According to Allied Market Research (AMR), the global market of sensors (along with actuators the main types of transducers) is poised to grow with a compound annual growth rate (CAGR) of 11.3 percent until 2022 when the market would reach $241 billion. A key driver: IoT.
In the latest edition of its Sensor Market Report, Allied Market Research also looks back at the sensor market in 2015 and the key drivers of the market in the coming years. Among them: technological evolutions, wearables, the IoT and increasing demand in some vertical industries and applications.
In order to be able to compare with other market research in the space of sensors, first a definition. Allied Market Research defines a sensor as “a device that detects, measures or indicates any specific physical quantity such as light, heat, motion, moisture, pressure, or similar entities, by converting them into any other form which is mostly, electrical pulses.”
Market drivers for the growth of the sensor market
The rising demand for sensors between now and 2022 is mainly due to (in no specific order):
- Inevitably, the growing adoption of IoT and Industrial IoT.
- Advancements in consumer electronics products.
- Advancements in sensors themselves.
- The growing usage of all sorts of sensors in smartphones.
- Strong demand in the automation industry (Industry 4.0).
- Growth in the automative industry
- Increasing demand for wearables
Trends and evolutions in the sensor market
Some data on the market in 2015 and evolutions in specific categories of sensors and sensor technologies.
According to the Sensor Market Report 2016, the APAC region dominated in 2015, contributing over 45 percent to the global market.
The types of sensors. If we look at the types of sensors, Allied Market Research states that radar sensors accounted for more than 18 percent of the overall sensor market. For the coming, forecasted period, image sensors would witness the highest market growth.
Sensor technologies. From a technological perspective, microelectromechanical systems (MEMS) accounted for 45 percent of market share in 2015. In the forecasted period, nanoelectromechanical systems (NEMS) are expected to be the fastest growers, even if MEMS technology will remain the leader for now.
The industries. There is also a shift in the major contributors to the overall sensor market. While in 2015 the electronics industry contributed over 60 percent of the overall sensor market, Allied Market Research expects that the healthcare industry will be a fast grower until 2022 with a CAGR of 12.6 percent as digital health continues to become more important.
The role of the Internet of Things
Research Associate, Semiconductor and Electronics at AMR, Ayushi Bajpai, comments: “Internet of Things (IoT) is expanding rapidly and relentlessly. Vehicles, machine tools, street lights, wearables, wind turbines, and a seemingly infinite number of other devices are being embedded with software, sensors, and connectivity. Sensor finds its extensive incorporation in IoT systems such as smart grids, smart homes, intelligent transportation, and smart cities which is estimated to garner high growth.”
Among the companies which are covered in the report: STMicroelectronics N.V., NXP semiconductors N.V., Infineon Technologies AG, Qualcomm Technologies, Inc., Atmel Corporation, Texas instruments Inc., Robert Bosch GmbH, Johnson controls international PLC, Sony Corporation, and Honeywell International, Inc.