Automotive Sensors Market

Global Automotive Sensor Market Size (2023 to 2028) 

The global automotive sensor market is expected to reach USD 55 billion by 2028 from USD 31.1 billion in 2023, growing at a compound annual growth rate (CAGR) of 12.7% during the forecast period 2023 to 2028. 

Automotive sensors play a crucial role in vehicles, controlling several functions and avoiding any unexpected mishaps while driving.

MARKET DRIVERS: 

The booming automotive industry, with the rising demand for electric vehicles and autonomous driving vehicles, is acting as a primary catalyst for positive growth in the global automotive sensors market. The latest trend of advanced driver assistance systems that comprise blind-spot detection, adaptive cruise control, parking assist, automatic emergency brakes, and other features is increasing the integration of advanced sensors in vehicles. In addition, these automotive sensors are crucial in safety systems to detect any object around the vehicle and warn and avoid any collisions. Also, the stringent government policies toward safe driving are pushing equipment manufacturers to develop more advanced sensors. The increasing investment in sensor technology to produce more effective, portable, and affordable sensors is touted to increase profits in the global automotive sensors market.

Besides, the growth of the electric vehicles industry is encouraging more players to invest in sensors, improving vehicle efficiency and making it futuristic. Further, changing consumer preferences for luxury lifestyles are allowing manufacturers to experiment with new technologies like the Internet of Things to offer more safety, efficiency, and enhanced driving experience. The continuous battle among companies to gain an advantage in the global business is resulting in more investments in research and development activities, which will create lucrative opportunities for the global automotive sensors market. 

MARKET RESTRAINTS: 

The major challenge in the automotive sensor market is the expenses associated with the manufacturing and integration of advanced sensors into automobiles. Another factor that might hinder the market is the ability to integrate multiple sensors in a vehicle without impacting the individual functionalities. In addition, strict government regulations related to the production of self-driving vehicles can cause delays in business growth. Also, there is a huge gap with respect to the advanced infrastructure and communication networks required for the proper functioning of self-driving vehicles. The lack of proper standardization for sensors globally, along with the negative effects of the environment on the product and supply chain, can limit the automotive sensors market to some extent. Besides, the concerns related to data privacy and security among the connected vehicles could be serious constraints for the new developments in this industry. 

Impact of COVID-19 on the automotive sensor market: 

The COVID-19 pandemic had a huge impact on the automotive sensor market due to the disruptions to the supply chain and restricted production of the sensors. The lockdown situation globally changed consumer priorities towards essentials, restricting the purchase of vehicles. In addition, the temporary shutdown of industries led to the halt of several research and development activities in the automotive industry. The market instability, along with the uncertainty in the adoption of new processes, had limited most of the companies to slow down their investments in the autonomous vehicles market. In addition, several governments have shifted investments from innovations toward societal needs during the 

COVID-19, which impacted the additional investments and developments in the automobile sector. Moreover, the strict lockdown conditions and safety protocols resulted in a decrease in workers at the manufacturing units and a shortage of raw materials, leading to a negative impact on the entire business. 

REPORT COVERAGE:

This market research report on the global automotive sensor market is segmented and sub-segmented into the following categories.

Global Automotive Sensor Market – By Type: 

• Pressure Sensors 
• Position Sensors 
• Temperature Sensors 
• Motion Sensors 
• Speed Sensors 
• Gas Sensor 
• Inertial Sensors 
• Magnetic Sensors 
• Oxygen Sensors 
• Image Sensors 
• LiDAR Sensors 
• Infrared Sensors 
• Chemical Sensors 
• Ultrasonic Sensors 
• NOx Sensors 
• Current Sensors 

The increasing investment in autonomous cars is going to act as a major catalyst for the growth of different types of sensors in the forecast period. Speed sensors play a crucial role in monitoring and controlling the speeds in a vehicle, avoiding any kind of road accidents. The position sensors are anticipated to grow at a considerable rate because of the requirement of these sensors for the proper functioning of different components in self-driving cars. Similarly, gas sensors are predicted to witness huge growth in this period due to the rising emphasis on controlling carbon emissions and improving fuel efficiency in vehicles. Also, pressure sensors are given significance, such as tire pressure monitoring systems, to improve vehicle safety standards. Another important sensor is LiDAR, which is pivotal in self-driving cars to determine the objects around the vehicle using 3D mapping technology. LiDAR is a crucial component in the advanced driver assistance system and offers high accuracy to avoid any collisions with pedestrians or other vehicles. Likewise, motion sensors, infrared sensors, ultrasonic sensors, and others will find more demand in the coming years. 

Global Automotive Sensor Market – By Vehicle Type: 

• Passenger Vehicle 
• Heavy Commercial Vehicle 
• Light Commercial Vehicle 

Passenger vehicles account for the major share of the automotive sensors market due to the increased sales of four-wheelers across the globe. The increasing trend of convenient driving is paving the way for additional features such as in-vehicle infotainment, ADAS, security improvements, and others in the vehicles. On the other hand, light commercial vehicles are anticipated to expand in the forecast period with the growing taxi and car-riding applications. Also, the use of these vehicles for cargo and goods transport is another factor promoting the business statistics in this segment. Moreover, with technological advancements, heavy commercial vehicles can also be converted to fully electric and hybrid, creating huge scope for the sensors market. 

Global Automotive Sensor Market – By Application: 

• Powertrain 
• Exhaust System 
• Telematics System 
• Chassis 
• Safety and Control System 
• Emission Control 
• Body Electronics 
• Driver Assistance and Automation 

At present, powertrain systems occupy the lion’s share in the global market due to their application in monitoring several vehicle operations. The surging need for world-class driving experience, improved fuel consumption, reduced carbon emissions, and enhanced control systems are boosting sales in the powertrain segment. Besides, telematics and safety control systems are predicted to witness more growth opportunities with the spiking need for data from connected vehicles and emphasis on reducing road accidents around the world. 

Global Automotive Sensor Market - By Region: 

• North America 
• Europe 
• Asia Pacific 
• Latin America 
• Middle East and Africa 

The Asia Pacific region holds the dominant part of the global automotive sensor market. The growing population in nations like China and India is creating more demand for automobiles. Also, government initiatives to reduce carbon emissions and encourage electric vehicles are supporting regional businesses. Nations like Japan, China, South Korea, etc., are investing heavily in innovative technologies to lead the global markets. The spike in consumers' purchasing power coupled with the priority for safety while driving is significantly driving the market in the APAC countries. 

After the Asia Pacific, North America is the dominant market for automotive sensors, with increasing investments from both government and private organizations toward electric and self-driving vehicles. The emphasis on the reduction of air pollution and greenhouse gases in the atmosphere is becoming crucial in this area, and more investment is needed in alternative solutions like EVs. Also, the spike in the charging stations and suitable infrastructures are determined to drive the EV market in North America, fuelling the automotive sensors market in the future. 

Europe is also a prominent player in the EV market, which is pushing business for automotive sensors in this area. The burgeoning trend of quick and convenient travel options is a major aspect of the growth of passenger vehicles in Europe. The technological investments along with the harsh environmental conditions, propel the need for advanced sensors in vehicles, promoting the local automotive sensors market. 

Latin America holds a smaller share of the global automotive sensor market and offers an untapped market opportunity for companies to invest in the future. Similarly, the Middle East and African nations are investing more to control carbon emissions and encourage people to purchase more EVs, which will drive the market in the forecast period. 

KEY MARKET PLAYERS: 

Robert Bosch GmbH, NXP Semiconductors, Denso Corporation, Panasonic, Autoliv, Inc., STMicroelectronics, Continental AG, Valeo S.A., Infineon Technologies, Allegro Microsystems, Inc., Delphi Automotive Company, BorgWarner Inc., Sensata Technologies, Honeywell International Inc., The Texas Instruments, Magna International Inc., CTS Corporation, Omnivision, TE Connectivity, Analog Devices, Inc., Melexis, and ZF Friedrichshafen AG. Are playing a dominant role in the global automotive sensor market. 

RECENT DEVELOPMENTS IN THE MARKET: 

• In 2023, Sony Semiconductor Solutions launched its IMX735 Sensor to offer enhanced vision with a 17.42MP camera. This sensor has the capability to automatically integrate with the existing LiDAR sensors and provides feasibility to develop improved algorithms for autonomous driving. 
• In 2023, Infineon introduced its MEMS sensor SP49, supporting the vehicle’s tire pressure monitoring system. In addition to the tire pressure displays, SP49 provides added functionalities like load identification, inflation assist, and blowout detection. 
• In 2023, Melexis introduced its MLX91230 IVT Sensor to support the battery management system designers for electric vehicles. Also, this sensor comprises temperature and voltage measurements that can help identify and monitor the performance and reliability of EV batteries.