Proximity Sensor Market Size, Share, and Trends 2024 to 2034

Proximity Sensor Market Size and Forecast 2024 to 2024

The global proximity sensor market size is worth around USD 4.37 billion in 2024 and is anticipated to reach around USD 9.01 billion by 2034, growing at a solid CAGR of 7.52% over the forecast period 2024 to 2034. Rapid advancements in technology, such as the development of miniaturized sensors in the electronic industry, are projected to offer lucrative growth opportunities for the expansion of the proximity sensor market.

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Proximity Sensor Market Key Takeaways

• Asia Pacific held the dominant share of the proximity sensor market in 2023 and is observed to witness prolific growth during the forecast period.
• North America is observed to expand at the fastest rate in the market during the forecast period.
• By technology, the inductive segment held the largest share of the market in 2023.
• By technology, the ultrasonic segment is expected to grow at the fastest rate in the market during the forecast period.
• By end-user industry, the automotive segment accounted for the dominating share of the market in 2023.
• By end-user industry, the smart manufacturing segment is expected to witness significant growth in the market during the forecast period.

Market Overview

A proximity sensor is a sensor that can used to detect the presence or absence of objects without physical contact within a defined range. These sensors then convert the information regarding the presence or movement of an object into an electrical signal. As technological advancements continue to evolve globally, the proximity sensor market is gaining immense popularity across various industries.

There are several different types of proximity sensors, including inductive sensors, capacitive sensors, photoelectric, and magnetic sensors. A proximity sensor often uses light, sound, infrared radiation (IR), or electromagnetic fields to detect a target. It is also widely known as a proximity switch.

AI Integration in the proximity sensors

The rapid growth of the AI-powered sensor has been phenomenal and is gaining immense popularity across various sectors, including the proximity sensor market. AI-powered sensors are widely used in smartphones, wearables, tablets, smartwatches, and other consumer electronics, automotive, industrial sectors, and healthcare. AI-powered sensors play an indispensable role in Internet of Things (IoT) devices, enabling them to make prompt and intelligent decisions based on the data they collect. In today's fast-paced world, automotive technology continues to evolve robustly. The integration of artificial intelligence (AI) into proximity sensors holds immense promise for improving road safety and reducing the number of accidents. In recent years, the smartphone market has increasingly offered AI-driven proximity sensor market solutions.

• In July 2024, Elliptic Labs, a global AI software company and the world leader in AI Virtual Smart Sensors currently deployed in over 500 million devices, is shipping its AI Virtual Proximity Sensor INNER BEAUTY on HONOR’s X60i smartphone. AI-powered proximity sensing in smartphones provides several benefits to enhance user experience as these sensors can accurately detect when the phone is close to the ear, which results in better call handling and reduces unintended touch inputs. These sensors also aid in preserving battery life. The use of software-based sensors can diminish the reliance on hardware components and lower the environmental footprint by minimizing e-waste and resource usage.

Proximity Sensor Market Growth Factors

• The growing applications of proximity sensors are penetrating various industries, from consumer electronics to aerospace and defense to manufacturing, and are likely to promote the proximity sensor market growth in the upcoming years.
• The rising investment in research and development by key players of the proximity sensor market to introduce advanced proximity sensing technologies that cater to specific industry needs as well as comply with stringent regulatory standards to ensure safety and reliability 
• The rapid expansion of the automotive sector, along with the rising demand for autonomous cars, led to an increasing demand for proximity sensors and assisted the industry in flourishing during the forecast period. Sensors have now become an integral part of any modern automobile design, serving many different purposes and driving the adoption of proximity sensors in automotive applications. 
• Several supportive government policies promoting industrial automation or Industry 4.0 are anticipated to boost the proximity sensor market demand during the forecast period.

Market Scope

Market Dynamics

Driver

Growing emphasis on automation

The emphasis on automation is anticipated to drive the growth of the proximity sensor market during the forecast period. The increasing use of automation across various industries, including manufacturing, automotive, and healthcare, increases the demand for proximity sensors and represents the prime driver for the significant growth of the market. The emergence of the Internet of Things (IoT) plays a critical role as sensors become important for proximity-based interactions and object recognition. Proximity sensors are most widely used in manufacturing and industrial automation.

Proximity sensors can detect the presence or absence and position of objects on conveyor belts, which ensures the smooth production process and facilitates more safety if something unintended ends up on the conveyor belt. Proximity sensors also play an integral role in ensuring the quality and alignment of components in the assembly process. Moreover, firms are heavily investing in automation to reduce manufacturing costs, improve efficiency, and boost product quality. Such supportive factors are driving the growth of the proximity sensor market during the forecast period.

• In May 2024, Neura Robotics, a global pioneer in cognitive robotics, and Omron Robotics and Safety Technologies Inc., a global leader in industrial robotics and automation, are excited to announce their strategic partnership. This partnership aims to revolutionize the manufacturing industry by introducing cognitive robots into factory automation, leveraging advanced AI capabilities to enhance efficiency, flexibility, and safety.
• In February 2024, SICK unveiled a sensor to solve a wide range of detection tasks in automation technology with the new W10 photoelectric proximity sensor.

Restraint

Limitations in sensing capabilities

Limitations in sensing capabilities are anticipated to hamper the market's growth. Proximity sensors often have limitations in sensing capabilities. Additionally, the easy availability of alternative sensors at a lower cost may restrict the expansion of the global proximity sensor market during the forecast period.

Opportunity

Growing demand for consumer electronics

The growing demand for consumer electronics around the world is projected to create a lucrative growth opportunity for the proximity sensor market during the forecast period. Proximity sensors are increasingly common in consumer electronics such as smartphones, tablets, smartwatches, laptops, smart home devices, cameras, and others, further aiding in industry expansion. Proximity sensors are extensively used in touchless interactions, including automatic screen dimming or disabling touch input on smartphones when it is closer to the face during a phone call. These sensors also play an integral role in energy-saving features by turning off the screen when the device is not in use. Thus, a rise in consumer electronics demand may spur the demand for proximity sensors in the coming years.

• In January 2024, the Optoelectronics group of Vishay Intertechnology, Inc. introduced a new fully integrated proximity sensor designed to increase efficiency and performance in consumer applications. The proximity sensor will be used in smartphones and smartwatches for automatic screen wake-up and turn-off functions, in addition to detecting if users are wearing or not wearing true wireless stereo (TWS) earphones, virtual reality / augmented reality (VR / AR) headsets, and smart glasses.
• In April 2023, Semtech will add to PerSe proximity sensors. Semtech has expanded its PerSe product portfolio with the release of a sensing human proximity sensor for smartphones.

Technology Insights

The inductive segment held the largest share of the proximity sensor market in 2023. Inductive proximity sensors use electromagnetic fields to detect metallic objects, including copper, iron, aluminum, brass, and others. When a metallic object enters the sensor’s range, it induces a current in the sensor, which in turn triggers a signal and makes them effective tools for detecting metallic objects. Inductive proximity sensors are used in various automation applications, including security-related applications, product counting, and sorting applications. These sensors are required to be installed carefully to ensure that their performance is not affected by the surrounding environment.

The ultrasonic segment is expected to grow at the fastest rate in the proximity sensor market during the forecast period. Ultrasonic sensors use high-frequency sound waves to detect objects and obstructions. Ultrasonic proximity sensors are widely used in applications that include obstacle detection and distance measurement. Thus driving the growth of the segment.

End-user Industry Insights

The automotive segment accounted for the dominating share of the proximity sensor market in 2023. Modern cars come with a variety of sensor devices. A proximity sensor in cars makes everything much simpler. Automobile proximity sensors can detect the presence of nearby objects without making any physical contact with them. These sensors detect and provide information to occupants about nearby items in and around the car. Electromagnetic and ultrasonic sensors are the two most widely used sensors in cars for assisting in parking and several other safety features. The range of their functions is gradually expanding significantly. Ultrasonic sensors are generally the parking sensors that inform when the car is getting too close to an object near the car.  Sonar is used by ultrasonic sensors to determine how far away the car is from an object. Proximity sensors are extensively used in the automotive industry for several applications, including position detection, assembly line automation, welding, PaintShop, and others. The benefits offered by these proximity sensors include cost savings, improved efficiency, reduced labor requirements, and enhanced safety. Proximity sensors can also automatically unlock car doors when the driver is nearby. Car security systems also use these sensors to detect if someone is trying to break into or tamper with the car. Additionally, Autonomous driving has the potential to transform transportation. AD can create massive value for the automotive industry in the coming future.

• In March 2020, As the automotive industry is striving to make the most of the current trend towards electric vehicles and low fuel consumption by building lighter-weight vehicles and favoring aluminum over iron, the demand for same-sensing-distance proximity sensors with suitably long sensing ranges is also on the rise. Industrial Automation solutions provider Omron Automation announced the release of its E2EW series metal face proximity sensors that are designed to reduce downtime.

The smart manufacturing segment is expected to witness significant growth in the proximity sensor market during the forecast period. Proximity sensors are often integrated into an extensive range of appliances in smart homes. These sensors can detect when a person has entered or exited a room in smart homes, allowing for lighting to be turned off or on.  To enhance the home’s security, proximity sensors can also be placed around the windows or doors to detect whether they are closed or opened. They can also heat or cool to offer comfort and enhance energy.

• In July 2023 OLIGHT, achieved a breakthrough in flashlight technology with the introduction of their industry-first pre-activated proximity sensor, which is featured in the highly anticipated Warrior Mini 3. This cutting-edge feature revolutionizes the user experience and sets a new standard for high-output flashlight safety and functionality.

Regional Insights

Asia Pacific held the dominant share of the proximity sensor market in 2023 and is observed to witness prolific growth during the forecast period. The growth of the region is driven by the presence of prominent market leaders, increasing penetration of IoT across various sectors, the rapid progress of industrialization, increasing awareness of innovative technology, rising production of consumer electronics, the increasing popularity of Industry 4.0, ongoing research and development for the deployment of sensors, and supportive regulatory policies of the government. The digital transformation of industries enables real-time decision-making, boosts productivity, enhances flexibility, and revolutionizes manufacturing and supply chain processes, which increases the adoption of the proximity sensor. Several developing countries, including China, India, and Japan, are experiencing significant growth in industrial automation, which facilitates the rising use of proximity sensors in factory automation and safety devices.

• In July 2024, Cisco, a worldwide leader in networking and security, and Rockwell Automation, the world's largest company dedicated to industrial automation and digital transformation, announced a collaboration to propel the digital transformation of the industrial market in Asia Pacific, Japan, and Greater China. The announcement was made as the two companies signed a Memorandum of Understanding (MOU) on the same. Cisco and Rockwell Automation will collaborate to advance industrial automation capabilities alongside robust industrial networking and security solutions. 
• China (PRC) - continues to hold the largest share, with more than 60% in 2023, followed by South Korea and India. Countries with the fastest IoT spending in 2023 are China, Singapore, and Hong Kong. The advent of Smart Factories and Industry 4.0, along with government-led IoT programs and policies, has sped up IoT adoption across the Asia Pacific nations.
• According to the Ministry of Electronics & IT Government of India (Annual Report 2022-2023), the Electronics hardware industry is the world’s largest and fastest growing industry and is increasingly applications in all sectors of the economy. The domestic production of electronic items has increased from ` 3,17,331 crore (USD 49 billion) in 2016-17 to ` 6,40,810 crore (USD 87.1 billion) in 2021-22, growing at a Compound Annual Growth Rate (CAGR) of 15%. India’s electronics production is expected to reach USD 300 Billion by 2026.

North America is observed to expand at the fastest rate in the proximity sensor market during the forecast period. The market dominance in the region is attributed to the presence of tech-driven infrastructure, rising consumer inclination for smart homes, the rising emphasis on industrial automation, rising demand for consumer electronics, and rapid advancements in autonomous systems and automotive vehicles.  In automotive, proximity sensors are widely used to detect the physical closeness of other vehicles and assist in parking. The rising use of sensing technology across various fields such as healthcare, automotive, aerospace, defense, and other industries for a variety of works, including data transmission, threat detection, and monitoring physical movements. In addition, the rising implementation of IoT and the adoption of Industry 4.0 are anticipated to spur the demand for proximity sensors. Furthermore, the strong presence of prominent market players and rapid advancements in sensor technologies are expected to fuel the market expansion in the region.

• According to a survey, smart home statistics have shown that 69.91 million households in the United States are actively using smart home devices in 2024. This is 10.2 percent more than the 63.43 million homes recorded in 2023.

Proximity Sensor Market Companies

• Broadcom Inc.
• IFM Electronic GmbH
• Schneider Electric
• Panasonic Corporation
• Balluff GmbH
• Hans Turck GmbH & Co. KG
• Pepperl + Fuchs GmbH
• Rockwell Automation
• Omron Corporation
• Honeywell International Inc.
• Fargo Controls
• Sick AG
• Riko Opto-electronics Technology Co. Ltd.
• Microelectronics NV
• Delta Electronics Inc.
• Autonics Corporation
• OMRON Corporation
• Keyence Corporation

Recent Developments

• In February 2022, Elliptic Labs, a global AI software company and the world leader in Virtual Smart SensorsTM, announced that its AI Virtual Proximity Sensor INNER BEAUTY is shipping on Xiaomi’s Redmi K50 Gaming smartphone. 
• In October 2023, Maxic launched MT3102, a miniature, low-power proximity sensor integrating skin recognition.
• In September 2023, ROHM developed a compact 2.0mm × 1.0mm proximity sensor, the RPR-0720, optimized for applications requiring attachment/detachment and proximity detection. As the use of IoT continues to grow, sensor devices that play a critical role are requiring greater miniaturization and functionality. 

Segments Covered in the Report

By Technology

• Inductive
• Capacitive
• Photoelectric
• Magnetic

By End-user Industry

• Aerospace & Defense
• Automotive
• Industrial
• Consumer Electronics
• Food & Beverage
• Others

By Geography

• North America 
• Europe 
• Asia Pacific 
• Latin America 
• Middle East & Africa