Automotive sensors help reduce fuel consumption and reduce the vehicle's weight on board as they can control and process vehicle temperature, coolant levels, and oil pressure. In addition, the high adoption of ADAS (Advanced Driver Assistance Systems) and AD (Automated Driving) also result in demand for automotive sensors. As a result, automotive sensors have become one of the fastest-growing technologies in the original equipment manufacturer (OEM) segment, eventually leading to a 13.4% CAGR from 2021 to 2028.
According to the recent research report by Brandessence Market Research, the global automotive sensors market in terms of revenue was about $21.43 billion in 2021 and is projected to reach $51.69 billion in 2028.
Many types of sensors are used in the automotive industry to sense speed, coolant, temperature, pressure, magnetic, voltage and oxygen.
Some of the players in this space include BorgWarner, Sensata Technologies, Allegro Microsystems, Analog Devices, Robert Bosch, Continental, Denso, Infineon Technologies, Elmos Semiconductor, STMicroelectronics, CTS Corporation, Autoliv, TE Connectivity, ZF, Valeo, Magna, Melexis, ON Semiconductor, Amphenol Advanced Sensors, LeddarTech, VelodyneLiDAR, Quanergy, Innoviz Technologies.
The COVID-19 pandemic has significantly impacted the automotive industry, with many manufacturing facilities shutting down, supply chain disruptions, and international trade disruptions. In addition, consumer demand has declined, leading many automakers to reduce their production capacity for new vehicles, limiting market opportunities for automotive sensor suppliers.
Market Dynamics
The market for automotive sensors is rising exponentially in line with the general growth of the automotive market. According to Brandessence Research, consumers have purchased about 10 million autonomous vehicles by 2020.
Powertrain sensors play an important role in the efficient operation of engines, transmission systems, and alternators. Chassis sensors supervise functions like steering, braking, and suspension. A cluster of sensors is used in ADAS / AD systems, braking systems, and power steering systems of Autonomous Vehicles (AV) Level-3 vehicles of the Society of Automotive Engineers (SAE). For example, body sensors capture and transmit information about door/roof closures, seating area, and sunlight/rainfall, and can trigger notifications and perform basic functions accordingly. Thus, autonomous vehicles deployed with various sensors can reduce driver stress and increase their productivity. Therefore, the increasing adoption of autonomous vehicles is largely driving the growth of the automotive sensors market.
The automotive sensor market is highly competitive due to the rise of regional players and start-ups. Rising sales of automobiles in emerging economies such as Brazil, Turkey, Iran, and India are forcing market players to enter the market by introducing new products at lower prices. For instance, in April 2021, Honda released the ADAS 'Honda Sensing Elite', a state-of-the-art advanced driver-assistance system for a special range of vehicles available in Japan. The system has SAE Level-3 capability and comes with a traffic jam pilot module.
Also, in August 2020, Positek launched a new line of in-cylinder mounted position sensors, 'P 116 series,' with coalescent electronics. These linear position sensors offer Positek's patented linear inductive position sensor, non-contact inductive technology, and new micro-electronic ASIC circuits. These sensors are compact and comfortably installed single device with numerous electrical interface options. These sensors have a long life and are extremely accurate, reliable, and durable.
In addition, Curtis-Wright recently launched their new rotary position sensor, 'WM-H10,' a Hall-effect sensor that provides two separate and electro-isolated outputs. This shaft-operated sensor has two separate, electrically isolated outputs and is designed for highway on/off applications.
The business of automotive sensors is an OEM-overwhelmed business as there is an immature post-retail for automotive sensors. For different other business fragments, like industrial sensors and home automation gadgets, aftermarket assumes a significant part in advancing the market development. However, in the case of car sensors, the vehicle producer or the Level-1 provider gives the vast technical features for sensors, which is the fundamental purpose for the trouble in the commercialisation of automotive sensors.
Similarly, for various new sensors like radar, lidar, and proximity sensors, the retrofit market is relatively small due to the low penetration of these sensors in automobiles, the research firm noted.
Courtesy: Brandessence Market Research & Consulting. NB: Photo is representational; courtesy: Denso.