MOTOR VEHICLE SENSOR MARKET ANALYSIS

Motor Vehicle Sensor Market Size and Trends

Global motor vehicle sensor market is estimated to be valued at US$ 30.41 Bn in 2024 and is expected to reach US$ 41.63 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 4.6% from 2024 to 2031.

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The rapid adoption of advanced driver-assistance systems and autonomous driving technologies can boost demand for various motion and position sensors, temperature sensors, pressure sensors and other types of motor vehicle sensors during the forecast period.

The market is expected to witness lucrative growth opportunities, owing to stringency in emission and safety regulations mandating the integration of various sensors in vehicles. Increasing consumer demand for advanced features such as collision avoidance, adaptive cruise control, blind spot detection, and others boosts the incorporation of numerous sensors per vehicle. Major automobile manufacturers are aggressively focusing on autonomous, connected, electric and shared mobility solutions, which can drive the motor vehicle sensor market growth.

Rising concerns over vehicle and passenger safety

With rising incidences of road accidents across the world, safety has become a major concern for both passengers as well as regulatory authorities. Various factors such as increasing traffic, reckless driving, poor road conditions, and others have contributed in making roads more unsafe over time. This has resulted in high fatality rates in many countries.

To address this issue and improve safety, modern vehicles are being outfitted with an increasing number of sensors. While basic sensors like anti-lock braking systems were common in the past, today's vehicles come equipped with a wide array of advanced sensors that serve as an additional set of eyes for drivers. These sensors power key systems such as proximity sensors, blind spot monitors, automatic emergency braking, and lane departure warning. Automakers are also actively developing self-driving technologies that will rely heavily on sensor inputs. This transition towards autonomous and connected vehicles is expected to dramatically boost the quantity of sensors installed per vehicle.

Monitoring driver drowsiness and fatigue

Regulatory pressure also leads to sensorization of vehicles. Various countries have made certain active and passive safety features mandatory, in order to receive a vehicle type approval. For example, the European Union had mandated that all new vehicle models sold in EU should have Automatic Emergency Braking (AEB) system by 2022. Such regulatory pushes are designed to directly address safety issues and reduce accidents. With more safety features becoming mandated, it will boost the sales volume of various sensors. Even used car buyers are increasingly demanding essential safety features, that boosts demand for sensors

While developing autonomous driving capabilities involves additional costs, manufacturers are recognising that investing in safety technologies can help boost brand image and trust among customers. This encourages continuous innovation and adoption of new kinds of vehicle sensors. Rising prioritization of vehicle and passenger safety on roads can drive the motor vehicle sensor market globally. Strict regulations and changing customer mindset prompts sensorization of automobiles to create a safer driving experience.