The automotive sensor market size was valued at US$ 16.82 billion in 2019 and expected to surpass around US$ 39.41 billion by 2027, with a CAGR of 10.4% from 2020 to 2027.
Rising demand of sensors in electric and hybrid vehicles, increased application of pressure sensor in automotive industry, and significant growth in custom designed automotive electronic devices are some of the prime factors that fuel the market growth. Surge in demand for electric vehicles have been prominently accelerated in the past few years owing to stringent government regulation for harmful gas emission in the environment. Public awareness for safety and security has also driven the market growth prominently in the past few years. For instance, The World Forum for Harmonization of Vehicle Regulations had issued some Global Technical Regulation for enriched vehicle safety that include electronic stability control systems and technical requirements for OBD for road vehicles.
On the other hand, high development cost associated to the automotive sensors expected to restrict the market growth. Moreover, frequent adoption of advanced technologies in the automotive industry offers lucrative growth opportunity for the implementation of sensor technology in automobiles.
In 2019, speed sensor dominated the global automotive sensor market with significant revenue share. The main factors that drives the growth of the segment is increased application in monitoring and controlling the speed of the vehicles. Speed was determined as the major cause for rising number of accidents across the globe, thus speed sensors are the first most sensors to be implemented by automobile manufacturers for enhancing the vehicle safety.
On the contrary, gas sensor exhibits the fastest growth over the forecast period owing to increased emphasis of governments of various regions to control pollution and enhance the fuel efficiency of the vehicles. For instance, European government announced to impose heavy fines on the auto manufacturers if they didn’t improves the fuel efficiency and reduces the CO2 emission in their upcoming vehicles. Gas sensor are largely used to monitors the release of harmful gases in the atmosphere along with improved fuel efficiency.
Powertrain held the major revenue share in the global automotive sensor market in 2019. This is mainly attributed to large number of sensors used in powertrain to monitor speed, position, gas, temperature, and pressure for safe and efficient operation. Furthermore, stringent emission regulations and fuel-efficiency norms formulated by governments of various countries drives the growth of automotive sensors in powertrain application. Collecting analog information related to temperature and pressure in automobile to be used by their digital control unit is crucial to fulfill emission regulation and fuel efficiency. Sensors help the automotive engines to burn fuel efficiently by using precise data of engine to optimize fuel consumption as per the requirement of the automobile.
However, safety & security and telematics exhibit lucrative growth opportunities in the coming years. Increasing number of road accidents over the past few years have forced the automobile manufacturers to enhance safety and security in the vehicle. World Health Organization (WHO) has also quoted that major death cause per is due to road accidents. Sensor technology provides assistance to the drivers and informs them from upcoming risk.
The automotive sensor market has been analyzed for North America, Europe, Asia Pacific, and Rest of the World. The Asia Pacific is the most prominent region in the global market. The region held significant revenue share in 2019 and exhibits lucrative growth aspect in the coming years. The prime factors attributed to this are rising demand for enhanced safety vehicle coupled with increasing purchasing power in the region. Emerging economies in the Asia Pacific such as India and China experience significant demand for automotive sensors. Large consumer base and green revolution drives in the region have flourished the application of sensor technology in automotive industry prominently.
North America and Europe are the other significant revenue contributors for the global automotive sensors market. Prior adopter of the technology and high Gross Domestic Product (GDP) are some of the prime factors that fuel the growth of the region. In addition, rising concern for pollution control and environment safety has forced the manufacturers to implement smart sensor technology in the automotive vehicles for controlling and monitoring the gas emission in the atmosphere.
Key Companies & Market Share Insights
The global automotive sensors market offers high growth opportunity for the market players owing to increased application of sensor technology in the automotive industry. Denso Corporation and Robert Bosch cover more than 25% of the global revenue share and currently adopting strategies for market consolidation. Denso Corp. and Robert Bosch both are global companies with its several branches in different regions. They have adopted inorganic strategies such as merger& acquisition, collaboration, and regional to excel their growth in the market. Product development and advancement is the another growth strategy that significant number of players are adopting to secure their market position.
Some of the prominent players in the automotive sensor market include:
Segments Covered in the Report
This report analyses and projects market revenue and growth trend at global, regional, and country levels and offers an analysis of the modern industry developments in each of the sub-segments from 2016 to 2027. The global automotive sensor market report categorized on the basis of type, application, and region:
By Type Outlook
By Application Outlook
By Regional Outlook
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