Sensor Fusion Market by Algorithms (Kalman Filter, Bayesian Filter, Central Limit Theorem, Convolutional Neural Networks), Technology (MEMS, Non-MEMS), Offering (Hardware, Software), End-Use Application and Region - Global Forecast to 2028
According to MarketsandMarkets, the sensor fusion market size is projected to grow from USD 8.0 billion in 2023 to USD 18.0 billion by 2028, registering a CAGR of 17.8% during the forecast period.
Growing demand for advanced driver assistance systems (ADAS) and deployment of autonomous vehicles, increasing demand for smart homes and buildings, growing trend of miniaturization in electronics, and increasing demand for integrated sensors in smartphones are expected to propel the market in the next five years. However, calibration across multiple sensors and security and safety concern are likely to pose challenges for the industry players.
The objective of the report is to define, describe, and forecast the sensor fusion market based on algorithms, offering, technology, end-use application, and region.
Sensor Fusion Market Forecast to 2028
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Sensor Fusion Market Dynamics
Driver: Increasing demand for integrated sensors in smartphones
Consumer electronics is a rapidly changing and dynamic industry with increasing competitiveness among the market players and game-changing technological developments. Latest developments in mobile computing and sensor technologies are making smartphones and tablets popular worldwide.
In the present market scenario, smartphone manufacturers are under pressure to bring exclusive and differentiated products. Thus, if a manufacturer successfully offers a unique product to the customers, that product will gain popularity and tend to create a trend in the market. There is a growing trend of integrating various sensors in smartphones. Thus, innovation and development in the sensor fusion technology would assist the smartphones manufacturers in enhancing the features of their products. The 9-axis inertial sensor is one of the common sensor fusion solutions that are being integrated into smartphones for detecting the location of the user.
Moreover, manufacturers of smartphones like Apple Inc., Samsung Electronics Co., Ltd., and Huawei Technologies Co. are investing in R&D to create sensor-based applications that will set their products apart from the competitors. For instance, in 2022, Xiaomi and Leica launched a series of smartphones with advanced optical and imaging sensors. For example, Apple released iPhone X with a front-facing 3D sensor for face ID, a facial recognition technology that takes the place of a fingerprint sensor to unlock the device. This factor is expected to drive the market over the forecast periods.
Restraint: Calibration across multiple sensors
In order to ensure that the data from various sensors are reliable, precise, and consistent with one another, sensor calibration is a crucial stage in the sensor fusion process. Incorrect or inaccurate sensor fusion outcomes may emerge from sensor data that contains errors, noise, and inaccuracies as a result of improper sensor calibration.
The requirement for calibration across numerous sensors, each with its own unique characteristics and properties, is an important challenge in sensor fusion. Differences in the sensitivity, resolution, or noise levels of various sensors may impact the accuracy and consistency of the sensor data. To address these challenges, sensor fusion systems need to incorporate sophisticated algorithms and techniques that can account for sensor variability and adapt to changes in sensor performance over time. This requires a deep understanding of sensor characteristics and properties, as well as expertise in signal processing, machine learning, and statistical analysis. Thus, the lack of proper calibration across multiple sensors is acting as a restrain for the market.
Opportunities: Growing demand for advanced driver assistance systems (ADAS) and deployment of autonomous vehicles
The advanced driver assistance systems depend on the sensing capabilities provided mainly by the combo inertial and image sensors. The MEMS inertial combo sensors are used for the detection of the state of motion in the vehicles. The increasing use of the GPS-IMU (Inertial Measurement Unit) fusion principle and advancements in ADAS are assisting in resolving dead reckoning interval accumulation errors with absolute location measurements. Using information gathered from a forward-facing camera, Tesla's Autopilot automatic driving feature is an example of an ADAS that can carry out tasks like maintaining the vehicle's center in a highway lane and directing the vehicle accordingly. Since many of the functionalities introduced within the ADAS require sensor fusion systems, the growing deployment of ADAS is anticipated to have a positive impact on the sensor fusion market.
Further, the increasing deployment of autonomous vehicles also creates an opportunity for the market. Autonomous vehicles require sensors such as, camera, LiDAR, and radar to view and evaluate their surroundings. In addition, increasing collaboration between car manufacturers and sensor fusion platform developers is expected to boost the adoption of the sensor fusion technology. For instance, in December 2022, Baidu, a Chinese automobile manufacturer, and Pony.ai, a startup company backed by Toyota Motors, announced that they were granted their first license to test fully autonomous vehicles in Beijing.
Challenges: Security and safety concern
The sensor fusion market involves integrating data from multiple sensors to obtain a more accurate and comprehensive understanding of the environment. While this technology has many benefits, it also raises security and safety concerns, including: Privacy: Sensor fusion systems have the potential to gather private information that might be misused, such as location data, health status data, or biometric data. It is critical to ensure that users' privacy is maintained and that data is collected and stored securely.
Cybersecurity: Sensor fusion systems are susceptible to hacking or cyberattacks, which could compromise the system's accuracy and dependability. To defend against such attacks, strong cybersecurity measures like encryption and authentication must be put in place.
Safety: Sensor fusion systems can be in applications requiring high levels of safety, like driverless vehicles, where a system failure could lead to significant harm or even death. It is essential to confirm that the system has been developed and tested in accordance with safety requirements.
Market Map/Ecosystem
Sensor Fusion Market: Key Trends
The prominent players in the market are InvenSense Inc. (U.S.), NXP Semiconductors N.V. (Netherlands), and Bosch Sensortec GmbH (Germany), among others. These companies boast mixing trends with comprehensive product portfolio and strong geographic footprint.
Hardware offering to acquire significant share in sensor fusion market
The hardware offering is expected to hold the largest market share during the forecast period. The hardware segment comprises the physical components of sensor fusion systems, such as processors, communication modules, sensors, and microcontrollers. Development kits, evaluation boards, and reference designs are examples of hardware products. In addition, various product type has been taken into consideration such as inertial combo sensor, radar + image sensors+ lidar, environment sensors, IMU + GPS, and others.
Consumer electronics end-use application holds largest share in sensor fusion market in 2023
The consumer electronics segment accounted for the largest market share in 2023. The consumer electronics segment is an important market for sensor fusion. A wide range of consumer electronics devices use sensors, including smartphones, tablets, wearables, and gaming equipment. Sensor fusion technology is used in these devices to provide logically fused data from different sensors for various applications such as gesture recognition, image stabilization, navigation, and motion-based gaming.
The major players providing consumer electronics products are InvenSense Inc. (U.S.), NXP Semiconductors N.V. (Netherlands), and Bosch Sensortec GmbH (Germany). Bosch Sensortec is one of the major players for the development of smartphones by sensor fusion. For instance, December 2021, Bosch Sensortec partnered with Nextnav, a one of the leaders in next-generation GPS. Bosch Sensortec will make use of the partnership to assess measurement precision and provide original equipment manufacturers (OEMs) that utilise its sensors in widely available products like smartphones, tablets, and wearables with strict performance guarantees.
Sensor fusion market to witness highest demand from Asia Pacific
The governments in the Asia Pacific are also playing a crucial role in promoting the growth of the sensor fusion market through various initiatives and policies. For instance, the government of China has set targets to become a world leader in autonomous driving. It is investing heavily in the development of advanced sensor technologies such as LiDAR and radar. Thus, the above factor is driving the market growth in the region.
Further, China held the largest share of the sensor fusion market in the Asia Pacific in 2023 and is projected to dominate both markets during the forecast period. China is witnessing rapid economic development. It has been focusing on shifting from a manufacturing-driven to an innovation-driven economy. China is a global manufacturing hub for industries for semiconductor and consumer electronic devices, which produce smartphones, smart TVs, and wearables.
Considering the country's large population and growing economy, China is a high potential market for sensor fusion technology for consumer electronic devices. The country has seen considerable increase in sales for innovative devices in smartphones and wearable devices which use sensor fusion technology. This is helping the growth of the market for sensor fusion. According to Mobile Economy China 2021 published by GSM Association, the country's total number of smartphone connections is estimated to reach ~1.5 billion in 2025.
Sensor Fusion Market by Region
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Key Market Players in Sensor Fusion Maket Growth
Major vendors in the sensor fusion companies include include STMicroelectronics (Switzerland), InvenSense, Inc. (US), NXP Semiconductors N.V. (Netherlands), Infineon Technologies (Germany), Bosch Sensortec GmbH (Germany), Analog Devices, Inc. (US), Renesas Electronics Corporation. (Japan), Amphenol Corporation (US), Texas Instruments (US), and Qualcomm Technologies, Inc. (US), among others.
Sensor Fusion Market Report Scope
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Report Metric |
Details |
| Estimated Market Size | USD 8.0 billion in 2023 |
| Projected Market Size | USD 18.0 billion by 2028 |
| Growth Rate | CAGR of 17.8% |
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Market Size Available for Years |
2019–2028 |
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Base Year |
2022 |
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Forecast Period |
2023–2028 |
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Units |
Value (USD Million/USD Billion) |
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Segments Covered |
Offering, Algorithms, Technology, End-Use Application, and Region |
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Regions Covered |
North America, Europe, Asia Pacific, and RoW |
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Companies Covered |
include STMicroelectronics (Switzerland), InvenSense, Inc. (US), NXP Semiconductors N.V. (Netherlands), Infineon Technologies (Germany), Bosch Sensortec GmbH (Germany), Analog Devices, Inc. (US), Renesas Electronics Corporation. (Japan), Amphenol Corporation (US), Texas Instruments (US), and Qualcomm Technologies, Inc. (US), among others. |
Sensor Fusion Market Highlights
This report categorizes the sensor fusion market based on algorithms, offering, technology, end-use application, and region.
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Segment |
Subsegment |
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By Algorithms |
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By Technology |
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By Offering |
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By End-Use Application |
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By Region |
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Recent Developments in Sensor Fusion Industry
- In February 2023, 221e srl, an innovator in embedded AI software, leader in intelligent precision sensing, and ST Authorized Partner, has extended its collaboration with STMicroelectronics, a global semiconductor leader serving customers across the spectrum of electronics applications, to include the latest offerings of both companies.
- In January 2023, Bosch Sensortec announced a new smart sensor system that delivers a best-in-class performance/power consumption ratio. . However, it is simple to integrate due to its small size and built-in, ready-to-use software algorithms.
- In June 2022, Infineon Technologies AG launched its battery-powered Smart Alarm System (SAS). The technology platform achieves high accuracy and very low-power operation using sensor fusion based on artificial intelligence/machine learning (AI/ML). This technology, combined with low-power wake-on acoustic event detection, provides remarkable performance.
Frequently Asked Questions (FAQ):
Which are the major companies in the sensor fusion market? What are their primary strategies to strengthen their market presence?
STMicroelectronics (Switzerland), InvenSense, Inc. (US), NXP Semiconductors N.V. (Netherlands), Infineon Technologies (Germany), Bosch Sensortec GmbH (Germany), Analog Devices, Inc. (US), are the leading players in the market. These companies have adopted organic and inorganic growth strategies such as product launches, acquisitions, and partnerships to gain a competitive advantage in the market.
Which is the potential market for the end use application?
Consumer electronics is an end use application with high growth opportunities owing to advancements in the electronics devices.
What are the opportunities for new market entrants?
Factors such as increase in commercial spaces across growing demand for advanced driver assistance systems (ADAS) and deployment of autonomous vehicles and growing demand for wearable devices are creating opportunities for the players in the market.
Which offering is expected to drive market growth in the next six years?
Software is expected to remain the major offering driving sensor fusion demand.
What are the major strategies adopted by sensor fusion companies?
The sensor fusion companies have adopted product launches, acquisitions, expansions and contracts to strengthen their position in the automated material handling equipment market.
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The research process for this study included systematic gathering, recording, and analysis of data about customers and companies operating in the sensor fusion market. This process involved the extensive use of secondary sources, directories, and databases (Factiva, Oanda, and OneSource) for identifying and collecting valuable information for the comprehensive, technical, market-oriented, and commercial study of the sensor fusion market. In-depth interviews were conducted with primary respondents, including experts from core and related industries and preferred manufacturers, to obtain and verify critical qualitative and quantitative information as well as to assess growth prospects. Key players in the sensor fusion market were identified through secondary research, and their market rankings were determined through primary and secondary research. This research included studying annual reports of top players and interviewing key industry experts such as CEOs, directors, and marketing executives.
Secondary Research
In the secondary research process, various secondary sources were referred to for identifying and collecting information important for this study. Secondary sources included corporate filings, such as annual reports, investor presentations, and financial statements; trade, business, and professional associations; white papers, sensor fusion products related journals, certified publications; articles by recognized authors; directories; and databases.
Secondary research was conducted to obtain key information about the industry supply chain, market value chain, key players, market classification and segmentation as per industry trends to the bottom-most level, geographic markets, and key developments from both market- and technology-oriented perspectives. Data from secondary research was collected and analyzed to determine the overall market size, which was further validated by primary research.
Primary Research
In the primary research process, various primary sources from the supply and demand sides were interviewed to obtain qualitative and quantitative information for this report. Primary sources from the supply side included industry experts such as CEOs, VPs, marketing directors, technology & innovation directors, and key executives from major companies in the sensor fusion market.
After going through market engineering (which includes calculations for market statistics, market breakdown, market size estimations, market forecasting, and data triangulation), extensive primary research was conducted to gather information and verify and validate the critical numbers obtained. Primary research was conducted to identify segmentation types, industry trends, key players, competitive landscape, and key market dynamics such as drivers, restraints, opportunities, and challenges, along with the key strategies adopted by players operating in the market.
To know about the assumptions considered for the study, download the pdf brochure
Market size Estimation
In the complete market engineering process, both top-down and bottom-up approaches were used, along with several data triangulation methods, to estimate and forecast the size of the market and its segments and subsegments listed in the report. Extensive qualitative and quantitative analyses were carried out on the complete market engineering process to list the key information/insights pertaining to the sensor fusion market.
The key players in the market were identified through secondary research, and their rankings in the respective regions were determined through primary and secondary research. This entire procedure involved the study of the annual and financial reports of top players, as well as interviews with industry experts such as chief executive officers, vice presidents, directors, and marketing executives for quantitative and qualitative key insights. All percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources. All parameters that affect the markets covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data. This data was consolidated and enhanced with detailed inputs and analysis from MarketsandMarkets and presented in this report.
Sensor Fusion Market: Bottom-up Approach
Sensor Fusion Market: Top-Down Approach
Data Triangulation
After arriving at the overall size of the sensor fusion market from the market size estimation process explained above, the total market was split into several segments and subsegments. Where applicable, the market breakdown and data triangulation procedures were employed to complete the overall market engineering process and arrive at the exact statistics for all segments and subsegments. The data was triangulated by studying various factors and trends from both the demand and supply sides. Along with this, the market size was validated using top-down and bottom-up approaches.
Market Definition
Sensor fusion is a process of combining the outputs from various sensors to provide an integrated and more refined sensor output than individual sensors. The most common type of sensor fusion is inertial combo sensors. In general, sensor fusion entails combining data from various sensors to produce a more precise and comprehensive picture of the environment or system under observation.
Sensor fusion is crucial in the context of autonomous vehicles since it enables the car to sense its surroundings much more accurately and consistently. For instance, a self-driving car may employ a variety of sensors, including cameras, lidar, radar, and others, to identify obstacles, pedestrians, and other moving vehicles. The car can build a complete 3D map of its surroundings and make better navigational judgements by combining the data from all these sensors.
Stakeholders
- Semiconductor product designers and fabricators
- Application providers
- Business providers
- Professional services/solutions providers
- Research organizations
- Technology standard organizations, forums, alliances, and associations
- Technology investors
Report Objectives
- To describe and forecast the sensor fusion market, in terms of value, based on algorithms, offering, technology, and end-use application
- To describe and forecast the sensor fusion market size, in terms of value, with respect to four regions: North America, Europe, Asia Pacific, and the Rest of the World (RoW)
- To provide detailed information about the drivers, restraints, opportunities, and challenges influencing the growth of the sensor fusion market
- To provide a detailed overview of the supply chain of the sensor fusion ecosystem
- To strategically analyze micromarkets1 with respect to individual growth trends, prospects, and contributions to the overall market
- To analyze opportunities in the market for various stakeholders by identifying the high-growth segments of the market
- To benchmark the market players using the proprietary company evaluation matrix framework, which analyzes the market players on various parameters within the broad categories of business strategy excellence and strength of product portfolios
- To strategically profile the key players and comprehensively analyze their market positions in terms of ranking and core competencies2, along with a detailed competitive landscape of the market
- To analyze competitive developments in the sensor fusion market, such as acquisitions, product launches, partnerships, expansions, and collaborations
Available Customizations
With the given market data, MarketsandMarkets offers customizations according to the specific requirements of companies.
Product Analysis
- Detailed analysis and profiling of additional market players
The following customization options are available for the report:
- Market sizing and forecast for additional countries
- Additional five companies profiling
Growth opportunities and latent adjacency in Sensor Fusion Market