Automotive Sensors Global Market Opportunities and Strategies to 2033

This report describes and explains the automotive sensors market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global automotive sensors market reached a value of nearly $28.53 billion in 2023, having grown at a compound annual growth rate (CAGR) of 9.3% since 2018. The market is expected to grow from $28.53 billion in 2023 to $53.21 billion in 2028 at a rate of 13.3%. The market is then expected to grow at a CAGR of 9.9% from 2028 and reach $85.33 billion in 2033.

Growth in the historic period resulted from the increased demand for passenger vehicles, strong economic growth in emerging markets, the rise in disposable income and the increase in demand for commercial vehicles. Factors that negatively affected growth in the historic period were limitations of sensors under challenging weather conditions and fluctuating prices of raw materials.

Going forward, the increasing automobile production, the growing adoption of electric vehicles, the increasing demand for safety features in automobiles, favorable government support and the growing demand for autonomous vehicles will drive the market. Factors that could hinder the growth of the automotive sensors market in the future include a lack of skilled workers.

The automotive sensors market is segmented by type into temperature sensors, pressure sensors, speed sensors, level/position sensors, magnetic sensors, gas sensors, inertial sensors and other types. The level/position sensors market was the largest segment of the automotive sensors market segmented by type, accounting for 26.7% or $7.61 billion of the total in 2023. Going forward, the pressure sensors segment is expected to be the fastest growing segment in the automotive sensors market segmented by type, at a CAGR of 15.4% during 2023-2028.

The automotive sensors market is segmented by vehicle type into passenger car, light commercial vehicle, heavy commercial vehicle and other vehicle types. The passenger car market was the largest segment of the automotive sensors market segmented by vehicle type, accounting for 65.3% or $18.64 billion of the total in 2023. Going forward, the light commercial vehicle segment is expected to be the fastest growing segment in the automotive sensors market segmented by vehicle type, at a CAGR of 13.8% during 2023-2028.

The automotive sensors market is segmented by technology into nano-electro-mechanical systems, micro-electro-mechanical systems and complementary metal-oxide-semiconductor. The micro-electro-mechanical systems market was the largest segment of the automotive sensors market segmented by technology, accounting for 80% or $22.82 billion of the total in 2023. Going forward, the nano-electro-mechanical systems segment is expected to be the fastest growing segment in the automotive sensors market segmented by technology, at a CAGR of 18.2% during 2023-2028.

The automotive sensors market is segmented by application type into body, powertrain, chassis and advanced driver assistance & autonomous driving systems (ADAS/AD). The advanced driver assistance & autonomous driving systems (ADAS/AD) market was the largest segment of the automotive sensors market segmented by application type, accounting for 39% or $11.14 billion of the total in 2023. Going forward, it is expected to be the fastest growing segment in the automotive sensors market segmented by application type, at a CAGR of 22.5% during 2023-2028.

Asia-Pacific was the largest region in the automotive sensors market, accounting for 40.4% or $11.54 billion of the total in 2023. It was followed by North America, Western Europe and then the other regions. Going forward, the fastest-growing regions in the automotive sensors market will be Asia-Pacific and North America, where growth will be at CAGRs of 15.7% and 13.3% respectively. These will be followed by Western Europe and Eastern Europe, where the markets are expected to grow at CAGRs of 11.1% and 8.9% respectively.

The global automotive sensors market is fairly concentrated, with a few large players operating in the market. The top ten competitors in the market made up to 37.7% of the total market in 2022. Robert Bosch GmbH was the largest competitor with a 11.4% share of the market, followed by Denso Corporation with 6.8%, Continental AG with 4%, Infineon Technologies AG with 2.8%, NXP Semiconductors N.V. with 2.7%, TE Connectivity Ltd with 2.2%, Aptiv Plc with 2.2%, Analog Devices Inc with 2%, Texas Instruments Incorporated with 1.8% and Sensata Technologies Holding Plc with 1.8%.

The top opportunities in the automotive sensors market segmented by type will arise in the level/position sensors segment, which will gain $7.18 billion of global annual sales by 2028. The top opportunities in the automotive sensors market segmented by vehicle type will arise in the passenger car segment, which will gain $15.95 billion of global annual sales by 2028. The top opportunities in the automotive sensors market segmented by technology will arise in the micro-electro-mechanical systems segment, which will gain $19.07 billion of global annual sales by 2028. The top opportunities in the automotive sensors market segmented by application type will arise in the advanced driver assistance & autonomous driving systems (ADAS/AD) segment, which will gain $19.61 billion of global annual sales by 2028. The automotive sensors market size will gain the most in China at $7.88 billion.

Market-trend-based strategies for the automotive sensors market include advancements in automotive image sensor technology for enhanced advanced driver assistance systems (ADAS), integration of radar sensors in in-cabin monitoring systems to enhance automotive safety and automation, use of artificial intelligence (AI) in automotive sensors for advanced in-cabin sensing, proliferation of innovative sensor products driving advancements in automotive technology and strategic partnerships and collaborations among market players to drive innovation and expansion in the market.

Player-adopted strategies in the automotive sensors market include focus on strengthening operational capabilities through the launch of new products and focus on enhancing business operations through strategic collaborations and partnerships.

To take advantage of the opportunities, the analyst recommends the automotive sensors market companies to focus on technological advancements for market leadership, focus on radar sensor integration for enhanced in-cabin monitoring, focus on AI integration for enhanced automotive sensor capabilities, focus on continuous innovation for market leadership, focus on pressure sensors for market expansion, focus on nano-electro-mechanical systems for market dominance, expand in emerging markets, focus on strategic collaborations for market expansion, focus on diversifying distribution channels for market expansion, provide competitively priced offerings, focus on strategic pricing strategies for market leadership, participate in trade shows and events, continue to use B2B promotions, focus on digital engagement for enhanced market visibility, prioritize technical webinars for thought leadership, focus on fast-growing applications such as advanced driver assistance & autonomous driving systems (ADAS/AD), focus on manufacturers of light commercial vehicle segment for optimal growth and target electric vehicle manufacturers.