The occupancy sensor market is projected to grow at a CAGR of 12.94% during the forecast period to reach US$1,375.279 million by 2027, from US$586.672 million in 2020.
Occupancy sensors can turn lights on when a person enters a room and off when a person leaves the room. They are a smart and easy way to save energy in commercial applications. These sensors can detect motions that enable space occupancy detection using several advanced technologies like microwave, radar, ultrasonic, infrared, or video image processing. Generally, these occupancy sensors are integrated with the IoT network of the building systems for the efficient management of the occupancy of space and energy conservation. Furthermore, this technological advancement, innovation, and growing trend of green buildings across the world are among the significant factors that are likely to create growth opportunities for the market. Moreover, these sensors help in eliminating energy waste and also minimize light pollution. These sensors are best suited for projects that require tight control, which can be difficult to achieve economically with the help of scheduling. The occupancy sensors market is further segmented based on sensor type, application, end-user, and geography.
The growing demand for energy-efficient devices, active development in smart sensor solutions, the surging trend of green building, and growing investment in smart houses, buildings, and cities are expected to drive the occupancy sensor market.
The overall rise in the initiatives to save energy and the surging trend of energy-efficient devices is expected to drive the market for occupancy sensors during the forecast period. Additionally, with the growing trend of digitalization, consumers are actively looking for alternatives to automate various operations. The occupancy sensors act as a major beneficiary factor for such requirements of automation as they can offer a wide range of opportunities to building owners, from residential houses to commercial buildings, offices, hospitals, and malls among others. Furthermore, these sensors can help these end-user organizations to reduce energy use, resource consumption, and cost every year. For instance, the San Francisco Surveillance Impact Report published in August 2022 mentions the benefits of using occupancy sensors. The report describes that occupancy sensors are less costly than full-time employees appointed for counting visitors into and out of the San Francisco facility, thus providing financial benefits to the department. Furthermore, these occupancy sensors can also automatically upload the database and render it into pre-formatted reports, which saves time in the data entry process of the department. Lastly, the report stated that the data provided by these occupancy sensors are robust and reliable and less prone to error and mismeasurement, hence these sensors ensure the quality of the data. Thus, these benefits of using occupancy sensors are acting as a prime factor driving the occupancy sensor market.
Furthermore, wireless, AI and IoT technologies are incorporated into smart homes and towns, enabling users to remotely monitor and manage power management via a single platform. With the use of these technologies, city management staff may communicate with locals and infrastructure facilities to control operations in the area. Numerous governments throughout the world are actively creating "smart cities" with the sole purpose of accelerating economic growth and improving quality of life. For instance, the Indian government launched its Smart Cities Mission with the objective to promote sustainable and inclusive cities that provide core infrastructural needs like assured electricity, robust IT connectivity and digitalization, efficient urban mobility, and a sustainable environment among others. The total allocated investment for these Smart Cities Mission stood at US$27.60 billion as of March 2021, reported the Indian Brand Equity Foundation established by the Department of Commerce, Ministry of Commerce and Industry, and the Government of India. Such breakthrough initiatives are being adopted and deployed by governments across the world which is further propelling the demand for occupancy sensors in these smart cities, consequently supporting the growth of the occupancy sensor market during the forecast period.
It is expected that the residential building will register the highest growth in the occupancy sensor market during the forecast period.
Based on the end-user, the occupancy sensor market is segmented into residential, commercial, and industrial. During the forecast period, it is expected that the residential section under the end-user segment will witness exponential growth in the occupancy sensors market. The rising preference for the latest technologies to be installed in residential buildings and/or apartments among house owners is the key element propelling the residential use of occupancy sensors. The installed occupancy sensing devices in their residential apartment or buildings help them to manage their energy usage and minimize costs. Additionally, the growing awareness regarding the wasteful use of electricity and energy in common residential buildings is further fueling the demand for occupancy sensors in the market, consequently resulting in significant growth of this market during the anticipated timeframe. Moreover, the rising disposable income is yet another factor propelling the market, as the increased disposable income gives birth to the need for security surveillance in apartment complexes. Henceforth, the rising adoption of security surveillance systems in the entrances, corridors, and parking facilities of residential buildings is further bolstering the occupancy system market under this segment.
Based on Geography, the North American region is expected to hold a dominant share of the occupancy sensor market during the anticipated period.
Based on geography, the occupancy sensor market is segmented into North America, South America, Europe, the Middle East and Africa (EMEA), and the Asia- Pacific. The analysts anticipate that the North American region will hold a significant share of the occupancy sensor market during the forecast period owing to the rising demand for occupancy sensors for commercial and residential buildings in the North American region. Furthermore, the stringent laws and policies prevailing in this region are expected to drive the demand for occupancy sensors. For instance, the State of California published the Building Energy Efficiency Standards for Residential and Nonresidential Buildings, for 2022 Building Energy Efficiency. These Standards mention under section 160.3 of the mandatory requirement for space conditioning systems in multifamily buildings that each space-conditioning system shall be installed with controls that shall be capable of automatically shutting off the systems during the period of nonuse. It also mentions that the space conditioning systems shall have an occupancy sensor. Furthermore, these standards also mandate the use of occupancy sensors in office spaces. Such corresponding laws and mandatory standards are levied in different parts of this region, which are acting as a significant factor propelling the occupancy sensor market in the North American region.
Additionally, the Asia Pacific region is also expected to contribute a significant share in the growth of the occupancy sensors market due to the increased construction activity in this region. Furthermore, the new emerging opportunities for smart cities, green buildings, smart lighting, and home automation are expected to propel the market growth during the anticipated period.