The global smart sensors market is projected to witness a compound annual growth rate of 17.18% to grow to US$26.882 billion by 2026, from US$8.861 billion in 2019. A sensor is a device used to measure a property, such as pressure, position, temperature, or acceleration, and respond with feedback. Also known as transducers, sensors are one of the fundamental building blocks of modern data acquisition systems. They have a wide range of applications from flood & water level monitoring systems, environmental monitoring, traffic monitoring & controlling, energy saving in artificial lighting, remote system monitoring & equipment fault diagnostics, and precision agriculture & animal tracking. These diverse applications across several industry verticals like healthcare, automotive, manufacturing industries among others are driving the market ahead in the current period.
The global smart sensors market will be majorly driven by the increasing implementation in manufacturing industries.
The manufacturing industries are undergoing a massive technological change worldwide often labeled as Industry 4.0. Two key components of Industry 4.0 are the industrial internet of things (IIoT) and cloud computing platforms. Smart sensors are used to monitor different industrial processes such as collecting data, taking measurements, and centralization and decentralization of data. Smart sensors are used in different forms like level sensors, temperature sensors, pressure sensors, proximity sensors, infrared sensors, etc for various purposes across several industries based on their requirements. As the industrial application for sensors has increased manifold during the timeframe, the market players have come up with novel products and newer strategies to attract consumers and solidify their hold. Superior Sensor Technology in 2021 launched a differential pressure sensor called the ND Series for industrial applications that support up to seven selectable pressure ranges in one device. This enables industrial manufacturers to introduce multiple product variants with different pressure requirements resulting in significant resource, time, and cost savings. Bosch has expanded its product portfolio to serve industrial applications with BMI090L Inertial Measurement Unit (IMU), BMA490L accelerometer, and BMP390L barometric pressure sensor but its main highlight was the launch of a longevity program making products available for 10 years period easing customer satisfaction. This niche move has made Bosch one of the popular names in the smart sensors market.
Significant growth in the end-user industry is expected to open market opportunities for smart sensors.
Based on industry vertical, the global smart sensor market is divided into automotive, healthcare, manufacturing, communication and technology, security, and others. Manufacturing, communication and technology, and security industries are expected to hold a dominating share in the market. Moreover, with increasing crime rates and instances of hazards, security standards are revised by the government and industry, supporting the sector's demand for smart sensors. Increasing investment accompanied by higher demand for advanced technology in the automotive industry has projected the drive the market demand for smart sensors in the industry. OCIA data shows that Motor vehicle manufacturing in the country increased from 94.976 million in 2016 to 95.634 in 2019.
Furthermore, rising investment in electronic vehicles is projected to exponentially increase the demand for smart sensors. Electronic vehicles are a major consumer of smart sensors in the automotive industry. The rise in electronic vehicle manufacturing in the country is projected to expand the scope of smart sensors in the automotive industry. According to the data given by the International Energy Agency, around 2.1 million electric cars were sold in the year 2019. Electric cars also accounted for around 2.6% of global car sales and had registered a 40% year-on-year surge. Tesla, a major electric car manufacturer, has been offering autopilot features and also has full self-driving features and capabilities. The company has advanced sensor coverage, with cameras providing 360 degrees of visibility at least 250 meters of range. There are around twelve novel ultrasonic sensors, that have been fulfilling this vision.
Major companies have been making significant developments in the market. For instance, in August 2021, Iteris Inc., one of the key players in the market, announced the launch of Vantage Apex, the novel, and first HD video and 4D radar sensor which has integrated AI algorithms. The company had stated that their novel smart sensor identifies objects, suing extensive image library, AI machine algorithm, neural network algorithms, and machine learning, and would be used to allow and enable detailed classification and high precision of different vehicle types and vulnerable road users. These trends and developments are expected to play a major role in the market growth, in the coming years.
Smart Temperature Sensor is projected to grow at a significant pace during the studied period.
By type, the global smart sensor market is segmented into smart flow sensors, smart pressure sensors, smart position sensors, smart temperature sensors, smart vision sensors, and others. Smart Temperature Sensor is projected to grow at a significant pace during the studied period. A smart temperature sensor is an integrated system consisting of bias circuitry, a temperature sensor, and an analog to digital converter (ADC). The application of temperature sensors to measure heat to provide a safe usage in meeting a necessary condition when dealing with extreme hazards, heat, or inaccessible measuring points and to ensure that a process stays within a specific range has led to the increasing adoption of temperature smart sensors at the end-user industries. The surging demand for temperature sensors provides an interpretable temperature reading in a digital format which is used in many end-user applications including automotive, healthcare, and building automation. The rising demand for low cost, high performance, and reliable sensors in the market has led to increasing developments of new technologies such as nanotechnology and microtechnology.
The smart sensor market has been driven by automation in industries and the widespread popularity and adoption of IoT over the years. The COVID-19 pandemic brought in a wave of digital transformation with it. With the upsurge in demand for smart home devices, home entertainment, and gaming consoles, the smart sensor market witnessed a positive impact. The industrial applications increased with remote work and tools such as digital heat maps were used which can support root-cause analyses for various problems. For example, with machine breakdowns, IIoT tools can receive input from sensors that help pinpoint problems, such as broken components or oil leakage that could interfere with production. Furthermore, the pandemic stirred a rise in the interest in wearable devices which further had a positive impact on the market growth. Also, the increased use of robots in the healthcare sector and industries and various other healthcare applications gave a boost to the smart sensor market in the year 2020. Thus, the projection for the global smart sensors market in the COVID-19 scenario is significantly revised upwards.
|Market size value in 2019||US$8.861 billion|
|Market size value in 2026||US$26.882 billion|
|Growth Rate||CAGR of 17.18% from 2019 to 2026|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Types, Technology, Industry Vertical, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||Texas Instruments Incorporated, STMicroelectronics International N.V., TE Connectivity, NXP Semiconductors, Bosch Sensortec GmbH, TDK Corporation, Infineon Technologies AG, Sensirion AG|
|Customization scope||Free report customization with purchase|
Key Market Segments
Frequently Asked Questions (FAQs)
Q1. What will be the global smart sensors market size by 2026?
A1. The global smart sensors market is projected to reach a market size of US$26.882 billion in 2026.
Q2. What are the growth prospects for the smart sensors market?
A2. The smart sensors market is projected to grow at a CAGR of 17.18% during the forecast period.
Q3. What is the size of the smart sensors market?
A3. Smart Sensors Market was valued at US$8.861 billion in 2019.
Q4. How is the global smart sensors market segmented?
A4. The global smart sensors market has been segmented by type, technology, industry vertical, and geography.
Q5. What factors are anticipated to drive the smart sensors market growth?
A5. The global smart sensors market will be majorly driven by the increasing implementation in manufacturing industries.