May 24, 2024
Sensor Market

The Surging Demand for Wearables is Driving the Sensor Market

Sensors can transform a variety of industries by collecting data about the physical world and making it available digitally. They are able to detect and respond to electrical or optical signals and convert them into outputs suitable for communication, analysis, or control use. A growing number of applications require sensors for functions including presence detection, positioning tracking, pressure sensing, temperature sensing, light sensing, flow sensing, and more. Sensors can add smart capabilities to a range of consumer electronics, home appliances, industrial equipment, medical devices, autonomous vehicles, and beyond. They are helping enable the growth of emerging technologies and assistive technologies that are improving people’s lives.

The global sensor market encompasses a wide range of sensing technologies used across industries. Accelerometers, gyroscopes, magnetometers, and other motion sensors are commonly found in smartphones, wearables, remote controls, and other motion-activated devices. Environmental sensors such as temperature sensors, pressure sensors, humidity sensors, and gas sensors help monitor conditions to detect issues or enable automated controls. Biometric sensors that can detect fingerprints, heart rate, oxygen saturation, and more are becoming increasingly integrated into healthcare devices and smartphones for authentication, health monitoring, and medical diagnostic use. Optical sensors that detect light, proximity, colour, and movement also have applications across sectors. Advances in microelectromechanical systems (MEMS) technology have driven down costs and miniaturized sensors for broader adoption.

The Global Sensor Market Size is estimated to be valued at US$ 226.91 Bn  in 2023 and is expected to exhibit a CAGR of 6.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Key Trends
Growing Popularity of Wearables: The increasing availability of affordable and advanced wearable devices is a major trend driving the demand for sensors. Smartwatches, fitness trackers, smart glasses, virtual/augmented reality headsets and other wearable gadgets require an array of different sensors for their various tracking and monitoring capabilities. The continued development of miniaturized and low-powered sensors is making it possible to add more sensing capabilities to wearables without compromising battery life or comfort.

Focus on IoT Sensing Solutions: Sensors are a core enabling technology for the Internet of Things (IoT), with the ability to collect and share data from the physical world. Industries are increasingly looking to deploy sensing solutions to digitally connect assets and processes for applications like predictive maintenance, environmental monitoring, supply chain tracking and more. This represents a major growth driver as the IoT ecosystem and
Porter’s Analysis

Threat of new entrants: The threat of new entrants into the sensor market is moderate. With high upfront costs for infrastructure and economies of scale, there are entry barriers, though new competition emerges in niche segments with novel sensor types.

Bargaining power of buyers: The bargaining power of buyers in the sensor market is high. Buyers can exert downward price pressure due to the availability of various sensor options from multiple vendors.

Bargaining power of suppliers: The bargaining power of suppliers is moderate as a few key players dominate the supply landscape and collaborate with multiple buyers. However, intellectual property protection maintains supplier influence.

Threat of new substitutes: The threat of substitutes is moderate as different sensing technologies emerge but don’t directly replace existing sensor usages due to their unique functionalities fulfilling specific needs.

Competitive rivalry: Competition is fierce with multiple global players and startups worldwide continuously innovating to gain market share by offering new features, prices, and customizations.

Key Takeaways

The global sensor market is expected to witness high growth over the forecast period driven by a wide range of end-use applications across multiple industries. Asia Pacific currently dominates the market and is expected to maintain its lead worldwide due to rapid industrialization in China, India, and Southeast Asia. Key players operating in the sensor market are Infineon Technologies, TDK Corporation, NXP Semiconductors, Analog Devices, and STMicroelectronics.

Regional analysis:

Within Asia Pacific, China accounts for the largest share currently owing to a well-established manufacturing industry alongside ambitious initiatives like ‘Made in China 2025’. India is projected to grow at the fastest pace in the region fueled by a booming manufacturing sector and supportive government policies. In North America, the US holds the major share of the regional market supported by defense, healthcare, and automotive sectors.

Key players:

Key players operating in the sensor market are Infineon Technologies, TDK Corporation, NXP Semiconductors, Analog Devices, and STMicroelectronics. Infineon leads globally by offering a diverse suite of sensors. TDK focuses on magnetic and piezoelectric sensors. NXP provides sensing solutions for automotive and industrial applications. Analog Devices has a strong portfolio including pressure and temperature sensors. STMicroelectronics caters to consumer electronics, medical devices, and automotive clients.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it