Torque Sensor Market

Market Overview

The global torque sensor market size was valued at USD 7.3 billion in 2022 and is projected to reach USD 17.7 billion by 2031, registering a CAGR of 10.4% during the forecast period (2023-2031). The use of wireless and digital features in torque sensors results in increased advantages. The increasing demand from industries is one of the primary market drivers boosting torque sensor market growth.

Torque sensors, also known as torque transducers or torque meters, detect torque or torsional force on an object. Torque is a rotating force imparted to an object commonly measured in Newton meters (Nm) or foot-pounds (lb-ft). Torque sensors are vital in various industrial applications where accurate torque measurements are required for performance, quality control, and safety.

Furthermore, the torque sensor market share will increase as the number of integrated cars increases. It is possible to conduct tests using fan torque technologies, motor dynameters, electric pumps, and electric car terminals. Wireless torque sensors are becoming more advanced. All of these aspects are considered to improve market circumstances for torque sensors. In the future, the rotating torque sensor will be in great demand from end users. Regulatory actions will improve the overall market environment as fuel and electricity efficiency improves.

Market Dynamics

Global Torque Sensor Market Drivers

Automotive Industry Growth

Torque sensors are widely used in the automobile sector. Due to increased vehicle production and the shift to electric powertrains, torque sensors are in high demand in applications such as electric power steering, motor testing, and drivetrain components. The increased relevance of torque sensors in electric powertrains has resulted from the move to electric automobiles. These sensors are critical for monitoring and adjusting the torque generated by electric motors to achieve maximum efficiency and performance.

The amount spent on automotive R&D globally expanded dramatically, fueled by the brisk plug-in electric light vehicle (PEV) industry, which is expected to triple year over year by 2021. China and the United States are market leaders in this field, with new electric car registrations and launches in China predicted to climb by 155% over the previous year in 2023. As automakers continue to innovate and develop new drivetrain technology, the demand for torque sensor market trends will likely expand, underlining their importance in the larger automotive scene.

Global Torque Sensor Market Restraints

High Cost of High Precision Sensors

High-precision torque sensors with advanced features frequently need complex technology, precision engineering, and high-quality materials, increasing manufacturing costs. As a result, these sensors may be more expensive, limiting their use in particular sectors and applications. High-accuracy sensors can be more expensive because of the technology necessary to obtain this degree of precision. 

For example, a pressure sensor that can detect pressure to 0.1% precision will be more costly than a sensor that can only measure pressure to 1% accuracy. Furthermore, the pressure range of a sensor might influence its pricing. Sensors capable of measuring a wide range of pressures, from vacuum to high pressures, may be more expensive than sensors capable of measuring only a restricted range of pressures.

Global Torque Sensor Market Opportunities

Advancement in Industry 4.0 and IoT Integration

The current improvements in Industry 4.0, defined by incorporating digital technology into industrial processes, present a considerable potential for torque sensors. Thanks to IoT integration, torque sensors may become an important component of the networked and data-driven production landscape, contributing to enhanced efficiency, predictive maintenance, and overall operational excellence. According to McKinsey research, the global economic effect of Industry 4.0 applications would range between USD 1.2 trillion and USD 3.7 trillion by 2025. 

Furthermore, torque sensors give real-time data on torque levels, allowing manufacturers to check equipment operation continually. This data may be evaluated for abnormalities or patterns, allowing for predictive maintenance and reducing downtime. Hence, The importance of Industry 4.0 and IoT integration for torque sensors stems from their development into intelligent, networked devices that contribute to manufacturing's entire digital transformation. Torque sensors are important in building more flexible, efficient, and data-driven production environments as companies embrace smart manufacturing processes.

Regional Analysis

The global torque sensor market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

Asia Pacific Dominates the Global Market

Asia-Pacific is the most significant global torque sensor market shareholder and is estimated to grow at a CAGR of 10.8% over the forecast period. Asia-Pacific has the largest market for torque sensors, with important contributors to market development, including China, Japan, and South Korea. The region's growing automotive sector and rising demand for improved torque sensors drive the Asia-Pacific market. In India, the automobile sector leads the market for torque sensors. Electric cars (EVs) now account for less than 1% of total vehicle sales in India, according to Catapult Organizations Report 2021; the industry is growing and is predicted to be valued at least GBP 4.8 billion (INR 475 billion) by 2025. However, two-wheelers account for 62% of this market, followed by three-wheelers at 37%.

Furthermore, favorable government regulations and hefty expenditures by manufacturers are likely to drive up demand for torque sensors in the Indian automobile sector. China's industrial robotics industry is expected to grow by 9.5% by 2020, indicating higher need for torque sensors. Furthermore, according to the country's five-year plan published earlier this year, the Chinese government plans to increase local enterprises' market share from 30-40% to 70% by 2025. Youibot, a leading Chinese industrial robot manufacturer, raised USD 15.5 million in its most recent fundraising round, spearheaded by SoftBank Ventures in May. In 2020, the Shenzhen-based firm had a full year, completing various fundraising rounds and earning several accolades for its innovation. 

North America is anticipated to exhibit a CAGR of 10.6% over the forecast period. This is due to the growing need for sophisticated torque sensors in the automotive and aerospace sectors and the region's expanding demand for wind energy. The presence of important industry players and the growing emphasis on improving fuel efficiency and lowering emissions are projected to expand the torque sensor market in North America in the coming years.

Additionally, the Torque Sensor market in the United States had the biggest market share. In contrast, the Torque Sensor market in Canada was the fastest-growing market in the North American area. The region's emphasis on advanced driver assistance systems (ADAS) corresponds with the function of torque sensors in improving vehicle control and safety. Furthermore, the trend of embedding torque sensors into electric and hybrid powertrains demonstrates the region's dedication to sustainable and efficient transportation solutions.

Europe is the third-largest torque sensor market in the world. Europe is a substantial market for torque sensors, with increasing demand in the automotive, aerospace, wind energy, and manufacturing industries. The presence of important companies in the area and the growing need for sophisticated torque sensors for applications such as engine management, powertrain control, and wind turbine control are the primary drivers of the European market.

In addition, the European Union's emphasis on decreasing carbon emissions and improving vehicle fuel efficiency has increased the usage of sophisticated torque sensors in the automobile sector. Torque sensors are critical in maximizing engine efficiency and fuel usage as the continent ramps up efforts to reduce carbon emissions. Furthermore, the integration of torque sensors with connection and IoT technologies responds to the region's emphasis on vehicle connectivity, contributing to improved performance and data-driven insights. The region's expanding need for wind energy has also increased the demand for torque sensors in the wind energy industry.

Segmental Analysis

The global torque sensor market is segmented based on type, application, and region.

By Type, the market is further segmented into Rotary Torque Sensors and reaction Torque Sensors.

Rotary Torque Sensor accounts for the largest share of the market. The torque exerted on a spinning shaft is measured using rotary torque sensors. These sensors are intended to be mounted in line with a rotating device, such as a motor shaft or a drivetrain component, to quantify the twisting force produced during rotation. Rotary torque sensors are often employed in applications that need accurate measurement of the torque delivered to a rotating object. Torque testing and monitoring of engines, electric motors, and other spinning machinery is included.

 In contrast, reaction torque sensors measure the torque imparted to a stationary or fixed device. These sensors are frequently positioned on a system's stationary element and respond to the torque supplied to the rotating part, measuring the twisting force.

The market can be bifurcated by application into Automotive, Industrial, Test and Measurement, Aerospace, and Defense.

Automotive influenced the market growth. Torque sensors are vital in the automobile sector, where precise torque measurements are required for various applications. Torque sensors are utilized in the automobile industry for engine testing, powertrain development, electric power steering systems, braking systems, and other components where torque control and measurement are critical. There is a growing need for sophisticated torque sensors for powertrain control, engine management, and transmission systems. Torque sensors are critical in enhancing vehicle fuel efficiency, pollution reduction, and performance. The increased emphasis on these elements has increased the use of sophisticated torque sensors in the car industry. Furthermore, the rising demand for electric and hybrid vehicles has increased the need for torque sensors in the automotive industry.

Torque sensing is required in various manufacturing and processing processes in industrial applications. This covers applications in equipment manufacture, assembly lines, robotics, and other industrial operations that need precision torque measurement and control.

Recent Developments

• November 2023- With the purchase of Vourity, ABB E-mobility streamlines the payment for electric car charging.
• October 2023- Sensor Technology's new torque sensors have capabilities ranging from 0.2Nm to 1Nm, for a total range of 0.2Nm to 13,000Nm.