PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1422756
PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1422756
The global automotive sensors market is projected to witness a CAGR of 11.5% during the forecast period 2024-2031, growing from USD 32.65 billion in 2023 to USD 78 billion in 2031. The market has experienced significant growth in recent years and is expected to maintain a strong pace of expansion in the coming years.
New elements in automotive technology include vehicle security, electronics, telematics, and other crucial features. The transition from mechanical vehicle systems to AI-powered digital analytics of modern-age vehicles couldn't have been possible without the role of advanced sensor technology. Sensor technology has constantly evolved from ultrasound to camera sensors identifying road signs and lanes. Furthermore, the advanced Radar and Lidar systems have enhanced the driving experience with features like real-time image recognition. Automotive giants are adopting the latest sensor technology to add ease, safety, and monitoring capabilities. It enhances the overall communication between various components of the vehicle. Technologies like IoT integration, artificial intelligence, and car-2-car communication are increasing the importance of automotive sensors. Major automotive companies are adding multiple sensor systems for upcoming electric vehicles. Hence, the rising sales of electric vehicles are also driving the market growth.
For instance, in February 2023, Continental AG developed a new high-speed e-motor position sensor (e-RPS). The sensor is highly compact, lightweight, and efficient. The technology can also be applied to a wide range of EV motors.
Futuristic Technology and Vehicle Electrification to Thrive Market Growth
The market growth is driven by the latest technological advancements such as automatic features, gesture recognition, advanced key systems, etc. Most of the latest features added to the vehicle are somewhere connected with a specific sensory technology that helps them function. From checking the tire pressure to sensing rain on the windshield, the sensors play a crucial role in advancing vehicle technology. Future technology developments in battery technology and hybrid powertrains are anticipated to serve the automotive sensors market. The transmission and new safety features have been added with the advent of electric vehicles. Furthermore, the increasing demand for more advanced and smarter heavy commercial vehicles is also driving the growth of automotive sensors. Semiconductor manufacturers are adding new features, such as satellite architecture and functional safety support, in their automotive sensors to deliver higher connectivity and lower response time.
For instance, in January 2024, Texas Instruments Inc., launched its new AWR2544 77GHz millimeter-wave radar sensor chip that enhanced automotive safety and intelligence. The chip also enables automotive manufacturers to build smarter and safer vehicles. Its company claims it to be the industry's first sensor that is designed for satellite architecture.
Adoption of Autonomous Vehicles with Multilevel ADAS Systems to Boost the Market Growth
The automotive industry is adopting autonomous systems and producing vehicles with features like lane assist, parking guidance, and different levels of autonomy. The manufacturers are producing new sensors for advanced driver-assistance systems (ADAS). These sensors involve video sensors (Optical Sensors), RADAR, LiDAR, RADAR, and GPS/GNSS sensors, etc. The rapidly growing demand for driver's comfort and convenience also drives the market expansion. The ADAS systems are also helpful in keeping the vehicle and driver safe while guiding the driver to make them attentive. Furthermore, the higher demand for electric vehicles with electrified transmission and advanced telematics also drives the sales of automotive sensors globally. The connected car technology along with IoT integration is also gaining traction in the automotive sensors market.
For instance, in May 2023, ON Semiconductor Inc., launched its Hyperlux automotive image sensor family. It has a pixel size of 2.1 μm, 150dB Ultra-high Dynamic Range, and LED Flicker Mitigation across the entire automotive temperature range.
Government's Safety Concerns and Compliances to Drive Market Growth
Governments around the globe are focusing on building safer, sustainable, and smarter vehicles to minimize the number of accidents and expenditures spent on road safety. Hence, the highway or road safety authorities are introducing a set of rules and regulations for auto manufacturers to apply sensors while producing new vehicles. Government subsidizing and incentivizing electric vehicles to limit carbon emissions are also helping the automotive sensor market as BEV and HPEV propulsion demands a higher number of sensors to monitor motor, battery, and other elements. Governments in some regions like Japan and China are promoting autonomous technology while keeping safety and security factors in mind. This allows automotive manufacturers to produce smart vehicles with different levels of autonomy. Compliance of safety in vehicles includes all types of safety sensors like position sensors, and ADAS sensors for additional guidance to the driver. New alcohol test systems are also being deployed in cars to add safety.
For instance, in December 2023, the United States National Highway Traffic Safety Administration introduced an advance notice of proposed rulemaking that is likely to make alcohol breath tests mandatory for upcoming passenger vehicles. The proposal explains how the national agency is involved with 16 auto manufacturers in cutting-edge research and development for developing alcohol test technology.
Safety Regulations and Increased EV Sales to Help Passenger Segment Lead
Based on vehicle type, the passenger vehicle segment does significantly better. The increased sales of passenger vehicles, the advent of BEV and HPEV propulsion technology, and stringent safety regulations are enabling auto manufacturers to deploy multiple sensory technologies. However, commercial vehicles also include ADAS and other technologies to improve mobility and safety. The introduction of ADAS in commercial vehicles such as city electric buses and coaches contributes to the value of automotive sensors. ADAS sensors alert the driver of a pedestrian or any obstacle in front of the vehicle. The passenger vehicle segment leads as affordable passenger vehicles are also equipped with advanced sensory technology like ADAS.
For instance, in January 2024, Kia Motor Corporation introduced the Kia Sonet Facelift with ADAS. The vehicle has a level 1 ADAS that offers features like forward collision warning, lane keep assist, high beam assist, lane following assist, lane departure warning, etc.
Asia-Pacific Dominates Automotive Sensors Market
Asia-Pacific region is likely to perform well in the market during the forecast period due to a surge in vehicle sales and an increase in demand for sensors. Electric vehicles are also increasing in popularity in the region, and the presence of major manufacturing industries in China, India, and Japan is driving market growth. Automotive production in emerging economies is increasing at a faster rate than in developed economies due to the rise of urbanization and a stable economic climate. Investors are increasingly investing in the development of compact and long-lasting automotive sensors, and electric vehicles are becoming more popular in the region, providing further growth opportunities for the market in Asia-Pacific. Increased purchasing power and the advent of global brands with technologies like ADAS are anticipated to lead the market during the forecast period.
For instance, in March 2023, China's Guangzhou Xiaopeng Motors Technology Co., Ltd introduced the advanced semi-autonomous driving system in its Shenzhen, Shanghai, and Guangzhou regions. The system can recognize lanes, overtake vehicles, and read traffic lights. The G9 Max and P7i Max models are equipped with navigation software.
Future Market Scenario (2024 - 2031F)
Evolving automotive engineering with advanced safety and smart technology is enabling the role of sensors in the automotive sector.
Government regulations and compliances are also expected to make sensory systems mandatory for upcoming passenger and commercial vehicles.
Trending autonomous driving features involving several levels of ADAS are expected to focus on the role of sensors.
The advent of electric and hybrid vehicles with increased usage of monitoring and body sensors is projected to drive market growth.
Key Players Landscape and Outlook
The competitive landscape for automotive sensors involves OEMs and aftermarket players. While aftermarket players focus on producing highly innovative, multifunctional, and affordable sensor systems, original equipment manufacturers (OEMs) work on the compatibility of these systems. The companies often collaborate, partner, and acquire to expand their supply chain and distribution channels. Furthermore, the companies also sign and extend contracts with automotive OEMs to strengthen the supply chain of constantly developing sensor technology. The usage of different technologies such as artificial intelligence, connected car technology, and machine learning is anticipated to transform the market dynamics.
In January 2024, NXP Semiconductors N.V. announced the extension plan of its 28nm RFCMOS Radar One Family. The SAF86xx is a monolithic system that combines a high-speed radar transceiver with a multithreaded radar processor and MACsec hardware driver for modern secure data communication via automotive ethernet.
In December 2023, Sensata Technologies Inc., introduced its groundbreaking brake force sensor. The technology is going to be integrated into the next-generation electromechanical brake (EMB). The sensor offers enhanced braking, higher safety, and optimized regenerative braking.
All segments will be provided for all regions and countries covered
Companies mentioned above DO NOT hold any order as per market share and can be changed as per information available during research work.