Global motor vehicle sensor market is estimated to witness high growth, owing to growing autonomous vehicles and emissions monitoring requirements
Global motor vehicle sensor market is estimated to be valued at US$ 30.41 Bn in 2024, exhibiting a CAGR of 4.6% over the forecast period of 2024-2031. Growing demand for advanced driver-assistance systems and full electric vehicles can boosts demand for motor vehicle sensors.
Furthermore, stringent emission regulations worldwide have necessitated deployment of sensors in vehicles for emissions monitoring. Gasoline particulate filters, NOx sensors and particulate matter sensors are witnessing huge adoption.
Market Dynamics:
Global motor vehicle sensor market growth is primarily driven by growing autonomous vehicles and emissions monitoring requirements. Automakers are integrating more advanced driver assistance features such as adaptive cruise control, automatic emergency braking and lane keeping assist that boosts demand for proximity, image and inertial sensors.
Mandatory On-Board Diagnostics (OBD) checks required under emission norms have increased deployment of sensors in exhaust systems for real-time emissions monitoring. This has bolstered incorporation of oxygen, particulate matter and NOx sensors. Stringent emission standards such as Euro 6 and BS-VI in regions also boosts need for robust vehicle emissions monitoring systems using sensors.
Increasing Demand for Advanced Driver Assistance Systems Can Drive Motor Vehicle Sensor Market
Advanced driver assistance systems (ADAS) such as automatic emergency braking, lane keep assist and adaptive cruise control are becoming more common in new vehicles. This boosts demand for various sensors required to support these systems such as ultrasonic sensors, radar sensors, LiDAR sensors and cameras. Motor vehicle manufacturers are rapidly adopting more ADAS into their vehicle lineups, in order to provide additional safety features to customers and meet increasingly stringent safety regulations. For example, the U.S. National Highway Traffic Safety Administration mandated automatic emergency braking on all new vehicles by 2022. Rising capability and adoption of ADAS technology can drive the motor vehicle sensor market growth as more sophisticated systems require an increasing number of sensors to function properly.
Growing Electrification of Vehicles Boosts Demand for Battery Monitoring Sensors
Rising electric vehicles and rising popularity of hybrid systems can boost use of large battery packs in motor vehicles. Battery monitoring systems play a key role in optimizing performance, safety and lifetime of these batteries. These require sensors to monitor parameters like voltage, current and temperature of individual battery cells. Strict quality and safety standards for large vehicle batteries boosts the need for advanced monitoring capabilities. The electrification trend is gaining momentum to meet emissions regulations and reduce dependence on fossil fuels. As battery-powered vehicles proliferate, there will be huge demand for sensors that enable optimized battery management and diagnostics.
Declining Vehicle Production Due to Global Economic Uncertainty
The motor vehicle industry has witnessed declining production volumes in several major markets due to slowing economic growth and geopolitical issues. When consumer confidence and spending decline, sales of new vehicles also drop off sharply. Reduced production levels directly correlate to lower demand for the sensors, electronics and other components that equip these vehicles. Prolonged periods of uncertainty or recession pose challenges for sustainable growth of the motor vehicle sensor market.
Increasing Adoption of Imported Vehicles Bypass Domestic Sensor Suppliers
The global automotive industry is characterized by significant consolidation, with a small number of major firms dominating substantial portions of regional markets. When vehicle imports increase in a country, these vehicles typically come equipped with sensors provided by original equipment manufacturers (OEMs), which diminishes the demand for local and domestic sensor suppliers in that market. Additionally, rising trade barriers may favor vehicles assembled locally using domestic supply chains. In some regions, the surge in imports is leading to a shift in sourcing from local sensor companies to the international OEMs' preferred global suppliers. This trend poses a threat to certain domestic players in the motor vehicle sensor market.
Advent of Connected Vehicles Offer Opportunities for Advanced Networking Sensors
The emergence of connected vehicle technologies enabling car-to-car and car-to-infrastructure communication can offer growth opportunities. Advanced applications involving vehicle connectivity require deployment of networking hardware including Wi-Fi, Bluetooth, cellular radios and supporting sensor ICs. Telematics control units relying on integrated sensors for location, diagnostics and security also present opportunities. Major automakers are heavily investing in vehicular networking technologies to enable services like remote monitoring, autonomous driving, traffic management and infotainment. This represents a growing sub-segment within the motor vehicle sensor market for the development of specialized sensing and communication devices.
Surge in Big Data from Vehicles Can Boost Demand for Advanced Analytics Sensors
Modern vehicles equipped with expanded connectivity, ADAS, and other digitally-enhanced systems generate massive streams of operational data. This includes terabytes of raw data from various sensors related to driver behavior, vehicle health, traffic conditions and more. Leveraging these large volumes of data through advanced analytics promises new intelligence for improvements across many areas. It drives requirements for enhanced sensing capabilities to efficiently capture and pre-process sensor readings for analytics and machine learning applications. Sensors optimized for tasks like real-time data compression and fusion can expand roles. The age of big automotive data driven by sensors can offer opportunities for specialized sensing technologies suited for analytics and data science applications.
Global motor vehicle sensor market is being shaped by a combination of technical and industry trends that both drive growth as well as introduce some constraints and uncertainties. Factors like increased vehicle electrification, safety regulation compliance and new connectivity applications can boost demand for these sensor. However, macroeconomic cycles, shifting trade dynamics and barriers to entry need to be addressed for sustainable market participation.
Link: https://www.coherentmarketinsights.com/market-insight/motor-vehicle-sensor-market-4129
Key Developments:
- In January 2023, NXP Semiconductors N.V., a global leader in secure connectivity solutions for embedded applications, announced its collaboration with VinFast, a member of Vietnam's Vingroup conglomerate, during CES 2023. VinFast aims to leverage NXP's processors, semiconductors, and sensors, while NXP will provide its advanced solutions to accelerate time-to-market. This partnership focuses on developing innovative solutions for designing and manufacturing cutting-edge electric vehicles using NXP's established reference platforms and software layers.
- In December 2022, Continental AG, a company that is renowned for its innovations in safe, efficient, and intelligent vehicle solutions, announced plans to present modules and sensors tailored for electromobility. The company will unveil its Advanced Driver Assistance Systems (ADAS), integrated into the "CV3" System on Chip (SoC) family featuring artificial intelligence (AI) from semiconductor startup Ambarella.
- In November 2022, Infineon Technologies AG, a prominent global provider of semiconductor solutions specializing in electrification, automation, and digitalization, introduced the latest XENSIV TLE4971 family to its automotive sensor portfolio. These devices provide accurate magnetic current sensing with proprietary temperature and stress compensation techniques, eliminating issues such as hysteresis or saturation effects typically associated with magnetic cores.
- In March 2022, CTS Corporation, a worldwide producer of sensors and actuators, completed the acquisition of TEWA Temperature Sensors SP. Zo.o. and its subsidiaries. TEWA Temperature Sensors, renowned for its expertise in temperature sensing technology, represents a significant addition to CTS's portfolio in this field. This strategic acquisition enhances CTS's footprint and capabilities in the European market.
Key Players:
Allegro MicroSystems, Inc., Analog Devices, Inc., Amphenol Advanced Sensors, Aptiv PLC, Autoliv, Inc., BorgWarner, Inc., Continental AG, CTS Corporation, DENSO Corporation, ELMOS Semiconductor SE, Infineon Technologies AG, Innoviz Technologies Ltd, LeddarTech, Magna International Inc., and Melexis N.V.
