The automotive sensor market will be worth $37.65 billion globally by 2027, growing at a compound annual growth rate (CAGR) of over 10 percent.
That’s according to a new report from analysts at Allied Market Research, which valued the market at $16.4 billion in 2019 – less than half of the projected value by the end of the forecast period.
The surge will be driven by increased uptake of electric, hybrid, smart, and autonomous vehicles over the next seven years, particularly in China. That said, the high cost of developing such devices will restrain greater growth in the market, cautions the report.
Asia-Pacific contributed the highest automotive sensor market share last year and will maintain its dominance throughout the forecast period.
APAC countries accounted for nearly half of total share in 2019, and are expected to grow their markets at the highest regional CAGR: 11.3 percent.
However, the global increase in demand will be dented by the coronavirus pandemic, which has hit customer behaviour, global supply chains, and the automotive, manufacturing, and technology sectors generally.
Several automobile manufacturers across the globe halted production during the lockdown, acknowledge the authors. Ongoing trade hostilities between the US and China have also not helped.
The temperature sensor segment was the largest overall in 2019, accounting for more than one-quarter of automotive sensor market share.
Analysts believe it will retain that position during the forecast period. However, gas sensors will experience the highest CAGR, 14.7 percent, during this time.
Key vendors mentioned in the report include: DENSO Corporation; Robert Bosch; Continental AG; Autoliv Inc; Delphi Automotive Company; Valeo; NXP Semiconductor; Sensata Technologies; Infineon Technologies AG; and STMicroelectronics NV.
- In March, a report from analysts at Technavio forecast that the global market for autonomous vehicle sensors will expand by 45.3 million units over the next five years.
Advanced Driver Assistance Systems (ADAS) and the growing popularity of CMOS (complementary metal oxide semiconductor) image sensors within them will contribute to that growth, said the report – which was published before global lockdown took place.
- The long-forecast growth in on-demand transport is likely to be a factor in the greater acceptance of electric, smart, and/or autonomous vehicles. However, there are cultural barriers in some countries.
In January, a study of over 10,000 consumers across five countries found that just 15 percent of drivers considered urban mobility schemes, such as car sharing, ride-hailing, and other on-demand transport options, as an alternative to their own vehicle last time they replaced it. Roughly 19 percent said they would consider them next time.
The picture is very different in China. According to OC&C strategy consultants, who produced that research, two-thirds of Chinese consumers will consider new mobility options instead of ownership next time they replace their vehicles.