Optical Sensor Market Size

Optical Sensor Market Size

Optical Sensor Market size surpassed USD 19 billion in 2019 and is expected to grow at a CAGR of over 10% between 2020 and 2026. The market growth is driven by increasing uptake of optical sensors in consumer electronic devices across the globe.

Consumer electronic devices, such as smartphones, tablets, and laptops, are being integrated with optical sensors for various applications such as device security, gesture recognition, and facial recognition, among others. Additionally, the rising demand for on-screen finger-print sensor technology in smartphones will further provide growth opportunities for the market.

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The rising adoption of wearable healthcare devices in developed economies is likely to boost the optical sensor market revenue. Wearable healthcare devices, such as fit bits, pulse oximeters, smartwatches, etc., are integrated with optical sensors, providing real-time patient health monitoring solutions. These sensors offer several features such as high accuracy, compact size, and no response to electromagnetic radiation, making them ideal for applications in medical-grade wearable devices. According to January 2020 report by Pew Research Center, about 21% of U.S. adults regularly wear smart watch or wearable fitness trackers; therefore, to address the growing demand for wearable healthcare devices, market players are introducing technically advanced products with optical sensor technology.

The COVID-19 pandemic has severely impacted the semiconductor sector, which is restraining the optical sensor industry demand. According to the Semiconductor Industry Association, the global semiconductor sales decreased by 3.6% in the first quarter of 2020 due to major disruption in international supply-chain activities on account of COVID-19 pandemic. In addition, several major automotive and consumer electronics OEMs have halted their manufacturing operations owing to lockdown scenario imposed by various governments, resulting in declining sales of optical sensors.