The automotive temperature and humidity sensors market was valued at USD 4.83 billion in 2018 and is expected to reach a value of USD 8.90 billion by 2024, at a CAGR of 10.77% over the forecast period (2019-2024). The automotive industry has grown significantly in the past five years, aided by the growth in unit volumes and the emergence of high innovation companies. The United States, China, and Europe continue to hold forte, while emerging nations, like India, are expected to record robust growth over the forecast period.
- Owing to an increase in the purchasing power of the millennial population, there is a continuous demand for passenger cars in the market. For an average consumer, trucks are reliable options, as they have better fuel efficiency and safety features. These factors drive the growth of heavyweight vehicles, thereby boost the market growth.
- The stringent government regulations that are imposed regarding safety and emission controls in North America, Europe, and Latin America, are expected to boost the market significantly over the forecast period. The Middle East & African market is estimated to show stagnant growth over the forecast period.
- The growing automotive HVAC market, which is facilitating broader adoption of temperature and humidity sensors, is one of the major trends contributing to the growth of the car temperature sensor market.
- The increased adoption of electric vehicles in the developing countries coupled with the developed countries is also favoring the market growth. For instance, the Ford Motor Company plans to double its electrified vehicle spending, which is a part of an investment tsunami in batteries and electric cars.
Scope of the Report
Temperature and humidity sensors are one of the most important components of an automobile that are required to perform some of the most important electronic functions. These sensors measure engine temperature, engine oil temperature, exhaust gas temperature, fuel temperature, cabin temperature and moisture level in the air. This report segments the market by type( Temperature sensors and humidity sensors), Technology( CMOS, MEMS, and Others), Application( Powertrain, Body electronics, Alternative Fuel Vehicles and others), and Geography.
Key Market Trends
Humidity Sensors are Expected to Witness a Substantial Growth
- Humidity sensing is one of the most important functions of automotive electronics. Humidity sensors can sense, measure and control the moisture levels in the air as relative humidity becomes an important factor when it comes to maintaining the cabin comfort.
- The automotive companies to gain more competitive advantage over competitors are in the phase of adopting humidity sensors that could provide greater cabin comfort to their consumers. For instance, Fiat Chrysler Automobiles in its new 2019 Jeep Cherokee LATITUDE PLUS FWD has adopted a humidity sensor that helps to maintain the cabin comfort for the passengers.
- The recent innovations and technological advancements in the fields of automotive electronics is expected to drive the market during the forecast period. For instance, Toyota in September 2017, patented Moisture-Sensing Auto Defrost To Clear Windows. A technology that would use a bevy of sensors that would help in the measurement of outside air temperature, inside air temperature and moisture levels inside the cabin.
- Moreover, humidity sensors are of prime importance in rising electric vehicles as the battery in such vehicles is cooled by air or water to prevent overheating during vehicle operation. This increases the chances of moisture getting condensed inside of a battery which increases the chances of a short circuit. To prevent this, companies have started using humidity sensors that help not only in improving safety but also helps in reduce their power consumption and increase their lifetime.
Asia-Pacific is Expected to Register a Significant Growth Rate
- The growth in the Asia-Pacific region is attributed to the growing automotive industry in countries such as China and India. The regulations regarding safety and emission controls in the region are expected to boost the market significantly during the forecast period.
- China in April 2018, announced that it is ready to scrap foreign ownership caps on automakers by 2022. In a move which would end foreign ownership caps on local auto companies by 2022 and would ward off all the restrictions on new-energy vehicle ventures that would make the market wider and open to new car makers. initiatives like these would boost the humidity and temperature sensors market in a positive way.
- The National Development and Reform Commission of the People's Republic of China on December 18, 2018, has said that it would ban the manufacturing of new enterprises that would make only traditional combustion engines amidst the countrywide rush towards new energy vehicles (NEVs). Humidity sensors being an integral part of an electric vehicle an initiative like this would boost the automotive temperature and humidity sensors market during and beyond the forecast period.
Competitive rivalry in the automotive temperature and Humidity sensors market is high due to the presence of some major players like General Electric, ABB, Emerson Electric and many more. These companies are able to gain a competitive advantage over other players due to their ability to constantly innovate their products and bring new products into the market. Hefty investments in research and development, mergers and acquisition and strategic partnerships have allowed the players in the market to gain a strong foothold in the market.
- January 2018 - Continental launched its latest innovation in the exhaust gas sensor technology to the Chinese market, to lower vehicle emissions by introducing the high-temperature sensor (HTS) and the differential pressure sensor (DPS), which provide data for closer control of emission-relevant exhaust gas after-treatment.
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