Automotive Powertrain Sensors Market Outlook - Forecast Trends, Market Size, Share and Growth Analysis Report (2025-2034)

The global automotive powertrain sensors market reached a value of USD 20.60 Billion in 2024. The market is expected to grow at a CAGR of 6.40% during the forecast period of 2025-2034 to attain a value of USD 38.31 Billion by 2034. The market is influenced by rowing adoption of electric and hybrid vehicles, rising demand for fuel efficiency, and stringent emission regulations.

Automotive Powertrain Sensors Market Analysis

An automotive powertrain system consists of several modules and each module function with different types of sensors. The powertrain sensors provide information necessary for engine management and transmission control, such as measurements of the air mass, pressure, speed, and other vehicle performance parameters. The electronic control units require these measurements to ensure that the drive functions in the vehicle are set perfectly.

The growing demand for luxury vehicles and electric vehicles with multiple sensors is leading to the increasing sales and production of automobiles, which is propelling the growth of the automotive powertrain sensors industry. In addition, the powertrain sensors work with other components of the powertrain system to improve energy efficiency and consequently reduce emissions.

For instance, the onboard sensors are employed in autonomous driving/driver assistance systems proposed by Hitachi Automotive Systems to acquire information about the preceding vehicle. The system then uses the information obtained about the conditions in front of the vehicle to formulate a driving plan for reducing fuel consumption, thereby creating fuel economy.

Automotive Powertrain Sensors Market Growth

The market is experiencing substantial growth, driven by the increasing demand for vehicle performance, fuel efficiency, and emission control. As automotive manufacturers focus on producing environmentally friendly, high-performance vehicles, the need for advanced powertrain sensors that monitor key parameters like temperature, pressure, speed, and fuel consumption has surged. The growing adoption of electric and hybrid vehicles, alongside the shift towards autonomous driving technology, further fuels the automotive powertrain sensors development.

Additionally, the rising trend of connected vehicles and the integration of Internet of Things (IoT) technology are creating new opportunities for powertrain sensors, contributing to market expansion.

Key Trends and Developments

Favourable government policies, innovations in the sensors, and demand for green sensors are some key trends aiding the market growth.

September 2024

LEM, an electrical measurement technology specialist, announced the launch of a new single monitoring unit family which is compatible with all types of EV technologies. The launch of a versatile monitoring unit compatible with all types of electric vehicle technologies expands the potential application of powertrain sensors, increasing demand for advanced sensor solutions in the EV sector.

September 2024

Allegro MicroSystems, Inc., a leader in power and sensing solutions, announced the launch of two new XtremeSense™ TMR sensors which can streamline high-power density designs. The introduction of high-performance TMR sensors for high-power density designs enhances the efficiency and precision of powertrain monitoring, driving automotive powertrain sensors market growth as automotive manufacturers adopt these advanced sensing solutions.

June 2024

Citroen, the France-based automaker in automotive powertrain sensors market, announced the launch of the Euro-spec C3 Aircross in Europe, which is equipped with petrol, hybrid, and electric powertrains. Citroen’s launch of a multi-powertrain vehicle (petrol, hybrid, and electric) increases demand for powertrain sensors that monitor the performance and efficiency of various powertrains, boosting the market for sensors in versatile automotive platforms.

March 2024

Toyota announced the launch of the Innova Hycross in India in 2023 which is equipped with a 2.0-litre naturally aspirated petrol motor, whereas the hybrid variant is powered by a 2.0-litre petrol-hybrid engine creating opportunities for sensors. The introduction of Toyota's hybrid variant with advanced powertrains creates additional opportunities for powertrain sensors to monitor and optimise engine and battery performance in hybrid vehicles, contributing to market growth.

Favourable Government Policies and Regulations

The stringent government regulations to reduce vehicular emissions for a carbon-free environment are contributing to the steady growth of the market. For instance, as per the Corporate Average Fuel Economy (CAFE) Standards, there are set standards for how far a vehicle can travel on a gallon of fuel can. This regulation is mainly applied to passenger cars and light trucks and aims to enhance the efficiency of vehicles.

As per the automotive powertrain sensors market dynamics and trends, China’s Ministry of Ecology and Environment released the final rule for the China VI emissions standard for heavy-duty vehicles in 2018, which allowed them to regulate both light and heavy-duty vehicles. This regulation was expected to be implemented in several phases, to reach full implementation on July 1, 2023, and reduce nitrogen oxide and particulate matter emissions by 70%. Both of these standards were expected to boost the demand for sensors that can regulate vehicle performance and improve its efficiency.

Innovations in the Sensors

Further, the advancements in sensor technology and the efforts taken by leading market players to introduce powertrain sensors of optimum performance are projected to enhance the market in the forecast period. Some of these innovations include the miniaturisation of sensors which can improve their precision and performance and contribute to the automotive powertrain sensors market revenue. Moreover, the powertrain sensors are used for diagnostic services to detect the failure of components and prevent possible car breakdowns, thus fuelling the market growth.

Smart sensors are also finding rising usage in the market as they can be used for real-time data processing. Around 21.6% of new car registrations in 2022 were electric vehicles, with a total of two million new registrations, whereas the number of new electric van registrations reached a share of 5.5% in 2022. Norway, Sweden, and Iceland were the top three countries for new EV registration in the region, which boosted the demand for specialised powertrain sensors for EVs.

Demand for Green Sensors

There is an increased demand for developing eco-friendly sensors which can contribute to fuel efficiency and reduce greenhouse emissions. Some of these sensors include ammonia sensors and NOx sensors which can align with sustainability goals and stringent environmental standards and enhance the automotive powertrain sensors market value.

As per the data by the United States Environmental Protection Agency, an average passenger vehicle can emit around 4.6 metric tons of CO2 per year with an emission of 400 grams of CO2 per mile. Vehicles can also produce methane and nitrous oxide, along with carbon dioxide, from the tailpipe and all vehicles can emit hydrofluorocarbon (HFC) from leaking air conditioners. This has necessitated the demand for eco-friendly sensors that can be critical in reducing emissions. For instance, The EU has plans to achieve a 90% reduction in greenhouse gas emissions from transport by 2050, which requires the demand for green sensors.

Usage of Sensors in Vehicles

Sensors in the vehicles are readily integrated with connected vehicle systems to monitor fuel efficiency, performance, and predictive maintenance. As per the market reports, around 96% of new vehicles sold globally are expected to be connected by 2030, which creates a lucrative demand for specialised powertrain sensors for connected vehicles, boosting the demand of automotive powertrain sensors market.

Autonomous and connected vehicles have been gaining popularity in the market and have fuelled the demand for position sensors, speed sensors, and torque sensors, among others, which offer precise control and real-time data processing for advanced driver assistance systems such as adaptive cruise control and lane-keeping assistance, among others. For instance, as per the 3 Years of the AAA LongROAD Study, the presence of one or more ADAS in the vehicles of the study participants increased from 59.0% to 72.0% in the three-year duration, increasing market growth opportunities.

Automotive Powertrain Sensors Market Trends

As the automotive industry increasingly adopts electric and hybrid powertrains, there is a growing demand for advanced sensors to optimise vehicle performance and battery management in automotive powertrain sensors market. These vehicles require sensors to monitor various parameters such as motor speed, torque, and temperature to ensure efficient energy use and prolong battery life.

Autonomous vehicles require a range of sensors to ensure safety, efficiency, and performance. Powertrain sensors play a crucial role in the seamless operation of autonomous systems by monitoring vehicle speed, engine status, and drivetrain performance in real-time. The integration of sensors with AI systems for predictive maintenance and autonomous driving features is expanding, which drives demand in the market.

Automotive Powertrain Sensors Market Restraints

Automotive powertrain sensors, particularly in electric and hybrid vehicles, are costly due to the need for advanced materials and technologies. This situation impacts manufacturers, who have to deal with high production costs, as well as consumers, who must deal with higher vehicle prices. For instance, geopolitical tension caused by Russia Russia-Ukraine war has led to sanctions on Russia and ultimately led to gas shortages that can affect ICE vehicles and ultimately automotive powertrain sensors demand forecast.

As vehicle design becomes more complex, especially with the increasing adoption of electric and hybrid models, the challenge of integrating multiple sensors into the powertrain system becomes more significant. For instance, these advanced systems require precise synchronisation of various sensors such as those that monitor temperature, pressure, and position, creating further challenges for manufacturers in ensuring smooth operation while keeping integration costs low.

Automotive Powertrain Sensors Industry Segmentation

“Automotive Powertrain Sensors Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Sensor Type

• Temperature Sensors
• Thermocouple
• Thermistor
• Silicon
• Position Sensors
• Capacitive
• Inductive
• Magnetic
• Exhaust Sensors
• Lambda/ Oxygen Sensors
• Nitrogen Sensors
• Soot Sensors
• Ammonia Sensors
• Knock Sensors
• Speed Sensors
• Torque Sensors
• Pressure Sensors
• Fluid Concentration Sensors
• Others

Market Breakup by Powertrain System

• Engine Management Sensors
• Transmission Management Sensors
• Power Steering Sensors

Market Breakup by Vehicle Type

• Internal Combustion Engines
• Passenger
• Light Commercial Vehicles
• Heavy Commercial Vehicles
• Electric Vehicles
• Battery Electric Vehicles
• Fuel Cell Electric Vehicles
• Plug-in Hybrid Electric Vehicles
• Hybrid Electric Vehicles
• Others

Market Breakup by Propulsion Type

• Engine
• Electric Battery

Market Breakup by Fuel Type

• Diesel
• Gasoline

Market Breakup by Sales Channel

• OEMs
• Aftermarket

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Market Analysis by Sensor Type

The growing demand for hybrid electric vehicles and electric vehicles due to their multiple advantages is leading to the use of silicon temperature sensors, thereby propelling the market growth of automotive powertrain sensors. The silicon temperature sensors can maintain accuracy and higher linearity over a wide range of temperatures. It offers the option of on-chip integration with electronic circuits to have an absolute temperature measurement. In addition, the silicon sensor possesses alert triggering functionality to make control operations more efficient. Moreover, they can be implemented easily at lower costs, which boosts the automotive powertrain sensors demand.

The position sensors also play a critical role in maintaining the power train systems of electric and hybrid electric vehicles. They help measure speed, velocity, and angle, during critical operations such as electric power steering. In addition, there are numerous advantages of position sensors like more sensitivity to detect the slightest change, an integrated digital output, low noise at the input, and high bandwidth for speed sensing.

Market Analysis by Powertrain Subsystem

Engine management sensors account for a significant automotive powertrain sensors market share due to the critical function of engine management in controlling fuel efficiency, emissions, and the vehicle's overall performance. Sensors in this category such as oxygen sensors, temperature sensors, and pressure sensors, are essential for optimising combustion processes and adhering to strict emissions standards. As the transition to vehicle electrification continues, engine management continues to gain popularity in both traditional internal combustion engines (ICE) and hybrid vehicles, resulting in an increasing demand for advanced engine sensors.

Market Analysis by Vehicle Type

Internal Combustion Engines (ICE) hold a substantial share of the market due to the growing prevalence of traditional ICE vehicles in the global automotive sector, particularly in regions where the adoption of EVs is progressing more slowly. The complex design of ICE powertrains requires a wide range of sensors for proper management of engine, transmission, and exhaust systems, which in turn drives up the demand for these sensors.

The share for EVs is also experiencing substantial expansion in the automotive powertrain sensors market as the shift towards electrification rises, especially given the increased focus on reducing emissions and improving fuel efficiency.

Market Analysis by Propulsion Type

Engine sensors represent the largest segment of the market due to the widespread use of internal combustion engines (ICE) in the automotive sector, which requires various sensors to monitor essential engine parameters such as temperature, pressure, air-fuel ratio, and emissions, among others. These sensors are crucial for improving engine performance, meeting regulatory standards, and enhancing fuel efficiency, aiding the automotive powertrain sensors market development.

The growing adoption of electric vehicles (EVs) is also increasing the demand for battery-related sensors, however, ICE-related sensors continue to lead the market for now, primarily due to the higher number of conventional vehicles still in operation.

Market Analysis by Fuel Type

Gasoline engines are expected to grow at a significant rate in the market due to the rising prevalence of gasoline-powered vehicles in the global passenger car market, particularly in areas like North America and some areas of Asia, where gasoline engines are predominantly used in personal vehicles, aiding the automotive powertrain sensors market expansion. Furthermore, gasoline engines require a wide range of sensors for effective fuel management, emissions regulation, and performance enhancement, among other functions, thereby increasing the demand for powertrain sensors.

Market Analysis by Sales Channel

OEMs hold a large market share compared to Aftermarket as most powertrain sensors are installed during the vehicle manufacturing process, as well as the stringent performance, safety, and regulatory standards that OEMs must follow. The automotive sector relies heavily on advanced sensor technologies to improve fuel efficiency, reduce emissions, and optimise engine performance, all of which are integrated by OEMs during production.

Automotive Powertrain Sensors Market Regional Analysis

Asia Pacific Automotive Powertrain Sensors Market Outlook

The increasing vehicle sales and production in developing countries like India, Japan, and China due to the strong presence of major industry players is significantly catalysing the market growth of automotive powertrain sensors in the Asia Pacific region. In 2022, the region had around 183 million automobiles and 580 million motorcycles. Brunei had the highest ownership of motor vehicles at 605 units per 1,000 people, whereas Bangladesh had the lowest with 7 units per 1000 people.

As per the automotive powertrain sensors industry analysis, the increasing demands of the young population for cars with better fuel efficiency and electrification technology due to rising purchasing power are also contributing to the expansion of the market.

North America Automotive Powertrain Sensors Market Dynamics

Strict environmental regulations and standards in the region are fuelling the demand for EVs, hybrid and autonomous vehicles, creating increased demand for specialised powertrain sensors that can meet their unique requirements. For instance, advanced powertrain sensors can monitor critical vehicle parameters such as temperature, pressure, and position, among others, for optimal performance, enhancing automotive powertrain sensors demand growth.

In 2022, 91.7% of houses in the United States had at least one vehicle with Idaho and Wyoming having the highest rates of car ownership. Additionally, as per the National Automobile Dealers Association, sales of electric vehicles (EVs), plug-in hybrid electric vehicles and hybrid electric vehicles accounted for 16.7% of all new vehicles sold in 2023 in the USA.

Europe Automotive Powertrain Sensors Market Drivers

The market share in Europe is fuelled by the burgeoning presence of major automotive manufacturers and strict emission regulations. Countries such as Germany, France, and the United Kingdom, are promoting cleaner technologies, which is increasing the demand for powertrain sensors, which are tailor-made for clean energy vehicles, and enhancing the automotive powertrain sensors market opportunities.

Additionally, companies like Bosch, Continental AG, and Infineon Technologies, among others, are investing heavily in research and development to meet regulatory standards and address consumer demands for improved safety features. These companies are also focusing on partnerships and acquisitions to enhance their market presence in the region.

Middle East and Africa Automotive Powertrain Sensors Market Growth

The increasing demand for fuel-efficient vehicles, the rise in disposable incomes in significant countries such as Saudi Arabia, and growing sales of vehicles are driving the growth of the powertrain sensors market.

As per the industry stats from Mobility, Light vehicle demand in the MEA region witnessed an estimated increase of 8.7% in December 2022 compared to 2021, which boosted the growth of the automotive powertrain sensors market. The estimated forecast for 2022 for the MEA region was around 3.756 million units. This positive trend indicated a rising demand for powertrain sensors in the region.

Latin America Automotive Powertrain Sensors Market Factors

The regional market growth is aided by the rising adoption of electric vehicles and the introduction of several stringent fuel economy regulations. Countries such as Brazil and Argentina are leading this shift with government policies focused on reducing emissions. For instance, Brazil has implemented fuel efficiency standards to limit CO2 emissions, increasing demand for sensors that enhance engine and transmission management, and eventually contributing to the automotive powertrain sensors industry revenue.

As of the end of 2022, there were around 128 million cars and light trucks in the Latin American Region, which created an ample demand for powertrain sensors.

Competitive Landscape

The report gives a detailed analysis of the following key players in the global automotive powertrain sensors market, covering their competitive landscape, capacity, and latest developments like mergers, acquisitions, and investments, expansions of capacity, and plant turnarounds. Major companies are investing heavily in sensor technology to boost engine performance and increase fuel efficiency. They are also focusing on sensors for a range of applications such as throttle control, exhaust management, and engine temperature monitoring. For instance, they are developing advanced sensors to support the shift to electric powertrains, which enhances overall vehicle performance and emissions control systems.

Texas Instruments Incorporated

Texas Instruments is a major American technology company in automotive powertrain sensors market that focuses on designing and manufacturing semiconductors and a range of integrated circuits. It plays a crucial role in the electronics sector, particularly in innovations in calculators, microcontrollers, and analogue semiconductors.

DENSO Corporation

DENSO is a top producer of automotive parts headquartered in Kariya, Japan. It is among the largest providers of advanced automotive technologies, systems, and components and offers its products to end-use sectors such as automotive, energy, and industrial automation.

Robert Bosch GmbH

Bosch, a multinational corporation in Germany, is one of the leading suppliers of automotive components globally. Besides its strong presence in the automotive sector, the company also offers its products in industrial technology, consumer goods, and energy solutions.

Other major automotive powertrain sensors market players are Mitsubishi Electric Corporation, Infineon Technologies AG, Renesas Electronics Corporation, and BorgWarner Inc., among others.

Innovative Automotive Powertrain Sensors Startups

Startups in this market are leveraging advancements in micro-electro-mechanical systems (MEMS) and AI to develop smart sensors that deliver real-time data analysis, which is crucial for the next generation of vehicles. For instance, some startups are exploring ways to incorporate predictive maintenance using sensor data, allowing for proactive repairs and reducing downtime, which can improve the efficiency of the vehicle.

Vesper Technologies

This startup in automotive powertrain sensors market focuses on creating advanced Micro-Electro-Mechanical Systems (MEMS) microphones and sensors. Although it is primarily known for its audio-related sensors, Vesper is also working on incorporating its piezoelectric MEMS technology into the automotive sector, especially in powertrain systems.

Sensirion

Based in Switzerland, this company aims to develop environmental and flow sensors that are increasingly being utilised in automotive powertrain applications. Sensirion's sensors are designed to monitor air quality, humidity, and temperature, which helps improve fuel efficiency and engine management, making them key players in the electric and hybrid vehicle markets.