Automotive Sensors Market Size, Share & Industry Analysis, By Sensor Type (Temperature Sensor, Pressure Sensor, Speed Sensor, Position Sensor, Others), By Application Type (Powertrain, Chassis, Exhaust, ADAS, Others), By Vehicle Type (Passenger Car, LCV, HCV) and Regional Forecasts, 2021-2028

The global automotive sensors market size was valued at USD 10.44 billion in 2020 and is projected to grow from USD 10.10 billion in 2021 to USD 15.6 billion by 2028, exhibiting a CAGR of 6.38% during forecast period. The market is expanding with the surge in vehicle electrification, advancements in autonomous driving technology, and the growing emphasis on safety features, fostering substantial market growth.

The global impact of COVID-19 has been unprecedented and staggering, which is why the market 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.

In vehicles, sensors are essential parts of electronic control systems. They're used to keep track of various vehicle parameters, including fuel consumption, pollution, and airbag deployment, to name a few. Several sensors, such as oxygen sensor, temperature sensor, mass airflow sensor, speed sensors and coolant sensors, are extensively utilized in the automotive industry. Sensors ensure efficient and safe operation of the vehicle by detecting, analyzing, and controlling the performance of the internal and external environment of the vehicle. 

Drop in New Vehicles Sales Amid COVID-19 to Hamper Market Growth

The lockdown and economic crisis-induced due to the COVID-19 pandemic has severely impacted the many automotive sensors companies. Many automotive sensors manufacturers have 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 sales were down. The demand for automotive sensor simulators, automotive sensor testers and automotive sensor connector have also decreased due to the pandemic impact.

Another factor is the output downturn. Due to the closure of assembly plants in North America and Europe, 2.5 million passenger cars were removed from production schedules. These are widely used in passenger cars for functions such as tire pressure and fuel pressure monitoring. Hence, decreased output directly translates to a considerable loss of sales and profitability in 2020, reducing key market players' R&D investment. Overall, the automotive industry will see low adoption of these sensors over the short term and a reduction in development capital in the following years.

LATEST TRENDS

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Increasing Demand for Advanced Technologies, Comfort and Safety To Set Positive Trend For Market Growth

Auto manufacturers encourage non-contact 3D magnetic sensors to replace potentiometers or optical systems that use traditional position-sensing techniques. These sensors prevent wear and contamination errors, save space, and ensure precise measurements in a high-temperature environment.

Manufacturers can use 3D magnetic sensing to optimize form factors throughout the vehicle, such as position sensors for gear sticks, pedals, and transmission moving parts. Suppliers such as STMicroelectronics and Elmos, for instance, are developing 3D gesture sensing to improve driver concentration and eliminate manual control of functions such as vehicle lighting and infotainment. Hence, the higher adoption of advanced technologies is a positive trend influencing the growth of the market.

Further, key market drivers that impact the automotive sensors market growth are growing demand for safety and comfort characteristics, new energy vehicles, connected vehicles, body electronics and upcoming autonomous vehicles, the rigorous regulatory framework. Moreover, this will add many new application/features scenarios to the charging, energy storage, power distribution, voltage conversion equipment, etc. Also, the rising purchases of such vehicles in North America and Europe and its rising vehicle production activities in South Africa will demand market growth in coming years.

DRIVING FACTORS

Increasing Demand for Pressure Sensors to Augment Growth

Modern vehicle restraint systems utilize side airbag pressure sensors to satisfy passenger car safety requirements. The pressure sensor is integrated into the vehicle's side doors and sends digital crash signals to the central airbag unit. Furthermore, the air pressure sensor improves engine efficiency by effectively controlling spark advances in gasoline and diesel engines. Hence, the market is expected to develop due to the rising use of pressure sensors in the engine and the vehicle's safety system.

Rising Growth of Autonomous Vehicles to Fuel Demand For Sensors

The autonomous abilities of commercially available vehicles are anticipated to develop rapidly over the next several years due to increasingly stringent regulations and safety tests (in particular, emergency brake assist) and growing awareness regarding vehicle safety. For instance, in developed countries, functions like cruise control and lane-keep assist are mandatory on all vehicles, and regulations for blind-spot monitoring, particularly in Europe.

These vehicles require Long-range radar sensors for features like adaptive cruise control and roughly two medium-range backward-facing radar sensors to enable blind spot detection. Furthermore, up to 12 ultrasonic sensors are required for features such as parking assistance. Thus, the usage of high-precision sensors is expected to increase as demand for autonomous driving features increases.

RESTRAINING FACTORS

High Cost and Limitations Under Bad Weather Conditions to Hinder Growth

Because of the small quantities produced it has been impossible to reduce the cost of sensors used in Advanced Driver Assistance System to target levels. Furthermore, most current sensors have a restricted signal bandwidth and measuring range, making it more difficult to distinguish between system noise and signals, such as road obstacles. Also, tracking moving things is even more challenging in less-than-ideal environments such as blizzards or rain. These factors are expected to hamper the market’s growth.

SEGMENTATION

By Sensor Type Analysis

Position Sensors Held the Highest Market Share in 2020 

Based on the type, the market is fragmented into speed, position, pressure, temperature, and others. Position sensors are used in vehicles to identify the steering wheel's position, pedals, manifold flap, and various actuators and valves. They can be used to detect and send data about the roof or seat position, the roof or door closure and activate the vehicle's essential functions accordingly. Hence, the position sensors segment is expected to dominate the automotive sensors market share over the forecast period due to the extensive range of applications.

Pressure sensors are a crucial part of automotive safety systems and engine operation. Airbag pressure sensors send digital crash signals that enable swift deployment of airbags, and air pressure sensors can effectively control spark advance that allows more excellent engine performance. These factors will help for the rise in growth for the segment.

The temperature sensors market segment is also predicted to show positive growth in the market. They are required to monitor transmission fluid temperature, exhaust gas temperature, engine oil temperature, fuel temperature, and coolant water temperature and ensure reliable vehicle engine operation over its durability.

By Application Type Analysis

ADAS Segment to Lead Market Owing to Rising Demand for Driving Assistance Features

Based on application, the market is segmented into powertrain, exhaust, chassis, ADAS, and others. ADAS sensors include LiDAR, cameras, and radar. Cameras and radars are mainly used in combination for level 1 and level 2 autonomous vehicles for safety-related applications. For instance, the New Car Assessment Programme (NCAP) awarded a five-star rating requires a high level of safety functions, fueling the growing demand for these radars and cameras. 

Other ADAS sensors include ultrasonic, airbag, tire pressure, and rain, further increasing vehicle safety. Thus, these factors are expected to propel the growth of this segment over the projected period. In Chassis, these components monitor essential functions such as steering, acceleration, and braking. Greater focus on improving vehicle maneuverability and occupant safety are expected to boost adoption of these components in Chassis segment over the next few years.

Powertrain sensors optimize fuel consumption by monitoring vehicle parameters such as temperature and pressure and sending information to the engine control unit. Hence, these components can boost greater fuel efficiency. These are some factors that are responsible for a high share of the powertrain segment in the market. The powertrain segment accounted for a 24.98% market share in 2020. The segment will show low growth during the forecast period.

By Vehicle Type Analysis

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Passenger Car Segment Held Largest Market Share in 2020

Based on vehicle type, the market is divided into passenger cars, light commercial vehicles (LCV), and heavy commercial vehicles (HCV). The need for sensors in passenger cars has increased due to optimizing fuel consumption and the growing demand for personal mobility solutions.

The passenger car segment holds the largest market share in the global market. Sensors used to monitor mass air flow, coolant, and oxygen assist the vehicle by controlling emissions rate, monitor temperature changes, and send signals to the engine control unit to adjust spark timing and deliver accurate fuel delivery. Thus, due to greater consumer demand for safety-oriented and environment-friendly vehicles, the passenger car segment is expected to hold the largest share of the market.

The light commercial vehicle segment accounted for 14.57% of the market. This segment will show a higher growth rate during the forecast period due to increased awareness about safety and comfort features and government regulation.

Heavy commercial vehicles currently hold a minimal share of 6.25% due to less awareness and high vehicle prices with advanced features such as sensors.

REGIONAL INSIGHTS

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Asia Pacific market size stood at USD 5.52 billion in 2020 and is projected to reach USD 8.51 billion by 2028, at a CAGR of 6.77% over the forecast period. Asia Pacific market is characterized by rising middle-class disposable income and cost benefits for OEMs such as low automotive production costs and the availability of low-cost labor. However, the number of fatalities due to vehicle accidents has increased in the last few years, compelling regulatory authorities to implement more stringent safety and emission norms. For instance, in India, the Ministry of Road Transport has approved the mandatory installation of seat-belt reminders, airbags, alert systems, reverse parking sensors (RPS) for speeds over 80 km/h, and manual override for the central locking system in case of electronic system failure for all cars manufactured after July 1, 2019. LCVs are also obliged to have RPS and airbags.

Furthermore, by October 1, 2019, existing vehicle models should comply with these rules. Thus, the increased acceptance of these features has created high demand for automotive sensors. Moreover, increased focus on safety systems in developing countries such as China and India is expected to show positive growth for the market.

Safety and fuel efficiency norms are stringent for passenger vehicles in Europe. Moreover, safety regulations for commercial vehicles have also increased with drowsiness and attention detection. Thus, safety features such as tire pressure monitoring, risky road user detection, and alert systems to be mandatory for trucks, buses, and vans from 2022. These factors are expected to boost the demand for automotive sensors in Europe over the projected period.

North America is anticipated to show significant growth in the market. The boost in the sale of electric vehicles and the early adoption of ADAS features are attributed to the high adoption of automotive sensors in North America.

KEY INDUSTRY PLAYERS

Infineon Technologies AG, NXP Semiconductors, and Robert Bosch GMBH to Lead Market

STMicroelectronics, Robert Bosch GmbH, Infineon Technologies AG, and NXP Semiconductors are key major players in the global market. Over the past few years, there has been a rise in investment in advanced technologies. For instance, high-resolution sensors from companies such as NXP, Elmos, Infineon, and Allegro Microsystems are utilized in steer-by-wire systems. The steering sensor data can then be combined with other information such as the length of the journey and turn signals via a driver-awareness algorithm to alert the driver if the level of tiredness exceeds a particular threshold.

Driver tiredness accounts for nearly twenty percent of road accidents. Thus, sensor developers, particularly tier-one suppliers, are likely to increase R&D funding to improve safety-oriented sensors that offer high performance and lower power consumption to boost their commercial viability among automotive manufacturers.

LIST OF KEY COMPANIES PROFILED:

• Robert Bosch GmbH (Gerlingen, Germany)


• Infineon Technologies AG (Neubiberg, Germany)


• STMicroelectronics (Geneva, Switzerland)


• Continental AG (Hanover, Germany)


• Denso Corporation (Kariya, Japan)


• NXP Semiconductors (Eindhoven, Netherlands)


• Texas Instruments Incorporated (Dallas, U.S.)


• Allegro Microsystems, LLC (New Hampshire, U.S.)


• CTS Corporation (Illinois, U.S.)


• Elmos Semiconductor (Dortmund, Germany)


• Sensata Technologies (Attleboro, Massachusetts, U.S.) 

KEY INDUSTRY DEVELOPMENTS:

• June 2020 – Vitesco Technologies, Continental AG's powertrain division, has developed a partnership with ROHM Semiconductor, a silicon carbide power device. Vitesco plans to use this technology in electric vehicle high-power electronics.


• April 2020 – Infineon Technologies takeover Cypress Semiconductor, a leading semiconductor design and production company. The acquisition will expand its automotive semiconductors, sensors, and microcontrollers, among other applications.


• January 2020 – Robert-Bosch GmbH, a German-based company, became the first company to launch long-range lidar sensors, the first lidar system suitable for automotive use.


• In June 2021, Melexis, a global microelectronics engineering company, has introduced two new non-contact position sensors to its portfolio to complement the existing MLX90364/5/6/7 products.


• In October 2020, Continental AG, a German automotive component manufacturer, has invested in sensor pioneer AEye. Both companies will jointly develop high-performance long-range Lidar sensors, that will be used for advanced and fully automated driving of passenger cars and commercial vehicles.

REPORT COVERAGE

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The automotive sensors market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, competitive landscape and leading applications of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report delivers an in-depth market analysis of several factors that have contributed to its growth over recent years.

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