The global Automotive Sensors Market is expected to attain a valuation of USD 19.2 billion in 2023. The market is projected to reach USD 44 billion by 2033, anticipated to increase at a CAGR of 8.6% during the forecast period.
The incorporation of various automotive sensors, including electric power steering (EPS), offers additional safety advantages to drivers is expected to increase its sales in the coming years.
The implementation of strict fuel efficiency regulations by governments and the adoption of international safety measures act as significant catalysts for the growth and advancement of sophisticated systems like EPS, which heavily rely on sensors.
The automotive industry is witnessing a rising demand for electronic sensors, particularly for position sensing applications, owing to the continuous advancements and breakthroughs in technology. The focus on technical advancements, including electrification and autonomous driving, has led to an increased demand for sensors.
Simultaneously, the industry's inclination towards incorporating position sensors into vehicles indicates a promising outlook for market growth.
The rise in accident rates has spurred end users to prioritize improved safety measures. Across first-world nations, advancements in road and vehicle design have contributed to a steady decline in injury and fatality rates.
Governments are actively focusing on enforcing stringent safety regulations and promoting the adoption of various subsystems, including sensors in vehicles, to enhance safety standards. This emphasis is particularly crucial in some developing countries where accident rates remain relatively high.
| Report Attribute | Details |
|---|---|
| Expected Market Value (2023) | USD 19.2 billion |
| Anticipated Forecast Value (2033) | USD 44 billion |
| Projected Growth Rate (2023 to 2033) | CAGR of 8.6% |
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The automotive sensors market was worth USD 14.8 billion in 2018. It accumulated a market value of USD 18.3 billion in 2022, growing at a CAGR of 5.4% during the historical period.
Driven by increasing sales of automobiles due to the rise in per capita income in emerging economies and the automation of vehicles, the automotive sensors market is forecast to grow at a steady pace.
Implementation of strict emission control norms aimed at reducing carbon emissions and rising demand for safety and comfort will continue bolstering growth.
FMI forecasts the demand for automotive sensors to consistently rise in South East Asian countries. The spike in demand can be attributed to the rising production of automotive and growing awareness among consumers towards technologies to improve driver and passenger safety.
Since sensors are an integral part of developing any automated system, the market is anticipated to grow at an 8.6% CAGR.
The incorporation of autonomous emergency braking systems (AEBS) in commercial vehicles to enhance the safety and comfort of the driver and passengers alike will propel automotive sensors sales.
The focus on improving overall vehicle performance also will bode well for the market. However, the limited adoption of automotive sensors in compact and economic cars owing to the high cost of sensors will dampen growth prospects to an extent over the assessment period.
Advancements in the sensor industry also will aid overall growth. For instance, in May 2021, Allegro MicroSystems Inc. launched new linear magnetic position sensor ICs for automotive applications.
The company claims that the A31315 sensor will offer high measurement accuracy and superior performance to steering, braking, transmission, and throttle systems while meeting strict safety requirements.
European Union says that around 22,800 road accident-related casualties were registered in European Union in 2019 with more than 44% being passenger car drivers or passengers. The rise in road accident-related fatalities is prompting automakers to incorporate advanced sensors as a part of their safety module in their vehicles.
A rise in safety system failure-related casualties can negatively affect a company’s reputation among consumers. Growing efforts to develop modern safety sensors to reduce such incidence will drive the demand for automotive sensors over the forecast period.
Governments also are imposing strict regulations to ensure driver safety in automobiles. Hefty penalties are charged to manufacturers in case of safety system failure-related accidents.
National Highway Traffic Safety Administration USA established federal motor vehicle safety standard (FMVSS) No. 126 that mandates automakers to install electronic stability control (ESC) system in passenger cars, multipurpose passenger vehicles, trucks, and buses with a gross vehicle weight rating of 4,536 Kg (10,000 pounds) or less.
As wheel speed sensors and steering sensors are an integral parts of ESC, the demand for automotive sensors is expected to skyrocket in upcoming years.
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Automotive sensors are used to improve driver safety and comfort, especially in commercial and luxury vehicles. Automotive sensors also boost performance and fuel efficiency in high-performance cars. The rise in the standard of living and increasing production of luxury vehicles will drive the sales of automotive sensors in the upcoming years.
Various governments are mandating the installation of safety sensors in commercial vehicles, which will positively influence market growth. Increasing demand for adaptive cruise control systems (ACCS) within sports utility vehicles and sedan cars in European and American countries will create growth opportunities in the automotive sensor market.
As per the International Organization of Motor Vehicle Manufacturers, globally more than 21 million automotive vehicles are produced between January and March 2021.
Increasing vehicle production and growing awareness regarding the safety of passengers and drivers is prompting original equipment manufacturers to install advanced position, level and speed sensors. This is expected to boost the sales of automotive sensors.
The emergence of autonomous and connected vehicles along with the rising popularity of truck platooning will fuel the demand for automated driving support and connectivity technology. This, in turn, will increase the demand for automotive sensors in trucks.
The demand for automotive sensors in China is expected to rise with a CAGR of 8.4% during the forecast period. The region is expected to account for over 35% of regional share in Asia Pacific region by end of the forecast period.
Implementation of stringent vehicle safety regulations along with increasing demand for autonomous vehicles is expected to boost sensor installation in vehicles manufactured in China.
As per the China Association of Automobile Manufacturers, around 256,000 electric passenger and commercial vehicles were sold in China in June 2021. Increasing sales of electric vehicles along with rising the production of passenger cars will drive the automotive sensors market in the country.
The Chinese government is looking to enforce three new safety standards for electric vehicles, batteries, and buses by the end of 2021. These new regulations will address issues about thermal runaway in electric vehicles, which is the leading cause of fire in EVs.
The use of advanced temperature and position sensors as a part of the battery safety system against mechanical shock and overheating will propel the demand for automotive sensors in China.
Government initiatives undertaken in favour of using new energy vehicles to curb carbon emissions will drive the sales of automotive sensors in China. Aggressive implementation of these norms and rising awareness among customers regarding vehicle safety will drive market growth in the upcoming years in China.
The market in India is expected to dominate the Asia Pacific automotive sensors market in 2023, by growing with a CAGR of 8.6% during the forecast period.
Rapid industrialization and a rise in per capita income in India will lead to an increase in demand for automotive vehicles which in turn will fuel the demand for automotive sensors in the country.
According to the Indian Brand Equity Foundation (IBEF), passenger vehicles sale in India experienced 28.39% year-on-year growth in March 2021.
Due to rising sales of passenger cars and increasing demand for adaptive cruise control sensors, leading car manufacturers are focusing on fitting these sensors in economic cars. This will bode well for the automotive sensor market growth.
As per the report from the Ministry of Road Transport and Highway, around 449,002 road accidents were recorded in 2019 with more than 33% of total road accident victims losing their lives. As such, the need for autonomous emergency braking systems (AEBS) and other safety sensors is ever-increasing to avoid such incidence.
A rise in road accident-related mortality rate in India and the increasing need for fuel-efficient solutions for commercial vehicles will fuel the demand for safety sensors in automobiles in the country.
Japan is expected to remain at third place in terms of market share in automotive sensors market. The demand for these sensors in the region is expected to escalate with a CAGR of 8.2% during the forecast period.
According to Japan Automobile Manufacturers Association, the Japanese car production rate reached 7.70 million in 2019. The rise in vehicle production and advancement in electronics will drive the sales of automotive sensors in the Japanese automotive market.
Automatic emergency braking and other safety sensors prevent the collision of vehicles by detecting and calculating braking time, and the rising number of accident-related casualties in Japan will boost the adoption of automotive sensors over the years.
In 2019, Japan’s Ministry of Land, Infrastructure, Transport, and Tourism mandated the installation of automated emerging braking in all new passenger vehicles by November 2021.
Existing passenger cars must have this feature by the end of 2025. Extensive research in the field of automotive sensors towards miniaturization and capability enhancement without compromising the fundamental functionalities of the vehicle will drive the automotive sensor market growth in Japan.
Auto Alliance reports that nearly USD 18 billion spends on research and development of the automobile in the United States. Rising investments towards developing compact and durable automotive sensors and increasing demand for electric vehicles in the United States are expected to offer lucrative opportunities for market growth in the country.
Owing to these factors, the market in this region is expected to grow with a significant CAGR of 8.2% during the forecast period.
According to the United States Department of Transportation, around 11 people per 100,000 die due to motor vehicle crashes. The rising adoption of automotive sensors and integrated safety systems to reduce the accident-related mortality rate will positively influence the market growth in the United States
The rising popularity of electric vehicles and stringent regulations to limit carbon emission has boosted the sales of electric cars in the country. In the United States electric vehicle registration grew 3X in the past four years with 1.8 million total registrations till 2020, states the International Energy Agency.
The rising adoption of temperature and proximity sensors in smart electric vehicles as a part of their safety system will fuel the market growth over the forecast period.
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By vehicle type, demand for installation in passenger cars is expected to rise exponentially, especially with the implementation of stringent regulations mandating the installation of automotive sensors in vehicles. The demand from this segment is expected to rise with a promising CAGR of 9.4% during the forecast period.
The rise in purchasing power of consumers in developed countries of Europe and North America along with increasing demand for luxury automobiles with advanced driver assistance system (ADAS) technology and other advanced features will boost the market growth throughout the assessment period.
The introduction of ADAS technology in commercial vehicles like urban electric buses and coaches will have a positive impact on the growth of the automotive sensors market. ADAS sensors notify the driver of the pedestrian or any obstacle that is ahead of the vehicle. Installation of these warning and braking sensors in buses and trucks will catapult the demand for automotive sensors.
The original equipment manufacturers segment is expected to exhibit a CAGR of 9.8% during the forecast period. Increasing investment towards advancement in sensor connectivity and a rise in sales of automobiles will push sales via original equipment manufacturers (OEMs).
Some of the leading OEMs are collaborating with regional research and academic universities to address the new challenges between image and non-image data.
Night vision sensors and short wave imaging sensors are gaining traction among OEMs, as they are working towards boosting the performance of the present ADAS systems for autonomous vehicle applications.
The demand for advanced driver-assistance systems (ADAS) is expected to remain high with an impressive CAGR of 10% during the forecast period. The segment is expected to account for a significant market share in 2023. Advanced driver-assistance systems are gaining traction in heavy commercial vehicles owing to the rise in mining and construction activities around the world.
Implementation of stringent emission control norms and rising fuel prices are encouraging truck fleet owners to invest in performance upgradation operations. These developments also will help in limiting carbon dioxide emissions and increase driving comfort.
Start-ups are crucial in identifying growth opportunities, including the automotive sensors market. They effectively translate inputs to outputs and adapt to market uncertainties, contributing to the industry's expansion. Some start-ups are expected to drive growth in the automotive sensors market.
The market for automotive sensors is highly competitive, with numerous prominent industry players making substantial investments in increasing their manufacturing capabilities.
The key industry players are NXP Semiconductors N.V., TE Connectivity, Continental AG, Denso Corporation, Robert Bosch GmbH, Infineon Technologies AG, STMicroelectronics, Texas Instruments Incorporated, Allegro Microsystems, LLC, CTS Corporation, Elmos Semiconductor, Sensata Technologies.
Some recent developments in the automotive sensors market are:
| Report Attribute | Details |
|---|---|
| Market Value in 2023 | USD 19.2 billion |
| Market Value in 2033 | USD 44 billion |
| Growth Rate | CAGR of 8.6% from 2023 to 2033 |
| Base Year for Estimation | 2022 |
| Historical Data | 2018 to 2022 |
| Forecast Period | 2023 to 2033 |
| Quantitative Units | Revenue in USD billion and CAGR from 2023 to 2033 |
| Report Coverage | Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis |
| Segments Covered | Sensor Type, Vehicle Type, Sales Channel, Region |
| Regions Covered | North America; Latin America; Europe; Asia Pacific; Middle East & Africa |
| Key Countries Profiled | United States, Canada, Brazil, Mexico, Germany, United Kingdom, France, Spain, Italy, India, China, Japan, Malaysia, Singapore, Thailand, South Korea, Australia, New Zealand, GCC Countries, South Africa, Israel |
| Key Companies Profiled | NXP Semiconductors N.V.; TE Connectivity; Continental AG; Denso Corporation; Robert Bosch GmbH; Infineon Technologies AG; STMicroelectronics; Texas Instruments Incorporated; Allegro Microsystems LLC; CTS Corporation; Elmos Semiconductor; Sensata Technologies |
| Customization & Pricing | Available Upon Request |
FMI projects the global automotive sensors market to expand at an 8.6% value CAGR by 2033
The global automotive sensors market is expected to garner a market value of USD 44 billion by 2033
FMI has projected India to be one of the promising regions for automotive sensors market with a CAGR of 8.6%
China is anticipated to grow at 8.4% CAGR throughout the forecast period.
By vehicle type, passenger cars are expected to grow with a CAGR of 9.4% during the forecast period
The automotive sensors market was worth USD 14.8 billion in 2018.
The market in United States is projected to grow with a CAGR of 8.2% during the forecast period.
1. Executive Summary
2. Market Overview
3. Market Background
4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033
5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Sensor Type
5.1. Position Sensors
5.1.1. Clutch Position Sensors
5.1.2. Gear Position Sensors
5.1.3. Throttle Position Sensors
5.1.4. Crankshaft Position Sensors
5.1.5. Steering Angle Position Sensors
5.1.6. Camshaft Position Sensors
5.2. Safety Sensors
5.2.1. Seat Belt Sensors
5.2.2. Brake Switch Sensors
5.2.3. Door Switch Sensors
5.2.4. Blind Spot Detection
5.2.5. Night Vision Sensors
5.2.6. Light Sensors
5.2.7. Parking Sensors
5.2.8. Cruise Control
5.2.9. Impact Sensors
5.2.10. Anti-theft Sensors
5.3. Level Sensors
5.3.1. Fuel Level Sensors
5.3.2. Coolant Level Sensors
5.3.3. Oil Level Sensors
5.4. Oxygen Sensors
5.5. Pressure Sensors
5.5.1. Tire Pressure Sensors
5.5.2. EGR Pressure Sensors
5.5.3. Airflow Rate Sensors
5.6. Temperature Sensors
5.6.1. Engine Coolant Temperature Sensors
5.6.2. Rain/Humidity Sensors
5.6.3. Oil/Fuel Temperature Sensors
5.6.4. Battery Temperature Sensors
5.6.5. Air Temperature Sensors
5.7. Speed Sensors
5.7.1. Wheel Speed Sensors
5.7.2. Speedometer
6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Vehicle Type
6.1. Passenger Cars
6.1.1. Compact
6.1.2. Midsize
6.1.3. Luxury
6.1.4. SUVs
6.2. Light Commercial Vehicles
6.3. Heavy Commercial Vehicles
7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Sales Channel
7.1. Original Equipment Manufacturers
7.2. Original Equipment Supplier Spare Parts
7.3. Independent Aftermarket
8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region
8.1. North America
8.2. Latin America
8.3. Europe
8.4. Asia Pacific
8.5. MEA
9. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
10. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
11. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
12. Asia Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
13. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
14. Key Countries Market Analysis
15. Market Structure Analysis
16. Competition Analysis
16.1. Robert Bosch GmbH
16.2. Infineon Technologies AG
16.3. STMicroelectronics
16.4. Continental AG
16.5. Denso Corporation
16.6. NXP Semiconductors
16.7. Texas Instruments Incorporated
16.8. Allegro Microsystems, LLC
16.9. CTS Corporation
16.10. Elmos Semiconductor
16.11. Sensata Technologies
17. Assumptions & Acronyms Used
18. Research Methodology
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Automotive Sensors Market
