Optical Sensor Market Size By Product (Photoelectric Sensors {Through Beam, Retro-Reflective, Diffuse}, Ambient & Proximity Light Sensors, Image Sensors {Complementary Metal-Oxide-Semiconductor (CMOS), Charged Coupled Device (CCD)}, Fibre Optic Sensors {Extrinsic, Intrinsic}), By Application (Consumer Electronics, Industrial, Automotive & Transportation, Food & Beverage, Medical), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2020 – 2026

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.
 

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.
 

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.
 

Optical Sensor Market Share

Key players operating in the optical sensor industry are

• ams AG
• Keyence Corporation
• ON Semiconductors
• Omron Corporation
• ROHM Co., Ltd.
• Sick AG
• Texas Instruments Incorporated
• Vishay Intertechnology
• Panasonic Corporation
• TE Connectivity

Companies are leveraging various strategies, such as mergers, collaborations, and acquisitions, to increase their market share and profitability. For instance, in March 2020, TE Connectivity acquired majority market shares of First Sensor AG. The company has in-house manufacturing capabilities of high-precision optical sensors.
 

In addition, the industry players focus on new product development to stay competitive in the market. For instance, in October 2020, Omron Corporation announced the launch of a CMOS-based photoelectric sensor for optical sensing applications. The new optical sensor uses image array technology, which helps industrial automation equipment to detect the object’s opacity, color, or pattern changes.
 

The optical sensor market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2015 to 2026 for the following segments:

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Market, By Product

• Photoelectric sensors
  • Through-beam
  • Retro-reflective
  • Diffuse
• Ambient & proximity light sensors
• Image sensors
  • CMOS
  • CCD
• Fibre optic sensors
  • Extrinsic
  • Intrinsic

Market, By Application

• Consumer Electronics
• Industrial
• Automotive & Transportation
• Food & Beverage
• Medical
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Spain
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Taiwan
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Chile
• MEA
  • South Africa
  • GCC