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The global virtual sensors market size stood at USD 214.4 Million in 2018 and is projected to reach USD 1,838.5 Million by 2026, exhibiting a CAGR of 31.6% during the forecast period.
A virtual sensor is a software or a piece of code that processes available information from physical sensors by interpreting multiple outputs and process parameters. They are capable of predicting results from multiple parameters such as temperature, pressure, humidity, and speed. Virtual sensors are experiencing rising demand as a cost-efficient and flexible alternative for physical sensors. Virtual sensing is a data-driven approach that offers an effective way of obtaining accurate readings without installing expensive hardware.
Increasing demand for the virtual sensor from the manufacturing industry and rising penetration of the Internet of Things (IoT) are significant factors impacting the virtual sensors market growth. Rising virtual sensors implementations among end-user industries such as automotive and transportation, manufacturing, electronics, and aerospace and defense will drive the virtual sensors market revenue in the forecast period. Moreover, growing application of virtual sensors for reducing the cost associated with physical sensors is expected to drive virtual sensors market growth during the forecast period.
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Furthermore, growing adoption of virtual sensors for security and surveillance purposes in the military as well as a commercial sector will contribute to virtual sensors market demand. Besides this, increasing virtual sensors implementation in aerospace and automotive industries is expected to fuel the market. However, the risk associated with data security due to the implementation of IoT and cloud platforms is expected to hamper the market growth.
“Rising Adoption of IoT and Cloud Platform to Drive the Market”
Functional efficiency offered by virtual sensors is driving their uptake across various end-users. Increasing penetration of cloud platforms is expected to create numerous opportunities for the adoption of virtual sensors.
Leading manufacturers are implementing a cloud-based virtual sensing solution as a standard platform. Implementation of virtual sensors on a cloud platform helps businesses in reducing the cost associated with maintenance and improve data connectivity between the user and sensor-cloud server. In addition to this, such solutions enable effective transport monitoring, weather forecasting, military activities, and in the healthcare industry. The cloud platform allows end-users in cutting down the total cost of ownership and increasing data storage capabilities which, as a result, has impacted the virtual sensor market growth.
Rising penetration of IoT is expected to support the growth of this market and emerge as one of the leading virtual sensors market trends over the forecast period. Virtual sensors, along with IoT, have been adopted by industry verticals to implement asset management and life cycle service strategies.
“Growing Adoption of Predictive Maintenance to Expand the Market Size”
Virtual sensor-based predictive maintenance allows end-users to determine the conditions of instruments to evaluate when maintenance should be performed. Thus, it helps manufacturers in minimizing unexpected device downtime, lowers the maintenance cost, and extends the equipment life cycle. Environmental pollution regulations have further elevated demand for virtual sensors among industry verticals.
Virtual sensors can be integrated with different parts such as connectors, hoses and tubing, motors, actuators, and filters. Throughout constant monitoring, manufacturing industries can provide real-time insights into their machinery by continuously monitoring factors such as vibrations, temperature, ultrasound and electromagnetic.
Growing adoption of Condition-based Maintenance (CBM) and IoT-enabled predictive maintenance (PdM) is one of the key reasons behind the adoption of virtual sensors among industry verticals. In addition to this, increasing use of Industrial Internet of Things (IIoT) for design and manufacturing is expected to play an essential role in this market’s growth.
“Solutions Segment is Expected to Augment the Virtual Sensors Market”
Based on component, the market is classified into solutions and services. Amongst these, solution segment is expected to hold the largest market share in this market.
Virtual sensing solutions are witnessing high demand from industry verticals owing to the increasing adoption of industrial automation. Virtual sensor solutions help manufacturers to estimate product properties and process conditions. Similarly, growing demand for virtual sensors solutions among industry verticals for data accumulation is expected to dominate the market.
The services segment is expected to exhibit the highest CAGR during the forecast period. Under services, the virtual sensor players offer implementation, consulting and training, support, and maintenance.
“On-Premises Deployment Segment to Account for the Largest Market Share”
Based on deployment, the market is segmented into the cloud and on-premises.
The advancements and applications of virtual sensor networks have become a popular trend in various industrial and commercial fields. The on-premises deployment segment is expected to hold the largest market share in this market as it allows enterprises to implement highly secure, personalized, and complex virtual sensor solutions software. Major advantages of on-premises deployment are high efficiency of sharing of data between networks, better sensor management capacity, and low cost for data collection between networks.
Cloud-based virtual sensor solutions have been widely implemented in various industrial applications such as healthcare, military, critical infrastructure monitoring, environment monitoring, and manufacturing. Organizations are implementing cloud-based virtual sensors as they are easy to deploy, are highly efficient, and offer more control as compared to traditional ways of deployment at an affordable cost. In addition to this, cloud deployment of virtual sensors enables numerous applications such as collaboration, data visualization, increased data storage & processing power, and quick response time.
“Manufacturing and Utilities Segment to Hold Maximum Market Share”
By end-user, the virtual sensors market is segmented into oil and gas, manufacturing and utilities, consumer technology, automotive, aerospace and defence, healthcare, chemical, and others.
Among these, the manufacturing and utilities segment holds the largest market share in the soft sensors market. This growth is mainly owing to the high demand for real-time data and monitoring systems among industry verticals. Industry manufacturers are adopting virtual sensor technology, along with Artificial Intelligence (AI) and IoT, which will help them in the easy designing of prototypes, process optimization, and remote monitoring. This will further drive the demand of virtual sensors among the manufacturing and utilities sector.
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The aerospace and defense sector is expected to witness the fastest growth in this market over the forecast period. This high growth is mainly owing to the increasing adoption of virtual sensing technology among aerospace and defense companies to boost productivity. Moreover, IoT has witnessed high adoption among industry players as a successful solution for enterprise-level manufacturing operations. In addition to this, high reliability, safe flight operations, aviation safety, and identifying risks are some of the major factors accelerating the demand for software-based sensing solutions in the aerospace and defense industry.
The virtual sensors market has been analyzed across five major regions, which are North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America. These regions are further categorized into countries.
North America is projected to augment the virtual sensors market share during the forecast period. In 2018, North America generated a revenue of USD 77.0 Million and is expected to reach up to USD 621.4 Million by 2026. This increasing growth in the region is mainly attributed to the presence of key vendors with an increased inclination towards Software as a Solution (SaaS). In addition to this, high competition among enterprises in adopting advanced technologies is expected to create lucrative growth opportunities in the inferential sensing market. North America has several companies working on consumer electronics products, especially smartphones and wearable devices, where virtual sensing technology is used prominently.
North America Virtual Sensors Market Size, 2018 (USD Million)
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Asia-Pacific is anticipated to lead the market and also witness a remarkable CAGR in the virtual sensors market. Ongoing innovations in the field of VR will create lucrative growth opportunities for manufacturers operating in Asia-Pacific. Besides this, manufacturers from growing economies such as China, India, and Japan are implementing virtual sensor solutions for predictive maintenance which will highly contribute to the growth of this market.
The market in Europe is highly dominated by the extensive implementation of virtual sensors across various industry verticals. Furthermore, technological advancements and the presence of key players offering virtual sensor solutions are major reasons behind the market growth in the region.
“Key Players such as Siemens, Elliptic Laboratories A/S, and General Electric to Focus on Strengthening their Position by Providing Innovative Solutions”
With the launch of innovative solutions for various industries, GE has developed itself as a strong brand among the leaders in the virtual sensor market. The company provides virtual sensors in a digital twin form that provides asset and machine information on the Predix platform. Predix is an industrial operating system which connects to industrial assets, and collects and analyzes data, which helps in delivering real-time insights for optimizing industrial infrastructure and operations.
Elliptic Laboratories A/S has emerged as one of the prominent players in this market. Its smart virtual sensors combine AI with its existing device sensors and further enhance it using ultrasound and machine learning algorithm.
The virtual sensors market report offers an elaborative analysis of the market dynamics and competitive landscape. Various key insights provided in the report are macro and microeconomic factors, SWOT analysis, Porter’s five forces analysis, and various virtual sensors industry trends, competitive landscape, and company profiles inclusive of recent industry developments such as mergers & acquisitions.
An Infographic Representation of Virtual Sensors Market
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Value (USD Million)
As per Fortune Business Insights study, the virtual sensors market is predicted to reach USD 1,838.5 Million by 2026 with a CAGR of 31.6% (2019 -2026).
Currently (in 2019), the virtual sensors market value at USD 268.4 Million, and it is anticipated to reach USD 1,838.5 Billion by 2026 at a CAGR of 31.6% during the forecast period (2019 -2026).
Globally, spending on virtual sensors is increasing each year. For instance, North America generated a revenue of USD 77.0 Million in 2018 and is expected to create a remarkable revenue share by 2026.
In the virtual sensors market, on-premises and manufacturing and utilities segment are the leading segments.
Some of the driving factors for the virtual sensors market are rising adoption of IoT (Internet of Things) and cloud platform and the growing adoption of predictive maintenance.
Some of the key players in the virtual sensors market are General Electric, Cisco Systems, Inc., Honeywell International Inc., Siemens, Schneider Electric, and Elliptic Laboratories A/S.
North America is expected to hold the highest market share in the virtual sensors market. The region is expected to witness remarkable growth as it houses major players.
On-premises virtual sensors would generate the highest revenue during the forecast period. Increasing demand for higher data security and lower privacy concerns would ensure to boost the adoption of virtual sensors strategies.
The manufacturing and utilities industry is expected to lead the virtual sensors market. Research and development in virtual sensors solutions would contribute to the market growth.
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