Motor vehicle sensor market to reach $75,447.5m by 2027
Automotive sensors or also referred to as motor vehicle sensors monitor and control physical and chemical changes in automobiles. These sensors are used to reduce fuel consumption and decrease weight of the vehicle and also increase government regulations.
The demand for sensors is dependent on a number of factors, ranging from technological advances to foreign trade to micro- and macro-economic variables that seek to improve the system functionality. The various sensor types are temperature sensors, exhaust gas, knock, air mass flow, and crankshaft position which subsequently are used to enhance powertrain performance (which comprises over 50% of the total applications of automotive sensors).
The global motor vehicle sensor market is expected to exhibit a CAGR of 11.2% during the forecast period, 2020-2027.
Advancements in new applications for technologies such as microelectromechanical systems (MEMS) optoelectronics and photoelectronic has increased the demand for sensors across the globe. Furthermore, technological development in materials and electronics has led to the miniaturisation and integration of sensors into intelligent devices and systems that not only measure and analyse but also act on the resultant information.
The manufacture and embedding of smaller sensors into products is becoming a high-growth industry. Sensors have become an integral component of nearly all automotive electronic systems, and developments in sensor technology allow for improvements in the automotive electronics subsystems and modules that contain them.
These improvements are being achieved without considerable cost rise because technological improvements in sensors tend to lead to rapid gains in sensing power even as unit prices fall. Therefore, these factors are expected to drive the growth of the global motor vehicle sensors market in the near future.
Autonomous vehicles are gaining traction among consumers. These vehicles operate on artificial intelligence and machine learning. These sensors collect more data and help to improve the decision-making process. Major companies in the market can capitalise on these opportunities by providing novel products and gain a competitive edge in the market.
Consumers are more inclined towards petrol cars rather than diesel cars. Since diesel cars require frequent repair and maintenance operations, the demand for these cars is declining. Moreover, the resale price for diesel cars is very low as compared to petrol cars, which in turn, is hindering the demand for motor vehicle sensors. Therefore, these factors are expected to hamper the global motor vehicle sensor market growth over the forecast period.
On the basis of regions, North America is expected to witness significant growth in the global motor vehicle sensor market during the forecast period. This is owing to a large customer base combined with rising disposable income across the region.
Furthermore, rising automobile capabilities in Mexico is expected to boost the regional market growth over the forecast period.
Europe is expected to register robust growth rate in the global motor vehicle sensor market during the forecast period. This is owing to high presence of major automobile OEMs combined with high demand for sensors in luxury cars across the region.
Furthermore, supporting regulatory norms and stringent emission norms are expected to boost the regional market growth over the forecast period.
Motor vehicle sensor are mainly used in various automobile vehicle parts such as ignition system, charging system, and others. Prior to the COVID-19 pandemic, the automobile industry had witnessed significant shrink, wherein both sales and production of vehicles were reduced by five to ten percent.
Post COVID-19, to remain operational, companies may reduce the funding on R&D and shift towards manufacturing and sales. Rising automobile sales and manufacturing may increase demand for motor vehicle sensor during the forecast period.
Key players operating in the global motor vehicle sensor market are Hitachi, Robert Bosch, Eaton, Denso, Continental, Delphi, and Valeo.
- Major market players are focused on product launches, to enhance the market presence. For instance, in January 2018, Denso Corporation introduced a new standard vision sensor that detects pedestrians at night, road signs, cyclists, driving lanes, and other road users.
- Key players in the market are focused on product development, to expand the product portfolio. For instance, in December 2019, Continental AG launched a new Contact Sensor System (CoSSy) that can determine a low-speed impact based on sound signals.