Automotive Sensors Market Analysis

Sensors are devices that detect changes in an environment and respond accordingly to the given input. Automotive sensors are used in a range of applications including engine management, fuel level detection, safety, and human-machine interface (HMI). The global automotive sensors market has been categorized as a part of the global auto parts and equipment market. The global auto parts and equipment market includes manufacturers of parts and accessories for automobiles and motorcycles.

The global automotive sensors market is expected to grow at a CAGR of around 7% through 2024. The passenger car segment dominates the global automotive sensors market by application, primarily owing to the rapid rise in the number of electronic components and features in passenger cars. North America is the key contributing region in the global automotive sensors market. Technological advances in the production and design of sensors and the high demand for automatic transmission vehicles in North America are expected to aid market growth in the region during the forecast period. Product innovations such as biometric sensor-based car locks and keyless ignition systems are expected to characterize the growth of the global automotive sensors market during the forecast period. 

Many factors are expected to influence growth in the global automotive sensors market during the forecast period. Our analysis identifies the following factors to be driving the growth of the global automotive sensors market:

Rising electronic content within automobiles

Automotive systems such as vehicle infotainment systems, automotive driver assist systems, automotive telematics, and safety features are undergoing radical changes. Advances in transmission and safety systems are driving the adoption of automatic transmission systems, anti-pinch power windows, and rain-sensing wipers, among others. The increasing use of electronic components will result in a corresponding increase in the number of actuators used in typical vehicles. Thus, such factors will accelerate the growth of the automotive sensors market during the forecast period.

Increasing demand for automatic transmission vehicles

Automatic transmission vehicles, especially passenger cars, are gaining traction in the global market. One of the major differentiating factors for autonomous vehicles is the integration of sensors, processors, and actuators. The degree of driver intervention in an autonomous vehicle varies based on the level of autonomy, which is largely dependent on the level of integration of sensors and actuators. Vehicles geared with automatic transmission systems enable effortless driving, and congested stop-and-go driving conditions in urban areas worldwide are encouraging customers to opt for automatic transmission vehicles. The technology eliminates the use of the automotive clutch and gearshifts, and this removes driving fatigue. The increasing level of autonomy in such vehicles is expected to accelerate the demand for sensors.

Government mandate for emission norms and safety features

A rising number of automobile-related accidents per year has compelled governing bodies to implement standards and regulations for mandating the use of certain safety features within modern vehicles. The addition of electronic safety features such as antilock braking systems, adaptive cruise control, airbag systems, and automatic emergency braking systems will increase the amount of power required for operations within vehicles. Additionally, the rising focus towards improving the fuel efficiency of the vehicle is increasing because of the emission norms. This increases the demand for automotive sensors. A few of the emission norms which impact the automotive sensors market include Euro VI emission norms (EU member states) and Bharat Stage VI emission norms (India).

Meanwhile, the vendors operating in the market face numerous challenges in increasing their sales and improving profitability. Some of those challenges are:

High rate of product recalls associated with automotive sensors

Recall of products due to defective components or improper assembly is common in the automotive industry, which adds up to the cost of the manufacturers and suppliers in the upstream value chain of the manufactured product. The add-on cost due to recall of defective sensors is a challenge to the manufacturers, which affects the associated markets as well. Recent examples of product recall due to sensor failure include BMW’s recall of over 33,600 vehicles to replace a variant of an airbag sensor, and Honda’s recall of a total of over 22,834 vehicles due to suspected sensor failure. 

 Risk of data security issues

With the increase in electronic content per vehicle, connections between sensors and cross-connections among different systems add to the sophistication of vehicle systems. Subsequently, on-car electronics are expected to process higher volumes of data. The rapid growth of the internet of things (IoT) may lead to a higher availability of connected cars, and this raises the risk of a breach in electronic security. A security breach or electronic disruption may pose several risks to the occupant.

The global automotive sensors market can be segmented into the following:

By sensor type

• Engine/e-motor sensors
• Climate sensors
• Safety sensors
• Brake sensors
• Battery sensors
• Powertrain sensors
• Pressure sensors
• Position sensors
• Speed sensors
• Others

By application

• Powertrain
• Chassis
• Engine
• Others

By vehicle type

• Passenger cars
• Commercial vehicles

By region

• North America
• Europe
• Asia Pacific (APAC)
• South America
• Middle East and Africa (MEA)

The global automotive sensors market is fragmented with the presence of several international and regional players. We provide a detailed analysis of around 25 vendors operating in the global automotive sensors market, including some of the prominent vendors such as Robert Bosch LLC, Continental AG, DENSO Corp., Analog Devices Inc., and Delphi Automotive plc.  Investments in research and development (R&D), expansion of production facilities, and new product launches are among the strategies adopted by manufacturers in the global automotive sensors market.

• DENSO Corp. launched a new standard vision sensor that detects pedestrians at night, cyclists, road signs, driving lanes and other road users. The vision sensor works in conjunction with a millimeter-wave radar sensor and allows automobiles to automatically activate emergency braking when obstacles are identified.
• Robert Bosch LLC launched a vehicle motion and position sensor that allows automated vehicles to precisely determine their position. The sensor includes a high-performance receiver unit for global navigation satellite system (GNSS) signals, which helps the vehicle to accurately determine its absolute position.
• Continental AG, through its Continental Urban mobility Experience (CUbE) range of self-driving cars, launched its new radar system for driverless vehicles. The vehicle can generate a 360-degree image of its environment by combining the data from different sensor technologies. The system is equipped with a total of seven radar sensors, with each radar sensor capable of detecting the vehicle’s environment within a radius of up to 200 meters.
• Continental AG announced plans to expand production lines at its production facility in Manesar, India. Through the addition of new production lines, the company aims to produce speed sensors at its plant to meet the growing demand caused by recent safety and emission legislations in India.

Backed with competitive intelligence and benchmarking, our global automotive sensors market research reports are designed to provide entry support, customer and M&A assessment, as well as go-to-market strategy support.