Automotive Rain Sensor Market Size, Share & COVID-19 Impact Analysis, By Vehicle Type (Passenger Car, Light Commercial Vehicle, and Heavy Commercial Vehicle), and Regional Forecast, 2021-2028

The global automotive rain sensor market size was USD 4.23 billion in 2020 and is projected to grow from USD 4.42 billion in 2021 to USD 6.82 billion in 2028 at a CAGR of 6.4% during the 2021-2028 period. The global impact of COVID-19 has been unprecedented and staggering, which is why the automotive rain sensor business is also struggling across all regions amid the pandemic. The sudden fall in the CAGR value is attributable to the lockdowns induced in countries due to the pandemic.

The global auto industry experienced a significant economic setback in 2020 because of the major shock of COVID-19 pandemic. It also affected this market. The growth of the global automotive market has dropped more than 8% in year-on-year sales. Amidst the worldwide auto industry chaos, the market has seen a massive slowdown during the pandemic. However, with the overall global markets recovering, the market is also expected to grow at a sustained CAGR during the forecast period.

The rain sensor device in an automotive detects rain falling on a vehicle's windshield. The sensor senses the water on the windscreen using a control module with an LED. Whenever the glass is wet, less light penetrates the sensor. When the amount of light reflected onto the sensor falls to a preset level, the software in a rain-sensing system activates the wipers. Moreover, the speed and the wiper activation time are dependent on the ratio of windscreen wetness and functioned using these sensor modules.

The market is driven by rising awareness of in-vehicle safety & comfort features, granular increase in the sales of luxury vehicles and mid-sized cars across the globe.

Raw Material Ecosystem Collapsed And Key Operating Players’ Revenue Declined Due To COVID-19

The lockdown and economic crisis-induced due to the COVID-19 pandemic has severely impacted many automotive rain sensor manufacturers and suppliers. Many suppliers experienced significant resource bottlenecks in the global supply and logistics chains in the year that had a perceptibly negative effect on their businesses. Except for a few Asian countries that have returned from the pandemic, original equipment manufacturers (OEMs) and parts suppliers have yet to return to total production capacity. In Q1 2020, most of the world's supply lines were disrupted, small and medium-sized businesses were financially drained, and vehicle type passenger sales were down.

The lockdown also halted the supply chain, mainly for raw materials from Asian regions requiring manufacturing rain sensors such as LED, Photodiodes, and others. This factor resulted in a substantial delay in fulfilling existing orders. As the pandemic started, companies were already facing a massive cash crunch due to no new demands. Thus, the supply chain crisis further impacted their profit margins.

The effects were first observed in China, where sales plunged 71 percent in February 2020; in the U.S., sales dropped 47 percent, while in Europe, it had dived 80 percent by April. Also, due to nationwide lockdowns, the manufacturing facilities were forced to temporarily shut down the electric vehicles' manufacturing operations. The same has resulted in delays in the auto and auto-dependent industries' production and development activities. Vaccination campaigns against Covid‑19 are expected to enable the progressive lifting of restrictions.

Companies such as HELLA GmbH & Co. KgaA have witnessed a significant decline of around 14-15% in revenue due to the covid effect. Also, the demand for these sensors has been hampered or lowered due to the low production of vehicles.

The covid-19 pandemic has a considerable impact on industry trends and developments. Light vehicle productions dropped 17.7% to 75.5 million units; over 16 million cars and light commercial vehicles were produced than in the previous year. Although the pandemic's span is difficult to anticipate, the recent arrival of the COVID-19 vaccines in early 2021 is likely to favor the automotive & transportation industry. Moreover, many companies have already started resuming production in parts of the world where the people are vaccinated, thereby implementing various safety procedures to safeguard the workers. This factor will positively impact the automotive rain sensor market growth during the forecast period.

LATEST TRENDS

Increasing Demand For Advanced & Comfort Features and Growing Awareness Of Driver Safety In Vehicles to Fuel Market Growth

The growing inclination towards technologically advanced vehicles, including safety measures, is expected to boost the rain sensor market growth. Safety & driving comfort is considered the utmost priority for customers and as a result major electronic safety device manufacturers started adopting to new changing environment and investing heavily to match the frequency that will support the advanced features & comfort features in vehicles in the future.

The market's growth is influenced mainly by the faster growth of the average number of software applications and electronics components per vehicle. Similarly, growing demand for safety & comfort features in new energy vehicles, connected vehicles and upcoming autonomous vehicles also propelled the market growth.  Further, OEMs are also developing advanced driver-assistance systems (ADAS) in commercial vehicles. Furthermore, increasing awareness about vehicle safety ratings and decreasing component costs due to extensive application of sensors and cameras will boost market growth. Additionally, technological advancements in the automotive sector and the rise of autonomous, semi-autonomous, and advanced driver assist system (ADAS) vehicles shall fuel market growth. 

The government is also actively looking into developing infrastructure and safety features mandates in Major countries, including North America and Europe. The expected trend of connected mobility and safety & comfort features, including rain-sensing wipers, is expected to boost the demand for the market. Moreover, electric mobility is booming and expected to fuel the market growth with their pre-equipped luxury featured devices. Thus, all such factors are expected to create ample opportunity in the coming year.

DRIVING FACTORS

Rising Automotive Sales Globally Will Drive Market Growth

The automotive manufacturers and the players involved in the ecosystem in each region have started adopting the changing regional patterns according to customers' needs and choices. The market will grow due to the rising demand for the vehicle and an increase in living standards across the globe. Moreover, the rapid urbanization and increasing population create a need for cars among millions.

The rising need for a safe and comfortable driving experience, growing demand for electric and autonomous vehicles, and others., are propelling the growth of the market throughout the globe. Asia Pacific region is the largest market due to the growing demand for vehicle production in China, Japan, and India.

Furthermore, growing economic condition, customer demand and interest, technological innovation, and strengthening government regulations are some of the favorable factors for the market's growth.

Moreover, due to growing environmental concerns and rising fuel prices, major luxury vehicle companies launch electric variants of their vehicles. It will also help accelerate market expansion. Adopting such sensors in the economy and mid-range vehicles will boost market growth due to the reduced price of automotive rain sensors. For instance, the 2020 Hyundai i20 has rain sensing wipers, which are being sold in India.  In addition, rain sensing wipers are in high demand among aftermarket consumers. Major OEMs install features in their economy and mid-range vehicle model to differentiate their model from other OEMs.

Major manufacturers/suppliers such as ZF TRW, Robert bosch gmbh, Koastal Group and many others are expanding their plants to produce rain sensors due to the expected rising demand for the market. For instance, Denso is expanding its Hokkaido plant to increase the production of semiconductor sensors. Thus, all such parameters and companies' strategies for improving their sensor business in the global market will demand this market.

RESTRAINING FACTORS

High Cost of Sensors to Limit Market Growth

The market's growth will be limited by the high cost of automotive rain sensors. The cost of the units slightly varies by the vehicle design and combinations requirements. Moreover, it also adds extra expenses in installation, serviceability, and slow growth rate. The windshield would be harmed due to the rapid wiping as a single drop of vehicle activates the sensors.

Moreover, the sensors are useless in areas where heavy rainfall is not expected. As a result, the market's potential for growth will be restricted in that regions. Further, the COVID-19 pandemic has placed the global economy in disarray. Automakers have redirected R&D investments to support the primary operation. Also, to increase sales, automobile makers would have to reduce earnings. With the downtrend in automotive sales, the rain sensor market in automotive would also be affected. Market growth will be hindered by technological advancements of wipers, such as cameras instead of sensors. For instance, Tesla introduced the 'Deep rain' neural net for its automated wipers in 2018. Instead of rain sensors, Tesla used its Autopilot cameras to feed its computer vision neural net to decide the wipers' speed.

SEGMENTATION

By Vehicle Type Analysis

By vehicle type, the market is segmented into passenger car, light commercial vehicle, and heavy commercial vehicle segments.

The passenger car segment is estimated to exhibit the highest CAGR during the forecast period. An increasing disposable income of consumers, significant growth of luxury offerings in vehicles, and shifting consumer preferences from sedans to SUVs have propelled the demand for passenger cars & their luxury features worldwide. However, factors such as an increase in import tariffs are expected to hinder the growth of the luxury car segment in the passenger car market. In addition, the light commercial vehicle segment is estimated to be the fastest-growing market owing to the rise in demand for comfort & convenience features in the vehicles.

Moreover, some North American & European countries have also seen a rise in demand for advanced features in the light commercial vehicle segment. The heavy commercial vehicle segment has low growth and low penetration rate in 2020. Rising mining and logistics operations are likely to boost the heavy commercial vehicles in the Asia-Pacific region. Increasing digitalization and use of advanced components for the safety of driver in in European region will create demand for these sensors in future.

REGIONAL INSIGHTS

Europe to Hold Highest Market Value due to Increased Production Of Vehicles

Europe stood at USD 1.68 billion in 2020, and the APAC region is expected to emerge as the fastest-growing region in the forthcoming years. It is expected to show dominance with the highest CAGR during the forecast period. Germany ranks first in this regional market owing to the major auto manufacturers presence in the country. Furthermore, increased production of vehicles and the adoption of advanced technologies will enhance the market growth in this region. In addition, various favorable government initiatives implemented to revive the automobile industry, which faced the heat of COVID-19, are projected to drive market growth in these regions. Furthermore, the high adoption rate of advanced features and luxury vehicle sales, and technological development related to the automotive sector are expected to accelerate the market development.

Asia Pacific holds the second-largest position in the market as it is an automotive hub and its countries vehicle production rises per year in all vehicle class. This regional growth is attributable to the increasing preference for personal mobility in the post-COVID period. This factor will boost automobile and such sensors demand. The growing adoption of vital governmental initiatives, use of electric vehicles, autonomous vehicles is likely to promote the development of the market in the region during the forecast period.

North America is anticipated to be the third-largest position in the global market due to increased sales of vehicles and growing consumer demand for safety, convenience, and comfort features. The market's growth is also attributed to technologically developed infrastructure and technology giants.

The rest of the world consists of Latin America, the Middle Eastern, and the African region. The Middle Eastern region is expected to contribute significantly to the growth of the market. This factor can be attributed to the early adoption of advanced technologies and the government’s initiatives like free trade zones in the UAE, which have sensed opportunities in the automotive industry.

KEY INDUSTRY PLAYERS

Partnership From Leading key Players Operating in the Business to Brightens its Market Prospects

In 2021, Internationally positioned Automotive supplier Hella signed a strategic partnership with a battery manufacturer FARASIS Energy Europe to offer a modular platform for battery management systems in an electric vehicle. Moreover, Hella also entered into a partnership with independent vehicle data provider WEJO in the same year. HELLA has an extensive sensor portfolio that significantly contributes to making driving safer, more efficient, and more comfortable. WEJO is a data processing company; WEJO will help HELLA process sensor data in the cloud.

The world's leading microelectronics engineering company, Melexis, has entered a license agreement with Chronoptics, a specialist in designing and integrating Time-of-Flight 3D cameras. As a result, Melexis will exclusively use Chronoptics' multipath and linearity error correction technologies in automotive applications.

LIST OF KEY COMPANIES PROFILED:

• HELLA GmbH & Co. KGaA (Lippstadt, Germany)


• Hamamatsu Photonic K.K (Hamamatsu City, Japan)


• KOSTAL Automobil Elektrik GmbH & Co. KG (Lüdenscheid, Germany)


• Melexis (Leper, Belgium)


• Xenso (Selangor, Malaysia)


• Casco (Frankfurt, Germany)


• Denso Corporation (Aichi, Japan)


• Valeo SA (Paris, France)


• Vishay Intertechnology Inc. (Pennsylvania, U.S.)


• Ford Motor Company (Dearborn, Michigan, U.S.)

KEY INDUSTRY DEVELOPMENTS:

• December 2020: The optoelectronic group of Vishay Intertechnology introduced the industry’s first four-quadrant silicon PIN photodiode in a standard surface-mount package, qualified for automotive applications. Combining high photosensitivity with low 0.1% crosstalk and virtually no tolerance between its segments. The Vishay Semiconductors K857PE enabled various sensors and control applications for automotive, industrial, and consumer markets.


• January 2021, Valeo started testing level 4 autonomous driving technology in Japan. The company’s self-driving system utilizes a combination of three-dimensional maps and information gained from communication between vehicles & traffic lights. The company is seeking to access the reliability and capability of its LiDAR sensors to achieve level 4 autonomy.


• June 2021, Lincoln, a brand operating under Ford Motors Company, announced its plan to electrify its entire vehicle portfolio by 2030. Lincoln expects half of its global volume of vehicles to be zero-emission with the assistance of the Ford+ plan & Ford Motor Company’s planned investment of more than USD 30 billion in electrification by 2025.


• June 2021, In the field of autonomous shuttles, Valeo and Navya have chosen to expand their technological and industrial collaboration. Further, Valeo will provide Navya with the sensors that will enable a vehicle to closely perceive its surroundings, and Navya will share the technical and functional data collected during experimentations.

REPORT COVERAGE

The global automotive rain sensor market research report provides a detailed analysis of the market and focuses on crucial aspects such as leading companies, product types, and leading product applications. Furthermore, the report offers insights into the market trends and highlights vital industry developments. In addition to the factors above, the report encompasses several factors contributing to the market's growth over recent years.

 Report Scope & Segmentation