Global Magnetic Sensors Market Is Estimated to Witness High Growth Owing to Increasing Demand from the Automotive Industry and Growing Use in Consumer Electronics
The global Magnetic Sensors Market is estimated to be valued at US$ 3.86 Bn in 2024, exhibiting a CAGR of 5.6% over the forecast period (2024-2031). Rapid industrialization and growing demand for magnetic sensors in the automotive industry for anti-lock braking systems, electronics stability control, and other advanced driver-assistance systems are some of the key factors driving the growth of the market.
Market Dynamics:
The automotive industry has been a major consumer of magnetic sensors due to their applications in engine control systems, triggering airbags, and breaking mechanisms, among others. Furthermore, increasing electrification of vehicles and development of autonomous vehicles is expected to propel the demand for magnetic sensors during the forecast period. On the consumer electronics front, the adoption of magnetic sensors in devices such as smartphones, laptops, wearables, and home appliances for positioning, rotation sensing, and other functions has been on the rise. Advancements in microelectromechanical systems technology have enabled smaller form factors and lower production costs of magnetic sensors.
Growing Demand for Consumer Electronics is Driving Growth in the Magnetic Sensors Market
One of the key drivers for the global magnetic sensors market is the growing demand for consumer electronics such as smartphones, tablets, wearables, and other devices. Magnetic sensors play a vital role in consumer electronics as they help in detecting magnetic fields for various purposes like rotational position sensing, proximity detection and current sensing. As the sales of consumer electronics continue to rise steadily every year, particularly in developing markets, the need for magnetic sensors is also increasing proportionally. Many newer applications like contactless payments, navigation, and AR/VR are further fueling the adoption of magnetic sensors in consumer devices. Consumer electronics manufacturers are continuously incorporating more advanced features requiring precision magnetic sensing capabilities. This rising demand from the consumer electronics industry will keep driving revenue growth of magnetic sensor suppliers globally in the coming years.
Increasing use of Magnetic Sensors in Automotive Sector is Benefitting Market Growth
Another major market driver is the increasing utilization of magnetic sensors in the automotive sector. Magnetic sensors are crucial components in modern vehicles used for various applications like torque, speed and position sensing. They help in functions related to engine control, transmission, power steering, ignition systems, security systems, and more. With the rapid transformation of the automotive industry towards electrical and electronic systems, magnetic sensors are finding wider adoption. Furthermore, the rising electrification of vehicles due to growing electric mobility is presenting huge opportunities. EVs require more magnetic field sensing compared to combustion engine vehicles. The automotive magnetic sensors market is projected to experience strong growth over the next decade led by electrical innovations in vehicles. The growing automotive production and stricter emission regulations globally will continue propelling the demand for magnetic sensors from OEMs and tier players.
Price Erosion of Sensors Hindering Market Revenue
One of the key challenges faced by magnetic sensor manufacturers is the consistent price erosion occurring in the market over time. As the technology becomes more ubiquitous and mass production sets in, the average selling prices witness a downward trend. This price pressure poses a threat to the profitability of vendors. Sustaining margins with reducing prices becomes difficult, especially for commodity magnetic sensors. The industry players experience intense competition which leaves little room for price increases. The commodity nature of some magnetic sensors and prevalence of low-cost alternatives also limit the scope for high prices. This continuous price decline acts as a restraint on the revenue growth potential of magnetic sensor suppliers. It compels companies to focus on cost-cutting and improving volumes to counter the margin risk.
Supply Chain Disruptions Impacting Business Operations
Another restraint for the magnetic sensors market is the disruption risks in the global supply chain network. Being an international industry, it is highly dependent on the smooth functioning of supply chains. However, unforeseen events like trade wars, political conflicts, natural calamities, and most importantly the ongoing COVID-19 pandemic have severely disrupted supply networks. The disruptions led to shortages, delayed shipments, project halts and increased costs for manufacturers. It negatively impacted their business operations and profitability. Moreover, over-dependence on certain countries for key components also increases exposure to supply shocks. Ensuring flexibility and diversification has become important to combat such supply chain issues. Their lingering effects along with the risks of future disruptions can discourage market investments and expansion plans to some extent.
Growing Interest in IoT and Industry 4.0 Driving New Opportunities
The increasing adoption of Internet of Things (IoT) solutions across various industries is opening up promising opportunities for magnetic sensor suppliers. IoT systems heavily rely on different types of sensors including magnetic, temperature, pressure, etc. to collect and analyze machine data. As more devices get connected and more functionalities are added in the IoT domain, the need for reliable, accurate and cost-effective magnetic sensors is rising. Their deployment in areas like smart factory equipment, smart grids, connected logistics and automotive telematics will see substantial growth. Magnetic sensors manufacturers can leverage this opportunity by developing IoT-ready solutions and collaborating with leading IoT platform providers.
Surging Demand from Healthcare Devices Market
The healthcare industry is another lucrative avenue presenting high growth prospects for magnetic sensors. Various medical devices like MRIs, CT scanners, X-rays, ultrasound, pacemakers, defibrillators extensively use magnetic field sensing for different purposes. With the medical devices market thriving globally due to aging populations, increasing access and technological advances, it is generating soaring demand for biosensors as well. Magnetic sensors modified for healthcare applications can sense important vital signs, monitor drug delivery and facilitate disease diagnosis. The rising investments in digital healthcare, remote patient monitoring solutions also demand cost-effective miniaturized magnetic sensors.
Link - https://www.coherentmarketinsights.com/market-insight/magnetic-sensors-market-5402
Key Developments:
- In October 2023, Renesas Electronics Corp., a leading global supplier of semiconductor solutions, announced the introduction of its new inductive position sensor (IPS) technology. This cutting-edge technology is designed for high-precision motor position sensor integrated circuits (ICs), catering to applications in robotics, industrial settings, and healthcare.
- In October 2023, Melexis, a global leader in semiconductor solutions for the automotive sector, announced the expansion of its well-regarded MLX9042x series of 3D magnetic position sensing solutions with the introduction of the MLX90423. This new device provides high precision for long strokes of up to 30mm, features stray field immunity (SFI), and complies with ISO26262, making it suitable for integration into ASIL D systems. This cost-effective solution is particularly ideal for automotive Advanced Driver Assistance Systems (ADAS) applications where space is limited, such as in braking systems.
- In January 2023, Infineon Technologies AG, a leading semiconductor company, unveiled the XENSIV™ TLI5590-A6W magnetic position sensor. This groundbreaking device merges Infineon's extensive knowledge in magnetic position sensing with its cutting-edge linearized tunnel magnetoresistance (TMR) technology. Housed in a wafer-level package, the sensor excels in both linear and angular incremental position detection applications. Qualifying for industrial and consumer use under the JEDEC standard JESD47K, the TLI5590-A6W serves as a viable replacement for optical encoders and resolvers.
- In April 2020, TDK Corporation, a leading global electronics company, announced a partnership with Genetesis, a U.S.-based firm specializing in magnetocardiography (MCG) technology. Genetesis, recognized for its innovative medical imaging solutions for cardiac diagnostics, plans to leverage TDK's extensive global presence and expertise in biomagnetic sensors. The collaboration will also focus on advancements in piezoelectric actuators, magnetic noise suppression systems, MEMS technologies, and other related areas.
Key Player:
Ams AG, Analog Devices, Inc., Asahi Kasei Microdevices Corporation (AKM), Bosch Sensortec, Honeywell International Inc., Infineon Technologies AG, NXP Semiconductors N.V., Rohm Semiconductor, STMicroelectronics N.V., TDK Corporation, Texas Instruments Incorporated, Vishay Intertechnology, Inc., MagnetoN, Microchip Technology Inc., and Everspin Technologies, Inc.
