Fuelling a $14.3 Billion Sensor Market by 2029

Sensors: The Key Driver of Automotive Innovation

Because the Twentieth-century introduction of semiconductors in vehicles, sensing applied sciences have steadily expanded. Initially geared toward enhancing powertrain effectivity, sensors like ABS, ESC, and airbags have grow to be indispensable on account of growing security priorities. Technological developments have transitioned these improvements from luxurious automobiles to mid-range and price range fashions, making a multi-billion-unit business. In 2023, 6.5 billion automotive sensors had been shipped globally, producing $9.3 billion in income. With a 7% income CAGR from 2023 to 2029, the market is anticipated to achieve $14.3 billion, with 8.8 billion sensors shipped worldwide. The automotive business is poised for enormous transformations in all 4 automotive domains:

1. Powertrain and Electrification: The business is shifting from inside combustion engine (ICE) automobiles, which constituted 91% of manufacturing in 2019, to electrified automobiles, anticipated to symbolize 43% of manufacturing by 2029. The Powertrain and Electrification sensor market will exceed $1.4 billion by 2029, rising at a 3% CAGR from 2023 to 2029. Electrification will drive essential modifications within the sensor panorama, creating new purposes and phasing out others.
2. ADAS and Security: Automobiles have gotten extra clever, with sensors like cameras, LiDARs, and radars enabling automobiles to grasp and react to their setting. The ADAS and Security section is projected to generate $8 billion in income by 2029, making it the most important section.
3. Infotainment and Telematics: This sector is pushed by elevated performance and in-cabin consolation, with prospects demanding higher leisure choices. It’s projected to realize a 7% CAGR from 2023 to 2029, surpassing $2.9 billion by 2029.
4. Chassis and Others: To boost passenger security, ship invaluable information to the ADAS computing unit, and eradicate hydraulic elements, sensor volumes are anticipated to develop at a 3% CAGR from 2023 to 2029. Income from this section is anticipated to achieve nearly $1.9 billion by 2029.

Developments in ADAS, autonomous driving, and electrification, alongside widespread sensor adoption, are set to rework automotive sensor expertise. It will result in substantial business reorganization and provide chain modifications, necessitating strategic enterprise planning and partnerships to capitalize on rising alternatives.

The Altering Automotive Market: Impacts on Sensor Producers

The expansion or decline of sensor producers will rely upon their strategic positioning throughout the market as automobiles more and more embrace electrification and superior driver help techniques (ADAS) and security options.

• ICE Functions: Suppliers of sensors utilized in conventional ICE purposes (e.g., engine strain sensing, emission management, engine administration techniques) will face declining demand. This impression will grow to be extra pronounced by the last decade’s finish, particularly with the 2035 ban on new ICE automobiles in Europe.
• New Prospects: Suppliers of MEMS strain sensors and fuel & particle sensors, equivalent to Bosch, TE Connectivity, NXP, and Infineon, will discover new alternatives in thermal runaway and CO2 sensing purposes. Stopping thermal runaway on the battery degree is essential for OEMs, and CO2 sensing is turning into a key in-cabin consolation function.
• Magnetic and Temperature Sensors: Suppliers like Allegro Microsystems, Melexis, Infineon, and Sensirion will see important alternatives. Monitoring present and temperature parameters is crucial for understanding EV efficiency, resulting in strong income progress for these gamers.

The elevated presence of ADAS and security parts will primarily impression firms concerned in picture, radar, and LiDAR sensors.

• Security Functions: As airbags and ESP grow to be customary in almost all automobiles, the growth of MEMS accelerometers and inertial combo/IMUs will rely upon automobile gross sales progress. This pattern is anticipated to generate substantial gross sales volumes for main gamers equivalent to Bosch, Murata, NXP, and STMicroelectronics.
• Picture and Radar Sensors: These sensors are projected to expertise important progress because of the increasing adoption of Autonomous Emergency Braking (AEB) options in semi-autonomous automobiles.

Projected Future Technological Developments Spanning All Automobile Domains

Although electrification and ADAS & security are main drivers, expertise will evolve in all automotive domains.

1. Powertrain and Electrification: Growing battery capacities and advancing 800V batteries will drive the adoption of magnetic (remoted) applied sciences for present sensing in parts like OBC, DC/DC converters, inverters, and energy modules. Magnetic sensors will exchange shunt sensors on account of their lack of galvanic isolation. Moreover, sustaining optimum battery temperature is essential for efficiency, security, and lifespan. Magnetic sensors on thermal valves will regulate cooling or heating fluids extra exactly, protecting sensor content material per BEV round $15 per automotive.
2. ADAS and Security: CMOS picture sensors will evolve to extend body charges, dynamic vary, and temperature resistance, assembly the wants of Tier-1s and OEMs. Radar sensors will advance with 4D imaging radar attaining a 1° angular decision. LiDAR expertise will enhance in vary, transitioning from avalanche photodiodes to extra delicate SPADs and SiPMs. The introduction of FMCW LiDAR by the top of the last decade may change the expertise panorama, with semiconductor content material for ADAS and Security sensors per automotive rising from $51 in 2023 to $82 in 2029.
3. Infotainment and Telematics: Integration of sensors for consolation options will enhance. MEMS sensors will enhance cellphone name high quality and allow noise-canceling functionalities. Capacitive sensors will exchange bodily buttons, and radar expertise will likely be used for occupant monitoring. Environmental sensors will improve in-cabin air high quality.
4. Chassis and Others: Improvements will give attention to brake and drive-by-wire applied sciences to eradicate hydraulic parts. Magnetic sensors will likely be important for pedal place sensing and motor place monitoring. Clever TPMS modules will measure tire strain and supply insights into tire high quality and automobile load. Moreover, purposes for monitoring driver’s seating place and making slight changes throughout prolonged journeys will emerge.

Citations from Yole Group