PUBLISHER: Orion Market Research | PRODUCT CODE: 1882935
PUBLISHER: Orion Market Research | PRODUCT CODE: 1882935
Global Automotive Powertrain Sensors Market Size, Share & Trends Analysis by Sensor Type (Temperature Sensor, Pressure Sensor, Speed Sensor, Position Sensor, and Other Powertrain Sensors), By Vehicle Type (Passenger Cars, Light Commercial Vehicles, Heavy Commercial Vehicles, and Electric Vehicles), By Propulsion Type (Internal Combustion Engine and Electric Vehicle), and By Sales Channel (Original Equipment Manufacturer, Original Equipment Supplier, and Aftermarket) Forecast Period (2026-2035)
Industry Overview
Global automotive powertrain sensors market was valued at $9.7 billion in 2025 and is projected to reach $13.7 billion by 2035, growing at a CAGR of 3.2% from 2026 to 2035. These automotive powertrain sensors enable real-time monitoring and adjustment of engine parameters, improving fuel efficiency while reducing emissions. The initiatives towards stricter emission and fuel-efficiency regulations across the globe are propelling the growth of the market during the forecast period. The regulatory bodies and governments across the globe are enforcing tighter norms, such as Euro 7 in Europe and BS-VI in India, to limit CO2. For instance, in May 2024, the European Council announced the adoption of the regulation on CO2 emission standards for heavy-duty vehicles. These regulations will amend and strengthen the existing European rules. In addition, in April 2024, the European Council adopted new rules on emission limits for cars, vans, and trucks.
Market Dynamics
Growing Adoption of Electric and Hybrid Vehicles
The growing adoption of electric and hybrid vehicles is expected to be a key driver propelling the growth of the market during the forecast period. The manufacturers are shifting towards electrification to reduce emissions and meet sustainability goals proposed by the governments in the region. For instance, the International Energy Agency (IEA) revealed its forecasts for 2024 that sales of around 17 million electric cars, meaning more than one in five cars sold globally would be electric.
Integration of AI, IoT, and Predictive Maintenance Technologies
The growing integration of technologies such as AI and IoT for predictive maintenance is reshaping the growth of the automotive powertrain sensors market. Through leveraging these technologies, sensors enable real-time data collection, analysis, and intelligent decision-making. For instance,
Market Segmentation
The Electric Vehicle Segment is Expected to Provide a Substantial Growth Rate
The rising demand for cleaner and more sustainable mobility solutions from regulatory bodies is shifting automakers to manufacture electric vehicles (EVs). These vehicles are emerging as fastest fastest-growing segment due to their stricter emission norms. EVs rely heavily on advanced powertrain sensors for monitoring key parameters such as battery voltage, current, temperature, and motor efficiency. For instance, according to the IEA, global electric-vehicle sales are expected to exceed 20 million units in 2025, representing more than one in four cars sold globally.
Temperature Sensors: A Key Segment in Market Growth
Temperature sensors are expected to be a key segment in the market growth during the forecast period. These sensors play an important role in maintaining and informing about optimal operating conditions. Temperature sensors work for both internal combustion and electric powertrains. The higher rate of adoption of EVs along with hybrid vehicles has increased the demand for fast-response temperature sensors. For instance, in March 2025, TDK Corporation announced the launch of immersion temperature sensors. These immersion temperature sensors are specifically designed for EV powertrain cooling applications.
The global automotive powertrain sensors market is further divided by geography, including North America (the US and Canada), Asia-Pacific (India, China, Japan, South Korea, Australia and New Zealand, ASEAN Countries, and the Rest of Asia-Pacific), Europe (the UK, Germany, France, Italy, Spain, Russia, and the Rest of Europe), and the Rest of the World (the Middle East & Africa, and Latin America).
Asia-Pacific Region Dominates the Market with Major Share
The Asia-Pacific region is expected to dominate the market with the largest share due to high vehicle production volumes. The strong presence of key market players such as Toyota, Hyundai, and BYD will further support the growth of the automotive powertrain sensors market in the region. For instance, in August 2024, BYD launched a new version of its Seal EV. The company's model is equipped with lidar sensors.
The Europe region is expected to hold a significant share in the market, driven by its strong regulatory environment, technological innovation, and rapid electrification of the vehicle fleet. For instance, in September 2024, Continental announced a major expansion of its aftermarket product offerings. These new offerings include new sensors for driver assistance systems, chassis components, and high-pressure fuel pumps. The new offering further includes meeting Euro 7 environmental regulations.
The major companies operating in the global automotive powertrain sensors market include Sensata Technologies, Inc., Hitachi Astemo Ltd., Valeo S.A., CTS Corp., Infineon Technologies AG, ams-OSRAM AG, TE Connectivity, DENSO Corp., and Phinia, Inc., among others. Market players are leveraging partnerships, collaborations, mergers, and acquisition strategies for business expansion and innovative product development to maintain their market positioning.
Recent Development