Industrial Sensors Market Size, Share & COVID-19 Impact Analysis, By Type (Temperature Sensor, Proximity Sensor, Pressure Sensor, Position Sensor, Motion Sensor, Level Sensor, Gas and Chemical Sensor, Humidity Sensor, Flow Sensor, Others), By End Use Industry (Discrete, Process), and Regional Forecast, 2020-2027

The global industrial sensors market size was valued at USD 19.29 billion in 2019 and is projected to reach USD 33.56 billion by 2027, exhibiting a CAGR of 7.2% during the forecast period.   

The movement towards Industry 4.0 and factory automation has made sensors an important tool in the manufacturing sector owing to their ability to maximize operational equipment efficiency and effectiveness and increase machine uptime. As the need for industrial automation increases, sensing technology is expected to remain the foundation for data collection to transform manufacturing floors into cost-effective, connected, and reliable facilities. Thus, the integration of industrial sensors in automation systems is receiving a great deal of attention from a considerable number of industrial communities and researchers for the past few years. In March 2020, for instance, Omron Automation launched the E2EW Series of metal face proximity sensors to withstand the harsh conditions of the typical mixed-metal production lines. The long sensing range feature of this series will help in reducing unexpected facility stoppages and slowdowns by minimizing false detection of unstable objects.

COVID-19 Impact

Limited Workforce and Delays in Supply of Raw Materials to Hamper Production of Sensors

The coronavirus pandemic has disrupted the global sensor market and has steeply declined the production and sales of sensors. Industries, including manufacturing, automation, and electronics, among others, have been hit hard due to the delays or closures of production units, limited workforce, and disrupted the supply chain of raw materials. As per the AMA Association for Sensors and Measurement, the German sensor and measuring technology industry witnessed a slight revenue loss in the first quarter of 2020, but sales fell by around 8% in the second quarter.

However, the industrial sensors market is expected to regain its growth trajectory in the post-COVID-19 pandemic period. The governments of various emerging economies are providing funds to industries for the adoption of advanced automation systems to improve industrial processes. For example, in August 2020, Thailand’s Ministry of Industry announced that the government will be investing in robotic and automation technologies as well as focusing on developing skilled manpower for the maintenance and production of industrial automation systems and industrial robots.

Such government-backed ventures are expected to increase the demand for industrial sensors in the coming years. Also, sensor manufacturers are making continuous improvements in their offerings to deliver robust and advanced sensors to help end-users to develop safe and efficient production lines for their workers.

• In July 2020, i-Virtualize, a Toronto-based technology solution provider, launched TRACE Sensors to provide non-invasive, workforce-monitoring, and high-accuracy asset tracking for a variety of industries. The sensors’ contact tracing and physical distance monitoring features enhance worker safety and can also assist in containing the spread of contagions.

LATEST TRENDS

Advent of Industry 4.0 and Industrial Internet of Things (IIoT) to Propel Market Growth

With the emergence of Industry 4.0, the use of control and automation systems on the factory floor has become a common practice to increase productivity, efficiency, and profitability. The Industry 4.0 era has pushed companies to invest in digital technologies such as sensors, connected devices, and advanced software such as manufacturing execution systems (MES), among others. The integration of the internet of things (IoT) with local computing power has transformed normal sensors into smart sensors. This has boosted the power of sensors, enabling them to perform complex calculations on measured data within a sensor module.

Over 20 types of sensors are used in the IIoT domain due to their enhanced remote sensing and monitoring capabilities. Industrial sensors help in improving material sorting, inventory counting, and automating processes, thereby increasing the productivity of the manufacturing units. Apart from this, they also assist in identifying root errors in production facilities during manufacturing. For instance, sensor-enabled assembly lines can send real-time pictures to the engineers during quality inspection. This helps engineers to identify any errors or issues in manufacturing in the early stages, instead of becoming a point of failure at later stages, thus saving a lot of time and resources. Thus, the advent of Industry 4.0 and IIoT is expected to boost the industrial sensors market growth.

DRIVING FACTORS

Adoption of Wireless Connectivity in Manufacturing Units to Fuel Growth

Sensors in industrial applications mostly rely on wireless connectivity. The battery-powered wireless sensors and nodes in the manufacturing facilities can easily scale hundreds of sensing points per facility. They eliminate the need for specialized or trained persons to control or manage processes. As companies are looking for ways to enhance their processes, increase their productivity, lower expenses, and operate more efficiently, they are keenly investing in the latest sensor and networking technologies. Manufacturers are experiencing growing demand for wireless connectivity solutions mainly for factory automation and robotics applications.

• In August 2020, PCTEL, Inc., a provider of Industrial IoT antennas and devices, added a wireless communication sensor platform to its IIoT portfolio. This sensor platform comprises a communication board and sensor for easy integration, a battery-enabled wireless sensor endpoint for seamless installation, and a development kit for application-specific customization.

Surge in Adoption of Sensing Technology in the Process Industry to Augment Market Growth

Accurate process monitoring coupled with preventative and predictive asset maintenance is the sole responsibility of the sensing technology that is deployed at process plants. Industrial sensors are used to sense and report specific properties related to the safety, health, and security of equipment in the process industry. For instance, pressure transmitters or sensors are used to measure the pressure of industrial gases and liquids. Stable and accurate measurements ensure reliable, safe, and effective operations of the plant.

• In June 2019, NevadaNano introduced the MPS family of gas sensors to detect, quantify, and classify a broad array of explosive or flammable gases using a single calibration. These sensors can accurately detect methane, flammable, and LGW refrigerant gases.

RESTRAINING FACTORS

High Installation Costs May Cause Reluctance in the Adoption of Sensor Technology

The specification of sensors varies depending upon the application, which increases their price. OEMs expect sensor manufacturers to offer the best sensors at lower costs, which increase pricing pressure on the manufacturers. It becomes difficult for the manufacturers to reduce the price owing to the lack of mass production in certain situations such as the ongoing pandemic.

Apart from this, the maintenance of sensor-enabled equipment is high. SMEs having low budgets for machinery are usually less interested in deploying advanced equipment in their facilities. Also, the chances of loss of the data in case of sensor failure are one of the major pitfalls restricting the growth of this market. Thus, the high costs associated with the sensors are restraining the growth of the market.

SEGMENTATION

By Type Analysis

Pressure Sensor Segment to Capture Maximum Share Backed by Extensive Use in High-Performance Industrial Applications

By type, the industrial sensors market has been segmented into temperature sensor, proximity sensor, pressure sensor, position sensor, motion sensor, level sensor, gas and chemical sensor, humidity sensor, flow sensor, and others.

The pressure sensor segment holds the maximum market share owing to the widespread usage of pressure sensors in high-performance industrial applications such as liquid pressure measurement, monitoring vacuum pumps, industrial process control, inspection, and packaging, among others.

However, the gas and chemical sensor segment is expected to show the highest growth rate during the forecast period due to the ability of these sensors to detect any gas leakages in a range of applications ranging from flammable gases in manufacturing plants to ethanol in breathalyzer tests.

Likewise, temperature sensors help in measuring, monitoring, and controlling the temperature of the process variable and workload in industrial processing. Level sensors detect the level of substances such as powders, liquids, and granular materials in industrial facilities. Similarly, motion sensors are used to detect changes in temperature and movements in the surroundings.

Flow sensors are majorly utilized for measuring the quantity and flow rate of a moving liquid or gas that flows through a pipe. Proximity sensors detect the presence of proximate objects without any physical contact.

By End Use Industry Analysis

Discrete Industry to Hold Major Market Share Supported by Increasing Applicability in the Automotive and Electronics Industries  

On the basis of the end use industry, the market has been segmented into discrete and process industry.

The discrete industry segment accounts for the major market share owing to the rapidly expanding automotive and electronics industries across the world. With the aid of industrial sensors, manufacturers can view machine performance and receive prior alerts of potential anomalies or problems so that they can be addressed proactively.

The process industry segment is expected to be the fastest-growing segment owing to the increasing adoption of gas sensors, chemical sensors, flow sensors, and level sensors, among others, in the oil and gas, chemical, mining, and other industries.

REGIONAL INSIGHTS

By region, the industrial sensors market has been analyzed across five major regions, namely North America, South America, Europe, the Middle East & Africa, and Asia Pacific.

Asia Pacific dominates the market share owing to the rapid industrialization in countries such as India, China, and Vietnam.  The emergence of Industry 4.0, increasing foreign investments, and the growing number of manufacturing units in this region are some of the factors contributing to the growth of the market. Apart from this, Asia Pacific also has the largest number of semiconductor manufacturing units.

North America and Europe hold the second- and third-largest market share, respectively. The presence of strong electronic and automotive industries in these regions is enhancing the growth of the market. High investments in technology and early adoption of advanced technologies are some of the other factors driving the growth of the market in North America and Europe.

Further, the Middle East & Africa and South America are expected to hold a substantial market share during the forecast period. The companies in these regions are investing in developing disruptive business models to improve their operational processes.

KEY INDUSTRY PLAYERS

Top Companies to Expand Industrial Sensors Business by Strategic Acquisitions and Collaborations

The market is vastly fragmented owing to the presence of a large number of companies, subsidiaries, divisions of industrial conglomerates, and a growing number of small companies and startups entering the market. The key companies are following various growth strategies such as partnerships and collaborations, mergers and acquisitions, product development, and others to sustain their position in the market. They leverage advanced technologies and features in their products to offer enhanced products catering to the varied needs of the end-use industries.

March 2020 – TE Connectivity Ltd acquired 71.87% shares of First Sensor, a sensor technology provider, to expand its sensor offerings and provide customers with a high level of products and services.

September 2019 – Measurement Specialties Inc., a subsidiary of TE Connectivity Ltd, acquired Silicon Microstructures Inc. to create its dominance in pressure sensing technology, especially in transportation, medical, and industrial applications.

LIST OF KEY COMPANIES PROFILED:

• ABB Ltd (Zürich, Switzerland)


• Amphenol Corporation (Connecticut, United States)


• Ams AG (Premstätten, Austria)


• Analog Devices, Inc. (Massachusetts, United States)


• Bosch Sensortec (Reutlingen, Germany)


• Figaro Engineering Inc. (Osaka, Japan)


• First Sensor (Berlin, Germany)


• Honeywell International (North Carolina, United States)


• Integrated Device Technology (California, United States)


• Microchip (Arizona, United States) 


• NXP Semiconductors (Eindhoven, Netherlands)


• Omega Engineering (Biel/Bienne, Switzerland)


• Panasonic (Osaka, Japan)


• PCB Piezotronics, Inc. (United States)


• Rockwell Automation (Wisconsin, United States)


• Safran Colibrys SA (Yverdon-les-Bains, Switzerland)


• Sensirion (Stäfa, Switzerland) 


• Siemens (Munich, Germany)


• STMicroelectronics (Geneva, Switzerland)


• TE Connectivity (Schaffhausen, Switzerland)


• Teledyne Technologies Incorporated (California, United States)


• Texas Instruments (Texas, United States)

KEY INDUSTRY DEVELOPMENTS:

• June 2020 – STMicroelectronics launched QST108, a capacitive touch sensor, to allow the easy creation of back-lit sensing surfaces, thereby enabling companies to reduce touch-panel costs while creating contemporary interfaces.


• July 2019 – SmartSens Technology, a CMOS image sensors provider, launched two CMOS Image Sensors named SC2310T and SC4210T, equipped with a high dynamic and superior ultra-low-light sensitivity feature so that it can be used in harsh environments.

REPORT COVERAGE

The industrial sensors market report highlights the leading regions across the world to offer a better understanding of the user. Furthermore, the report provides insights into the latest industry trends and analyzes technologies that are being deployed at a rapid pace at the global level. It further highlights some of the growth-stimulating factors and restraints, helping the reader to gain in-depth knowledge about the market.

REPORT SCOPE & SEGMENTATION