Top 3 trends set to bolster automotive sensors market outlook by 2030
The automotive sensors market is set to grow from its current market value of more than USD 30 billion to over USD 55 billion, as reported in the latest study by Global Market Insights Inc.
Global automotive sensors market share is set to witness commendable growth over the forecast spell, given the escalating integration of safety technologies like child safety systems, airbags, and pre-tension seatbelts in automobiles. Sensors of various types, including LiDAR, pressure, temperature, and image, play a key role in these safety solutions, owing to their ability to offer higher accuracy and faster response rates in the event of accidents or crashes. Additionally, many regulatory bodies are issuing mandates that require auto manufacturers to equip their new vehicle models with passive safety systems, which could augment demand for automotive sensor technology.
Heightening global standards and government policies designed to mitigate carbon emission rates and promote clean energy in the automotive sector will boost the demand for cutting-edge gasoline engines. With the focus on more efficient and cleaner technology for power production becoming increasingly intense, automotive OEMs are using various car sensors in their engine management systems. These include gas, level, temperature, and humidity sensors, and are expected to contribute greatly to automotive sensors industry penetration, particularly in the gasoline engine segment.
Rapid penetration of radar sensors as a core component in autonomous vehicle technology
With regards to product, the automotive sensors market from the radar sensor segment is likely to depict a CAGR of 10% through 2030, owing to burgeoning autonomy and use of ADAS in modern vehicles. Eminent automakers like Honda Motor have made significant strides in this regard. For instance, in March 2021, the company introduced the Legend, its new car integrated with the first Level 3-certified autonomous driving technology in the world. This growing integration of autonomous technology in vehicles by major automakers will accelerate automotive sensors industry growth considerably over the forecast spell.
Radar sensors, especially, will gain rapid traction as key components of autonomous vehicles, given their ability to enhance performance and detection capabilities of automotive safety systems, through the use of time-of-flight principle and echolocations. To illustrate, NXP Semiconductors introduced a full suite of new radar sensor chipsets, designed to create a 360-degree safety cocoon around the vehicle, to improve the classification and identification capabilities of imaging radar.
Burgeoning demand for smarter and more sustainable HCV models
The implementation of stringent policies and initiatives by governments to curb GHG (greenhouse gas) emissions from HCVs (heavy commercial vehicles) and comply with environmental standards will stimulate the automotive sensors market outlook. For example, the U.S. EPA (Environmental Protection Agency) announced the DERA (Diesel Emission Reduction Act) in 2020. The program was geared towards granting rebates and funds to safeguard human health and enhance air quality through the mitigation of harmful emissions from heavy-duty commercial vehicles powered by diesel engines.
The automotive sensors market from the HCV segment is projected to record a 6% CAGR through 2030, on account of the proliferating need for performance efficiency in various vehicle systems, including suspension, powertrain, chassis as well as exterior and interior systems. In December 2020, Velodyne Lidar, Inc. partnered with Ford Otosan, to plan and test the use of Velodyne’s Velarray H800 solid-state lidar sensors to facilitate collision avoidance and safe navigation in its next-gen autonomous heavy commercial trucks.
Growing focus on automotive safety and fuel efficiency in Europe
Europe automotive sensors industry is set to register a commendable CAGR of 6% through 2030, as a result of strict government policies to promote the integration of sophisticated safety and electrification systems in automobiles. According to new EU mandates, cars sold in the region from 2022 onwards will be required to consist of new safety systems like intelligent speed limiters, monitors, and automotive sensor technology, as standard.
Europe is also among the major users of alternative fuels, with robust programs and government policies that promote EV adoption and curb GHG emissions. To cite an example, the European Commission has created several long-term goals and strategies for low-emission mobility and execution of zero-emission policies by 2050 in Norway. In addition, these strategies will also focus on the installation of charging facilities to establish a stable infrastructure for electric vehicles. Initiatives such as these are expected to generate significant potential for sensors in automotive applications over the years ahead.
Global automotive sensors market dynamics are bolstered considerably by the presence of key players like Valeo, TRW Automotive, Texas Instruments Incorporated, Honeywell International, and HELLA GmbH & Co. KGaA, among others. Portfolio expansions, mergers, and acquisitions are among the prominent strategies being employed by these entities to accommodate the evolving needs of the market. For instance, in March 2021, HELLA collaborated with connected vehicle data provider Wejo to create new data-powered business models and improve the performance of HELLA’s portfolio of automotive sensor systems. This development, among numerous other similar efforts by major car manufacturers, is likely to present lucrative opportunities for automotive sensors market growth over the years ahead.