Virtual Sensors Market Forecasts to 2028 - Global Analysis By Component, Deployment Mode, End User and By Geography

According to Stratistics MRC, the Global Virtual Sensors Market is accounted for $683 billion in 2022 and is expected to reach $3884 billion by 2028 growing at a CAGR of 33.6% during the forecast period. Software-based virtual sensors use the data that is currently available to estimate product qualities or process conditions. These mathematical models compute the estimated characteristic or condition from additional physical sensor readings. Sensors gain the ability to analyse readings from numerous devices and determine the correlations between variables. When real sensors are unable to detect certain attributes or conditions, such as shelf ageing, moisture tests, or split tensile assessments, virtual sensors might be helpful. Moreover, they deliver information between readings more quickly than actual sensors.

Market Dynamics:

Driver:

Increasing need for virtual sensors

Since measuring various parameters, such as shelf life, humidity, tensile strength, material burning, ash computation, among others, can be challenging and involve a lot of manual sample processing, there is an increasing need for virtual sensors. Virtual sensors can be used to do this, which is anticipated to propel the expansion of the worldwide virtual sensors market. The global virtual sensors market is anticipated to increase as a result of the manufacturers' extensive research and innovation. Increasing the range of end consumers and applications is anticipated to greatly enhance revenue growth for both current market participants and new entrants, as well as assist organisations in business expansion. Players are also concentrating on studying and developing ways to offer unique products and urge more and more customers to convert from sensor devices to virtual sensors for technically sophisticated items in order to broaden their consumer base.

Restraint:

Lack of skilled workforce and technical knowledge

The development of a virtual sensor for an asset or process calls for a variety of technologies, skill sets, and trained personnel to operate the newest machinery and software systems. The shift to digital would impact the kind of skills needed for workers at various points throughout the value chain, from research to marketing and sales. Due to the anticipated growth in overall productivity and processes' reliance on data, new staff skills and experience and high certifications will be needed. As a result, there can be a competence gap between both the new employees. Also, industries are quick to adopt new technologies even when they are struggling to find highly skilled workers. Due to their complicated structures and a lack of process understanding for the deployment of this technology, most industries are also unaware of the capabilities of adopting virtual sensor technology, despite the growing popularity of digitization.

Opportunity:

Use of IIoT for Design and Manufacturing

Real-time operating data is collected by sensors built into industrial assets like jet engines & wind turbines and fed to virtual avatars that analyse the information and predict engineering and manufacturing results. The IIoT provides new opportunities for developing virtual sensors and physical assets by utilising data collected by sensors, which is then transformed into insights, optimised, and represented as business outcomes. Virtual sensors let manufacturers run their facilities more effectively and get fast information on how well their products are doing. A portal with a continual perspective is provided by IIoT monitoring of the field performance of made items via their virtual sensor, which compares actual usage with anticipated usage of the manufactured goods as represented in the physical sensor. A useful real-time estimate is produced by this approach, which can be applied to enhance the design process.

Threat:

Data Security Risks Related to the Use of IoT and Cloud Platforms

The market for virtual sensors is being severely restricted by the escalating threat to cloud data. Many security issues are brought on by the rise of infections and cyber attacks. Computer viruses that are malicious can steal important data, costing industries a lot of money. A whole information flow may be interrupted if IoT infrastructure and cloud platform suppliers fail to implement the proper security safeguards. Enterprises utilising virtual sensors with this platforms are susceptible to malware aimed at industrial systems due to the growing reliance on web-based data exchange and off-the-shelf IT solutions.

Covid-19 Impact

The global market for virtual sensors has been significantly impacted by the COVID-19 epidemic. The number of new projects has stopped all around the world, which has caused a sharp decline in demand for virtual sensors. The inability of global manufacturers to produce, incorporate, and manufacture new technologies while workers stayed at home has disrupted worldwide supply chains. The market would suffer less harm than other marketplaces for non-essential products and services because these technologies are a vital component of automation. Also, the world would just be edging closer to automated, ensuring that no significant pandemic could halt production. Businesses may have opportunities to invest in, use, and study technology that demand less human contact as a result of the COVID-19 crisis.

The on-premise segment is expected to be the largest during the forecast period

The on-premise segment is estimated to have a lucrative growth, due to improved data security and less privacy issues. Also, an on-premise deployment requires IT specialists that can follow, oversee, and manage the optimizing process in real time, which is a key element driving the industry.

The manufacturing and utility segment is expected to have the highest CAGR during the forecast period

The manufacturing and utility segment is anticipated to witness the fastest CAGR growth during the forecast period, due to the growing need for constantly updated data and monitoring systems inside operations. Also, the development of smart workplaces that are completely automated and outfitted with wireless connectivity is a result of IoT and Industry 4.0. Throughout the projected period, the aerospace and military industry is anticipated to expand quickly. This is explained by the advantages that these sensors offer, like improved dependability and safe flight operations. Virtual simulation training also helps uncover additional hazards to the lives of the pilots and the aircraft and ensure aviation safety. These elements are anticipated to increase demand in the aerospace and defence sectors for software-based sensing solutions.

Region with highest share:

Asia Pacific is projected to hold the largest market share during the forecast period owing to corporate growth and technical improvement. The expansion of niche industries like the aerospace and defence sectors has created excellent entry points for businesses. Due to manufacturers' significant investments in developing Virtual Reality (VR) technologies, particularly in China, Japan, and South Korea, the Asia-Pacific region is predicted to have a spectacular Growth over the projected period. Likewise, businesses in China and India are quickly using technologies for predictive maintenance to optimise their operations and lower costs.

Region with highest CAGR:

North America is projected to have the highest CAGR over the forecast period, owing to use of cutting-edge technologies like cloud computing, virtual reality, and the Internet of Things (IoT). Virtual world is a popular technology in North America's public sector, and the market for virtual sensing is stimulated by the presence of significant providers with a preference for SaaS platforms. Also, the region market is supported by ongoing VR innovation. Thus, increased enterprise willingness in the area to adopt cutting-edge technologies is fostering market expansion as a whole.

Key Players in the market

Some of the key players profiled in the Virtual Sensors Market include LMI Technologies, Aspen Technology, General Electric, Cisco, Schneider Electric, Honeywell, Algorithmica Technologies, Elliptic Labs, Tactile Mobility, Digital Ghost, IntelliDynamics, Rockwell Automation, OsiSoft LLC, Modelway, Exputec and Andata.

Key Developments:

In September 2019, Honeywell International launched its novel cost-efficient and high-performance Hguide inertial measurement units (IMUs). These solutions are lightweight and can withstand any kind of challenging surroundings and environment. Moreover, these sensors can be utilized in various industries including agriculture, defense, transportation, and robotics.

In May 2019, Siemens teamed up with a company under Alphabet called Chronicle to develop sophisticated solutions to protect the energy industry from increasing cyber threats. The partnership will combine Siemens' experience in cybersecurity and Chronicle's Backstory platform to come up with advanced solutions for the energy sector.

In March 2019, Honeywell introduced the Honeywell marketplace for companies to discover, obtain and improve productivity by buying creative software solutions, technologies, and services

In January 2019, Digital Ghost, an active cyber-defense solution for industrial control systems, was launched by GE. By developing an additional security layer, Digital Ghost helps organizations safeguard the critical infrastructure and system network and combines systems monitoring technologies from GE's Digital Twin and cutting edge.

Components Covered:

• Services
• Solution

Deployment Modes Covered:

• On-Premises
• Cloud

End Users Covered:

• Automotive
• Process Industry
• Oil and Gas
• Transportation
• Manufacturing & Utilities
• Chemical
• Healthcare
• Consumer Goods
• Other End Users

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

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