Automotive Sensors Market

Key Points Covered in Automotive Sensors Market Study

• Market estimates and forecast 2021 – 2031
• Key drivers and restrains impacting market growth
• Segment-wise, Country-wise, and Region-wise Analysis
• Competitive Mapping and Benchmarking
• Brand share and Market Share Analysis
• Key Product Innovations and Regulatory Climate
• COVID-19 Impact On Automotive Sensors  Market
• Recommendation on Key Winning Strategies

2016 – 2020 Global Automotive sensors Market Outlook Compared to 2021 – 2031 Forecast

Driven by increasing sales of automobiles due to rise in per capita income in emerging economies and automation of vehicles, automotive sensors market is forecast to grow at a steady pace. Implementation of strict emission control norms aimed at reducing carbon emission and rising demand for safety and comfort will continue bolstering growth.

FMI forecasts the demand for automotive sensors to consistently rise in South East Asian countries. Spike in demand can be attributed to rising production of automotives and growing awareness among consumers towards technologies to improve driver and passenger safety.

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Since sensors are an integral part of developing any automated system, the market is anticipated to grow at a healthy pace of 7.2% CAGR in 2021.

The incorporation of an autonomous emergency braking systems (AEBS) in commercial vehicles to enhance the safety and comfort of the driver and passengers alike will propel automotive sensors sales.

The focus on improving overall vehicle performance also will bode well for the market. However, the limited adoption of automotive sensors in compact and economic cars owing to its high cost of sensors will dampen growth prospects to an extent over the assessment period.

Advancement in the sensor industry also will aid the overall growth. For instance, in May 2021, Allegro MicroSystems Inc. launched new linear magnetic position sensor ICs for automotive applications.  The company claims that the A31315 sensor will offer high measurement accuracy and superior performance to steering, braking, transmission, and throttle systems while meeting the strict safety requirements.

How Will Focus on Driver Safety Boost Demand for Automotive Sensor?

European Union says that around 22,800 road accident related casualties were registered in European Union in 2019 with more than 44% being passenger car drivers or passengers. Rise in road accident related fatalities is prompting automakers to incorporate advance sensors as a part of their safety module in their vehicles.

Rise in safety system failure related casualties can negatively affect a company’s reputation among consumers. Growing efforts to develop modern safety sensors to reduce such incidence will drive the demand for automotive sensors over the forecast period.

Governments also are imposing strict regulations to ensure driver safety in automobile. Hefty penalties are charged to manufacturers in case of safety system failure related accidents.

National Highway Traffic Safety Administration U.S. established federal motor vehicle safety standard (FMVSS) No. 126 that mandates automakers to install electronic stability control (ESC) system in passenger cars, multipurpose passenger vehicles, trucks, and buses with a gross vehicle weight rating of 4,536 Kg (10,000 pounds) or less. As wheel speed sensors and steering sensors are integral part of ESC, the demand for automotive sensors is expected to skyrocket in upcoming years.

How will the Market Gain from Increasing Automotive Vehicle Sales?

Automotive sensors are used to improve driver’s safety and comfort especially in commercial and luxury vehicles. Automotive sensors also boost performance and fuel efficiency in high performance cars. Rise in standard of living and increasing production of luxury vehicles will drive the sales of automotive sensors in upcoming years. 

Various governments are mandating the installation of safety sensors in commercial vehicles, which will positively influence the market growth. Increasing demand for adaptive cruise control system (ACCS) within sports utility vehicles and sedan car in European and American countries will create growth opportunities in automotive sensor market.

As per the International Organization of Motor Vehicle Manufacturers, globally more than 21 million automotive vehicles are produced between January and March 2021. Increasing vehicle production and growing awareness regarding safety of passengers and driver is prompting original equipment manufacturers to install advance position, level and speed sensors. This is expected to boost the sales of automotive sensors.

Emergence of autonomous and connected vehicles along with rising popularity of truck platooning will fuel the demand for automated driving support and connectivity technology. This, in turn, will increase the demand for automotive sensors in trucks.

Country-wise Analysis

What Are the Factors Driving Automotive sensors Demand in China?

Implementation of stringent vehicle safety regulations along with increasing demand for autonomous vehicles is expected to boost sensors installation in vehicles manufactured in China.

As per the China Association of Automobile Manufacturers, around 256,000 electric passenger and commercial vehicles were sold in China in June 2021. Increasing sales of electric vehicles along with rising the production of passenger cars will drive the automotive sensors market in the country.

The Chinese government is looking to enforce three new safety standards for electric vehicles, batteries, and buses by the end of 2021. These new regulations will address issues pertaining to thermal runaway in electric vehicles, which is the leading cause of fire in EVs.

The use of advanced temperature and position sensors as a part of the battery safety system against mechanical shock and over-heating will propel the demand for automotive sensors in China.

Government initiatives undertaken in favor of using new energy vehicles to curb carbon emission will drive the sales of automotive sensors in China. Aggressive implementation of these norms and rising awareness among the customers regarding vehicle safety will drive the market growth in upcoming years in China.

What Makes India a Leading Market for Automotive sensors?

Rapid industrialization and rise in per capita income in India will lead to an increase in demand for automotive vehicles which in turn will fuel the demand for automotive sensors in the country.

According to the Indian Brand Equity Foundation (IBEF), passenger vehicles sale in India experienced 28.39% year-on-year growth in March 2021. Due to rising sales of passenger cars and increasing demand for adaptive cruise control sensors, leading car manufacturers are focusing on fitting these sensors in economic cars. This will bode well for automotive sensor market growth.

As per the report from the Ministry of Road Transport and Highway, around 449,002 road accidents were recorded in 2019 with more than 33% of total road accident victims lost their lives. As such, the need for autonomous emergency braking systems (AEBS) and other safety sensors is ever-increasing to avoid such incidence. A rise in road accident-related mortality rate in India and the increasing need for fuel-efficient solutions for commercial vehicles will fuel the demand for safety sensors in automobiles in the country.

What is the Outlook for Automotive sensors in Japan?

According to Japan Automobile Manufacturers Association, the Japanese car production rate reached 7.70 million in 2019. The rise in vehicle production and advancement in electronics will drive the sales of automotive sensors in the Japanese automotive market.

Automatic emergency braking and other safety sensors prevent the collision of vehicles by detecting and calculating braking time, and the rising number of accident-related casualties in Japan will boost the adoption of automotive sensors over the years.

In 2019, Japan’s ministry of land, infrastructure, transport, and tourism mandated the installation of automated emerging braking in all new passenger vehicles by November 2021. Existing passenger cars must have this feature by the end of 2025.  Extensive research in the field of automotive sensors towards miniaturization and capability enhancement without compromising the fundamental functionalities of the vehicle will drive the automotive sensor market growth in Japan.

How Big Is The Automotive Sensors Market Growth Opportunity In U.S.? 

Auto Alliance reports that nearly US$ 18 Bn spends on research and development of the automobile in the U.S. Rising investments towards developing compact and durable automotive sensors and increasing demand for electric vehicles in the U.S. are expected to offer lucrative opportunities for market growth in the country.

According to the United States Department of Transportation, around 11 people per 100,000 die due to motor vehicle crashes. The rising adoption of automotive sensors and integrated safety systems to reduce the accident-related mortality rate will positively influence the market growth in the U.S.

The rising popularity of electric vehicles and stringent regulations to limit carbon emission has boosted the sales of electric cars in the country. In U.S. electric vehicle registration grew 3X in the past four years with 1.8 million total registrations till 2020, states the International Energy Agency. The rising adoption of temperature and proximity sensors in smart electric vehicles as a part of its safety system will fuel the market growth over the forecast period.

Category-wise Insights

Which Is The Leading Segment Among The Vehicle Type?

By vehicle type, demand for installation in passenger cars is expected to rise exponentially especially with implementation of stringent regulations mandating the installation of automotive sensors in vehicles.

Rise in purchasing power of consumers in developed countries of Europe and North America along with increasing demand of luxury automobiles with advanced driver assistance system (ADAS) technology and other advance features will boost the market growth throughout the assessment period.

Introduction of ADAS technology in commercial vehicles like urban electric buses and coaches will have a positive impact on the growth of automotive sensors market. ADAS sensors notify the driver of the pedestrian or any obstacle that is ahead of the vehicle. Installation of these warning and braking sensors in buses and trucks will catapult the demand for automotive sensors.

Which Sales Channel is witnessing High Growth?

Increasing investment towards advancement in sensor connectivity and rise in sales of automobiles will push sales via original equipment manufacturers (OEMs). Some of the leading OEMs are collaborating with regional research and academic universities to address the new challenges between image and non image data.

Night vision sensors and short wave imaging sensors are gaining traction among OEMs, as they are working towards boosting the performance of present ADAS system for autonomous vehicle applications.

Why Are Advanced Driver-Assistance Systems (ADAS) Automotive Sensors High In Demand?

Advanced driver-assistance systems are gaining traction in heavy commercial vehicles owing to rise in mining and construction activities around the world. Implementation of stringent emission control norms and rising fuel prices are encouraging truck fleet owners to invest in performance upgradation operations.

These developments also will help in limiting the carbon dioxide emission and increase driving comfort.

Competitive Landscape

NXP Semiconductors N.V., TE Connectivity, Continental AG, Denso Corporation, Robert Bosch GmbH is identified as leading market players in automotive sensors market. They collectively account for more than 30% market share in 2021, says FMI.

Automotive sensor market is highly competitive owing to emergence of regional players and start-ups. Increasing sales of automobiles in emerging economies like Brazil, Turkey, Iran, and India is motivating market players to enter these markets by introducing new products at lower price.

• For instance, in April 2021, Honda released it modern advanced driver-assistance systems ADAS “Honda Sensing Elite” for a special range of vehicles available in Japan. The system has SAE level 3 capabilities and comes with Traffic Jam pilot module.
• Positek launched new line of in-cylinder mounted position sensor “P 116 series” with integrated electronics in August 2020. These linear position sensors combine Positek’s patented linear inductive position sensor, non-contact inductive technology and novel micro-electronic ASIC circuitry to offer a compact and easily installed single device with multiple electrical interface options. These sensors have log life and are highly accurate, reliable, and durable.
• Curtis-Wright recently launched its new rotary position sensor “WM-H10”, a Hall-effect sensor that gives two independent and electrically-isolated outputs. This shaft operated sensor with two independent, electrically-isolated outputs and is designed for hostile on/off highway applications.

Automotive sensors Market – Report Scope

Key Questions Answered in the Report

• What is automotive sensors market size?

  Driven by innovations in vehicle security features against rising demand for advanced sensor functionalities, the automotive sensors market size is forecast to reach US$ 36.7 Bn in 2021 with a CAGR of 7.2%.

• At what rate did the automotive sensors market expand in the last five years?

  Between 2016 and 2020, the automotive sensors sales grew at 1.1% CAGR. The slump in sales is due to closure of manufacturing facilities due to COVID-19 pandemic.

• What are the key trends shaping the automotive sensors market?

  Adoption of advanced technologies like real time monitoring, tracking and navigation system in fleet management, development of autonomous and connected automobiles, and development of advance security features on the backdrop of advanced sensor functionalities are few of the key trends shaping the automotive sensors market.

• What is the growth rate in automotive sensors market in terms of market volume?

  The global sales of automotive sensors are expected to grow by 5.0% from 2021 to 2031, with valuation of just over US$ 36.7 billion in 2021.

• What is the North America automotive sensors market outlook?

  Demand registered in North America will continue rising, backed by increasing production and sales of automotives in U.S. and Canada, the North America market is anticipated to grow at 4.7% CAGR during the forecast period.

• Who are the leading companies in automotive sensors market?

  NXP Semiconductors N.V., TE Connectivity, Continental AG, Denso Corporation, and Robert Bosch GmbH are the top companies operating in the market.

• What is the cumulative share of top companies in automotive sensors market?

  The cumulative market shares of top players operating in automotive sensors market are around 30% in 2021.

• At what rate will automotive sensors sales increase in Europe?

  Automotive sensors sales will increase at 6.5% CAGR in Europe, backed by presence of leading original equipment manufacturers in U.K., Germany and other countries.

• What is the year-on-year growth rate for global automotive sensors market?

  The automotive sensor market saw modest growth in 2021 with worldwide revenues up 5.5% year over year.

• What are the key statistics for automotive sensors market in Japan and South Korea?

  Currently in 2021, Japan and South Korea jointly holds around 9.1% of share respectively in the global automotive sensors market.

Key Segments Covered in Automotive sensors Market Study

Sensor Type:

• Position Sensors
  • Clutch Position Sensors
  • Gear Position Sensors
  • Throttle Position Sensors
  • Crankshaft Position Sensors
  • Steering Angle Position Sensors
  • Camshaft Position Sensors
• Safety Sensors
  • Seat Belt Sensors
  • Brake Switch Sensors
  • Door Switch Sensors
  • ADAS Sensors
    • Blind Spot Detection
    • Night Vision Sensors
    • Light Sensors
    • Parking Sensors
    • Cruise Control
  • Impact Sensors
  • Anti-theft Sensors
  • Knock Detection Sensors
• Level Sensors
  • Fuel Level Sensors
  • Coolant Level Sensors
  • Oil Level Sensors
• Oxygen Sensors
• Pressure Sensors
  • Tire Pressure Sensors
  • EGR Pressure Sensors
  • Airflow Rate Sensors
• Temperature Sensors
  • Engine Coolant Temperature Sensors
  • Rain/humidity Sensors
  • Oil/Fuel Temperature Sensors
  • Battery Temperature Sensors
  • Air Temperature Sensors
• Speed Sensors
  • Wheel Speed Sensors
  • Speedometer

Vehicle Type:

• Passenger Cars
  • Compact
  • Midsize
  • Luxury
  • SUVs
• Light Commercial Vehicles
• Heavy Commercial Vehicles

Sales Channel:

• Original Equipment Manufacturers
• Original Equipment Supplier Spare Parts
• Independent Aftermarket

Region:

• North America
• Latin America
• Western Europe
• Eastern Europe
• South East Asia & Pacific
• Middle East & Africa
• Japan
• China
• India