Sensor Market Size & Share - Industry Growth | 2031 (2024)

sensor market was valued at USD 204.31 billion in 2022 and is expected to rise from USD 220.86 billion in 2023 to reach a value of USD 411.83 billion by 2031, at a CAGR of 8.10% during the forecast period (2024–2031).

The sensor market is now being seen as a fast-growing industry driven by advanced technologies and automation, as well as the broader IoT device pervasiveness across industries. Sensors, which have gained recognition as must-have elements in a wide range of uses including automotive, consumer electronics, healthcare, industrial automation, and aerospace, are becoming more widespread. The main ones are, among other things, the reduction of sensors and the use of MEMS and CMOS technology. Another important component of this process is the possibility of integrating sensors with AI and machine learning algorithms.

ADAS sensors are a growing topic that is becoming increasingly popular in the overall automotive sector to improve speed as well as efficiency of the driver and vehicle. Consumer electronics include sensor technologies which are responsible for futuristic features like before-mentioned face recognition, gestural interaction, and augmented reality that has been incorporated in smartphones, tablets and wearables. Medical apps that monitor the patients remotely, imaging systems and testing tools used at the point of care contribute to the growth of biosensors and wearable sensors for more accurate diagnostics and path to personalized healthcare delivery. Sensor's deployment is another true growth factor which is seen in robotics, smart manufacturing, and predictive systems for maintenance. This helps optimize the processes, lower down the downtime and enhance productivity. Not only that, the need for environmental monitoring, improved energy efficiency, and smart infrastructure is playing a major role in the growing application of sensors in areas such as clean air monitoring and smart buildings, as well as the smart cities campaigns that create new opportunities for markets to capitalize on across the world.

US Sensor Market is poised to grow at a sustainable CAGR for the next forecast year.

Market Snapshot - 2024–2031

Global Sensor Market is segmented by Parameter Measured, Mode of Operation, End User, and region. Based on Parameter Measured, the market can be segmented into Temperature, Pressure, Level, Chemical, Flow, Proximity, Vibration, Inertia, Magnetism, Environmental, Others. Based on Mode of Operation, the market can be segmented into Biosensors, Optical, Electrical Resistance, Piezoresistive, Piezoelectric, Image, Capacitive, Radar, LiDAR, Others. Based on End User, the market is segmented into Consumer Electronics (Smartphones, Tablets, Laptops, and Computers, Wearable Devices, Smart Appliances or Devices, Others), Energy, Medical and Wellness, Aerospace, Defense, Construction, Agriculture, Mining, Industrial, Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Analysis by Parameter Measured

The pressure sensor segment is the largest segment within the sensor market. Sensors which measure pressure possess a wide range of industrial applications from the automotive, medical, industrial automation, and consumer electronics sectors. In automotive applications itself, the pressure sensors are used for tires, the engine oil and fuel pressure monitoring, which contribute significantly to the safety of the vehicle, performance optimization and fuel efficiency. Pressure sensors are used by various processes such as the medical field, plants, and electronics, hence creating a strong base for pressure sensor sellers in the sensor sector.

Conversely, the proximity part has been growing rapidly. Due to increased use of smart devices which include phones and wearables among others and the need to apply it in many industrial components the pressure sensor itself has gone high together with sensors in general especially proximity.

Analysis by End User Industry

The automotive segment holds the largest market share. The vast spectrum of sensors immensely re-inforces the automotive industry, ranging from temperature and pressure sensors to motion and image sensors. They now are standard equipment on the cars of nowadays and serve as essential control engines, safety features, and driving aids all. The ever-expanding automotive technology that revolves around the making of electric and autonomous cars raises the need for sensors in the automotive sector thereby facilitating a continuous rise in the demand for sensors in that sector.

The healthcare sector is the fastest-growing segment in which the research commercialization rate has increased significantly. Personalized medicine is one of the urgent needs; thus, the increasing focus on remote patient monitoring, and medical diagnostics is driving demand for biosensors, wearable sensors, and medical imaging devices. Sensors fill a critical gap in the early disease detection protocols, tracking an individual’s health while at the same time, helping refine patient care. The emergence of telemedicine related healthcare system modification and digital transformation in various healthcare institutions will translate into solid growth trajectory, especially, of biomedicine and healthcare sector in the coming years.

Sensor Market Driver

Increased Demand for Smart Sensors in IoT Devices Driving Market Growth

• The worldwide sensor market growth is projected to be driven by higher demand for smart sensors in IoT-enabled devices as well as consumer electronics. The sensors have been propelled by the Internet of Things to unprecedented levels. The IoT ecosystem can be autonomous with the help of a variety of sensors which fetch information and make gadgets intelligent. Devices share information and increase their effectiveness and functionality by combining a set of sensors and a communication network. IoT devices are employed throughout all industries and consumer markets, with the consumer segment accounting for a major share of all IoT-connected devices in 2023.

Improvements in Sensor Technology for the Healthcare Sector

• As individuals aspire for longevity and enhanced quality of life, in-home patient treatments are increasingly prevalent. Healthcare devices are now more affordable, compact, technologically advanced and user-friendly People are moving to use smart medical services at home rather than in hospitals As a result, smart medical devices have been improved The devices have different sensors that collect important information for fast treatment of diseases caused by infections This ensures that there is accuracy in treatment as well as cost effectiveness in use of such sensors which may raise demand for innovations in sensing technologies

Restraint

High Costs and Maintenance of Smart Sensors Hindering Industry Growth

• The high installation and maintenance costs of smart sensors are anticipated to stymie industry expansion. Smart sensor implementation has been limited due to the high cost of the sensors due to their expensive components and batteries. Because of the energy requirements of the sensors and wireless network, these batteries have a limited life duration and are used at a quicker pace. Finally, due to the energy requirements of the sensors and wireless link, as well as insufficient radio range, technologies developed for short-range applications are used, with limited battery life. The potential for combining sensing technologies with a network or signal processing intelligence is included in the implementation costs.

Short Shelf Life of Sensors

• The shelf life of a sensor ranging from six months to a year, depend on the gas it detects and the environment it is used in. For instance, the electrochemical sensors have six-month lifespan from manufacturing date when it is stored at an optimal temperature of 20°C. A part of this lifespan is consumed while the production and shipping of the gas detector to the consumers. This limitation can hinder the growth and the expansion of the sensor market.

The market is fragmented in nature. The prominent players operating in the market are always adopting various growth strategies to stay afloat in the market. Product launches, innovations, mergers, and acquisitions, collaborations and partnerships, and intensive R&D are some of the growth strategies that are adopted by these key players to thrive in the competitive market. The key market players are also constantly focused on R&D to supply industries with the most efficient and cost-effective solutions.

Sensor Market Top Players Company Profiles

• STMicroelectronics N.V. (Switzerland)
• Analog Devices, Inc. (United States)
• Infineon Technologies AG (Germany)
• Texas Instruments Incorporated (TI) (United States)
• Honeywell International Inc. (United States)
• NXP Semiconductors N.V. (Netherlands)
• Bosch Sensortec GmbH (Germany)
• TE Connectivity Ltd. (Switzerland)
• Omron Corporation (Japan)
• Sensirion AG (Switzerland)
• Broadcom Inc. (United States)
• Panasonic Corporation (Japan)
• Murata Manufacturing Co., Ltd. (Japan)
• Sony Corporation (Japan)
• ON Semiconductor Corporation (United States)
• Renesas Electronics Corporation (Japan)
• Allegro Microsystems, LLC (United States)
• Aptiv PLC (Ireland)
• First Sensor AG (Germany)
• Mouser Electronics, Inc. (United States)

Sensor Market Recent Developments

• In January 2024, Sensata Technologies ST introduced the 129CP Series Digital Water Pressure Sensor to enhance smart pressure monitoring for water utilities, aiming to reduce waste. The new sensor will address the rising challenges faced by water utilities due to non-revenue water loss due to leaks, inaccuracies, and unauthorized consumption.

• In December 2023, Neuranics announced the launch of a new magnetic sensor development kit. The kit will feature the company’s magnetic sensor that can identify tiny magnetic signals from the heart muscle.

• In October 2023, Prophesee SA announced the availability of the GenX320 Event-based Metavision sensor, the industry’s first event-based vision sensor developed specifically for integration into ultra-low-power Edge AI vision devices. The fifth generation Metavision sensor, available in a tiny 3x4mm die size, expands the reach of the company’s pioneering technology platform into a vast range of fast-growing intelligent Edge market segments.

• Industry 4.0 and IIoT: Revolutionizing Manufacturing with Smart Sensors and Automation: The arrival of Industry 4.0 and the Industrial Internet of Things (IIoT) is one of the key trends driving the market growth forward. With the advent of Industry 4.0, the use of control and automation technologies on the factory floor has become standard practice to boost productivity, efficiency, and profitability. The industry 4.0 era has compelled businesses to invest in digital technology such as sensors, connected equipment, and advanced software such as manufacturing execution systems (MES). The combination of the internet of things (IoT) and local computer power has turned ordinary sensors into smart sensors. This has increased sensor power, allowing them to execute complicated calculations on collected data within a sensor module. Thus, the advent of Industry 4.0 and IIoT is projected to fuel the industrial sensor market growth.

SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates and Analyses the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.

According to our analysis, the sensor market has entered a very dynamic phase where the bio-medical and health sector is evolving as the key segment which is propelling the market growth. The personalized healthcare services requirement rises while the digital revolution pushes the incentive scale in healthcare up. Shifting the paradigm focuses on remote patient monitoring, early disease detection and better treatment performance using sensor devices consequently leads to advanced medical diagnostics and telemedicine. On the other hand, the main trend shaping this sector is the joining of sensor technology with AI and data analytics creating platforms of new innovations into healthcare such as predictive analytics for disease management and real-time health records. With healthcare becoming more patient-centric and digitally based, the sensor integration that includes AI-powered analytics is undoubtedly growing, and it is set to change healthcare practices much more positively, enabling greater patient success, and the shortcut to what the market will do next.