Sensor Market

[287 Pages Report] The global Sensor Market for automated vehicles is projected to grow from USD 0.4 billion in 2022 to USD 19.1 billion by 2030, registering a CAGR of 62.6%. Component providers provide automated driving software and hardware to leading automotive OEMs. Global OEMs leverage cameras, LiDAR, radars and sensing platforms from these providers to be integrated in their autonomous vehicles. Factors such as increased demand for safer vehicles and strong government support have caused leading original equipment manufacturers (OEMs) and component manufacturers to invest in autonomous vehicles technologies. OEMs and solution providers have set up R&D centers and are working on meeting the rising demand of autonomous vehicles in the global automotive market. With advances in technologies such as connected mobility, ADAS and safety features, new age battery technologies, among others, the sensors market for automated vehicles is likely to grow.

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Market Dynamics:

Driver: Growing penetration of ADAS safety features

The demand for reliable safety measures has grown along with the development efforts for automated vehicles. For the autonomous car to travel securely, autonomous vehicle sensors are a crucial part of these cutting-edge safety measures. Due to this, there is now an increased demand for autonomous vehicle sensors, which is propelling the market's expansion. These sensors are used to convey information about the position and speed of the vehicle as well as to identify obstacles including pedestrians, other cars, and road conditions. There are already several groups active in different aspects of automobile safety throughout the world. The fact that ADAS (advanced driver assistance systems) are being included in more and more vehicles, trucks, and buses has led to a steady increase in the standards and norms linked to ADAS. A fully autonomous car can reduce the risk of drivers with illnesses, alcohol, or drug problems gripping the steering wheel of traditional vehicles, thus reducing the chance of driving problems, which currently account for a major portion of the total deaths caused by road traffic injuries. Autonomous vehicles use a system that finds the fastest route to their destination, resulting in better fuel economy and lower emissions and costs. Many of the global automotive OEMs, such as Audi, BMW, Volkswagen, and Hyundai, provide various types of safety features, such as autonomous emergency braking (AEB), blind spot detection, adaptive cruise control (ACC), lane keeping assist (LKA), autonomous parking, self-diagnostics, autonomous valet parking, and automated highway pilot, in their vehicles.

Restraint: Insufficient infrastructure for vehicle connectivity

Autonomous vehicles need basic infrastructures, such as well-organized roads, lane marking, and GPS connectivity for the effective functioning of various sensors. V2V and V2X communications also leverage various sensors and sensor platforms which require adequate connectivity infrastructure. On highways, information such as lane change, object detection, distances between vehicles, traffic, and services, such as navigation and connectivity, is critical in semi-autonomous and autonomous trucks. However, due to the limited network connectivity on highways, vehicles are not connected to each other or to cloud data. In developing countries like Mexico, Brazil, and India, the development of IT infrastructure on highways is slow as compared to developed economies. 3G and 4G-LTE communication networks, which are needed for connectivity, are limited to urban and semi-urban areas. While several third-party logistics companies operate in semi-urban and rural areas, issues of low connectivity persist. Developing countries also need government support for the adoption of sensors and sensor platforms in autonomous and semi-autonomous vehicles. Therefore, the lack of information technology communication infrastructure and lenient government regulations are major restraints to the growth of autonomous vehicle sensors in developing regions. In most developing countries, basic amenities required for automated vehicles, like improved roads, high-speed internet connectivity, dedicated lanes, and improved charging stations, are not present. Autonomous vehicles rely on reliable and accurate mapping data. ADAS technologies depend on high-speed internet connectivity for a variety of functions, such as real-time traffic updates, route planning and navigation, and remote vehicle diagnostics.

Opportunity: Rising popularity of electric vehicles

Electric vehicles (EVs) are becoming increasingly popular due to their environmental and economic benefits. These vehicles are propelled by electricity rather than gasoline, which lowers both pollution and energy costs. Additionally, through tax credits, subsidies, and other incentives, governments and automakers are encouraging the use of EVs. The use of EVs is expected to increase in the upcoming years due to ongoing technological advancements and growing public awareness of their benefits. OEMs such as Tesla, NIO, Rivian, Xpeng, Volkswagen, and Daimler have developed autonomous EVs and other ADAS features. An autonomous EV includes sensors and controllers such as battery management systems (BMS), electric motor controllers, wheel speed sensors, accelerometer sensors, brake pedal position sensors, and vehicle range sensors. With increasing demand for autonomous and environment-friendly electric vehicles globally, the demand for sensors and sensor platforms is expected to increase. The shift to EVs will drive the demand for automated vehicles. An electric autonomous vehicle offers various benefits, such as improved safety, increased mobility, reduced impact on the environment, and increased efficiency. An electric autonomous vehicle can reduce the dependency on non-renewable sources of energy, such as fossil fuels. Electric autonomous vehicles are also much more efficient in terms of fuel consumption, as they can be programmed to drive in the most efficient way possible. With the added potential of lowering overall greenhouse gas emissions, these battery-powered, energy-efficient vehicles provide cleaner and faster transportation. With the rapidly growing demand for EVs, and targets for greener and safer transportation across many countries in the world, both these technologies will grow simultaneously. Countries like China, Germany, and the US, among others, have made stringent safety and environmental regulations.

Challenge: Hard to trade-off between price and overall quality

Safety regulations, among other factors, have led to several advancements in automotive technology. However, this has resulted in high compliance costs, as regulatory bodies such as the NHTSA and Euro NCAP are promoting the use of ADAS in vehicles to reduce road accidents. This is the first step towards complete autonomous vehicles. The increasing demand for safety, comfort, and convenience is reflected in the overall price of autonomous vehicles. In general, higher-priced autonomous vehicles are of higher quality, with more features and advanced technology. Cheaper self-driving cars may lack certain features or have less advanced technology, but they may still provide some automated features such as lane-keeping and parking assistance. While the key criteria for buying a car previously were power, speed, and design, buyers now demand energy efficiency, safety, and comfort. It is challenging for manufacturers to provide these features at a low cost. OEMs are struggling to offer new features with minimum cost impact and to keep a balance between cost and performance to sustain in the market. OEMs are expected to negotiate with Tier 1 manufacturers to keep component prices low and incorporate more features in upcoming vehicles at lower prices. Hence, Tier 1 manufacturers will find it difficult to provide advanced safety systems at a low cost and maintain superior quality at the same time.

Sensor Market for Automated Vehicles Ecosystem

Prominent companies in this market include well-established, financially stable manufacturers of Semi-Autonomous and Autonomous vehicle sensor and platform provider. These companies have been operating in the market for several years and possess a diversified product portfolio, state-of-the-art technologies, and strong global sales and marketing networks. Prominent companies in this market include Robert Bosch GmbH (Germany), Continental AG (Germany), ZF Friedrichshafen AG (Germany), DENSO (Japan), and NXP Semiconductors (Netherlands).

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High-level Fusion is to be the largest market during forecast period

The high-level fusion segment is estimated to hold the largest market size during the forecast period. High-level fusion in autonomous vehicles typically involves the integration of data from various sensors, such as cameras, LiDAR, and radars, to provide a comprehensive understanding of the vehicle's surroundings. This information is then processed using advanced algorithms and machine learning techniques to identify objects and make predictions about their behavior. The resulting information is used to make decisions about the vehicle's path, speed, and other control inputs. One important aspect of high-level fusion is to handle uncertainty in the data from individual sensors, such as measurement errors and false detections, and to ensure that the final decisions made by the vehicle are reliable and safe. High-level fusion can also be used to improve the overall performance of autonomous vehicles. For example, it can be used to optimize the vehicle's energy efficiency and extend its range. High-level fusion can also be used to provide additional safety features, such as object detection and avoidance, to prevent collisions and other hazardous situations. With an increasing demand for automated vehicles, the demand for high-level sensor fusion solutions is also growing. As more and more companies enter the AV market, the demand for advanced sensor fusion technology is expected to increase. With the AV market maturing, more companies are investing in the development of advanced sensor fusion technology to stay competitive. This is expected to drive the growth of the market. Government regulations and standards for automated vehicles are becoming more stringent, which is driving the demand for high-level sensor fusion solutions that can meet these standards. Advances in technology such as 5G, edge computing, and artificial intelligence is also expected to drive the growth of the market.

Feature Level Fusion to be the largest and the fastest growing segment during the forecast period

Feature-level sensor fusion is a process in autonomous vehicles (AVs) where information from multiple sensors is combined and processed to extract specific features of the vehicle's environment. The features can include road markings, traffic signals, lane boundaries, and other objects such as other vehicles and pedestrians. The extracted features are then used by the vehicle's decision-making systems to make real-time driving decisions and navigate the vehicle safely. Feature-level sensor fusion is important in ensuring the safety and reliability of AVs, as it helps to accurately detect and track objects and road features and make informed driving decisions in real time. By combining data from multiple sensors, the vehicle can create a more accurate and robust representation of the environment, enabling it to operate in challenging environmental conditions, such as darkness, rain, or snow.

Asia Pacific to be the largest market by volume during the forecast period

Asia Pacific is estimated to account for the largest market share by 2030, followed by Europe and North America, whereas the Rest of the World (RoW) region is projected to register the highest CAGR during the forecast period. Increasing demand for a safe, efficient, and convenient driving experience; rising disposable income in emerging economies; and stringent safety regulations worldwide drive the sensors market for automated vehicles. The market growth in the North American and European regions is expected to be driven by stringent safety regulations. For instance, in 2016, the US National Highway Traffic Safety Administration (NHTSA) and the Insurance Institute for Highway Safety (IIHS) made automatic emergency braking (AEB) a standard for vehicles by 2022. The market in the RoW region is expected to grow at a significant rate as OEMs are increasingly focusing on emerging economies to expand and attract consumers with feature-rich vehicles. Other factors, such as changing preferences of buyers, improved standard of living, and enhanced infrastructure, are also expected to drive the sensors market for automated vehicles. China, South Korea, and Japan account for the largest share of the sensors market for automated vehicles in the Asia Pacific region. The market growth in this region can be attributed to the high vehicle production and increased use of advanced electronics in Japan, South Korea, and China.

The governments of these countries have recognized the growth potential of the automotive industry and have consequently taken different initiatives to encourage major OEMs to enter their domestic markets. Several European and American automobile manufacturers, such as Volkswagen (Germany), Mercedes-Benz (Germany), and General Motors (US), have shifted their production plants to developing countries. Major sensor component providers such as Robert Bosch (Germany), Continental (Germany), and DENSO (Japan) have production facilities across the region. The Asia Pacific region is home to established OEMs such as Hyundai (South Korea), Toyota (Japan), and Honda (Japan), which are investing in autonomous vehicle technology. These OEMs have collaborated with various global software and hardware providers to develop autonomous vehicles. They also have plans to invest heavily in the development of autonomous vehicle sensor technologies in the coming years. The region is also home to various tech start-ups that are engaged in the development of autonomous vehicle technologies. Countries in the region are also establishing infrastructure for the implementation of electric vehicles, which could aid in the rise of autonomous vehicles as well. For instance, in October 2021, Honda signed an agreement with Cruise, a subsidiary of General Motors, under which Honda will invest USD 2 billion over a span of 12 years to develop autonomous vehicle technologies.

Key Market Players

The sensor market for automated vehicles is dominated by Robert Bosch GmbH (Germany), Continental AG (Germany), ZF Friedrichshafen AG (Germany), DENSO (Japan), and NXP Semiconductors (Netherlands), among others. These companies provide hardware and software solutions to global OEMs and component manufacturers. These companies have set up R&D infrastructure and offer best-in-class solutions to their customers.

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Scope of the Report

This research report categorizes the sensor market for automated vehicles based on component, offering, software, propulsion, level of autonomy, vehicle type, sensor platform approach, sensor fusion process, and region.

Based on Component:

• Hardware
• Software

Based on Offering:

• Cameras
• Chips/Semiconductors
• Radar Sensors
• Lidar Sensors
• Others

Based on Software:

• Operating System
• Middleware
• Application Software

Based on Propulsion:

• ICE
• Electric

Based on Level of Autonomy:

• L2+
• L3
• L4

Based on Vehicle Type:

• Passenger Cars
• Commercial Vehicles

Based on Sensor Platform Approach:

• High-Level Fusion
• Mid-Level Fusion
• Low-Level Fusion

Based on Sensor Fusion Process:

• Signal-Level Fusion
• Object-Level Fusion
• Feature-Level Fusion
• Decision-Level Fusion

Based on Region:

• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
• North America (NA)
  • US
  • Canada
• Europe
  • France
  • Germany
  • Italy
  • UK
  • Rest of Europe

Recent Developments

• In January 2023, ZF Friedrichshafen AG launched Smart Camera 4.8. It enables autonomous cars to have a wider field of view, in turn enabling the vehicle to identify pedestrians, cyclists, and other vehicles.
• In December 2022, Robert Bosch GmbH launched the 6G-ICAS4Mobility project, which is aimed at integrating communication and radar systems into a single 6G system.
• In October 2022, DENSO launched its new 4mm Wave Radar PCU. According to DENSO's vision of future mobility, the power device in the power control unit (PCU) is essential. The SiC MOSFET will displace silicon-based power devices, and 4mm Wave radar will be widely used.
• In September 2022, NXP Semiconductors started the production of its second-generation RFCMOS radar transceiver. The RFCMOS chip accommodates 3 transmitters, 4 receivers, ADC conversion, phase rotators, and low-phase noise VCOs. It supports short-, medium-, and long-range radar applications, including cascaded high-resolution imaging radar. Moreover, it will facilitate 360-degree sensing for critical safety applications, automated emergency braking, automated parking, and blind-spot monitoring, among others.
• In June 2022, Under a joint project, Continental AG announced the development of an intelligent solution for automated driving in the city. In this project, it collaborated with 15 companies, universities, and research institutes, supported by the German Federal Ministry of Economics and Climate Protection.
• In January 2022, DENSO created the Global Safety Package 3, an active safety system intended to increase vehicles’ safety by enhancing their environment-sensing abilities. The Global Safety Package helps the driver operate the car securely by combining the capabilities of a millimeter-wave radar sensor and vision sensor. The vision sensor makes use of a camera to detect the surroundings in front of the car, while the millimeter-wave radar sensor makes use of radar to detect the forms of road objects, such as vehicles and guardrails.

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