Smart Sensors Market by Type (Temperature & Humidity Sensor, Pressure Sensor, Motion & Occupancy Sensor), Technology (CMOS, MEMS), Component (Microcontrollers, Amplifiers, Transceivers), End-User Industry and Region - Global Forecast to 2029
[319 Pages Report] The smart sensors market was valued at USD 61.9 billion in 2024 and is projected to reach USD 136.3 billion by 2029; it is expected to grow at a CAGR of 17.1% from 2024 to 2029. Factors such as government support for construction of green buildings, and growing need for predictive maintenance in industries create lucrative opportunities whereas high installation and maintenance costs is a major restraint for the growth of the smart sensors market.
Smart Sensors Market Forecast to 2029
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Market Dynamics:
Driver: Increasing demand for wireless technology to monitor and control security devices
In recent years, there has been a growing demand for wireless technologies such as GPS, GPRS, wireless LAN, and WAP. It is more expensive to install sensors with wired network connectivity due to the additional cost of wires and batteries. A wireless occupancy sensor can replace the existing wall switch with a wireless wall switch receiver and do away with wires and batteries. It also eliminates the cost of maintenance. For example, a smart home security solution based on wireless protocols, including Wi-Fi and Zigbee, can monitor and control security devices, such as window and door locks, indoor and outdoor surveillance cameras, lighting solutions, and smoke detectors, through a smartphone. The increasing demand for wireless technology is in turn, driving the demand for smart sensors.
Restraint: High installation and maintenance costs
There is an adverse impact on the growth of the smart sensors market due to the requirement for significant capital for the deployment and maintenance of an integrated, self-monitoring, sustainable, and scalable network of smart sensors. The recent recession in the European market has also restricted research and development expenditure.
The deployment of smart sensors has been limited due to the high cost of the sensors because of their costly components and batteries. Due to energy requirements of the sensors and wireless network, limited life span of these batteries that are consumed at a faster rate. Lastly, due to the energy needs of the sensors and wireless link; and poor radio range, the use of technologies designed for short-range applications and limited battery life. The implementation costs include the potential for integrating sensing technologies with a network or signal processing intelligence. Depending on the application, the additional expenditure on the deployment of smart sensor software solutions, related software compatibility issues, and other software maintenance services make the adoption of smart sensor technologies highly expensive, thereby limiting the viability of the smart sensor business.
Opportunity: Growing need for predictive maintenance in industries
Condition monitoring (CM) helps detect a particular condition in machinery (such as vibration, temperature, pressure, etc.) to identify changes that could indicate a developing fault. It is a major part of predictive maintenance, allowing machinery maintenance to be scheduled and preventive actions taken to prevent further failure and subsequent unplanned downtime. Sensors enable continuous condition monitoring by collecting data that facilitates intelligent decisions via machine learning or arti?cial intelligence (AI). Vibration, pressure, position, speed, fluid property, temperature and humidity sensors all play a critical role in industrial condition monitoring applications. Condition monitoring enables uptime for manufacturing factories and allows for continuous development of goods. Sensors form a major part of predictive maintenance equipment. The demand for smart sensors is expected to increase with the growth of the condition monitoring market.
Challenges: Increasing Lack of skilled workforce
The market for smart sensors is growing rapidly and smart sensors are a valuable tool in modern technology, but their effective use requires skilled professionals to install, configure, and integrate them with existing systems. Without proper installation and integration, the sensor network may suffer delays, errors, and suboptimal performance. Another important aspect of using smart sensors is the management, analysis, and interpretation of the data they collect. This requires data scientists and engineers with expertise in sensor data analysis. A shortage of such professionals can hinder the full potential of smart sensors and prevent the generation of actionable insights. Smart sensor systems can also experience technical issues or require maintenance, which highlights the need for technicians with the necessary knowledge and skills. Without skilled personnel, troubleshooting and repairs might be delayed or mishandled, leading to downtime and disruptions. Finally, smart sensor systems benefit from ongoing monitoring and optimization to fine-tune them for maximum efficiency and effectiveness. However, a lack of skilled personnel can hinder the ability to maintain and optimize these systems.
Smart Sensors Market Segmentation
Pressure sensors segment to account for the largest market share of the smart sensors market, by type, during the forecast period.
The pressure sensors segment of the smart sensors market holds the largest market share and is expected to retain its position during the forecast period from 2024 to 2029. The market for pressure sensors is driven by the increasing concerns regarding safety and need for reduction of automotive emissions. They are also used in automobiles for engine management, tire pressure monitoring systems (TPMS), and airbag deployment systems. Apart from this, they have applications in industrial automation for process control, monitoring pressure in pipelines and machinery well as in Medical devices for monitoring vital signs, and blood pressure measurement.
Automotive segment accounts for the second-largest market share of the smart sensors market, by end-user industry, during the forecast period.
The automotive sector holds the second-largest market share and is expected to retain its position during the forecast period due to the increasing applications of smart sensors in the automotive industry in advanced driver-assistance systems (ADAS); electronic control units (ECU); electronic stability control (ESC); heating, ventilation, and air-conditioning (HVAC) systems; safety and security solutions; in-car navigation systems; OIS cameras; and tire pressure monitoring systems (TPMS). Also the growing opportunities for smart sensors in self-driving cars are expected to boost the market for the automotive industry in the coming years. Manufacturers of self-driving vehicles are expected to launch an advanced form of self-driving vehicles in the next few years.
The Asia Pacific region is expected to grow at the highest growth rate during the forecast period.
Asia Pacific is expected to be the fastest-growing as well as the leading market for smart sensors in automotive, infrastructure, consumer electronics, and pharmaceuticals industries, with the major demand in China, India, and Japan.
China is the world's leading manufacturer of electronics, and the government is actively promoting the development of the smart sensor industry. This, combined with the country's large and growing domestic market, is driving rapid growth in the smart sensor market. Japan is a world leader in sensor technology, and its companies are well-positioned to benefit from the growth of the smart sensor market. The country's aging population is also creating a demand for new sensor-based technologies that can help to improve the quality of life for older adults. India is a rapidly developing economy with a large and growing middle class. The government is investing heavily in infrastructure development, and this is creating a demand for smart sensors that can be used to monitor and manage these projects. The growing popularity of smartphones and other connected devices is also driving the demand for smart sensors in India.
Smart Sensors Market by Region
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Key Market Players
Analog Devices, Inc. (US), TE Connectivity (Switzerland), Infineon Technologies AG (Germany), STMicroelectronics (Switzerland), ABB (Switzerland), Microchip Technology Inc. (US), NXP Semiconductors (Netherlands), Siemens (Germany), Honeywell International Inc. (US), Robert Bosch GmbH (Germany), among others, are some key players operating in the Smart Sensors companies.
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Report Metric |
Details |
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Market size available for years |
2020–2029 |
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Base year considered |
2023 |
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Forecast period |
2024–2029 |
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Forecast units |
USD Million/Billion |
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Segments Covered |
Type, Technology, Network Connectivity, Component, End-user Industry, and Region |
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Regions covered |
Americas, Asia Pacific, Europe, and RoW |
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Companies covered |
Some of the leading companies operating in the smart sensors market are Analog Devices, Inc. (US), Infineon Technologies AG (Germany), Texas Instruments Incorporated (US), Microchip Technology Inc. (US), STMicroelectronics (Switzerland), TE Connectivity (Switzerland), Siemens (Germany), ABB (Switzerland), Honeywell International Inc. (US), Robert Bosch GmbH (Germany), TDK Corporation (Japan), Sensirion AG (Switzerland), Eaton (Ireland), Emerson Electric Co. (US), NXP Semiconductors (Netherlands), General Electric (US), Legrand (France), Balluff GmbH (US), Renesas Electronics Corporation (Japan), MEMSIC Semiconductor Co., Ltd. (China), Qualcomm Technologies, Inc. (US), Airmar Technology Corporation (US), Vishay Precision Group Inc. (US), Gill Sensors & Controls Limited (UK), and Murata Manufacturing Co., Ltd. (Japan). |
Smart Sensors Market Highlights
This research report categorizes the smart sensors market based on Type, Technology, Network Connectivity, Component, End-user Industry, and Region.
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By Type |
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By Technology |
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By Component |
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By Network Connectivity |
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By End-user Industry |
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Recent developments
- In September 2023, Robert Bosch GmbH (Germany) has acquired the assets of the US chipmaker TSI Semiconductors Corporation. The new company is called Robert Bosch Semiconductor LLC. With this acquisition, Bosch is establishing significant manufacturing capacity in an important market. Starting in 2026, the first chips will be produced on 200-millimeter wafers based on the innovative material silicon carbide (SiC). Bosch plans to invest some USD 1.5 billion to transform the Roseville site into a facility that produces and tests silicon carbide semiconductors, which are key building blocks for electric vehicles.
- In June 2023, Honeywell International Inc. (US) announced the DG Smart Sensor, a solution designed to enhance the efficiency and reliability of monitoring and controlling low-pressure combustion air and fuel gases. This product offers precise monitoring capabilities and embraces the digitalization trends aligned with Industry 4.0, providing an opportunity to improve combustion system performance and transform the operational dynamics for OEMs, end users, and system integrators.
- In July 2022, NXP Semiconductors (Netherlands) signed a MoU with Hon Hai Precision Industry Co., Ltd. (Taiwan) to jointly develop platforms for a new generation of smart connected vehicles. Hon Hai Precision Industry Co., Ltd. (Taiwan) will leverage NXP’s portfolio of automotive technologies and its longstanding expertise in safety and security to enable architectural innovation and platforms for electrification, connectivity, and safe automated driving.
Critical questions answered by this report:
What are the key strategies adopted by key companies in the smart sensors market?
Product launches, acquisitions, and collaborations have been and continue to be some of the major strategies the key players adopted to grow in the smart sensors market.
What region dominates the smart sensors market?
The Americas region will dominate the smart sensors market market.
What end-user industry segment dominates the smart sensors market?
Consumer Electronics segment is expected to dominate the smart sensors market.
Which sensor type segment dominates the smart sensors market?
The pressure sensor segment is expected to have the largest market size during the forecast period.
Who are the major smart sensors market companies?
Analog Devices, Inc. (US), Infineon Technologies AG (Germany), STMicroelectronics (Switzerland), TE Connectivity (Switzerland), and ABB (Switzerland).
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The study involved four major activities in estimating the current size of the smart sensors market —exhaustive secondary research collected information on the market and its peer and parent markets. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the total market size. After that, market breakdown and data triangulation were used to estimate the market size of segments and subsegments.
Secondary Research
Various secondary sources have been referred to in the secondary research process for identifying and collecting information important for this study. These secondary sources include high-speed data converter technology journals and magazines, annual reports, press releases, investor presentations of companies, white papers, certified publications and articles from recognized authors, and directories and databases such as Factiva, Hoovers, and OneSource.
Primary Research
Various primary sources from both supply and demand sides have been interviewed in the primary research process to obtain qualitative and quantitative information important for this report. The primary sources from the supply side included industry experts such as CEOs, VPs, marketing directors, technology and innovation directors, and related executives from key companies and organizations operating in the smart sensors market. After complete market engineering (including calculations regarding market statistics, market breakdown, market size estimations, market forecasting, and data triangulation), extensive primary research was conducted to gather information as well as to verify and validate the critical numbers arrived at.
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
In the complete market estimation process, both top-down and bottom-up approaches have been implemented, along with several data triangulation methods, to estimate and validate the size of the smart sensors market and other dependent submarkets listed in this report.
- Extensive secondary research has identified key players in the industry and market.
- In terms of value, the industry’s supply chain and market size have been determined through primary and secondary research processes.
- All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources.
Smart Sensors Market: Bottom-Up Approach
Smart Sensors Market: Top-Down Approach
Data Triangulation
After arriving at the overall market size from the estimation process explained above, the global market has been split into several segments and subsegments. Market breakdown and data triangulation procedures have been employed wherever applicable to complete the overall market engineering process and arrive at exact statistics for all segments and subsegments. The data has been triangulated by studying several factors and trends identified from both the demand and supply sides.
Market Definition
A sensor detects, measures, and controls physical properties such as light, humidity, motion, moisture, temperature, and pressure. It converts data such as light and sound into a practical format for the user. On the other hand, a smart sensor has built-in circuitry for a designer. For instance, the motion sensor has an operational amplifier (op-amp) and digital circuitry built into the sensor module, making it ready to use once plugged in. A smart sensor can produce an electrical output when combined with a sensing element, an analog interface circuit, an Analog-to-Digital Converter (ADC), and a bus interface under one housing. It is a combination of sensing elements with a microprocessor or microcontroller providing processing capabilities. A smart sensor is capable of multi-sensing, multi-tasking, and communication. The smart sensors market is expected to grow significantly during the forecast period, with consumer electronics and industrial automation being the major end-user industries. The growing popularity of IoT devices and the increasing need for energy conservation are among the major factors contributing to the market's growth. Since the circuitry of digital sensors is similar to that of smart sensors, all digital sensors are considered smart sensors for this study.
Key Stakeholders
- Raw material suppliers
- Component manufacturers and providers
- Sensor manufacturers and providers
- Original Equipment Manufacturers (OEMs)
- Technology solution providers
- Application providers
- System integrators
- Middleware providers
- Assembly, testing, and packaging vendors
- Market research and consulting firms
- Associations, organizations, forums, and alliances related to the smart sensor industry
- Technology investors
- Governments, regulatory bodies, and financial institutions
- Venture capitalists, private equity firms, and start-ups
- End users
Report Objectives
The following are the primary objectives of the study.
- To forecast the size of the smart sensors market, in terms of value, based on type, technology, component, end-user industry, and region
- To define, describe, and forecast the smart sensors market size, in terms of volume, based on type
- To describe and forecast the market, in terms of value, for various segments across four main regions: Americas, Asia Pacific, Europe, and Rest of the World (RoW)
- To provide detailed information regarding drivers, restraints, opportunities, and challenges influencing the growth of the market
- To study the complete value chain and related industry segments and conduct a value chain analysis of the smart sensors market landscape
- To strategically analyze the ecosystem, regulatory landscape, patent landscape, Porter’s Five Forces, import and export scenarios for products covered under HS code 902690 trade landscape, and case studies pertaining to the market under study
- To strategically analyze micromarkets1 with respect to individual growth trends, prospects, and their contributions to the overall market
- To analyze opportunities for stakeholders by identifying high-growth segments in the market
- To strategically profile the key players and provide a detailed competitive landscape of the smart sensors market
- To analyze strategic approaches adopted by the leading players in the smart sensors market, including product launches/developments and acquisitions
Available Customizations
With the given market data, MarketsandMarkets offers customizations according to a company’s specific needs. The following customization options are available for the report:
Company Information:
- Detailed analysis and profiling of additional market players (up to 5)
Generating Response ...
Growth opportunities and latent adjacency in Smart Sensors Market
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