Global Automotive Sensors Market Size, Forecast, and Trend Highlights Over 2022 - 2031
The global automotive sensors market is estimated to garner significant revenue by the end of 2031 by growing at a CAGR of ~8% over the forecast period, i.e., 2022 – 2031. Further, the market generated modest revenue in the year 2021. The growing popularity of electric vehicles along with stringent regulations to limit carbon emissions has resulted in increased sales of electric cars in various regions. For instance, in 2020, electric car sales surpassed 2.8 million for the first time, an increase of 38% over the previous year. It is projected that ~280 million electric cars will be on the road by 2030, representing 62% of new car sales compared with 4.5% in 2020.
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The automotive sensors capture, monitor, and deliver information, which helps to evaluate the performance of the vehicle. They are made of cobalt and nickel semiconductors. Sensors are used in automobiles to improve vehicle performance, safety, and comfort for passengers. A silicon wafer is used for fabricating these sensors, which are based on integrated circuit (IC) fabrication technology. Increasing vehicle manufacturing along with rising research and development expenditures by companies in automobile vehicles are expected to drive global automotive sensors market growth. For instance, over USD 15 billion was spent by 28 companies on automated vehicles in 2019. The Ford Motor Company expects to spend USD 5 billion on driverless cars by 2023. Moreover, government regulations relating to safety & emissions reduction, increasing disposable income, increased demand for adaptive cruise control systems (ACCS), usage of pressure sensors along with consumers' preference for safety features in vehicles are other factors expected to drive global automotive sensors market during the forecast period.
Global Automotive Sensors Market: Growth Drivers and Challenges
Growing Number Of Road Accidents Around The World - According to the United States Department of Transportation, in 2020, approximately 2.28 million people suffered injuries in motor vehicle accidents, up from 2.74 million in 2019. Also, a total of 38,824 people died in road accidents in the United States in 2020. As a result of the increasing number of road accidents around the world, autonomous emergency braking systems (AEBS) and other safety sensors are becoming increasingly important to vehicles in order to prevent such incidents from happening. Increasing car cash accident mortality rate, demand for fuel-efficient commercial vehicles, and sensorization of automobiles are expected to expand global automotive sensors market size during the forecast period.
Developments And New Product Launches In The Sensor Industry - For instance, Allegro MicroSystems, Inc announced in June 2022 at the Sensors Converge Conference in San Jose, California, the launch of its new linear magnetic position sensors for automotive applications, the A33110 and A3115. In addition to ensuring high levels of accuracy, these sensors offer superior performance to steering, braking, and transmissions in advanced driver assistance systems (ADAS).
Increase In Sales of Luxury Cars Worldwide - It was observed that there were 16,500 luxury vehicles sold in India from January-May 2022, a 53% increase compared to 10,500 units sold in the preceding year.
Rapid Growth In The Automobile Industry- For instance, the growth in the Indian automotive industry is anticipated to reach USD 250-280 billion by the end of year 2026. Also, the automobile industry's purchasing managers' index (PMI) was higher than 51% in July 2022 than the overall manufacturing industry in China.
Rising Demand for Self-Driving Cars and Autopilot Technology- For instance, the self-driving vehicle industry is expected to grow by 15% annually. A total of 65% of all passenger vehicles in China will be automated by 2040. Also, in the U.S., 34% of drivers say self-driving vehicle features make driving safer.
Inadequate Aftermarket for Automotive Sensors
Risks Associated with Autonomous Vehicles in terms of Safety and Security
Lack of Adoption of Automotive Sensors in Small Vehicles
The global automotive sensors market is segmented and analyzed for demand and supply by vehicle type into passenger cars, light motor vehicle (LMV), and heavy motor vehicle (HMV). Among these segments, the passenger cars segment is anticipated to capture the largest market size in the global automotive sensors market owing to the high demand for automobiles worldwide and the increasing production rate of passenger cars. With the implementation of stringent regulations mandating automotive sensors in vehicles, sensor installation demand is expected to increase exponentially in passenger cars. Using automotive sensors in passenger cars enhances car performance, improves vehicle safety, and reduces vehicles' carbon emissions. Moreover, the rising purchasing power of consumers along with the escalating production of passenger cars worldwide is expected to drive segment growth during the forecast period. For instance, the global production of passenger cars accounted for nearly 55 million in 2021. In addition, a total of approximately 3,650,000 passenger vehicles were manufactured in India during the year 2021-22.
Major Macro-Economic Indicators Impacting the Market Growth
The never-ending growth in internet accessibility around the world along with numerous technological advancements comprising 5G, blockchain, cloud services, Internet of Things (IoT), and Artificial Intelligence (AI) among others have significantly boosted the economic growth in the last two decades. As of April 2021, there were more than 4.5 billion users that were actively using the internet globally. Moreover, the growth in ICT sector has significantly contributed towards GDP growth, labor productivity, and R&D spending among other transformations of economies in different nations of the globe. Furthermore, the production of goods and services in the ICT sector is also contributing to the economic growth and development. As per the statistics in the United Nations Conference on Trade and Development’s database, the ICT good exports (% of total good exports) globally grew from 10.816 in 2015 to 11.536 in 2019. In 2019, these exports in Hong Kong SAR, China amounted to 56.65%, 25.23% in East Asia & Pacific, 26.50% in China, 25.77% in Korea, Rep., 8.74% in the United States, and 35.01% in Vietnam. These are some of the important factors that are boosting the growth of the market.
Global Automotive Sensors Market Regional Synopsis
Regionally, the global automotive sensors market is studied into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. Amongst these markets, the market in Asia Pacific is projected to hold the largest market share by the end of 2031 backed by rapid industrialization, and rising per capita income. Moreover, strict vehicle safety laws and the increasing consumer demand for self-driving cars are expected to encourage the installation of sensors in cars manufactured in the region. Furthermore, the rising production and sales of electric passenger cars and electric vehicles (EVs) in the region are expected to drive the automotive sensors market in the region. For instance, in China electric car sales are expected to reach around 6 million by the end of 2022. A total of 3.2 million electric vehicles were sold in China in 2021, up 150% from the previous year.
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The global automotive sensors market is further classified on the basis of region as follows:
- North America (U.S. & Canada) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook
- Latin America (Brazil, Mexico, Argentina, Rest of Latin America) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook
- Europe (U.K., Germany, France, Italy, Spain, Hungary, Belgium, Netherlands & Luxembourg, NORDIC (Finland, Sweden, Norway, Denmark), Ireland, Switzerland, Austria, Poland, Turkey, Russia, Rest of Europe), Poland, Turkey, Russia, Rest of Europe) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook
- Asia-Pacific (China, India, Japan, South Korea, Singapore, Indonesia, Malaysia, Australia, New Zealand, Rest of Asia-Pacific) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook
- Middle East and Africa (Israel, GCC (Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman), North Africa, South Africa, Rest of Middle East and Africa) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook
Our in-depth analysis of the global automotive sensors market includes the following segments:
By Sensor Type
By Vehicle Type
By Sales Channel
Top Featured Companies Dominating the Global Automotive Sensors Market
- Avago Technologies
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Delphi Automotive LLP
- Casco Automotive Groups
- Allegro MicroSystems, Inc.
- CTS Corporation
- Infineon Technologies AG
- GE Measurement & Control Solutions
- Analog Devices Inc.
- Denso Corporation