Rapid advancements in the automotive industry, increasing vehicle production across the globe, and strict government regulations to reduce carbon emission drive the global automotive sensors market size to reach $ 48.29 billion in 2027, finds Emergen Research.
The automotive sensors are intelligent and widely used in vehicles to monitor and control several parameters, including oil temperature, light, heat, and coolant levels, to enhance fuel efficiency and reduce carbon emissions. These sensors also help detect wheel speed, manifold pressure, incoming air temperature, and fuel-air mixture to analyse the vehicle's overall performance.
Some of the major players in manufacturing sensors include Robert Bosch, Continental, Delphi Automotive, Denso, Infineon Technologies, Sensata Technologies, Allegro Microsystems, Analog Devices, Elmos Semiconductor, and CTS.
The research firm said that high revenue growth is attributed to increasing demand for miniaturisation, rapid urbanisation, rising per capita income, especially in developing countries, and growing passenger cars and commercial vehicles.
In addition, the growing electric vehicles, hybrid vehicles, the increasing adoption of advanced driver-assistance systems, and the high deployment of image sensors support the growth.
Moreover, increasing R&D investments to develop more effective and advanced sensors and high adoption of autonomous driving is expected to boost the market. However, these automotive sensors' high installation and maintenance costs are expected to hamper the overall market growth in the coming years, Emergen Research noted.
According to the market research and consulting company, the temperature sensors segment is expected to register steady revenue growth throughout the forecast period due to increasing demand for monitoring temperature of various parameters, including transmission fluid, engine oil, or exhaust gas.
The passenger car segment is expected to account for the largest revenue share during the period. Increasing adoption of automotive sensors to improve the cars' overall performance, carbon emission reduction, passenger safety, rising disposable income, purchasing power, and improvements in the people's standard of living are key factors supporting the segment's revenue growth.
Based on the application, the powertrain segment is anticipated to register rapid revenue growth during the forecast period, Emergen Research noted.
The key factors include stringent government regulations for emission control, extensive use of sensors in powertrains to monitor speed, gas, temperature, and pressure to enhance fuel efficiency are augmenting segment growth.
In terms of region, the Asia Pacific is expected to register the highest revenue growth throughout the forecast period due to rising disposable income. Besides, increasing concerns about accidents, and increasing consumer inclination towards comfortable, safe, and cost-effective vehicles, also contribute to growth.
In addition, low production costs of automobiles, increasing demand for electric vehicles and government initiatives will support the growth in the Asia Pacific region.
North America is expected to register steady revenue CAGR during the forecast period due to increasing electric vehicles sales, growing public awareness about excess carbon emission, and rising pollution levels.
Courtesy: Emergen Research. NB: Photo is representational; courtesy: Bosch.