Global Vehicle Emission Sensor Market - Forecasts from 2022 to 2027

The global vehicle emission sensor market is projected to grow at a CAGR of 2.01% during the forecast period to reach US$4.496 billion by 2027, from US$3.911 billion in 2020. An emission sensor, a highly sensitive electric device, is used to detect the proportion of oxygen in the emitted gas mixture. It is located in the exhaust pipe, where it detects and measures the concentration of the exhaust gas emitted by the internal combustion engine of automobiles. The vehicle emission sensors are divided into two types based on the type of emission gases they detect and measure: Nitric Oxide sensors, and Oxygen sensors, and others. Nitric Oxide is a by-product produced during fuel combustion and is a highly harmful pollutant. The Nitric Oxide sensors detect the presence of nitrogen dioxide in the exhaust gases and produce an electric signal corresponding to the concentration of nitrogen dioxide in the emissions. As the name implies, Oxygen sensors detect and measure the concentration of oxygen levels in the gas mixture. It helps to detect how much fuel is being combusted and adjust the air-to-fuel mixture ratio accordingly. These sensors act as a check to monitor the air-to-fuel mixture and then optimize its performance based on that performance. The other types of sensors include particular matter sensors, engine coolant matter sensors, and MAP/MAF sensors. These sensors help in keeping emission control and fuel economy in check. The market's growth is attributed to the increase in automobile demand and production and the rising pollution caused by automobile emissions.



The ever-increasing demand for automobiles and the alarming increase in pollution has significantly fuelled the vehicle emission sensor market.

Furthermore, in the past few years, the automobile industry has seen an increase in the adoption of electric vehicles, which heavily use emission sensors to conserve the environment. Electric cars help protect the environment by reducing greenhouse gas emissions and promoting renewable energy sources that tend to leave a lower carbon footprint. In September 2021, the Union Cabinet approved a Rs 26,058 crore production-linked incentive (PLI) scheme to accelerate the domestic manufacturing of electric and fuel cell vehicles in India. For example, in an effort to incentivize modern-day technologies and to fulfil the COP26 pledge to reduce carbon emissions to zero by 2070, India has begun aggressively promoting the adoption of electric vehicles. India has also aimed to switch 30% of private cars, 80% of two and three-wheelers, and 70% of commercial vehicles to electric vehicles by the year 2030, further increasing the market for vehicle emission sensors in the said country. With the aim of selling 5 million electric cars globally by 2030, Stellntis has collaborated with LG Energy  Solutions to invest about 4.1 billion dollars in a new facility in Canada, where the two will produce batteries for electric vehicles. Once the facility is all set up, the plant is expected to have an annual production of 45 gigawatt-hours, approximately. This initiative will also create more than 2,500 new jobs. Similar initiatives are taking place in several other countries across the globe.

Furthermore, the increasingly stringent emission norms and surging penetration of diesel vehicles have also propelled the automotive exhaust sensor market growth. According to WHO estimates, in 2021, 7 million people will die globally from various air pollution sources. Of those, 4.2 million die prematurely every year due to outdoor air pollution, while 3.8 million die from indoor air pollution. The implementation of euro VII, to be announced in 2022, is expected to have even more stringent regulations to reduce CO2 emissions. The Chinese government is also aggressively trying to curb emissions throughout the country. From January 1, 2021, and July 2021, all light-duty vehicles and high-duty vehicles, respectively, are required to meet the standards of 6a. The main objective of this norm was to remove thousands of tonnes of harmful pollutants from the country’s environment. Such norms have led to an increase in the demand for vehicle sensors. During the forecasted period, Asia in particular is anticipated to dominate a significant proportion of the market.

Increasing growth in the automobile industry in the Asia Pacific, particularly in India and China, is estimated to support the market growth during the projected period. 

According to OICA statistics, Asia Pacific produced about 4,67,32,785 units in 2021, with a 4% leap compared to 2020. In the Asia Pacific, China and India occupied the dominant positions. China produced about 25,225,242 units in 2021, showing a 3% increase in production compared to the previous year. At the same time, India had produced about 4,399,112 units in the same year. Following the Asia Pacific, America and Europe followed closely, with approximately 16 million production units.

Covid-19 Insights

The COVID-19 pandemic had a negative impact on the global vehicle sensor market. This is because the outbreak had a significant impact on the automotive industry, which led to a negative impact on the vehicle sensor industry as well. Few factors such as household income, epidemic severity, and travel vulnerabilities led to a decline in demand in the automobile industry which lowered the demand for vehicle sensor market from end-user industries. According to OICA, the number of units produced in 2021 fell to 77,621,582 units from 92,175,805 in 2020 worldwide. Overall, the year 2021 saw a decline of 15.8% in the production of motor vehicles globally.

Market Segmentation:

By Sensor Type

• O2 sensor
• NOx sensor

By Vehicle Type

• Passenger Vehicle
• Light Commercial Vehicle
• Heavy Commercial Vehicle

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Europe
• Germany
• France
• United Kingdom
• Italy
• Middle East and Africa
• Saudi Arabia
• Israel
• Asia Pacific
• China
• Japan
• South Korea
• India
• Others