Sensors Market is Estimated to Witness High Growth Owing to Opportunity of Rising Adoption of IoT and Connected Devices

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Sensors Market is Estimated to Witness High Growth Owing to Opportunity of Rising Adoption of IoT and Connected Devices

The global sensor market is estimated to be valued at US$ 226.91 Billion in 2024 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.

Sensors play a vital role in a wide array of applications ranging from consumer electronics to industrial equipment. Various types of sensors such as pressure sensors, temperature sensors, position sensors, motion sensors and image sensors are used across industries to monitor performance, detect abnormalities and provide real-time data. The increasing adoption of technologies like Internet of Things (IoT) and connected devices is driving the demand for sensors. With growing digitization, sensors find abundant usage in areas including consumer electronics, automotive, healthcare, industrial and others.

Market Opportunity:
The opportunity of rising adoption of IoT and connected devices is expected to significantly drive the growth of sensor market during the forecast period. IoT connects physical devices over the Internet and allows them to generate, exchange and consume data. With proliferation of IoT, various consumer and industrial assets are being integrated with sensors and networking capabilities. This is resulting in surge in demand for different types of sensors including temperature sensors, pressure sensors, motion sensors and others. Increase in penetration of IoT is generating need for large-scale deployments of multiple sensors in applications such as smart homes, smart cities, industrial automation, infrastructure monitoring and healthcare. Hence, rapid adoption of IoT worldwide presents lucrative opportunity for sensor manufacturers during the coming years.

Porter's Analysis

Threat of new entrants: The sensor market has moderate threat of new entrants due to large capital requirement and presence of established players. However, new opportunities in emerging areas can attract new players.

Bargaining power of buyers: The bargaining power of buyers is high due to availability of substitute products and transparency in pricing. Buyers can choose from various sensor types and switch suppliers easily.

Bargaining power of suppliers: The bargaining power of suppliers is moderate as R&D in sensors requires technical expertise available with few major suppliers globally. However, switching costs are low.

Threat of new substitutes: The threat of new substitutes is moderate as sensors find diverse applications. However, new technologies can disrupt existing applications.

Competitive rivalry: The competitive rivalry is high due to many global players offering diversified product portfolios differentiated through technology.

SWOT Analysis

Strength: Sensor technology is witnessing innovations. Wide applications ensure sustainable demand. Standardization reduces integration costs.

Weakness: High R&D costs and frequent technology changes pose challenges. Complex applications require expertise. Susceptibility to macroeconomic cycles.

Opportunity: Growing automation and IoT expand the market. Wearables and smart cities open new avenues. Miniaturization enables mobility.

Threats: Trade barriers and regulations increase compliance costs. Cyberscurity threats raise concerns. Short product life cycles necessitate continuous innovations.

Key Takeaways

Global Sensor Market Size is expected to witness high growth over the forecast period led by expanding applications in consumer electronics, automotive, industrial and healthcare industries.

Regional analysis: Asia Pacific dominates the global sensor market currently and is projected to maintain its lead till 2030 attributable to robust demand from major economies like China and India. China accounts for over 30% of global sensor production owing to advanced manufacturing capabilities and presence of domestic OEMs. North America and Europe are other major regional markets driven by technological advancements.

Key players: Key players operating in the sensor market are Robert Bosch GmbH, STMicroelectronics, TE Connectivity Ltd., NXP Semiconductors N.V., Infineon Technologies AG, Analog Devices, Inc., Texas Instruments Incorporated, and Honeywell International Inc. These companies have strong foothold in sensor technologies and continuously invest in R&D to develop new and innovative products.