MAGNETIC SENSORS MARKET ANALYSIS

One of the major challenges faced by the global magnetic sensors market is the high initial investment required for setting up manufacturing facilities for these sensors. The manufacturing process of magnetic sensors such as Hall Effect sensors, anisotropic magnetoresistance (AMR) sensors, giant magnetoresistance (GMR) sensors, and tunnel magnetoresistance (TMR) sensors is highly complex involving various advanced technological steps. It requires setting up ultra-clean rooms and a strict quality control process to minimize defects during production. Moreover, specialized equipment and tooling are required which has to be regularly upgraded to manufacture new variants with improved specifications. The need for skillful workforce who are trained to work with such complex automated equipment lines also increases the operational costs. The long gestation period needed to break even the high capital expenditure poses significant risks for new players venturing into this market.

Market Opportunities: Emerging applications in IoT devices for market

One of the key opportunities for the global magnetic sensors market lies in its increasing usage in various Internet of Things (IoT) devices. With growing penetration of smartphones, wearable devices, wireless healthcare gadgets, and smart home/industrial appliances, the need for miniature low-power magnetic sensors has been on the rise. IoT has opened up several new application areas for magnetic sensors such as in contactless payment, navigation, remote controls, and position/movement sensing for user interface. Magnetic sensors now allow developers to add innovative location-based and gesture recognition functions in various IoT gadgets. Furthermore, their ability to detect magnetic fields for networking between connected devices presents an emerging opportunity. It is estimated that the integration of magnetic sensing capabilities will become more commonplace across a wide range of IoT applications going forward leading to strong demand prospects for magnetic sensor vendors over the long term.