The optical position sensor market is expected to grow at a compound annual growth rate of 9.48% to reach a market size worth US$1,486.613 million by 2027. This market was valued at US$788.595 million in 2020. An optical position sensor is a device that calculates the distance traveled by a body from its reference point. The fundamental goal of an optical sensor is to calculate the physical amount of light, depending upon the nature of the sensor. Optical sensors are being used to track, count, or position pieces without using any physical contact. These sensors are used in a wide range of industrial & commercial applications, ranging from low-cost automobiles and consumer electronics to elevated military and defense systems.
Analysts anticipate that the market will grow due to the growing demand for plant automation in process industries during the forecast period.
The majority of industrial businesses and units operating across various global areas are growing a pressing demand for automation, which is emerging as one of the primary factors driving the global optical position sensor market expansion. One of the major reasons driving market expansion in the worldwide optical position sensor market is the rising demand for car safety. These sensors are used to determine the location of an automobile and give parking assistance. In the case of a collision, these sensors are also used to assess the driver's position and activate the airbags accordingly. The growing use of optical sensors in medical and industrial automation applications is also propelling the marketplace for optical position sensors.
Furthermore, the market will be driven by ongoing technological innovation, which will result in the introduction of compact, more effective chipsets & modules with greater functionality. According to the International Federation of Robotics (IFR), over 374 thousand industrial robots were supplied around the world in 2017. Furthermore, international investments in the high-revenue vehicle business have increased dramatically in recent years. As a result, companies from all over the world are concentrating their efforts on improving their production infrastructure by introducing completely automated machine tools, culminating in a boom in demand for optical position sensors. Consumer tastes are shifting away from touch to non-contact position sensing, allowing major businesses to offer novel contactless sensors. Honeywell International, for example, offers a wide selection of SMART position sensors for non-contact angular position detection. Moreover, prominent businesses in the worldwide optical position sensors market are integrating & developing new products that will fuel the industry's growth. Mobile TeleSystems PJSC and Vodafone Group PLC, for example, announced a strategic partnership in January 2021 that entails a series of joint projects aimed at identifying new opportunities to improve MTS's company's operations, and boost newer technologies, & enhance strategic execution across the consumer and enterprise segments. STMicroelectronics and Politecnico di Milano also signed a five-year collaboration agreement in June 2021. The deal calls for the establishment of a joint research center on innovative materials for sensors, leveraging ST and Politecnico's long-standing collaboration.
The need for the highest accuracy level can act as a constraint on market growth at a global level.
Attaining and maintaining a high level of accuracy while providing support, as well as other factors such as rising variations in international regulations and risks associated with mechanical failures while operating, are preventing the market from expanding among end-users, and are likely to continue during the forecast period. Furthermore, the lack of product differentiation, as well as the availability of product replacements, will be the market's biggest and most pressing obstacle.
The two-dimensional segment is anticipated to witness a significant market share during the forecast period.
Optical position sensors are sensors that transform light waves into an electrical signal to transmit the position of an item. Either the light emitted out of an emitter and then sent to a receiver on the other end, or the emitted light signal is retransmitted from the observed item. From the reflection of a light beam, a two-dimensional sensor offers both location data and object size. The global two-dimensional optical position sensor market is being driven by factors such as the increased need for car safety, expanding consumer electronics demand, increasing acceptance of wearable devices, and the need for high-performance sensors to monitor applications.
The automotive industry is anticipated to witness a significant market growth during the forecast period.
The optical position sensors market is being driven by the growing demand for optical position sensors in the automotive industry. Optical position sensors are utilized in automobiles to increase safety and protection. Optical position sensors are becoming more widely used in the vehicle industry due to their effectiveness in preventing accidents and determining automobile positions. In the approaching years, the growing safety concern and awareness of consumers about automotive safety are likely to drive the rising market for optical position sensors. In addition, the global aerospace sector necessitates highly sophisticated products with a significant proportion of electrical components & strict safety standards. As a result, sophisticated development & production processes are in high demand. This type of manufacturing technique necessitates contactless sensing technology, which has gained attention in aerospace applications.
According to regional analysis, the Optical position sensor market in the Asia Pacific is expected to hold a significant share during the projected period.
The Asia Pacific position sensor market expanded at a significant CAGR as a lucrative industry for consumer technology devices such as smartphones & desktops, as well as a developing regional market for industrial manufacturing. Substantial demand for high-quality sophisticated equipment and sensors is projected in Asia as manufacturing activities are outsourced to low-cost developing countries. Over the projection period, robust manufacturing expansion and a huge potential for modern industrial machinery in the Chinese market are likely to enhance regional growth.
The worldwide optical position sensor industry has been negatively impacted by the recent breakout of the COVID-19 pandemic. The pandemic's severe influence on the global vehicle industry led to a fall in the market. Lockdowns & isolations enforced by global governments led to the closure of optical position sensor manufacturing factories and industries, resulting in the market's demise. During the COVID period, demand for optical position sensors was reduced due to the shutdown of the automation and automobile industries. Due to trade and travel restrictions, the supply chain and production activities were hampered, resulting in a market drop during the epidemic.