Industrial Sensors Market- Overview And Outlook By Potential Growth (2024- 2032)

Global Industrial Sensors Market Overview

Industrial Sensors Market Size Was Valued at USD 26.60 Billion In 2023 And Is Projected to Reach USD 46.50 Billion By 2032, Growing at A CAGR of 6.4% From 2024-2032.

Industrial sensors are devices that carries the main tasks of detecting events or changes in the environment and then providing the corresponding output. These sensors are used to sense input, such as light, heat, motion, pressure, moisture or any other entity, and respond by an output on a display or transmit the information in electronic form for further Processing of the information.

Industrial sensors are a key part of factory automation. Thoroughly, Industry 4.0. Motion, environmental, and vibration sensors are some of the sensors that are used to monitor the health of equipment, ranging from linear or angular positioning, tilt sensing, leveling, and shock, to fall detection. These Sensors have its major applications in various different areas such as, flood and water level monitoring systems, environmental monitoring, traffic monitoring and controlling, energy saving in artificial lighting, remote system monitoring and equipment fault diagnostics, and precision agriculture.

Industrial robotics adoption is increasing, but energy efficiency has emerged as an increasingly prominent concern, as electronics adoption and environmental consciousness both increases parallelly by today different types of low-power/low-cost sensors in the market allow for the greatly expanded data collection on different devices across the manufacturing processes.

COVID-19 Impact Analysis on Industrial Sensors Market

COVID-19 outbreak is having a very large impact in molding the perception of both consumer and the manufacturer.  Manufacturing hubs have been working at low efficiency in order to resist the COVID-19 spread. The primary thing that is being an obstacle for the market growth is the hindrance in the supply chain of the market which leads to shortages of materials, components, and products.

The impact of COVID-19 on the manufacturing industry has affected the global economy, and same goes with Industrial Sensors Market as discontinuity in operations has affected shareholder returns, and revenue, which are expected to create some financial disturbances in the industrial sensors industry. Various electronic components mostly used for industrial application, such as sensors, PCBs, LED chips, ICs, and other semiconductors, are mostly imported from China. And hence, due to temporary lockdown of manufacturing units, the prices of semiconductor components have raised by around 2-3% because of short supplies. In addition, capital budget reduction and delay in pre-planned projects in end-use industries have hampered the industry.

Market Dynamics And Factors

Drivers:

Many gears like Industrial Internet of Things (IIoT), Internet of Robotic Things (IoRT), AR, etcetera is fostering the market to grow. The Industrial Internet of Things made industries to rethink their business models, generating actionable information and knowledge from IIoT devices. Such smashing data sharing ecosystem have started to build new revenue streams and partnerships.

Further, clustered and real-time data acquired from sensors led to the development of robots that can take specific actions because of these built-in capabilities whereby IIoT becomes a driver of ‘decision-making’ devices and software’s which is driving the market towards a rise. AR (Augmented Reality) provided a new lens to view this real-time data for a variety of uses, which directly affected in improvement of front-line worker productivity.

Restraints:

With the interest of producing a superior sensor, the most prominent part is high-quality raw materials which is to be chosen by the producer. Metals and alloys used while manufacturing sensors include Platinum, Copper, Silicon, Tungsten, and Nickel, and alloys. Platinum prices have spiked towards a two-month high in month of May 2020, the platinum-group metals markets are going to remain under tension because of the Covid-19 pandemic. Prices for 99.95pc min platinum increased to USD 830/troy ounces (toz) in May 2020, which were at its lowest at USD 621/toz on 19 March 2020.

Also, in the year 2020, raw material prices of copper and aluminum increased by 15-20% which led to the low manufacturing units, which majorly disrupted the supply chain distribution toward the end-user applications.

The sensors in automobiles are required to work in varying environmental conditions, which differs from altitude and varying humidity, thus, adding the cost of maintenance of sensors under different conditions.

Opportunities:

The reduced cost of production and the efficiency in the production are fostering the growth as the conventional manufacturing process had such trouble which can be expelled with the technological advancement. Unforeseen facility stoppages are a major management issue at manufacturing sites and are directly linked to lost production opportunities. hence, manufacturers are looking for ways to utilize smart devices and IoT-based industrial sensors in order to maintain and further improve facility operation rates without directly appointing human experience or skills in the task.

The miniaturization of industrial sensors is the prime focus in the market as many industrial processes require multiple sensors. Thus, the manufacturers are having their attention towards the introduction of sensor fusion which can make it compact plus, it can perform tasks of more than one sensor. For example, TE connectivity has introduced pressure transducers with temperature sensing options with tri and quad designs.

Self-determining trends are also potent of having a very positive impact on the market. Overall, the market will have a stable increase in demand for all types of sensors owing to industrial automation, digitization, and factory automation.

Market Segmentation

Segmentation Insights

By Sensing Type, the pressure segment is dominating the market, with a share of 20.35% in 2020, and will maintain its dominance in the upcoming period. The same segment owns the fastest growth in the market at a high CAGR over the forecast period as, around 30% of the total cost of a vehicle is from electronic systems, the systems include touch screen displays, radio, automated braking systems, etc.  The developments of Industry 4.0 with the Covid -19 pandemic are now acting as a catalyst which is pushing the development of intelligent pressure sensors that help in improving energy consumption with a high level of efficiency. The type segment is further followed flow and temperature segment in terms of revenue.

Addressing the End User Vertical, the manufacturing segment owns the major share. In 2020, the region covered over 29.79% of the market. However, other end user verticals are expected to experience the fastest growth rate among all others at a Highest CAGR over the forecast period. Various types of industrial sensors are presently used in manufacturing industries, including environmental sensors, image sensors, motion and vibration sensors, and proximity sensors, the main purpose of these sensors is to provide a variety of information about the product during manufacturing. The pharmaceutical industry also concedes an effective CAGR this segment primarily deals with vibration sensors and temperature-controlled sensors. Moreover, Mining, oil and gas vertical is increasingly adopting sensors for monitoring reciprocating machinery and oil and gas wells, and pipelines leveraging its highly accurate results.

Regional Insights

By geography, the industrial sensor market is mostly occupied by Asia-Pacific region. In 2020, the region stood with 38.16% of the market share, and also in the coming years the Asia-Pacific region is expected to experience the fastest growth at a very good CAGR. China held the major share of the market, and the Rest of Asia-Pacific is expected to grow swiftly at the highest rate CAGR.

In North America, Canada and United States are growing with a healthy CAGR. The industry 4.0 wave, in combination with the growing demand for industrial automation and steady growth in capital investments are setting up various industries wherein industrial sensors are used, driving the growth of the market in the United States.

The United Kingdom is highly competing with countries, like China, the United States, and India, in the production of vaccines against COVID-19. This shows the increase in investments in the pharmaceutical sector in UK, which results in greater use of industrial sensors. The vendors are focusing more on the developments in temperature sensors to monitor the vaccines stored in various facilities. However, the market in the region may witness an offset from the country’s automotive sector but the effect may not be sustainable.

Rest of Europe includes the countries such as Austria, the Czech Republic and Switzerland. These countries are mainly focusing on developments aimed at augmenting the current sensor technology rather than engendering new, in order to improve their efficiency in industrial environments. The manufacturing and automotive sectors are having the greater use of industrial sensors in the region.

Players Covered in Industrial Sensors Market are:

• Texas Instruments Incorporated
• TE Connectivity Inc.
• Omega Engineering Inc.
• Honeywell International Inc.
• Rockwell Automation Inc.
• Siemens AG
• STMicroelectronics Inc.
• ams AG
• NXP Semiconductors NV
• First Sensor AG
• Bosch Sensortec GmbH
• Sick AG
• ABB Limited
• Omron Corporation other Major Players.

Key Industry Developments

• Omron Corporation opened a new Automation Center in Tokyo as it will allow customers to experience and test state-of-the-art FA that seamlessly integrates AI, IoT, robotics, and other cutting-edge technologies, this indicates that the players are prioritizing the investments in the expansion of their product lines, expansion of manufacturing facilities and expansion of their operations across the world.
• Further in October 2020, Omron Electronic Components Europe announced that they have partnered with MIT-Systems to expand its Russian distribution network.
• TE Connectivity Ltd have also announced the completion of its public takeover of First Sensor AG to hold 71.87 % of First Sensor in March 2020.