INDUSTRIAL SENSORS MARKET ANALYSIS

The global industrial sensors market size was valued at US$ 19.68 billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 8.44% from 2023 to 2030.  The market is primarily driven by the surge in adoption of IoT technologies and Industry 4.0, the increase in supportive regulations by government towards use of industrial sensors, and industrial automation. Furthermore, the rising awareness about the benefits of using smart sensors is boosting the demand for these products across industries.

Global Industrial Sensors Market: Regional Insights

Among regions, North America is projected to exhibit strong growth in the global industrial sensors market over the forecast period, owing to the wave of Industry 4.0, along with increasing demand for industrial automation. Moreover, the region is witnessing increasing investments in development of various industries that utilize industrial sensors. Along with this, the presence of multiple established manufacturers in the region is also expected to drive growth of the global industrial sensors market across North America.

Furthermore, Asia Pacific is expected to dominate the global industrial sensors market over the forecast period due to popularity of Industry 4.0 in countries such as China and Japan. Due to the wave of Industry 4.0 has enabled various functions and industries under architectural frameworks and global initiatives, such as Made-in-China 2025 in China and Society 5.0 in Japan. The investment in expansion of Industry 4.0 by governments in the region is increasing. Along with this, the R&D programs on sensors are also growing in the region. These factors in turn are expected to boost growth of the global industrial sensors market across the region.

Figure 1: Global Industrial Sensors Market Share (%), By Region, 2022

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Global Industrial Sensors Market Drivers:

Increasing adoption of Internet of Things to drive demand for sensing components

With the advent of Internet of Things, industries are rethinking business models to generate usable information and knowledge from IIoT devices. A data sharing ecosystem is building new streams of revenue and partnerships. While, the real-time and aggregated data gathered from sensors has resulted into development of robots that are capable of taking specific actions due to the built-in capabilities where Industrial Internet of Things (IIoT) is driving the ‘decision-making’ devices. The growing adoption of Internet of Things (IoT) thus is leading to growing demand for sensing components, which in turn is expected to augment growth of the global industrial sensors market during the forecast period.

Increasing emphasis on using predictive maintenance and remote monitoring to fuel the market pace

With the increasing growing of automotive sector, the number of sensor and sensor components has increased in this sector, despite the recession witnessed by the industry in past two years. The adoption of MEMS pressure sensors has increased significantly in the smart automotive sector in recent years. Thus, various companies are launching novel products in the market. Asystom recently introduced a series of multi-sensor IIoT devices that feature increased autonomy. The multi-sensor capability is addressing the predictive maintenance requirements of different array of industrial equipment as it integrated novel on-board connected, and energy-saving electronics that perform in situ analysis. Thus, growing focus on use of predictive maintenance as well as remote monitoring is driving growth of the global industrial sensors market. 

Global Industrial Sensors Market Opportunities:

Growing industrial automation is expected to bring several business opportunities in the global industrial sensors market during the forecast period. Due to the improvement in production costs reduction and enhanced efficiency compared to conventional methods of manufacturing, the industrial automation is growing all over the world. Manufacturers are finding ways to use IoT-based industrial sensors and smart devices for maintaining and improving rates of facility operation without having to rely on human skills or experience. This is due to unpredictable facility stoppages being major issues of management at manufacturing sites, linked directly to lost production opportunities. Thus, growing industrial automation will bring several business opportunities in the market over the forecast future.

Industry 4.0 initiatives around the world are anticipated to create ample opportunities in the global industrial sensors market in the near future. As the digital transformation is increasingly becoming necessary all over the world, the Industry 4.0 initiatives are increasing to boost the 3D image sensors in industrial automation as well as inspection in different end user industries. As a result, market players are launching novel products to cater the increasing need in the market. For instance, AMS launched a wide dynamic and low noise range of imaging sensors, with which manufacturers can develop industrial vision tools with high frame rates and high resolution.

Global Industrial Sensors Market Trends:

Growing demand from pharmaceutical industries is a major trend in the market

The requirement for smart temperature sensors that can connect to novel technologies such as blockchain or IoT as data loggers is growing in pharmaceutical industries. The need for these sensors is increasing in the industry to enable hospitals and pharmaceutical manufacturers to get updated information regarding vaccine storage at the time of use, among various other applications. With increasing growth of pharmaceutical industry, this trend is likely to continue in the global industrial sensors market during the forecast period.

Increasing trend of miniaturization of industrial sensors to fuel the demand

Due to the miniaturization of industrial sensors, the number of consumers in the market is increasing, as several industrial processes use sensors. In turn the market vendors are launching new sensors and sensor fusion. For instance, TE Connectivity recently launched pressure transducers with temperature sensing options, having quad and tri designs. Moreover, as per the company, the need for pressure and temperature sensors is increasing due to conditional monitoring of automotive and industrial machinery. Thus, this trend is likely to drive the demand for industrial sensors in several applications, which is expected to boost the market growth in the coming future.

Global Industrial Sensors Market Restraints:

High cost of industrial sensors to impede the market growth

To produce a superior temperature sensor, choosing high quality raw materials is important for the manufacturer. To manufacture these sensors various metals and alloys are used including Copper, Platinum, Silicon, Nickel, Tungsten, and various categorized alloys are used. The cost of Platinum has increased in recent years. The cost for 99.95pc min platinum increased from US$ 621/toz on 19 March 2020 to US$ 830/toz in May 2020. Such sudden spike in the cost of raw material increases the overall production distribution cost, which in turn increases the cost of temperature sensor. This factor is thus expected to hinder growth of the global industrial sensors market during the forecast period. However, the market vendors are focusing finding ways to reduce manufacturing cost of these products, which is anticipated to support the market growth in the coming future.

Need for precise performance from advanced sensors to obstruct the market pace

The end-use applications drive the sensing capability of sensors. This leads to inaccurate sensing performance and measurement. For instance, pressure, temperature, position, and flow measurement parameters in the automotive end-user industry differ from the measurement parameters in oil & gas end-user industry. Thus, the performance needs of these sensors are critical in advanced applications. This factor is likely to act as restraining factor in the global industrial sensors market in the coming future.  

Figure 2: Global Industrial Sensors Market Share (%), By Systems Segment, 2022

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Global Industrial Sensors Market Segmentation:

The global industrial sensors market report is segmented into Sensing Type and End User Vertical.

Based on Sensing Type, the market is segmented into Flow, Pressure, Proximity (Area), Level Measurement, Temperature, Image, and Other Sensing Types. Out of which, Flow is expected to dominate the global market over the forecast period and this is attributed to the widespread application of flow sensors in various industries including oil and gas, pharmaceutical, chemical, manufacturing, water and wastewater, power generation, and others. Flow sensors are designed for measuring the flow rate of gas or liquid through a conduit or a pipe. These measurements are imperative to control different industrial processes for machinery to operate efficiently. The growing use of these sensors in such industries is expected to drive growth of this segment in the near future.

Pressure segment is also expected to witness significant growth in the near future and this is owing to the growing adoption of pressure sensors as a result of rise in demand for continuous and extensive operation in manufacturing, along with the need for efficiently controlling and sustaining industrial processes. Pressure sensors are important in quality control and imperative process in industrial application. These are majorly adopted in industries dealing with pressurized fluids. The adoption of pressure sensors is increasing in such industries, due to which the segment is likely to show strong growth in the coming years.

Based on End User Vertical, the market is segmented into Mining, Oil, and Gas, Manufacturing, Chemical, Pharmaceutical, and Other End-user Verticals. Out of which, Mining, Oil, and Gas is expected to dominate the global market over the forecast period and this is attributed to the rise in adoption of sensors in oil and gas industry to monitor oil and gas wells, pipelines, and monitor reciprocating machinery leveraging the highly accurate results. As the oil and gas industry is sensitive to vibration and pressure changes, which impact the effectiveness and consistency of the equipment, pipelines, and heavy machinery; the demand for industrial sensors is increasing in this industry. This in turn is supporting growth the segment in the market.

Manufacturing segment is also expected to witness significant growth in the near future and this is owing to the growing use different kinds of industrial sensors in manufacturing industries. Industrial sensor play a key role in Industry 4.0 Motion and factory automation in manufacturing industry. Various industrial sensors such as motion and vibration sensors, environmental sensors, proximity sensors, and image sensors are used in manufacturing industries, as they offer different information regarding the products in the manufacturing process.

Global Industrial Sensors Market: Key Developments

In March 2021, Rockwell Automation Inc., and FANUC formed a coalition aimed at addressing the skills gap in manufacturing with automation and robotics apprenticeship programs created for upgrading skill in the current and future workers working in advanced robotics, manufacturing, and automation.

In February 2021, TE Connectivity announced the development of the 830M1 wide bandwidth triaxial accelerometer to cater the increasing demand to perform critical health monitoring of machines having sensors.

In March 2020, TE Connectivity Inc. acquired First Sensor AG, and now holds 71.87% of First Sensor. With this acquisition, TE will offer a wider range of product base including market-leading, innovative sensors, systems, and connectors; as portfolio of both the companies will be combined.

In March 2020, Stmicroelectronics NV entered into partnership with Panasonic Industry and Arrow Electronics for launching a low-power, multi-sensor, wireless, edge-intelligence solution for smart home, smart life, and smart factory applications.  

Global Industrial Sensors Market: Key Companies Insights

The global industrial sensors market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis.

Some of the key players in the global industrial sensors market are Omron Corporation, Texas Instruments Incorporated, ABB Limited, TE Connectivity Inc., Sick AG, Omega Engineering Inc., Bosch Sensortec GmbH, Honeywell International Inc., First Sensor AG, Rockwell Automation Inc., NXP Semiconductors NV, Siemens AG, ams AG, and STMicroelectronics Inc.

*Definition: Industrial Sensors are devices that sense a physical condition and then respond by sending an electronic signal to a display or computer. They can be used to monitor temperature, pressure, force, and motion, as well as light, heat, moisture, and other environmental factors.