Speed Sensors Market size is set to surpass USD 12 billion by 2027, according to a new research report by Global Market Insights Inc.
The favorable government initiatives to boost smart manufacturing in industries across developed economies, such as South Korea, the U.S., China, and Germany, are anticipated to propel the market growth. For instance, in July 2020, The Ministry of SMEs and Startups, Government of South Korea announced to invest USD 414.4 million in 11 projects including establishing and adding new smart factories to the region. Through this initiative, the government aims to drive the growth of the country’s small and mid-size (SME) manufacturing capabilities. These smart factories are integrated with automated assembly lines, conveyor systems, industrial robots, and CNC machinery that require speed sensor for process control applications. The extensive penetration of automation equipment and robotics in smart factories will further amplify the market expansion during the forecast timeline.
Sustainability issues associated with a speed sensor in high temperature environments is one of the major factors restraining the speed sensors market demand. The magneto resistive and variable reluctance speed sensor are made up of ferrite cores, which get demagnetized when operated in the extreme temperature environments. To overcome this, companies are emphasizing on developing sensors based on newer form factors, such as chipsets and ICs, which can sustain high temperatures.
Developments in giant magnetoresistance (GMR) technology will fuel the industry growth
The magneto resistive segment held more than 25% of the market share in 2020 and is predicted to witness 4.5% growth rate till 2027 led by several high-end features offered by the magneto resistive sensor such as low fabrication cost, low power consumption, smaller footprint, and higher accuracy compared to hall-based sensors. The ongoing technological advancement in giant magnetoresistance (GMR) technology by major market participants, such as Allegro MicroSystems Inc., ABLIC, and Infineon Technologies AG, is projected to impel the market value.
Browse key industry insights spread across 190 pages with 231 market data tables and 26 figures & charts from the report, “Speed Sensors Market Size, By Type (Hall Effect, Magneto Resistive, Variable Reluctance), By Application (Automotive, Industrial, Aerospace & Defense, Consumer Electronics), Industry Analysis Report, Regional Outlook, Application Potential, Competitive Market Share & Forecast, 2021 - 2027” in detail along with the table of contents:
Increasing adoption of speed sensor in consumer electronics and smart home appliances will spur the market revenue
The consumer electronics application segment in the speed sensors market captured around 10% of revenue share in 2020 and will grow at a CAGR of 3% through 2027 on account of growing acceptance of speed sensor in consumer electronics and smart home appliances. High power rotatory appliances, such as air conditioners, washing machines, mixers, and smart vacuums, are extensively incorporated with speed-sensors to measure the rotational speed of motors, shafts, and gears in the rotating device. The proliferation of consumer electronics across developing economies, such as India, Argentina, Brazil, and Mexico, is poised to foster the expansion of the market.
Growing government spending in the defense sector will influence the growth for North America region
North America speed sensors market is estimated to attain a CAGR of 4.5% during 2021 to 2027 owing to increasing government spending by the U.S. federal government on the military & defense sector. For instance, in February 2020, U.S. Congress announced proposal for FY2021 budget, requesting USD 740.5 billion on national security, of which USD 704.5 billion will be for the Department of Defense (DoD). The government also announced to invest USD 1.5 billion in the development of microelectronics. This will further increase the R&D activities in sensor technology and military electronics in the market. Favorable budget and government investments in microelectronics are expected to bolster the market progression in the North America region.
Key players operating in the speed sensors market include SICK AG, Petasense, Allegro MicroSystems, Inc., Robert Bosch GmbH, NXP Semiconductors N.V., Infineon Technologies AG, Sensoronix, Inc., TE Connectivity, Inc., ZF Friedrichshafen AG, Continental AG, SPECTEC, and Sensor Solutions Corporation, among others. The industry leaders are proactively focusing on R&D activities to develop technically advanced products than their competitors in the market.