The occupancy sensor market is expected to grow at a CAGR of 85.57%, reaching a market size of US$5.482 billion in 2030 from US$2.504 billion in 2025.
Motion detection can be used with these devices to monitor whether a room is occupied or not by utilizing several sophisticated methods such as microwave, radar, ultrasound waves and video image processing. In the presence or absence of a person, these motion sensors automatically facilitate the necessary actions, like turning on or off the HVAC or light systems. The sensors are usually integrated with the IoT network of the building systems for the efficient management of space occupancy and energy conservation. The technological advancements and innovation of programmable sensors with precise detection and efficient performance have made the working of occupancy sensors possible like never before. The rapid penetration of IoTs and the increasing development of smart homes, smart offices, and smart cities are a few factors that predominantly contribute to the global occupancy sensor market. This market is further segmented based on the types of sensors, end-user sectors, and geographical regions.
Due to the increasing demand for digitalization and various operational processes, occupancy sensors offer many opportunities for building owners, from residential houses to commercial malls and hospitals. Reduced energy, resource consumption, and cost-effectivity are its major appealing factors. For instance, these sensors are actively used in offices to efficiently manage space utilization, meeting room efficiency, and desk hoteling, among many others, by installing them in multiple strategic locations to detect motion in high-traffic areas. Occupancy sensors are becoming more and more popular in commercial buildings because of these advantages. To improve user experience, a lot of occupancy sensor manufacturers actively implement strategic partnerships. In January 2022, for instance, a Sweden-based global IoT solutions provider, Sensative, and a leading Low Power Wide Area Network connectivity solutions provider for IoTs, Actility, collaborated with WMW. Through this partnership, the former has introduced an integrated IoT desk occupancy monitoring solution enabled by LoRaWAN. This solution keeps an eye on desks using an active infrared sensor. In April 2022, Ambarella and Lumentum partnered to develop a new joint reference design for occupancy sensors. Smart buildings feature advanced sensors that use AI technology for privacy. Moreover, these sensors are increasingly being used in parking areas for better customer parking experiences. Therefore, several manufacturers actively include further components in such systems to improve consumers’ vehicle movement and parking experience.
Smart cities, as well as homes, come together using wireless technologies, AI and IoT that enable remote power management monitoring as well as use control on one platform shared by all. Another important advantage is that such systems allow city management staff to interact directly with the infrastructural facilities and alike persons to regulate their running. In a quest to propel economic growth and enhance the quality of life through harnessing smart technological solutions, multiple governments worldwide are actively developing smart cities.
Information sharing is facilitated through deploying sensors throughout the city; thus, smart cities can have an efficient and intelligent service delivery platform for social service providers and those working for state or local government. The platform may comprise a communal data warehouse in which information from various sensor systems is stored. In addition to knowing whether each parking space is occupied, a truly intelligent parking system should be able to direct users to it. On a global scale, vehicle-induced traffic congestion is an increasing concern. Edge computing can provide valuable insights into traffic patterns from occupancy sensors such as the Internet of Things (IoT) or even ultrasonic sensors which can be used in this regard.
One of the major hindrances to the market for occupancy sensors is their installation cost upfront. Small firms will never afford high installation costs and as such they become major obstacles towards widespread adoption. Besides, there might be challenges regarding merging occupancy sensors with existing BMSs or smart building solutions. Similarly, their implementation has been hindered by compatibility issues and additional infrastructure financing requirements.
Occupancy sensors are more important in North America than in any other part of the world, both in commercial and residential buildings. This is largely because this region’s occupancy sensors sector has a well-structured and regulated value chain. Therefore, ordering and installation have been made easier. Furthermore, by forming partnerships and launching new items, the North American market for occupancy sensors will probably lead up to 2025. Besides, this category of equipment has also seen tremendous advancements due to high market demand including image processing based ones (IPOS), smart ones (IOS) or microphonics among other factors which have contributed to their higher consumption in North America.
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| Occupancy Sensor Market Size in 2025 | US$2.504 billion |
| Occupancy Sensor Market Size in 2030 | US$5.482 billion |
| Growth Rate | CAGR of 85.57% |
| Study Period | 2020 to 2030 |
| Historical Data | 2020 to 2023 |
| Base Year | 2024 |
| Forecast Period | 2025 – 2030 |
| Forecast Unit (Value) | USD Billion |
| Segmentation |
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| Geographical Segmentation | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| List of Major Companies in Occupancy Sensor Market | |
| Customization Scope | Free report customization with purchase |
The occupancy sensor market is analyzed into the following segments: