and well-being. This further creates opportunities for the manufacturers of smartphone sensors to embed state-of-the-art technologies in their existing product portfolio and create advanced sensors.
Furthermore, modern mobile phones featuring high-performance microprocessors are ideal for developing countries and rural areas that lack access to diagnostic laboratories and expensive instrumentation. Thus, the development of smartphone applications for remote monitoring and analysis is expected to create lucrative opportunities for the players operating in the global smartphone sensors market during the forecast period.
By region, the global smartphone sensor market is divided into North America, Europe, Asia-Pacific, and Rest of the World (RoW).
Asia-Pacific is the most significant global smartphone sensor market shareholder and is anticipated to grow at a CAGR of 7.75% during the forecast period. The region is a central hub for industrial manufacturing and, in recent years, has become a global focal point for significant investments and business expansions. Some major smartphone sensor manufacturers in Asia-Pacific include Sony Corporation, Panasonic Corporation, Samsung, Murata Manufacturing Co., Ltd., and Huawei Technologies Co., Ltd. In addition, China is the leading country in the region. The nation is home to large manufacturing firms such as Foxconn, which manufactures electronic components for companies such as Apple and Samsung. China is the hub for manufacturing and assembling smartphones due to its well-developed infrastructure and cheap labor. Due to its massive production capabilities, the manufacturers focus on expanding their reach to other countries, which is expected to influence China's smartphone sensor market and, in turn, lead to the expansion of the Asia-Pacific region during the forecast period.
Europe is expected to grow at a CAGR of 5.84% over the forecast period. The increasing use of smartphones by the young generation has propelled the demand for smartphone sensors in the region. Additionally, the proliferation of AI and VR technologies in smartphones has encouraged the adoption of smartphone sensors in this region. Some of the significant manufacturers of smartphone sensors in Europe include NXP Semiconductors NV, Infineon Technologies AG, Bosch Sensortec, AMS AG, ARM Holdings plc, and ABB Ltd. Furthermore, the presence of key countries such as the UK, Germany, France, and Italy contributes to regional market growth.
In addition, some businesses in Germany have adopted industrial digital technologies to gain greater productivity and efficiency. This has encouraged the local and regional players in the smartphone sensor market to tap a significant share of the German market by delivering products that comply with the government regulations in the country. France also offers multiple opportunities for expansion to established players in the global market. The country is witnessing huge concerns regarding individuals' safety and security, resulting in the adoption of smartphone fingerprint sensors. In addition, consumers' growing adoption of AI and IoT is expected to increase the demand for sensors in the near future.
The North American market region includes the US, Canada, and Mexico. The region has a well-developed infrastructure and can quickly adopt technological advancements. Moreover, the influx of IoT and connected technologies have contributed to the growth of the smartphone sensors market in North America. Some significant manufacturers of smartphone sensors in North America include Analog Devices Inc., Maxim Integrated, Knowles, and KEMET Corporation. The US is the leading country in North America, owing to the region's product innovation and development. In addition, several US companies are expected to establish production plants in Mexico to gain benefits such as shorter supply lines, less inventory in the pipeline, and lower operating costs over the forecast period. These facilities are enabled with state-of-the-art technology, thus, increasing the demand for smartphone sensors across Mexico. The factors mentioned earlier will likely accelerate the market's expansion during the forecast period.
The Rest of the World has been segmented into the Middle East and Africa and South America. The market growth in this region is currently stagnant due to the presence of emerging economies and relatively low infrastructure support. However, the market is expected to experience a growing trend due to the increasing investment to boost IoT connectivity.
The global smartphone sensor market is segmented by smartphone type, price, manufacturers, and application.
The global smartphone sensor market is divided into standard smartphones, rugged smartphones, smartwatches, and other wearables.
The standard smartphone segment owns the highest market share and is estimated to grow at a CAGR of 6.87% over the forecast period. A smartphone is a cellular phone equipped with a combination of integrated computer and other features, such as operating system and web browsing, which are not originally associated with its traditional counterpart. The increasing use of mobile Internet, high ownership of premium design smartphones, and the growing per capita disposable income in developing countries are a few factors that are expected to increase the sales of smartphones. Smartphones are supported by a mobile operating system that offers advanced computing facilities to the device. A smartphone can also work as a digital media player for music, uploading photos and videos through a single interface.
The global smartphone sensor market is divided into USD 300 to USD 500, USD 100 to USD 300, above USD 500, and under USD 100.
The USD 300 to USD 500 segment is the highest contributor to the market and is expected to grow at a CAGR of 4.73% during the forecast period. Most smartphones sold in medium-end devices have a sensor within this range. For instance, an unexpectedly early launch date was announced by Nubia for the introduction of a new flagship Android device powered by the latest Snapdragon 8 Gen 2 CPU. The OEM has also stated that this gadget, which strangely seems to go by the name Z50 even though its predecessor was the Z40 Pro, will compete with the Xiaomi 13 and iQOO 11 series with cutting-edge LPDDR5X RAM and storage with the most recent UFS 4.0 spec.
The global smartphone sensor market is divided into Apple Inc., Samsung Electronics, Huawei Technology, Xiaomi Inc., Oppo, Sony Corporation, HMD, and others.
The Apple Inc. segment owns the market and is anticipated to grow at a CAGR of 8.12% over the forecast period. Due to its superior quality, Apple's iPhone stands out over all other smartphones in the market. Apple Inc. is the market leader as a result of using more sensors in their devices to provide unique features. For instance, Apple's iPhone 12 uses a lidar for depth sensing, face ID for biometrics, an accelerometer for compass and GPS, a gyroscope for compass, GPS, and AR applications, proximity for 3D touch, auto-off, a magnetometer for compass, a barometer, and an ambient light sensor for auto-dimming displays. The better user experience, more security, and increased accessibility these sensors provide consumers fuel the segment's expansion.
The global smartphone sensor market is divided into high-end, mid-level, and low-end.
The high-end segment is the highest contributor to the market and is expected to grow at a CAGR of 5.96% during the forecast period. The use of smartphone sensors for high-end applications is high compared to standard applications. These include 3D sensing, magnetometers, VR and AR applications, EIS and OIS in image stabilization, and proximity sensing. The sensors capable of performing complex applications are usually found in high-end devices and smartphones, including the ones from Apple, Samsung, and Huawei. These phones and other smart wearable devices, such as smartwatches, are extremely expensive.
• October 2022- Samsung introduced the ISOCELL HPX as the latest in its steadily-growing portfolio of mobile image sensors with the current class-leading resolution of 200 megapixels (MP).
• January 2023- Samsung Electronics introduced its new Neo QLED, MICRO LED, and Samsung OLED product lines, along with lifestyle products and accessories today, in advance of CES® 2023. This year's list comprises new, cutting-edge items emphasizing better connectivity and individualized user experiences.