Our recent market analysis, titled "Smart Sensor Market Forecast to 2028 - COVID-19 Impact and Global Analysis - by Technology, Type, and End-User Industry," indicates that the smart sensor market is projected to expand from US$ 31,731.1 million in 2021 to US$ 77,747.6 million by 2028. This growth represents a compound annual growth rate (CAGR) of 13.7% from 2021 to 2028.
A smart temperature sensor consists of a temperature sensing element, bias circuitry, and an analog-to-digital converter (ADC). These sensors are essential in environments where high temperatures pose risks or in locations that are difficult to access for measurement. Their primary function is to monitor temperature levels to ensure that processes remain within specified limits, thereby promoting safety and compliance with necessary standards. The rising demand for affordable, high-performance, and dependable sensors is propelling the growth of the smart sensor market, which is fostering the innovation of new technologies, including micro- and nanotechnology. Stick-on or printed sensors can serve as labels to monitor various physical parameters such as humidity, temperature, and gas pressure. These compact, cost-effective, and user-friendly sensors are applicable across multiple industries, including automotive, healthcare, residential, food processing, chemical, and environmental monitoring.
Smart thermostats are a primary application for temperature sensors, gaining popularity among consumers. This trend, along with ongoing technological advancements and improved accessibility, is anticipated to significantly boost the smart home market, thereby increasing the demand for smart sensors globally. Key market players such as Analog Devices, Inc., STMicroelectronics, TE Connectivity Corporation, Microchip Technology Inc., and NXP Semiconductors provide a wide array of temperature and humidity sensors tailored to meet the requirements of the smart sensor market.
Humidity sensors, also referred to as hygrometers, are in high demand within the smart sensor market. These devices are designed to detect, measure, and report moisture levels and air temperature. Relative humidity plays a crucial role in ensuring comfort, and humidity sensors find applications in various settings. They are utilized in residential environments to monitor and mitigate humidity-related health issues, in HVAC systems, meteorological stations, offices, vehicles, humidors, museums, industrial facilities, and greenhouses.
The smart sensor market is geographically divided into regions including North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). In 2021, North America dominated the global smart sensor market.
Prominent players in the smart sensor market include Analog Devices Inc., Infineon Technologies Inc., STMicroelectronics, TE Connectivity, Microchip Technologies, NXP Semiconductor, Siemens AG, ABB Ltd., Robert Bosch GmbH, and Honeywell International. The overall market landscape has been thoroughly analyzed, encompassing various other participants in the smart sensor sector.
In Europe, the smart sensor market is witnessing growth driven by the increasing demand for electric vehicles (EVs) that provide extended ranges and enhanced self-driving and self-parking capabilities. European EV manufacturers are focusing on integrating highway assist features rather than pursuing fully autonomous driving. The UK government has allocated US$20.75 million (approximately Euro 19 million) to fund trials for driverless vehicles on UK roads, positioning the country as a leader in automotive technology and the smart sensor market.
As reported by the International Federation of Robotics (IFR), countries such as South Korea, Singapore, Japan, Germany, Sweden, Hong Kong, the US, Chinese Taipei (Taiwan), China, and Denmark had the most automated manufacturing sectors in 2020. In South Korea, robots are employed in diverse roles, including educational, industrial, domestic, and robotic arms. Japan also has a strong focus on robotics, emphasizing the advancement and adoption of robots for economic and social benefits, which contributes to the growth of the smart sensor market.
Impact of COVID-19 Pandemic on Smart Sensor Market
The onset of the COVID-19 pandemic adversely affected the stability of Europe?s economy and had a negative impact on numerous smart sensor companies. The pandemic introduced significant supply chain challenges, including disruptions to the operations of suppliers and customers, regulatory restrictions imposed by authorities at various levels, and a shortage of essential personnel. Consequently, many governments halted the production of smart sensors, affecting businesses and their global supply chains. This led to a decline in the availability of raw materials and components, resulting in decreased sales volumes within the smart sensor market. The situation was exacerbated as the pandemic persisted throughout 2020.
Moreover, global travel restrictions due to the pandemic may have caused delays in numerous mergers and acquisitions. The outbreak of the coronavirus could significantly influence the business operations, financial health, liquidity, cash flows, and earnings of companies in the sector. However, as the number of reported COVID-19 cases declined and consumer preferences shifted towards personal vehicles, vehicle sales began to rise, positively impacting the smart sensor market.
The size of the smart sensor market has been assessed using both primary and secondary sources. Comprehensive secondary research was conducted utilizing internal and external resources to gather qualitative and quantitative data related to the smart sensor market. Additionally, multiple primary interviews were held with industry experts and commentators to validate the data and gain further analytical insights. Participants in these discussions included industry professionals such as VPs, business development managers, market intelligence managers, national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the smart sensor market.