PUBLISHER: KBV Research | PRODUCT CODE: 1548622
PUBLISHER: KBV Research | PRODUCT CODE: 1548622
The Global IoT Sensors Market size is expected to reach $177.7 billion by 2031, rising at a market growth of 27.9% CAGR during the forecast period.
Europe is known for its strong industrial base, particularly in automotive manufacturing, aerospace, and advanced manufacturing, where these sensors play a crucial role in enhancing productivity and efficiency. The European Union's commitment to Industry 4.0 and its emphasis on sustainability and energy efficiency have driven the adoption of IoT technologies across the region. Consequently, the European region would acquire nearly 30% of the total market share by 2031.
The major strategies followed by the market participants are Partnerships as the key developmental strategy to keep pace with the changing demands of end users. For instance, in February, 2024, NXP Semiconductors N.V. announced a partnership with SECO, a semiconductor company, to optimize SECO's Clea AIaaS Platform for industrial and IoT applications. Under the partnership, Clea would integrate with NXP's MCX and i.MX portfolios, supported by NXP's eIQ machine learning environment. This partnership would simplify AI deployment and accelerate product development for edge devices. Moreover, in January, 2024, NXP Semiconductors N.V. signed an agreement with Honeywell, an American technology company, to enhance building energy efficiency through smart automation. By integrating NXP's neural network-enabled processors with Honeywell's building management systems, the two companies would improve energy consumption and sustainability using AI, machine learning, and real-time data analytics.
KBV Cardinal Matrix - IoT Sensors Market Competition Analysis
Based on the Analysis presented in the KBV Cardinal matrix; Siemens AG and General Electric Company are the forerunners in the Market. Companies such as Texas Instruments, Inc., Honeywell International, Inc. and STMicroelectronics N.V. are some of the key innovators in Market. In January, 2023, Texas Instruments, Inc. teamed up with TDK, a wireless connectivity solutions provider, to launch the i3 Micro Module, the first module combining edge AI and wireless mesh connectivity. The module integrates TI's SimpleLink platform and TDK's MEMS accelerometer, enabling real-time monitoring and predictive maintenance for smart factories by simplifying sensor deployment and data aggregation processes.
Market Growth Factors
The emergence of advanced wireless communication technologies, particularly 5G, has significantly transformed the connectivity landscape for these sensors. Furthermore, 5G's ability to support higher bandwidths and a denser array of connected devices drives IoT adoption across healthcare, manufacturing, and agriculture industries. Hence, advancements in wireless communication are a foundational force behind the market's robust growth trajectory.
Smart city initiatives are designed to enhance urban living by leveraging technology to improve infrastructure, optimize resources, and ensure better public services. These smart city projects are being implemented in developed and developing nations, with government initiatives and private sector collaborations accelerating their progress. Thus, these global efforts underscore the growing demand for these sensors.
Market Restraining Factors
The high initial costs associated with deploying IoT solutions are a significant barrier to widespread adoption, particularly for small- and medium-sized enterprises (SMEs). Upgrading network infrastructure is another major cost factor. These sensors require reliable, high-speed connectivity to function effectively, which often necessitates significant investment in network upgrades. Hence, the high initial deployment costs continue to hamper the growth of the market.
Network Technology Outlook
Based on network technology, the market is bifurcated into wireless and wired. The wired segment procured 36% revenue share in the market in 2023. Wired sensors are preferred in environments where reliability, data security, and consistent power supply remain paramount. Industries such as manufacturing, utilities, and large-scale industrial operations often rely on wired sensors due to their stable and interference-free connections, critical for real-time data transmission and control.
End Use Outlook
Based on end use, the market is segmented into consumer electronics, automotive, industrial, healthcare, food & beverage, aerospace & defense, and others. The automotive segment recorded a 21% revenue share in the market in 2023. The increasing integration of advanced driver-assistance systems (ADAS) connected vehicle technologies, and autonomous driving features in modern vehicles has increased demand for these sensors.
Type Outlook
On the basis of type, the market is divided into pressure sensor, temperature sensor, proximity sensor, image sensor, optical sensor, gyroscope sensor, humidity sensor, accelerometer sensor, and others. The temperature sensor segment procured 18% revenue share in the market in 2023. Temperature sensors are crucial in various applications, including consumer electronics, industrial automation, and healthcare.
Regional Outlook
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America segment witnessed a 38% revenue share in the market in 2023. The strong presence of key industry participants, high adoption rates of IoT solutions, and the region's advanced technological infrastructure are all contributing factors to its dominance.
Recent Strategies Deployed in the Market
List of Key Companies Profiled
Global IoT Sensors Market Report Segmentation
By Network Technology
By End Use
By Type
By Geography