An automotive sensor is considered to be an essential component of a vehicle that processes information and further helps in the proper functioning of various other components in a vehicle. These sensors are used for the functioning of different aspects of vehicles such as fuel, temperature, position, and others.
Global Automotive Sensors Market, Forecasts From 2019-2025, in US$ Billion
Source: Knowledge Sourcing Intelligence Estimates
The figure above represents the size of the global automotive sensors market, which is evaluated at US$28.464 billion for the year 2019 and is estimated to reach US$40.980 billion by the year 2025. The market is poised to show a good throughout the course of the next five years. The major factors amplifying the demand for automotive sensors include the increasing investments in the integration of technology in automobiles by automakers. The growing investments in autonomous vehicles coupled with a rapidly increasing demand for vehicle electrification are also some of the key factors that are propelling the opportunities for the manufacturers over the next five years. Moreover, increasing concerns regarding passenger safety along with the stringent regulations regarding vehicle emissions has further propelled the usage of numerous sensors in automobiles, which is also playing a significant role in shaping up the global automotive sensors market growth during the next five years. However, the market is projected to be restrained by the fact that the recent outbreak of the novel coronavirus disease has negatively impacted the automotive production globally. The disruption in the supply chain is also expected to restrain the production of automotive parts. Furthermore, the government measures such as lockdowns and social distancing further led to a temporary suspension in the manufacturing activities across various industries in many countries. Thus, all these factors are expected to hamper the market growth, especially during the short run.
Penetration of Technology Is Expected to Widen up the Opportunities
The advancement of technology in the automotive industry as well as sensor technology is a major factor that is propelling the opportunities for the manufacturers to tap the growing potential of the market in the near future. The autonomous vehicles are in significant attention including the traditional automakers and the innovators to have a significant market share over the next 5 years. Additionally, the innovations in technology such as ‘Advanced Driver Assistance Systems’ is also expected to amplify the usage of sensors for the proper functioning of these systems. The increasing investments in Level 4 and Level 5 autonomous vehicles, wherein Level 4 no human interaction and in Level 5, human driving is completely eliminated, to make these systems safe, technologically advanced sensors are required for safe and reliable use of these systems. Furthermore, the technological advancements in sensor technology is also expected to augment the market growth as players are investing heavily in the R&D for the development and launch of new products. For instance, in July 2019, Detroit Engineered Products, Engineering Solutions and Product Development company based out of the United States, announced the launch of its latest advanced IC sensor that further enables automakers to improve the efficiency and emission from the internal combustion engines. Similarly, in July 2018, STMicroelectronics a leading French-Italian semiconductor manufacturer announced the launch of its New Precision MEMS Sensor that supports accurate positioning and control for cars. Moreover, the companies are developing various technological features for automobiles that further propel the use of sensors which is further providing an impetus for the market to grow over the forecast period. For example, in December 2019, Robert Bosch GmbH and multinational engineering and technology company based out of Germany announced the developments of its AI-powered interior monitoring system for automobiles for the improvement of safety drivers and passengers both, this system uses a number of cameras and sensors, which is projected to come into production by the year 2020.
The global automotive sensors market has been segmented on the basis of sensor type, vehicle type, distribution channel, and geography.
Temperature Sensor to Witness a Healthy Growth
On the basis of sensor type, the market has been segmented on the basis of a wheel speed sensor, temperature sensor, pressure sensor, position sensor, and others. The position sensors are projected to hold a decent share in the market throughout the forecast period on account of wide applications such as chassis, powertrain, and safety among others. The temperature sensors are projected to show a healthy growth throughout the forecast period. Temperature sensors are being increasingly being adopted by automotive manufactures, as they are able to facilitate the proper and effective measurement of temperature in different components and areas in an automobile, which is essential for the proper functioning of a vehicle.
Passenger Vehicles to Hold a Nominal Share
On the basis of vehicle type, the segmentation of the market has been done on the basis of passenger vehicle and commercial vehicle. The passenger vehicle segment is expected to hold a nominal share in the market throughout the course of the next five years. The major factor bolstering the significant share of this segment include the wide adoption of sensors in vehicles for various applications. The commercial vehicles segment is anticipated to propel at a notable CAGR during the forecast period as the demand for commercial vehicles is increasing due to the growing logistics industry. Furthermore, the growing travel and tourism industry has further propelled the demand for heavy commercial vehicles, which is also positively impacting the growth of this segment during the forecast period.
Commercial Vehicle Production, World Total, 2015 to 2019, in Units
Source: International Organization of Motor Vehicle Manufacturers
Europe to Hold a Noteworthy Share
Geographically, the market has been distributed into North America, South America, Europe, Middle East and Africa, and Asia Pacific. The European region is anticipated to hold a considerable share in the market during the forecast period on account of the presence of well-established automotive manufacturing industry. Furthermore, the growing investments in autonomous vehicles, as well as electric vehicles, are some of the additional factors that supplement the market growth in the European region during the next five years.