The global proximity and displacement sensors market size was valued over USD 3 billion in 2014 and is expected to grow at a CAGR of around 9.5% to reach over USD 6 billion during the forecast period 2015-2022. A shift in trend towards industrial automation is primarily driving the global market towards growth. In addition, booming electronic gadgets market for smartphones, tablets, and play stations is one of the major factors driving the growth of the global market.
Moreover, rising demand for contactless sensing technology coupled with increasing adoption of the sensor integrated automotive security in automobiles is expected to uplift the market for proximity and displacement sensors. Furthermore, growing awareness towards rationalization for optimum energy consumption and affordable prices of the commercially available technologies are some other factors affecting the global market positively.
However, the requirement of high initial investment for implementation of integrated systems in automobiles industry is challenging the growth of the market. Moreover, the requirement of skilled professionals for deployment of the technology results in increased service cost to the customer. Thus, increased cost of the technology is hindering the growth especially in price sensitive markets such as developing countries in Asia Pacific and Latin America.
Inductive, photoelectric, capacitive, ultrasonic, magnetic, and LVDT are the widely used sensors. Photoelectric sensors accounted for the largest market share of around 38% in 2014. A Large share of the segment was mainly attributed to its wide application in a variety of industries. Moreover, photoelectric sensors are capable of sensing the presence, color, distance, size, shape and many more attributes of the target object. Thus, considering all the above-mentioned factors, the segment accounted for the largest market share in 2014.
Ultrasonic sensors segment is anticipated to show significant growth during the forecast period. Miniaturization of the commercially available technologies coupled with growth in integration is one of the major factors expected to boost the demand for ultrasonic sensors during the forecast period. The segment is expected to reach over USD 290 million with CAGR of around 21% during the forecast period.
Proximity and displacement sensors are applicable in various applications such as parking, ground proximity warning, vibration monitoring and measurement, anti-aircraft warfare, roller coasters, conveyor system, mobile devices, and assembly line testing.
Parking sensor systems were the largest revenue-generating vertical across the globe in 2014, and it is anticipated to maintain its leading position in 2022 as well. This segment is forecast to reach over USD 1.9 billion in 2022, at a CAGR of around 8% from 2015 to 2022. Growing concern about vehicle safety is primarily contributing to largest market share of parking sensors system segment.
The stakeholders for this market include automotive, pharmaceuticals, food-beverage, pulp-paper, elevators-escalators, manufacturing, metals-mining industry. The automotive industry was the largest revenue-generating segment in 2014, and it would continue to maintain its leading position in 2023. This segment is forecast to reach over USD 1.9 billion in 2022, growing at CAGR of around 10% during the forecast period. The bulk requirement of the sensors in this industry has contributed to largest revenue generation compared to other end-user segments of the market.
However, elevators and escalators would constitute highest CAGR of around 11% during the forecast period. This sector is forecast to reach over USD 760 million in 2022. Demand for sensors for elevators and escalators would grow with the growth of construction sector in the future. As a result, elevators and escalators segment is anticipated to show significant growth during the forecast period.
North America has witnessed significant technical advancements in industrial and manufacturing sectors. Subsequent adoption of automation technology has offered numerous opportunities for sensors’ market to grow at an exponential rate.
Presently, North American manufacturers who have adopted automation for their operations are facing solid rivalry from those manufacturers who have adopted labor-assisted operations in regions where the labor cost is low. To counter this, most of the North American manufacturers are shifting their manufacturing facilitates to the regions such as China, Malaysia, and Indonesia, where labor costs are comparatively lower. Their tendency to reduce domestic manufacturing facilities is having an adverse impact on automation utility sensor manufacturing industry in North America.
Major market participants present in the proximity and displacement sensors market are focusing on lowering manufacturing cost through shifting manufacturing facilities in emerging countries of Asia-Pacific. The major players operating in the global market include Eaton Corporation, OMRON Corporation, Honeywell International Inc., Panasonic Corporation, Pepperl+Fuchs GmbH, Standex Electronics GmbH, and Sharp Corporation.
This report has a service guarantee. We stand by our report quality.
We are in compliance with GDPR & CCPR norms. All interactions are confidential.
Design an exclusive study to serve your research needs.
Get your queries resolved from an industry expert.
"The quality of research they have done for us has been excellent..."
The recent COVID-19 pandemic that has been ravaging numerous countries across the globe has adversely affected the overall sensor, control, and automation industry. While the capital investments in the automation sector have been lethargic before the pandemic, they are expected to be put on hold or postponed for at least a year. However, the recent standstill in industrial manufacturing and production is anticipated to act as a wake-up call for the manufacturing sector on its reliance on human labor. This, in turn, is expected to highlight the advantages of robotics and automation helping a greater adoption in the post-pandemic period. As IoT, industrial automation, and digitalization are expected to become increasingly relevant to post-pandemic Tier 1 manufacturers, it may eventually turn into an opportunity especially in evolving supply chains. The report will account for Covid19 as a key market contributor.