July 12, 2024
Sensor Market

Sensor Market Growth is Expected to Driven by Increasing Demand for IoT-based Devices

Sensors play a vital role in detecting and transmitting information regarding various physical parameters of an environment. Right from touchscreens of smartphones to thermostats in homes and advanced driver-assistance systems in automobiles, sensors are becoming an integral part of numerous electronic products. The growing adoption of the Internet of Things (IoT) has significantly increased the uptake of sensors across multiple industries. For instance, temperature sensors are extensively deployed in smart refrigerators to monitor food temperatures and humidity sensors are used in smart air conditioners to automatically adjust cooling and ventilation levels according to indoor humidity.

The global Sensor Market 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:

Emergence and growth of nano-sensors: Rapid advancements in nanotechnology have enabled the development of nano-scale sensors. Nano-sensors provide enhanced sensing capabilities with respect to conventional sensors as they can detect parameters at molecular and atomic levels. Their small size also allows integration into miniaturized electronic devices. Furthermore, nano-sensors consume less power and exhibit better response times. Ongoing research in materials science and nanofabrication techniques are expanding the applications of nano-sensors across biomedical, environmental and industrial sectors.

Porter’s Analysis

Threat of new entrants: The threat of new entrants is moderate as substantial capital investment is required for sensor technology and production. Furthermore, it is tough to establish a widespread distribution network and gain consumer trust as the market is dominated by major players.

Bargaining power of buyers: The bargaining power of buyers is high given the availability of numerous options from various vendors. Buyers can negotiate on price and demand additional features to their requirements.

Bargaining power of suppliers: The bargaining power of suppliers is moderate. While there are many raw material suppliers, major players develop sensors in-house and source some components from specialist suppliers increasing their dependence.

Threat of new substitutes: The threat of new substitutes is low as sensors have widespread applications and no direct replacement. However, alternative technologies can affect prospects in certain fields to some extent.

Competitive rivalry: The competitive rivalry is intense amongst leading brands. Players differentiate through technology, features, services and competitive pricing to gain market share in the growing industry.

Key Takeaways

The Global Sensor Market Demand is expected to witness high growth over the forecast period. The increasing adoption of IoT, industrial automation and demand for wearable devices will propel the revenue. The global Sensor Market 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.

Regional analysis: Asia Pacific region dominates the global sensor market and is expected to grow at the fastest CAGR during the forecast period. This is due to rapid industrialization in countries such as China and India and government initiatives to promote smart technologies. Furthermore, a shift in sensor manufacturing plants to Asia Pacific boosts regional growth.

Key players: Key players operating in the sensor market are EverZinc, S. Zinc and Numinor Chemical. EverZinc is a market leader known for its image sensors used in smartphones. S. Zinc offers a range of pressure and temperature sensors for industrial applications. Numinor Chemical focuses on developing chemical sensors used for analysis in various sectors. Players are investing heavily in R&D to develop novel sensing technologies and gain competitive advantages.

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