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Market Overview

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Automotive sensors play a crucial role in gathering essential information about a vehicle’s surroundings, including its speed, location, and environment. This data is then transmitted to the vehicle’s onboard computer system to make informed decisions.

The market for automotive sensors is estimated to reach USD 27.23 billion in 2023 and is projected to grow at a CAGR of 6.05% during the forecast period (2023-2028), reaching USD 36.53 billion by 2028.

The COVID-19 pandemic had a significant impact on the automotive industry, including the automotive sensors market. Production plants were temporarily shut down, leading to a decrease in vehicle production and subsequently, a reduced demand for automotive sensors. Moreover, disruptions in the global supply chain resulted in a shortage of raw materials and components, further affecting sensor production.

However, the automotive sensors market is now recovering, driven by the gradual resurgence of the automotive industry. The demand for sensors is expected to increase as the industry rebounds. Additionally, the pandemic has accelerated the adoption of advanced driver assistance systems (ADAS) and autonomous vehicles, which heavily rely on automotive sensors. This is anticipated to drive market growth as manufacturers integrate these features into their vehicles.

Over the long term, increasing demand for ADAS and autonomous vehicles will continue to drive the growth of the automotive sensors market.

Automotive sensors are designed to detect, transmit, analyze, record, and display performance information from a vehicle’s internal and external environments. With the rising popularity of vehicle automation and connected cars worldwide, the demand for automotive sensors is expected to significantly increase. Customers are increasingly prioritizing vehicles with improved safety features and are more aware of advanced safety systems and technologies. Consequently, automotive manufacturers are equipping their vehicles with features like driver assistance systems to address these safety concerns, driving the demand for sensors.

The adoption of stringent fuel efficiency standards and international safety measures by governments has also contributed to the expansion and development of advanced systems, such as electric power steering (EPS), which extensively rely on sensors.

The continuous advancements and breakthroughs in technology propel the demand for electronic sensors, particularly position sensors, in the automotive industry. Consequently, the automotive sensor market is expected to witness significant growth throughout the forecast period.

The automotive industry’s increased focus on technological advancements like electrification and autonomous driving has amplified the demand for sensors. Moreover, the preference for integrating position sensors into vehicles among manufacturers indicates sustained market growth.

Autonomous vehicles, especially those with self-driving systems at level 4 and level 5, require large amounts of data processing to enable smooth driving, obstacle clearing, and adherence to traffic signs. This necessitates incorporating a greater number of sensors into such vehicles, further driving market demand for this segment.

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Market Segmentation

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The market is segmented based on various factors, including type, application, vehicle type, and region.

Segmentation by Type
Temperature Sensors
Pressure Sensors
Speed Sensors
Level/Position Sensors
Magnetic Sensors
Gas Sensors
Inertial Sensors

Segmentation by Application
Powertrain
Body Electronics
Vehicle Security Systems
Telematics

Segmentation by Vehicle Type
Passenger Cars
Commercial Vehicles

Segmentation by Region
North America – United States, Canada, and Rest of North America
Europe – United Kingdom, Germany, France, and Rest of Europe
Asia-Pacific – China, Japan, India, South Korea, and Rest of Asia-Pacific
Rest of the World – Brazil, United Arab Emirates, and Other Countries

The Inertial Sensor segment holds a significant market share in terms of revenue in 2022 and is projected to continue growing. Inertial sensing systems are devices that measure the velocity, gravitational force, and orientation of moving objects. The rising demand for safety features in vehicles is expected to drive the market during the forecast period. In 2022, the Inertial Sensors segment was valued at USD 7.09 Billion and is estimated to reach USD 10.41 Billion by 2028, with a CAGR of 6.47% during the forecast period (2023 – 2028).

Inertial sensors refer to accelerometers or gyroscopes that detect linear acceleration or angular motion along one or more axes. These sensors are used to measure the intensity and frequency of human movement and are employed in various applications such as cars, planes, ships, and other vehicles. They play a crucial role in Artificial Intelligence by ensuring the achievement of goals without relying on digital technology. The emergence of micro-electromechanical systems (MEMS) technology has enabled the miniaturization of mechanical and electro-mechanical elements in sensors and semiconductors through micro fabrication and micro-machining techniques. Consequently, MEMS has become integral to automation components in autonomous vehicles, leading to increased demand for inertial systems in the automotive sector.

Powertrain sensors provide essential information for engine management and transmission control. With growing awareness regarding fuel economy, carbon emission reduction, and technological advancements in powertrain systems, the market for powertrain sensors is expected to flourish. In 2022, the powertrain segment accounted for USD 10.45 billion and is projected to reach USD 14.47 billion by 2028, with a CAGR of 5.43% during the forecast period (2023-2028). These sensors, which measure air pressure, temperature, and speed, provide the necessary data for smooth and safe vehicle driving and are pivotal in ensuring engine performance and transmission efficiency.

The increasing emphasis on safety, improving overall performance, and the growing passenger vehicle market will drive the market further in the coming years. The passenger cars sub-segment was valued at USD 18.28 billion in 2022 and is expected to reach USD 25.57 billion by 2028, with a CAGR of 5.60% during the forecast period (2023 – 2028). The rising adoption of sensors in passenger vehicles for driver convenience, vehicle safety, and comfort components contributes to the market’s growth. Factors such as increased disposable income and technological innovation also bolster market expansion. The rise in luxury vehicles and the demand for premium amenities, coupled with the shift towards electrified models, further support market growth. Additionally, integrating automotive rain sensors in budget and mid-range automobiles would boost market growth due to their affordability.

The Asia-Pacific region dominates the market share in terms of revenue during the forecast period. The region’s increasing vehicle sales and the growing demand for electric vehicles contribute to the rising sensor demand. The presence of manufacturing industries in countries like China, India, and Japan creates opportunities for market growth.

In developing economies, automotive production is growing at a faster rate compared to developed economies due to increasing urbanization and stable economic conditions. Consumers in these economies, such as India and ASEAN countries, have greater safety concerns, leading automobile manufacturers to incorporate more sensors in low-cost vehicles. This trend is expected to drive the demand for automotive sensors in the future.

The APAC region is home to some of the world’s fastest-growing economies, with China and India at the forefront. As a result, the middle-class consumers in these economies have the purchasing power to buy vehicles equipped with advanced features like Advanced Driver Assistance Systems (ADAS).

Government initiatives to reduce traffic congestion and enhance road safety have also stimulated the adoption of ADAS and other safety features that rely on automotive sensors. The APAC region has favorable regulatory environments with lower entry barriers for advanced automotive technologies compared to other regions.

Moreover, the region hosts some of the largest markets for electric vehicles (EVs). As EVs heavily rely on sensors for power control and battery monitoring, the demand for automotive sensors in the APAC region is further bolstered.

Therefore, due to the high demand for vehicles, rapidly expanding economy, encouraging government initiatives, favorable regulatory environment, and growing emphasis on electric vehicles, the APAC region stands as the most important market for automotive sensors.

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Competitive Landscape

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Key players in the analyzed market include Continental AG, Robert Bosch GmbH, BorgWarner Inc, Infineon Technologies, NXP Semiconductors, Denso Corporation, and others. The market is witnessing substantial growth due to active product innovations, collaborations, and partnerships among major players. These developments are expected to positively impact the market outlook during the forecast period.

In January 2023, NXP Semiconductors N.V. (NXP) announced its involvement in the early development stages of upcoming automotive projects by VinFast at CES 2023. VinFast aims to leverage NXP’s processors, semiconductors, and sensors, while benefiting from NXP’s top-tier solutions to accelerate time-to-market. This collaborative effort will focus on creating cutting-edge electric vehicles (EVs) using NXP’s well-established reference assessment platforms and software layers.

Key companies profiled in this report include DENSO Corporation, Infineon Technologies AG, Robert Bosch GmbH, Texas Instruments Inc., Sensata Technologies Holding PLC, Aptiv PLC (Delphi Automotive), CTS Corporation, Maxim Integrated Products Inc., NXP Semiconductors NV, Analog Devices Inc., Continental AG, Littelfuse Inc., Hitachi Automotive Systems Americas Inc.

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Recent Industry Developments

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December 2022: Continental AG (Continental) has made an announcement regarding the showcasing of exclusive modules and sensors designed specifically for electromobility. Continental will unveil its Advanced Driver Assistance Systems (ADAS), which have been integrated into the CV3 System on Chip (SoC) family, incorporating artificial intelligence (AI) technology from semiconductor startup Ambarella.

November 2022: Infineon Technologies AG has introduced the latest addition to its current sensor series for automotive applications, the XENSIV TLE4971 family. These devices offer precise magnetic current sensing based on proprietary temperature and stress compensation techniques, eliminating the negative effects of magnetic cores caused by hysteresis or saturation effects.

March 2022: CTS Corporation has completed the acquisition of TEWA Temperature Sensors SP. Zo.o. and its subsidiaries. This acquisition is a strategic move for CTS as it enhances their temperature sensing platform and expands their presence in Europe.

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Key Questions Answered

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What is the duration of the study for this market?
The study period for the Automotive Sensors Market is from 2018 to 2028.

What is the growth rate of the Automotive Sensors Market?
The Automotive Sensors Market is expected to grow at a compound annual growth rate (CAGR) of 6.05% over the next five years.

What is the size of the Automotive Sensors Market?
The Automotive Sensors Market is projected to reach USD 27.23 billion in 2023 and is anticipated to grow at a CAGR of 6.05% to reach USD 36.53 billion by 2028.

Which region experiences the highest growth rate in the Automotive Sensors Market?
The Asia Pacific region shows the highest CAGR during the period of 2018 to 2028 in the Automotive Sensors Market.

Which region holds the largest share in the Automotive Sensors Market?
As of 2022, North America holds the highest market share in the Automotive Sensors Market.

Who are the key players in the Automotive Sensors Market?
The major companies operating in the Automotive Sensors Market include Continental AG, NXP Semiconductors NV, Robert Bosch GmbH, Infineon Technologies AG, and BorgWarner Inc.