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Automotive Sensor Market revenue worth over $55 Bn by 2030

  • Published Date: September 14, 2021

Automotive Sensor Market size is set to cross USD 55 billion by 2030, according to a new research report by Global Market Insights Inc.

Rising penetration of autonomous and semi-autonomous vehicles in logistics and transportation industries is boosting the automotive sensor industry demand. Growing safety concerns and developments in automotive technology have led governments around the world to adopt and accept autonomous vehicles.

Furthermore, major automotive OEMs are planning to enter into strategic alliances and partnerships with different companies to promote the adoption of self-driving vehicles. For instance, in January 2021, General Motors and Cruise announced that they signed an agreement for long-term partnership with Microsoft to drive the commercialization of autonomous vehicles. In addition, Microsoft will invest USD 2 billion in Cruise to accelerate the safety in its all electric and autonomous vehicles.

High costs associated with LiDAR sensors is one of the major factors restraining the automotive sensor market growth. They contain moving components, such as lasers, scanners, and GPS receivers, increasing the risk of malfunction and thus increasing the cost of maintenance. The ongoing research & development in the field of solid state lidar technology and low cost lidar sensors will improve market statistics.

Global Automotive Sensor Market Size By Vehicle Type

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Increasing vehicle safety regulations and growing adoption of ADAS technology by OEMs will positively impact market expansion

The LiDAR sensor product type is estimated to observe 21% CAGR through 2030. Rising government regulations and policies for increasing road & vehicle safety is likely to augment the segment growth. The growing usage in ADAS subsystems including automatic high beam control, night vision, and front lighting, among others will enhance the market demand.

Manufacturers are developing new products to cater to the demand for ADAS components in the automotive market. For instance, in April 2021, DENSO Corporation announced that it developed various products for advanced driver assistance technology. The developed products consist of LiDAR sensors, ECUs, and image sensors, enabling safety and flexible mobility for drivers and pedestrians.

Browse key industry insights spread across 1378 pages with 2341 market data tables and 47 figures & charts from the report, “Automotive Sensors Market Size By Product (Current Sensor [Hall-effect {Coreless Hall, Cored Hall}, Shunt, Fluxgate, Magneto-resistive], Pressure Sensor, Temperature Sensor, Speed Sensor, Position Sensor, Camshaft Sensor, Torque Sensor, Angle Sensor, Level Sensor, Gas Sensor, Humidity Sensor, LiDAR Sensor, Infrared Sensor, Ultrasonic Sensor, Radar Sensor, Image Sensor), By Vehicle Type (Passenger Cars, LCV, HCV), By Engine Type (Gasoline, Diesel, Hybrid, Battery Electric Vehicle, Fuel Cell), By Application (Powertrain, Body Electronics [Steering System, Chassis System, Others], ADAS & Safety System, Health, Wellness and Wellbeing {HWW}), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2021 – 2030” in detail along with the table of contents:

Rising demand for eco-friendly light commercial vehicles

The light commercial vehicles (LCV) segment held over 10% of the market revenue share in 2020 and is poised to register 6% growth rate through 2030. Growing demand for safe operation and freight transportation in the logistics sector is spurring the segment growth. Moreover, major industry participants are planning to develop smart and modified eco-friendly light commercial vehicles for safe logistics operation with improved cost efficiency. For instance, in January 2021, General Motors announced its plan to launch a light electric van. The company also mentioned that its first 500 electric vans would be bought by FedEx for logistics and freight transportation.

Favorable government initiatives toward innovation of new fuel cell technology will propel the market expansion

The fuel cell engine segment in the automotive sensor market is anticipated to witness 17% CAGR till 2030 driven by numerous features offered by it such as reduced gas emission, flexibility in operation, and develop renewable energy resources. The rising government initiatives to boost the research and innovation in fuel cell technology will support the industry statistics. For instance, in July 2021, the U.S. Department of Energy announced an investment of USD 52.5 million in 31 projects to boost the advancement in next gen hydrogen technology. These projects will focus on reducing the technical gap in fuel cell, hydrogen production, and storage utilization technologies for decarbonization of electricity by 2035.

Rising usage of health monitoring systems in passenger vehicles

The Health, Wellness, Wellbeing (HWW) segment is projected to expand at a CAGR of over 22.5% through 2030. The growth is attributed to the increasing demand for various sensors, such as pressure, temperature, and gas, to monitor and measure the driver’s health condition in vehicles. Various automakers are integrating in-vehicle health monitoring systems and air quality management systems to provide a clean, comfortable, and safe driving experience. Furthermore, biosensors are also installed in the vehicle's health monitoring system, allowing for the measurement of human glucose levels and blood pressure levels as wellness features.

Proliferation of electric vehicles in North America to foster business growth

The North America market is expected to achieve 7% growth rate during 2021 to 2030 on account of increasing deployment of Battery Electric Vehicles (BEVs) and Plug-in Electric Vehicles (PHEVs) across the U.S. and Canada. Major automotive OEMs and governments are extensively investing in modernization of existing automotive plants to increase the EV production in the region. For instance, in October 2020, the Canadian government allocated USD 220 million to Ford Motor Company Canada to help with EV production, making it the largest Ford EV facility in North America.

Key players operating in the automotive sensor industry include Bosch Group, Continental AG, Denso Corporation, Allegro Microsystems, Hyundai Mobis, Magna International, Inc., and Texas Instruments Incorporated, among others. These companies are constantly engaged in new strategies, such as mergers & acquisitions, in order to expand their product offerings and meet the industry's high demand.

Authors: Preeti Wadhwani, Prasenjit Saha