TORQUE SENSORS MARKET ANALYSIS

High costs involved in developing customized solutions for unique applications can hamper wider adoption of torque sensors. Customizing torque sensors for niche applications requires extensive research and development efforts from manufacturers. Additional testing and certification procedures are also needed to ensure the customized sensors meet rigorous industry standards. This increases the cost significantly. For example, developing a highly customized and ruggedized torque sensor for downhole applications in the oil and gas industry can cost US$ 50,000 due to complex engineering challenges. Such high development expenditures have to be passed on to the customers as well. This makes customized torque sensors prohibitive for many cost-sensitive applications.

Moreover, long product development cycles needed for customization can also hamper the market growth. It can take 12-18 months for specialized torque sensors to be engineered as per the customer's exact specifications. This delays the time to market and does not allow manufacturers to quickly scale up production based on demand fluctuations. Thus, customized solutions appeal only to large corporations working on big-ticket projects who have the means to absorb high initial costs. According to the United Nations International Trade Statistics Database, exports of standard industrial process control and factory automation equipment had increased by over 6% year-on-year in 2021, indicating growing preference for generic solutions. High costs and long timelines involved in customization can present challenge for the torque sensors industry to penetrate new applications and markets.

Market Opportunities: Emergence of IoT and connected devices

The emergence of internet of things (IoT) and connected devices present a huge opportunity for the global torque sensor market. As more 'smart' devices get interconnected through IoT, there will be huge need for precise torque measurements. Torque sensors play a vital role in ensuring safety and performance in countless applications that involve rotational motion such as electric vehicles, industrial robots, power tools, and factory automation equipment. With rapid advancements in connectivity technologies like 5G, more devices across various industries will become a part of the IoT ecosystem.

IoT assisted solutions can help achieve predictive maintenance goals through early detection of component faults by continuous torque monitoring. This will make machinery uptime more efficient. The proliferation of connected devices presents a massive opportunity for torque sensor manufacturers to explore the need for specialized IoT integrated products across market verticals. Variants with integrated connectivity, compact packages suited for device miniaturization and enhanced durability can gain long term commercial success in the impending era of ubiquitous connectivity through IoT.