Speed Sensor Global Market Report 2026

The speed sensor plays a crucial role in the functionality of numerous onboard systems, enabling the measurement of magnetic rotation speed and providing a corresponding voltage output. This sensor is designed to detect the rotational speed of gears within the transmission system. Subsequently, the sensor transforms this measurement into either an analog signal or a low-voltage square wave signal, transmitting it to electronic control units (ECUs). Its application extends to measuring the rotational speed of a vehicle's wheel.

The primary categories within the speed sensor market encompass inductive sensors, monopolar sensors, bipolar sensors, and active sensors. Inductive sensors are electronic devices capable of detecting ferrous metal targets without direct physical contact. Speed sensors find applications in various domains, including position sensing, pulse counting, functioning as flow meters for liquids and gases, coil applications, and other diverse uses. End-users of speed sensors span across industries such as aerospace and defense, automotive, electronics, healthcare, industrial and telecom, along with other sectors.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs have impacted the speed sensor market by increasing the cost of imported magnetic materials, semiconductor components, hall-effect elements, and precision mechanical housings primarily manufactured in Asia-Pacific. Automotive, aerospace, and industrial sectors in North America, Europe, and Asia are experiencing higher procurement costs and elongated lead times due to supply chain disruptions. However, tariffs are accelerating local sourcing, encouraging domestic semiconductor packaging, and fostering innovation in compact, durable, and cost-efficient speed sensing technologies that strengthen long-term supply resilience.

The speed sensor market research report is one of a series of new reports from The Business Research Company that provides speed sensor market statistics, including speed sensor industry global market size, regional shares, competitors with a speed sensor market share, detailed speed sensor market segments, market trends and opportunities, and any further data you may need to thrive in the speed sensor industry. This speed sensor market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The speed sensor market size has grown strongly in recent years. It will grow from $9.88 billion in 2025 to $10.38 billion in 2026 at a compound annual growth rate (CAGR) of 5.0%. The growth in the historic period can be attributed to early adoption in automotive wheel speed sensing, increasing deployment in transmission systems, growth of inductive sensor usage, reliance on analog speed output mechanisms, expansion of hall-effect sensor applications.

The speed sensor market size is expected to see steady growth in the next few years. It will grow to $12.56 billion in 2030 at a compound annual growth rate (CAGR) of 4.9%. The growth in the forecast period can be attributed to rising demand for high-precision digital speed sensors, growth in advanced driver assistance systems, increasing use of active speed sensing in electric vehicles, development of compact solid-state sensors, expansion of predictive maintenance-based sensor deployment. Major trends in the forecast period include advancement of smart mobility speed sensing, growth of e-mobility speed monitoring systems, adoption of AI-based vehicle speed detection, expansion of IoT-enabled automotive sensor networks, development of intelligent manufacturing for precision sensors.

An anticipated rise in vehicle production is expected to propel the growth of the speed sensor market. A vehicle is defined as any mode by which individuals travel or items are transported. Traditionally, vehicle speed sensors have been installed on the transmission or rear differential to monitor the rotational speed of the drive shaft. For example, in 2024, according to Virta Global, a Finland-based company specializing in electric vehicle (EV) charging solutions, the global EV fleet, excluding two- and three-wheelers, is projected to reach approximately 245 million by 2030 and rise to 525 million by 2035, at which point electric vehicles are expected to account for one in every four vehicles on the road. New EV sales could surpass 50% of total vehicle sales by 2035. As a result, the uptick in vehicle production is contributing to the expansion of the speed sensor market.

Major companies in the speed sensor market are directing their efforts towards the development of e-motor Rotor Position Sensors (eRPS), particularly for the electric automotive industry. An e-motor rotor position sensor precisely measures and reports the rotor's position within an electric motor, contributing to accurate control and enhanced efficiency. For instance, in February 2023, Continental AG, a Germany-based manufacturing company, launched the high-speed inductive e-motor Rotor Position Sensor (eRPS) designed for electric vehicles. This innovative sensor detects the rotor's exact position in a synchronous electric machine, increasing efficiency and enabling smoother operations.

In January 2024, Amphenol, a US-based company that specializes in designing, manufacturing, and marketing electrical, electronic, and fiber-optic connectors, along with other high-technology products, acquired Airmar Technology Corporation for an undisclosed sum. This acquisition is intended to enhance Amphenol's sensor portfolio, foster innovation through technology sharing, and bolster its market leadership, particularly in marine and industrial applications. Airmar Technology Corporation is a leading US-based manufacturer of sensor technologies.

Major companies operating in the speed sensor market are Sick AG, Allegro MicroSystems Inc., Robert Bosch GmbH, NXP Semiconductors NV, Continental AG, HELLA GmbH & Co. KGaA, ZF Friedrichshafen AG, DENSO CORPORATION, Melexis NV, NTN Corp., WABCO India Ltd., Honeywell International Inc., Infineon Technologies AG, Sensata Technologies Inc., STMicroelectronics NV, Texas Instruments Incorporated, Proxitron GmbH, TE Connectivity Ltd., Honeywell Automation India Limited, Pepperl+Fuchs GmbH, Turck Inc., Baumer Group, Omron Corporation, Panasonic Corporation, IFM Electronic GmbH

Asia-Pacific was the largest region in the speed sensor market in 2025. The regions covered in the speed sensor market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the speed sensor market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The speed sensor market consists of sales of magnetoresistive sensors, inductive sensors, variable reluctance magnetic speed sensors, and hall effect magnetic speed sensors. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Speed Sensor Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses speed sensor market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for speed sensor ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The speed sensor market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market. This section also examines key products and services offered in the market, evaluates brand-level differentiation, compares product features, and highlights major innovation and product development trends.
• The supply chain analysis section provides an overview of the entire value chain, including key raw materials, resources, and supplier analysis. It also provides a list competitor at each level of the supply chain.
• The updated trends and strategies section analyses the shape of the market as it evolves and highlights emerging technology trends such as digital transformation, automation, sustainability initiatives, and AI-driven innovation. It suggests how companies can leverage these advancements to strengthen their market position and achieve competitive differentiation.
• The regulatory and investment landscape section provides an overview of the key regulatory frameworks, regularity bodies, associations, and government policies influencing the market. It also examines major investment flows, incentives, and funding trends shaping industry growth and innovation.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.
• The total addressable market (TAM) analysis section defines and estimates the market potential compares it with the current market size, and provides strategic insights and growth opportunities based on this evaluation.
• The market attractiveness scoring section evaluates the market based on a quantitative scoring framework that considers growth potential, competitive dynamics, strategic fit, and risk profile. It also provides interpretive insights and strategic implications for decision-makers.
• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• Expanded geographical coverage includes Taiwan and Southeast Asia, reflecting recent supply chain realignments and manufacturing shifts in the region. This section analyzes how these markets are becoming increasingly important hubs in the global value chain.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The company scoring matrix section evaluates and ranks leading companies based on a multi-parameter framework that includes market share or revenues, product innovation, and brand recognition.

Scope

• Markets Covered:1) By Type: Inductive Sensor; Monopolar; Bipolar; Active Sensor
• 2) By Application: Position Sensing; Pulse Counting; Liquid and Gas Flow Meters; Speedometers; Coil Applications; Other Applications
• 3) By End User: Aerospace and Defense; Automotive; Electronics; Healthcare; Industrial IT and Telecom; Other End-Users
• Subsegments:
• 1) By Inductive Sensor: Passive Inductive Sensors; Active Inductive Sensors; Differential Inductive Sensors
• 2) By Monopolar: Single Channel Monopolar Sensors; Dual Channel Monopolar Sensors
• 3) By Bipolar: Single Channel Bipolar Sensors; Dual Channel Bipolar Sensors
• 4) By Active Sensor: Hall Effect Sensors; Optical Sensors; Magnetic Sensors
• Companies Mentioned: Sick AG; Allegro MicroSystems Inc.; Robert Bosch GmbH; NXP Semiconductors NV; Continental AG; HELLA GmbH & Co. KGaA; ZF Friedrichshafen AG; DENSO CORPORATION; Melexis NV; NTN Corp.; WABCO India Ltd.; Honeywell International Inc.; Infineon Technologies AG; Sensata Technologies Inc.; STMicroelectronics NV; Texas Instruments Incorporated; Proxitron GmbH; TE Connectivity Ltd.; Honeywell Automation India Limited; Pepperl+Fuchs GmbH; Turck Inc.; Baumer Group; Omron Corporation; Panasonic Corporation; IFM Electronic GmbH
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain.
• Regions: Asia-Pacific; South East Asia; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
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