Optical Sensor Market Analysis

Optical Sensor Market Analysis

In 2019, the fiber optical sensor market held a revenue share of over 8% and is anticipated to witness around 7.5% growth rate till 2026. The fiber optic sensor provides several intuitive features, such as low transmission losses, resistance to electromagnetic field, higher sensitivity, and energy efficiency, compared to other sensors in the market. It can seamlessly measure various parameters including pressure, displacement, temperature, vibration, etc., increasing its adoption in industrial asset health monitoring applications.

These optical sensors are majorly used in the field of remote sensing due to their small size, and they do not require electrical power for measurement. These sensors are ideal for microwave and harsh environments and can provide enhanced performance in extreme pressure conditions, increasing their adoption in oil & gas, mining, and petrochemical sectors. The companies are launching new products with advanced features to gain a competitive edge in the market.

The automotive & transportation segment accounted for over 10% market share in 2019 and will expand at 11% CAGR through 2026. In the automotive industry, the optical sensor is used in several camera-enabled systems such as autonomous driving, advanced safety systems, and in-vehicle infotainment (IVI) systems. These sensors offer various intuitive features such as 3D gesture recognition, vehicle-to-everything (V2X) communications, and interior lightening control applications, among others.
 

The rising development of ADAS and self-driving cars in the U.S. and Germany will further accelerate the market demand. Major players in the automotive industry, such as Tesla, Ford, and BMW Group, have already started their development for fully-autonomous models. In November 2020, Honda announced to mass produce Level-3 autonomous vehicle with integrated sensor technology for the Japan market. Similar initiatives by automotive OEMs will add expansion opportunities for the market.
 

The North America optical sensor market captured more than 20% revenue share in 2019 and is predicted to observe growth of over 9.5% during the forecast timeline. The growth is attributed to burgeoning rate of smart home connected devices in the U.S. market. According to January 2020 press release by Consumer Technology Association, more than 69% of the total households in U.S. have at least one smart home technology product and 18% of the households have at least two smart home technology products. Smart home devices, such as service robots, smart door locks, smart security systems, robotic vacuum, etc., are integrated with optical sensors.
 

In addition, the proliferation of IoT connected devices in North America will further boost the market revenue growth. According to GSM Association, North America accounted for 2.8 billion IoT connected devices in 2019, which is projected to surpass 5.4 billion mark by 2025, amplifying the adoption of optical sensor in the region.