Global Market Size, Forecast, and Trend Highlights Over 2025-2037
Automotive Sensors Market size was over USD 34.95 billion in 2024 and is anticipated to cross USD 224.97 billion by 2037, witnessing more than 15.4% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of automotive sensors is estimated at USD 39.52 billion.
The growing popularity of electric vehicles along with stringent regulations to limit carbon emissions has resulted in increased sales of electric cars in various regions. For instance, in 2020, electric car sales surpassed 2.8 million for the first time, an increase of 38% over the previous year. It is projected that ~280 million electric cars will be on the road by 2030, representing 62% of new car sales compared with 4.5% in 2020.
The automotive sensors capture, monitor, and deliver information, which helps to evaluate the performance of the vehicle. They are made of cobalt and nickel semiconductors. Sensors are used in automobiles to improve vehicle performance, safety, and comfort for passengers. A silicon wafer is used for fabricating these sensors, which are based on integrated circuit (IC) fabrication technology. Increasing vehicle manufacturing along with rising research and development expenditures by companies in automobile vehicles are expected to drive global automotive sensors market growth. The Ford Motor Company expects to spend USD 5 billion on driverless cars by 2023. Moreover, government regulations relating to safety & emissions reduction, increasing disposable income, increased demand for adaptive cruise control systems (ACCS), usage of pressure sensors along with consumers' preference for safety features in vehicles are other factors expected to drive global market during the forecast period.
Automotive Sensors Sector: Growth Drivers and Challenges
Growth Drivers
- Growing Number Of Road Accidents Around The World - According to the United States Department of Transportation, in 2020, approximately 2.28 million people suffered injuries in motor vehicle accidents, up from 2.74 million in 2019. Also, a total of 38,824 people died in road accidents in the United States in 2020. As a result of the increasing number of road accidents around the world, autonomous emergency braking systems (AEBS) and other safety sensors are becoming increasingly important to vehicles in order to prevent such incidents from happening. Increasing car cash accident mortality rate, demand for fuel-efficient commercial vehicles, and sensorization of automobiles are expected to expand global automotive sensors market size during the forecast period.
- Developments And New Product Launches In The Sensor Industry - For instance, Allegro MicroSystems, Inc announced in June 2022 at the Sensors Converge Conference in San Jose, California, the launch of its new linear magnetic position sensors for automotive applications, the A33110 and A3115. In addition to ensuring high levels of accuracy, these sensors offer superior performance to steering, braking, and transmissions in advanced driver assistance systems (ADAS).
- Increase In Sales of Luxury Cars Worldwide - It was observed that there were 16,500 luxury vehicles sold in India from January-May 2022, a 53% increase compared to 10,500 units sold in the preceding year.
- Rapid Growth In The Automobile Industry- For instance, the growth in the Indian automotive industry is anticipated to reach USD 250-280 billion by the end of year 2026. Also, the automobile industry's purchasing managers' index (PMI) was higher than 51% in July 2022 than the overall manufacturing industry in China.
- Rising Demand for Self-Driving Cars and Autopilot Technology- For instance, the self-driving vehicle industry is expected to grow by 15% annually. A total of 65% of all passenger vehicles in China will be automated by 2040. Also, in the U.S., 34% of drivers say self-driving vehicle features make driving safer.
Challenges
- Inadequate Aftermarket for Automotive Sensors
- Risks Associated with Autonomous Vehicles in terms of Safety and Security
- Lack of Adoption of Automotive Sensors in Small Vehicles
Automotive Sensors Market: Key Insights
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
15.4% |
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Base Year Market Size (2024) |
USD 34.95 billion |
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Forecast Year Market Size (2037) |
USD 224.97 billion |
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Regional Scope |
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Automotive Sensors Market Segmentation
The global automotive sensors market is segmented and analyzed for demand and supply by vehicle type into passenger cars, light motor vehicle (LMV), and heavy motor vehicle (HMV). Among these segments, the passenger cars segment is anticipated to capture the largest market size in the global market owing to the high demand for automobiles worldwide and the increasing production rate of passenger cars. With the implementation of stringent regulations mandating automotive sensors in vehicles, sensor installation demand is expected to increase exponentially in passenger cars. Using automotive sensors in passenger cars enhances car performance, improves vehicle safety, and reduces vehicles' carbon emissions. Moreover, the rising purchasing power of consumers along with the escalating production of passenger cars worldwide is expected to drive segment growth during the forecast period. For instance, the global production of passenger cars accounted for nearly 55 million in 2021. In addition, a total of approximately 3,650,000 passenger vehicles were manufactured in India during the year 2021-22.
Our in-depth analysis of the global market includes the following segments
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By Sensor Type |
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By Vehicle Type |
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By Application |
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By Sales Channel |
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Customize this ReportAutomotive Sensors Industry - Regional Synopsis
APAC Market Statistics
Regionally, the global automotive sensors market is studied into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. Asia Pacific industry is poised to hold largest revenue share by 2037, backed by rapid industrialization, and rising per capita income. Moreover, strict vehicle safety laws and the increasing consumer demand for self-driving cars are expected to encourage the installation of sensors in cars manufactured in the region.
Furthermore, the rising production and sales of electric passenger cars and electric vehicles (EVs) in the region are expected to drive the market in the region. For instance, in China electric car sales are expected to reach around 6 million by the end of 2022. A total of 3.2 million electric vehicles were sold in China in 2021, up 150% from the previous year.
Companies Dominating the Automotive Sensors Landscape
- Avago Technologies
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Delphi Automotive LLP
- Casco Automotive Groups
- Allegro MicroSystems, Inc.
- CTS Corporation
- Infineon Technologies AG
- GE Measurement & Control Solutions
- Analog Devices Inc.
- Denso Corporation
- Curtiss-Wright
In the News
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October 27, 2021: A new automotive current sensor has been unveiled by Infineon Technologies AG - the XENSIV TLE4972. With Infineon's well-proven Hall technology, this coreless current sensor measures current with precision and stability
Author Credits: Saima Khursheed
- Report ID: 274
- Published Date: Dec 23, 2024
- Report Format: PDF, PPT
