The global automotive sensors market is projected to grow at a CAGR of 6.26% to reach US$40.980 billion by 2025, from US$28.464 billion in 2019. Automotive sensors are components or devices that are used to process information, monitor and control the proper functioning of different aspects and different components in automobiles. The automobile sensors can facilitate different functions such as sensing oil pressure, sensing temperature, sensing the wheel speed, sensing the proximity with obstacles in the path of the vehicle, for tire pressure monitoring, for the rate of airflow into the intake valve, among a plethora of other functions. Automotive sensors work on ultrasonic waves, either through radar waves or through image sensors. The sensors are able to provide real-time information about the current situation and condition and then send the sensed information for processing, after processing the electronic control module decides how to react to the situation the necessary steps can be taken.
The disposable income of people is increasing which is increasing their propensity to spend on vehicles. This is leading to an increased demand for vehicles, thus increasing the demand for automotive sensors by automakers, which will lead to a surge in the market growth over the forecast period. Moreover, the increasing concerns of people to have vehicles that are advanced and can mitigate any problem that might cause damage to the vehicles and the occupants the demand for these sensors is further increasing thus, bolstering the growth of the automotive sensors market further.
However, the high cost of fabrication of some of these sensors that are fitted into automobiles and the lack of fitment of some sensors that can be found only in high-end vehicles, which are not affordable by a majority of the people, is factor that will restrain the growth of the market to some extent.
In addition, the market holds immense opportunities for automaker sand sensor manufacturers to upgrade the sensing technologies reduce the size of sensors, reduce the R&D cost of these sensors, for advanced applications like telematics, autonomous vehicles, heads up display among others, which will act as a growth opportunity for the market in the forecast period.
The automotive sensors market has been segmented based on sensor type, vehicle type, distribution channel, and geography. By sensor type, the market has been segmented as wheel speed sensor, temperature sensor, pressure sensor, position sensor, and others. By, vehicle type the market has been segmented as passenger vehicle and commercial vehicles. By Distribution Channel, the market has been segmented as OEM’s and aftermarket.
Wheel Speed Sensor accounts for the majority share by sensor type.
By sensor type, wheel speed sensors is expected to hold a significant share in the market which is attributable to the fact that these sensors are extremely necessary for the functioning of safety features like ABS and EBD, which requires the measurement of the speed of the wheels to take action. In conjunction, the government is also taking steps to make ABS mandatory in all vehicles, which would contribute to the increase of the market share of wheel speed sensors. Temperature sensors are also expected to increase their share over the forecast period owing to the fact that they can sense any spike in the temperature occurring in the vehicle and take action to stop damage from occurring to vehicle components.
OEMs dominate the distribution channel segment.
OEM’s are estimated to hold a significant market share as most of the sensors that are present in the vehicles these days are offered in the vehicles manufactured itself, so if people want they can get additional sensors fitted into their cars through aftermarket fitting.
Geographically, the North America and Asia Pacific are estimated to accout for significant market shares.
Based on geography, the Asia Pacific is expected to hold a healthy market share owing to the increasing automobile production in counties such as China and India. Moreover, India and China are two of the major hubs for automotive component manufacturing.
Some of the major players covered as a part of this study are Robert Bosch GmbH, STMicroelectronics, Delphi Auto Parts, Continental AG, TGS GROUP, and Murata Manufacturing Co., Ltd.