According to our latest market study, titled "Smart Sensor Market Forecast to 2028 - COVID-19 Impact and Global Analysis - by Technology, Type, and End-User Industry," the market is expected to grow from US$ 31,731.1 million in 2021 to US$ 77,747.6 million by 2028. It is estimated to grow at a CAGR of 13.7% between 2021 to 2028.
A smart temperature sensor comprises a temperature sensor, bias circuitry, and an analog-to-digital converter (ADC). It is utilized in scenarios where there is a risk of high temperatures, danger, or in hard-to-reach measurement areas. Its purpose is to monitor temperature to ensure that a process stays within a particular range, thus ensuring safe usage or fulfilling a necessary requirement. The increasing demand for low-cost, high-performance, and reliable sensors is driving the growth of the smart sensor market, leading to the development of new technologies like micro-and nanotechnology. Stick-on or printed sensors can be utilized as labels to measure physical factors like humidity, temperature, and gas pressure. These sensors are compact, affordable, and easy to use, making them suitable for applications in various sectors, including automobiles, medical devices, homes, food processing, chemical, and environmental monitoring.
The primary application of temperature sensors is in smart thermostats, which are increasingly becoming popular among consumers. This trend, coupled with incremental technology breakthroughs and enhanced accessibility, is expected to contribute to the rapid expansion of the smart home market, leading to a growing demand for smart sensors in the global smart sensor market. Market players such as Analog Devices, Inc., STMicroelectronics, TE Connectivity Corporation, Microchip Technology Inc., and NXP Semiconductors offer a diverse range of temperature and humidity sensors to cater to the needs of the smart sensor market.
The smart sensors market has a high demand for humidity sensors (also known as hygrometers) that detect, measure, and report moisture and air temperature. Relative humidity is an important factor in seeking comfort, and humidity sensors have a broad range of applications. These sensors are used in houses to monitor and prevent diseases caused by humidity, residential HVAC systems, meteorological stations, offices, vehicles, humidors, museums, industrial facilities, and greenhouses.
Geographically, the smart sensor market is segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). In 2021, North America held the largest share of the global smart sensor market.
Analog Devices Inc., Infineon Technologies Inc., STMicroelectronics, TE Connectivity, Microchip Technologies, NXP Semiconductor, Siemens AG, ABB Ltd., Robert Bosch GmbH, and Honeywell International are some of the key players in the smart sensor market. The overall market was also analyzed, along with several other players in the smart sensor market.
The smart sensor market in Europe is experiencing growth due to the rising demand for electric vehicles (EVs) that offer longer ranges and increased levels of self-driving and self-parking features. EV manufacturers in Europe are more inclined to incorporate highway assist features, rather than completely autonomous driving. The UK government has invested US$20.75 million (Euro ?19 million) in funding for trials of driverless cars on UK roads, which is expected to keep the country at the forefront of automotive technology and the smart sensor market.
According to the International Federation of Robotics (IFR), South Korea, Singapore, Japan, Germany, Sweden, Hong Kong, the US, Chinese Taipei (Taiwan), China, and Denmark have the most automated manufacturing industries in 2020. In South Korea, robots can perform various tasks, including educational, industrial, domestic, and robotic arms, among others. Robotics is also quite popular in Japan, with a focus on advancing and adopting robots for economic and social reasons, contributing to the growth of the smart sensor market.
Impact of COVID-19 Pandemic on Smart Sensor Market
The initial phase of Covid-19 had a detrimental effect on the stability of Europe's economy and negatively impacted numerous smart sensor companies. The pandemic created significant supply chain risks, which included limitations on the business activities of suppliers and customers, regulatory restrictions imposed by authorities at regional, national, or international levels, and a shortage of key employees. As a result, many governments suspended the production of smart sensors, impacting businesses and their global suppliers and customers. This led to a decrease in the availability of raw materials and components, resulting in reduced sales volumes in the smart sensor market. The situation potentially worsened as the pandemic continued throughout 2020.
In addition, the global travel restrictions resulting from the pandemic may cause delays in many mergers and acquisitions. The coronavirus outbreak may significantly impact the Group's business operations, financial condition, liquidity, cash flows, and earnings. However, due to a decrease in the number of reported Covid-19 cases and an increase in consumer preference for personal vehicles, there has been a rise in vehicle sales, positively impacting the smart sensor market.
The size of the smart sensor market has been determined based on primary and secondary sources. Thorough secondary research has been conducted using both internal and external sources to collect qualitative and quantitative information related to the smart sensor market. Furthermore, multiple primary interviews have been conducted with industry experts and commentators to verify the data and obtain further analytical insights into the subject. Participants in these processes include industry experts like VPs, business development managers, market intelligence managers, national sales managers, as well as external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the smart sensor market.