Capacitive sensors are often called non-contact devices that are used to detect the presence or absence of virtually any object regardless of any type of material. Expanding the automotive industry is one of the prime drivers for the growth of the capacitive sensor market during the forecast period. Also, growing demand for smartphones, tablets, and other advanced consumer electronics worldwide is further fuelling the demand for capacitive touch displays, thus positively impacting the demand for capacitive sensors in various parts of the world.
Increasing Demand for Electronics Across Industry Verticals
Consumer electronics comprising capacitive sensors includes smartphones, wearables, and advance tablets among other consumer electronics. Increasing adoption of consumer electronics and the availability of a variety of products, the demand for consumer electronics is increasing, simultaneously which will further push the demand for capacitive sensor during the forecast period. In addition, the increasing household consumption expenditure also plays an important role in increasing the demand for consumer electronics, which further increases the demand for innovative sensors from semiconductor industry. For instance, as per the World Bank, the household’s final consumption expenditure has grown remarkably from US$ 2.732 trillion in 2011 to US$ 4.698 trillion by 2017. Furthermore, rapid urbanization and increasing disposable income in developing economies like India, China, and Brazil are anticipated to increase the demand for consumer electronics which will further widen up the growth opportunities for vendors and manufacturers during the forecast period.
Moreover, with the increasing popularity of wireless power, interactive displays, and advance robotics there is a burgeoning demand for better performance. With this heavy expenditure are being done by the manufacturers of consumer electronic devices worldwide, in the R&D to bring out the state-of-art technology, as a result, the demand for semiconductors is expected to grow in the coming years. In addition, the demand for these devices in the communication industry will see a rise due to their increasing application in smartphones and other communication devices. Smartphones utilize multiple sensors, ranging from proximity sensors, accelerometers and gyroscopes, magnetometers, and light sensors, among others. Furthermore, the technological advancements in the field have also led to manufacturers further improving the capacitive sensor usage in smartphones.
With the advancement in embedded technologies, technologies such as industrial PCs are used in electronics manufacturing plants so as to increase productivity. Industrial automation in the manufacturing industry is playing a significant role in increasing the demand for capacitive sensors. Panel PCs are increasingly being utilized in the manufacturing plants because they meet the demands of a rigorous working environment. Emerging technologies such as the Industrial Internet of Things (IIoT) are shaping the manufacturing processes in the electronics industry. It is becoming a core component of industrial transformation across the globe. Manufacturers are steadily adopting industrial IoT to upgrade their facilities and to gain a competitive edge. Thus, increasing demand for such technologies is expected to bolster the capacitive sensor market growth. The market is expected to grow at a steady pace owing to the growing semiconductor and electronics industry in the developed and developing countries. Emerging technologies such as Industrial Internet of Things (IIoT) is shaping the manufacturing processes in electronics industry. It is becoming a core component of industrial transformation across the globe. Manufacturers are steadily adopting industrial IoT to upgrade their facilities and to gain competitive edge. Thus the market is expected to grow at a steady pace owing to the growing semiconductor and electronics industry in the developed and developing countries.
Source: Apple Annual Report, Knowledge Sourcing Intelligence Analysis
China Is Driving the Growth of the Market
In China, the government policy also aims at supporting the creation of manufacturing innovation centers to 15 by 2020, and to 40 by 2025. Moreover, the availability of cheap labor and other supportive government practices have also assisted China in being a hub for electronic manufacturing and attracts producers from around the world to set up production sites in the country, further amplifying the semiconductor production and thus, positively impacting the demand for capacitive sensors in the coming years. The Chinese region is also a prominent manufacturer of solar cells. According to the Global Market Outlook for Solar Power, 2018 to 2022, by the European Photovoltaic Industry Association, China installed 53.3% of the world’s solar capacity in 2017, and the country is also responsible for more than half of the global demand. With the country still projecting a high growth in solar cell production, the demand for capacitive sensors to assist the same will also increase in the region during the forecast period.
Understanding the Japanese Capacitive Sensor Market
The domestic consumer spending has been relatively week in recent years, even though, there has been a growing indication of the improvement in real wages on account of rising employment trends. The growing consumer spending in the country is stimulating the production of personal computers, smartphones, and audio-visual equipment, among others. Thus, after a recent decline in domestic production of Japan’s electronic industry by 6% in 2016 (source: Japan Electronics and Information Technology Industries Association), the industry is projected to witness moderate growth during the forecast period, more specifically for display devices, storage/server equipment, electronic medical equipment, and electric measuring instruments.
Moreover, the production of passenger cars and commercial vehicles has also improved since 2015. For instance, the vehicle production in the country, including passenger vehicles, trucks, and buses, totalled 791, 315 units in December 2017, representing 1.3% year on year increase during the same month in 2016 (source: Japan Automobiles Manufacturer’s Association). Furthermore, the instance of a trade war between the United States and China in which the United States imposed steep import duties for the Chinese manufactured good is resulting in some firms shifting their production facilities from China to other countries such as Japan and Korea among others in order to maintain higher margins. Thus, the anticipated economic recovery and relatively favourable trade policies are projected to push the growth of the capacitive sensor market in Japan.