Touchless Sensing Market

Market Overview

The global touchless sensing market size was valued at USD 7 billion in 2023 and is projected to reach USD 30 billion by 2032, registering a CAGR of 17.3% during the forecast period (2024-2032). The increasing demand for touchless sensing technologies in smartphones and the growing need for end-use industries such as banking and finance are the primary factors driving the market’s growth.

Touchless sensing technology, or contactless sensing or gesture recognition technology, detects and interprets gestures or movements without physical contact. This technique allows gadgets to perceive and analyze human gestures and motions without physical contact. The touchless sensor enables the system to recognize biometric images and the presence of humans without requiring physical contact with any device. The optical technology of this system utilizes a camera to scan and detect the image. Touchless technology is extensively employed in locations that require high levels of hygiene, such as kitchens, hospitals, semiconductor laboratories, and washrooms. Touchless sensing technology is being rapidly utilized across various industries, including healthcare, automotive, consumer electronics, and home automation. 

The touchless sensing business is projected to experience significant growth in the foreseeable future because of the increasing digitalization in sectors such as healthcare, automotive, and others. Moreover, the growing need for touchless sensing, driven by hygiene concerns for both employees and customers, along with the integration of gesture and sensing technology in consumer electronics like smartphones and laptops, is anticipated to drive the growth of the touchless sensing market in the projected timeframe.

Highlights

• Proximity and infrared sensors generate the highest revenue share based on sensors.
• Camera-based technology accounts for the largest market share by technology.
• Consumer electronics account for the largest market share in the industry.

Market Dynamics

Global Touchless Sensing Market Drivers

Advancements in Gesture Recognition and Biometric

Advancements in gesture recognition and biometric authentication are propelling the expansion of the Touchless Sensing market. Gesture recognition systems have advanced in accuracy and responsiveness, allowing intuitive and seamless interactions with devices such as smartphones, game consoles, and car interfaces. This technology enables users to manipulate and traverse digital interfaces using uncomplicated hand gestures. Biometric identification systems, like facial recognition and fingerprint scanning, are experiencing significant expansion. These technologies provide secure and convenient methods of verifying identity, making them well-suited for unlocking devices, making payments, and accessing services.

In June 2020, Alphabet Inc’s Google business received approval from U.S. regulators to implement Project Soli, a radar-based motion detection gadget. The Soli sensor utilizes a radar beam to detect motion in a three-dimensional area, allowing for touchless control of operations or features. This technology is particularly beneficial for people who have mobility or speech problems. The ongoing enhancement and incorporation of gesture recognition and biometrics will drive the market’s growth. 

Growth in Smart Home and loT Integration

The Touchless Sensing market is significantly driven by the rapid expansion of the Internet of Things (IoT) and the increasing number of smart home devices. Touchless technologies are essential for establishing smooth and interconnected surroundings in smart homes. Touchless faucets, voice-activated assistants, and facial recognition door locks are gaining popularity. Integrating touchless sensors with loT ecosystems improves the user experience, allowing for more automation and ease. This connection enables customers to remotely operate diverse equipment, retrieve information, and efficiently oversee their residences with limited physical engagement. 

By 2025, it is estimated that more than 50% of consumers in the United States will embrace smart home technologies. In contrast, in 2021, the adoption of smart home technology was limited to around 40% of households in the United States. The adoption rate of smart homes has increased by 42% within four years. Approximately 78% of prospective house buyers are willing to pay a premium for a residence equipped with smart home technology. Around 75% of smart home consumers are aged below 55. The satisfaction rate among smart home gadget owners is 97%. Approximately 66% of smart home buyers express apprehension regarding the security of their data. The average number of smart gadgets in U.S. smart homes is 8. With the increasing adoption of smart home solutions, there will be a corresponding increase in the demand for touchless sensing technologies.

In addition, with the increasing need for smart home technology, firms such as PCI have developed user-friendly and secure designs for smart home devices. The company has created LCD modules, high-performance single-board computers, IP69 K-rated enclosures, and a range of sensors to provide a comprehensive solution that fulfills the requirements of smart homes.  

Global Touchless Sensing Market Restraints

Privacy and Data Security Concerns

With the increasing prevalence of touchless sensing technologies in our everyday lives, a vast amount of data is being gathered for various reasons, such as recognizing gestures, analyzing biometrics, and studying user behavior. This data has the potential to generate apprehensions regarding privacy and security. Users are becoming more aware of the dangers of improper use or unauthorized access to their data. Strict adherence to privacy standards is necessary for storing, transmitting, and preserving biometric data and other sensitive information to minimize the risk of privacy breaches and cyberattacks.

Additionally, authorities and governing bodies are taking action to tackle these concerns by implementing laws like the General Data Protection Regulation (GDPR) in Europe and the California Consumer Privacy Act (CCPA) in the United States. Manufacturers and service providers must adopt strong security measures to protect data and inform consumers about the collection and use of their data.

Global Touchless Sensing Market Opportunity

Demand for Energy Efficiency and Environmental Sustainability

The need for energy efficiency and environmental sustainability significantly influences the Touchless Sensing industry. Touchless sensing technologies are being implemented to enhance energy efficiency and minimize ecological footprint. Smart lighting systems utilize motion sensors to automatically alter lighting settings according to occupancy, minimizing energy consumption. In January 2023, the United Kingdom suggested raising the minimum energy efficiency requirement for lighting to the most elevated level globally, reaching 120 Lumens per Watt (lm/W) in 2023 and 140 lm/W in 2027.  

In addition, in July 2022, the East African Community (EAC) implemented a standardized quality and performance standard that will gradually replace traditional and fluorescent lamps with LED lamps.  On May 24, 2023, South Africa released new regulations stating that all General Service Lamps (GSLs) must achieve a minimum efficiency of 90 lumens per watt (lm/W). Touchless faucets and appliances help to save water and energy by only activating when necessary.

Additionally, touchless sensors’ capacity to monitor and regulate energy utilization aligns with worldwide endeavors to lessen climate change and diminish resource consumption. Governments and organizations are promoting touchless technology through incentive programs and regulatory measures. With the increasing focus on sustainability, there is a rising need for touchless sensing technologies that enhance energy efficiency and lead to environmental preservation.

Regional Analysis

North America Dominates the Global Market

The global touchless sensing market analysis is conducted across North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

North America is the most significant global touchless sensing market shareholder and is estimated to grow at a CAGR of 17.1% over the forecast period. The growing adoption of touchless sensing technology in the healthcare, and aerospace and defense industries is anticipated to drive market growth in North America. In December 2020, Quench, a water cooler manufacturing and supply firm based in the United States, introduced a touchless bottle-filling machine. This recently introduced device enables people to consume hot, cold, and purified mineral water without physical contact with the machine, particularly during the COVID-19 pandemic. In June 2020, Smartrac, a subsidiary of Avery Dennison (NYSE: AVY) and the blockchain startup SUKU, introduced a digital verification system for verifying the authenticity of COVID-19 testing kits and personal protective equipment (PPE). The platform, driven by NFC technology, allows for immediate verification of authenticity and offers complete transparency throughout the supply chain.

Europe is anticipated to exhibit a CAGR of 17.6% over the forecast period. The prevalence of touchless sensing systems in automobiles is the reason behind this. Moreover, the growing presence of sophisticated automotive production facilities in Europe drives the demand for touchless sensors. In 2021, Germany was Europe's foremost automobile manufacturing country, having manufactured almost 3.3 million vehicles. In that particular year, Spain was the second-largest automobile manufacturer in Europe, having produced more than 2.1 million automobiles.

Asia-Pacific holds a significant market share. The growing adoption of touchless sensors in the BFSI industry in countries like India, China, and Japan is propelling the market. Across April 2021, UIDAI conducted a successful trial of touchless biometric recognition to facilitate the efficient rollout of the COVID-19 immunization program nationwide.

Segmental Analysis

The global touchless sensing market is segmented based on sensors, technology, product, and industry. 

Based on sensors, the market is segmented into Proximity and Infrared Sensors, Image Sensors, and Others.

Proximity and infrared sensors segment dominated the market in 2023. Proximity and infrared sensors ascertain the presence or absence of an object within a specific range. They play a vital role in many touchless sensing applications, such as touchless security systems, elevator buttons, and faucets. The growing need for touchless sensing applications in numerous industries, like consumer electronics, healthcare, and retail, is driving the growth of the proximity and infrared sensors market.

The image sensors segment is the fastest growing. Image sensors are crucial in the touchless sensing market since they allow devices to detect and interpret gestures, motions, and proximity without physical contact. These sensors catch and transform light into digital data, enabling the identification of hand gestures, facial expressions, and item movements. Image sensors are vital in numerous applications, including smartphones, car safety systems, and home automation. They enable touchless interactions, which not only enhance the user experience but also improve safety and efficiency. 

The market is segmented based on technology into RFID Technology, Camera-Based Technology, Sensors, Voice Assistance, and Others. 

The camera-based technology segment dominated the market in 2023. Camera-based technology offers various advantages over other touchless sensing methods. The technology can provide more precise and comprehensive information, making it particularly valuable in virtual reality, gesture recognition, and facial identification. The growth of this market has also been facilitated by the widespread use of smartphones, tablets, and other intelligent devices, many of which have touchless sensing technology using cameras.

The RFID Technology segment is the fastest growing. RFID technology is crucial in touchless sensing, facilitating contactless interactions and automation in many industries. The capability to wirelessly detect and monitor things or humans using radio waves makes it well-suited for tasks like access control, inventory management, and supply chain tracking. 

Based on product, the market is segmented into Touchless Sanitary Equipment, Touchless biometrics, and Others. 

The touchless biometrics segment dominated the market in 2023. The touchless biometrics segment had significant growth in the worldwide touchless sensing market. The primary catalyst for this expansion was the increasing need for secure and touchless identification methods across various industries. Furthermore, the COVID-19 pandemic has accelerated contactless technology, such as touchless biometrics, to minimize the risk of virus spread. This has significantly bolstered the expansion of this particular area.

The touchless sanitary equipment segment is the fastest growing. Touchless faucets offer numerous advantages that contribute to their increasing popularity. Their initial offering provides a hygienic solution by eliminating the need for physical contact and reducing the transmission of diseases and germs. Due to the COVID-19 pandemic, people have become more conscious about practicing good hygiene and minimizing contact points, which makes this function even more essential. Touchless faucets contribute to water conservation and offer convenience.

Based on industry, the market is segmented by Consumer Electronics, Government, BFSI, Healthcare, Automotive, and Others. Consumer electronics dominated the market in 2023. This trend results from the growing popularity of touchless consumer devices, driven by manufacturers’ efforts to enhance convenience and hygiene standards. The consumer electronics sector is expected to maintain its dominance in the industry due to the rising demand for touchless products.

The healthcare segment is the fastest growing. Touchless sensing systems, including motion sensors, infrared thermometers, and gesture recognition devices, are used in healthcare to allow for hands-free operation of medical equipment, enhance remote patient monitoring, and optimize workflow efficiency. In addition, touchless sensing technologies are essential for implementing infection control measures, especially in situations prone to nosocomial infections. 

Recent Developments

• April 2024– Infineon Technologies AG (FSE: IFX / OTCQX: IFNNY) unveiled the PSoC™ 4 HVMS family of automotive microcontrollers. These microcontrollers combine high voltage capabilities (including a 12 V-regulator and LIN/CXPI transceiver) with advanced analog features such as CAPSENSE™ and Inductive sensing. They are also compliant with ISO26262 and ready for ISO21434.
• February 2024– Wearable Devices Ltd., a technology growth company focused on touchless sensing wearables powered by artificial intelligence (AI), will participate in MWC Barcelona 2024. This exhibition is known for its influence on the connectivity and security ecosystem. The company will showcase its neural gesture input technology at the event, designed for both the B2B and B2C markets.