The global smart sensors market is projected to grow at a CAGR of 20.02% to reach US$123.972 billion by 2025, from US$41.476 billion in 2019. Smart sensors detect the input from the physical environment and provide automated and accurate data with less or no error. These sensors are used for the monitoring and control mechanisms that detect and process data, are used extensively in applications such as smart grids, and various other scientific applications. Tremendous progress in the semiconductor industry has resulted in the cost reduction of the microprocessors, thereby boosting the smart sensors’ market growth. Sensors are one of the main factors for the success of the internet of things (IoT), hence the technology trend towards widescale IoT adoption will further augment the demand for these sensors. Furthermore, the introduction of smart cities and smart factories will require the implementation of smart sensors across various applications. North America has a significant market share due to continuous technological advancements while the Asia Pacific is the fastest-growing market.
The growing adoption of IoT at the global level is contributing to the market growth in the forecast period.
There is growing adoption of IoT among businesses due to the increasing number of benefits provided by this technology. Also, with the growing IoT spending, the number of sales of IoT devices has also simultaneously increased, which is further boosting the market growth in the forecast period. There has been a growing adoption of connected devices, which include the usage of smart sensors, is further providing an impetus for the market to grow at a rapid pace with a good CAGR. Connected devices find huge application in smart homes which include smart speakers for controlling lights, and other home appliances. Also, in the healthcare sector, IoT is being utilized in the form of the Internet of Medical Things (IoMT), further providing an opportunity for the market to grow in this area too. Additionally, with the advent of Industry 4.0, the usage of smart sensors for the control and monitoring of operations in fully-automatic industries are further providing an opportunity for Industrial IoT to grow at a significant pace in the forecast period and in the upcoming years.
The Asia Pacific region is expected to show higher growth prospects in the forecast period with the growing semiconductor industry.
The growing semiconductor industry in the APAC region is expected to increase the growth of the smart sensors market here. Growing technological innovations in the semiconductor industry are driving the market growth with the growing adoption of smartphones, tablets, and wearables. Also, the growing use of sensors in automotive electronics keeping in view the growing safety concerns are further accelerating the market growth in this region. Hence, the growing automotive industry with the growing use of sensors in infotainment and navigation is further contributing to the growing semiconductor industry in the APAC region. Additionally, the growing trend of the internet of things and digitization is further contributing to the growing semiconductor industry. Furthermore, the growing use of sensors in consumer electronics and industrial electronics is further contributing to the growth in the semiconductor industry in the forecast period. The growing consumer electronics industry is attributed to a large consumer base here with the expanding middle-class population who are willing to spend more on consumer electronic products with the adoption of modern living conditions. Hence, the Asia Pacific region will be considered as the largest market on account of maximum semiconductor consumption. China from the APAC region is expected to be a leader in the growing semiconductor industry. Thus, the semiconductor industry here is projected to propel with a significantly high (double-digit) growth rate in the forecast period. Also, several Chinese players are strengthening their bases with strategic mergers and acquisitions.