MAGNETIC SENSORS MARKET ANALYSIS

The global magnetic sensors market size was valued at USD 2616.6 million in 2021 and is anticipated to witness a compound annual growth rate (CAGR) of 7.2% from 2022 to 2030. Increasing technological advancements are also expected to drive the magnetic sensor market. These advancements include the use of artificial intelligence and increased R&D investments. Moreover, increasing demand from the consumer electronics sector has led to a boost in the magnetic sensor market. This is due to the increasing use of smartphones and laptops.

Global Magnetic Sensors Market: Regional Insights

Asia Pacific is anticipated to witness strong growth in the global magnetic sensors market over the forecast period. China is leading country in magnetic sensors market in the region, and this is owing to rising use of applications such as anti-locking systems, and anti-braking system (ABS) using magnetic sensors. These systems are widely used in the country in industries such as automotive and consumer electronics. Moreover, other countries across Asia Pacific such as Taiwan and South Korea also support growth of the market in the region due to growing support government of these countries towards adoption of magnetic sensors in various applications.

North America is expected to dominate the global magnetic sensors market during the forecast period. This growth can be attributed to presence of developed infrastructure in the United States with the capacity of housing advanced solutions in different sectors, rise in demand for magnetic sensors from several industries, including automotive, manufacturing, and consumer electronics, and growing investments in automation in the country. Moreover, growing sector of automotive manufacturing in Canada is also supporting growth of the market in North America.

Figure 1. Global Magnetic Sensors Market Share (%), By Region, 2021

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Global Magnetic Sensors Market Drivers:

Rise in regulations regarding energy efficient automobiles and systems is expected to propel growth of the global magnetic sensors market over the forecast period. The amount of energy consumed by industries is increasing around the world due to which governments are focusing on regulations and promotion of use of solutions that are energy-efficient. As per the EIA, in 2018, the total electricity consumption around the world was 36.7 quadrillion British thermal units. Furthermore, the Energy Efficiency Directive of the European Union is focused on working towards reaching intelligent energy transition for competitive, secure, and sustainable energy. Thus, such initiatives and regulations by governments regarding energy efficient automobiles and systems is driving growth of the market.

Advent of applications of magnetic sensors in data centers and consumer electronics is also expected to augment growth of the global magnetic sensors market over the forecast period. The demand for magnetic sensors is increasing due to their applications in consumer electronics segment. New magnetic sensors applications in navigation, motion gaming, and IoT are influencing the demand for sensors. These sensors are used as magnetometers in motion gaming to allow the devices to measure terrestrial magnetic field at low power. Thus, increasing applications of these sensors in such technologies is driving the market growth steadily.

Global Magnetic Sensors Market Opportunities:

Increasing number of vendors are focusing on widening their portfolio scaling up their off-shelf magnetic sensors, which is expected to create growth opportunities in the global magnetic sensors market over the forecast period. For instance, TDK has developed an ultrasensitive magnetic sensors, the Nivio xMR, which can measure at pico tesla level, an extremely weak magnetic field of nearly on ten-millionth of geomagnetism. This sensors is yet to be commercialized and as per the company it will be useful in several end-user sectors.

Furthermore, increasing demand for battery-powered electric vehicles is generating lucrative opportunities for major players in the global magnetic sensors market. The use of magnetic sensors is increasing in autonomous vehicles, in which protection of pedestrian is crucial. This further requires highly accurate break booster system and navigation system. Most of the autonomous vehicles are currently in testing phase and many of the automobile giants such as Volkswagen, Daimler, Volvo, BMW and others are involved in testing of their autonomous cars. This is expected to grow the demand for magnetic sensors and their adoption, which will create numerous growth opportunities in the market.

Global Magnetic Sensors Market Trends:

Increasing potential applications of magnetic sensors in medical field is a growing trend in the global magnetic sensors market. In medical sector, magnetic sensors could be utilized in more precise diagnosis of cardiac diseases where magnetic mapping replaces electrocardiography. Thus, healthcare industry is likely to be one of the fastest-growing segment in magnetic sensors market in the near future. This trend is projected to continue and increase growth of the global magnetic sensors market during the forecast period.

Furthermore, rise in development in magnetic sensors is also an emerging trend in the global magnetic sensors market. Current magnetic circuits can only be placed on flat surfaces or they are at risk of breaking down. However, novel magnetic sensors can be attached to the skin and can also function when folded without causing discomfort. In February 2020, a team of scientists at Osaka University created a thin and light matrix sheet system of magnetic sensor that visualizes two-dimensional distribution of magnetism on different surfaces. Thus, growing technological development in magnetic sensors is driving the market growth.

Global Magnetic Sensors Market Restraints:

Drop in average selling costs of sensors and semiconductors is expected to restrain growth of the global magnetic sensors market during the forecast period. The magnetic sensors are likely to witness cost erosion in the coming years due to decrease in cost of end-user industry products such as automotive, consumer electronics, healthcare devices, and industrial products leading to decline in average selling price. Furthermore, the cost is increasing even further, as manufacturers are maintaining high inventory levels to attain economies of scale. Thus, these factors are anticipated to restrain growth of the market over the forecast period.

Outbreak of Covid-19 influencing electronics industry is projected to limit growth of the global magnetic sensors market over the forecast period. The coronavirus pandemic influenced both production and demand in semiconductor industry. Countries such as South Korean, Taiwan, and China have major share in electronics and semiconductor industry in Asia Pacific. Due to the pandemic, there was a significant drop in annual global GDP growth of these countries. It further negatively impacted the financial markets of these and other interconnected countries. Thus, such unfavorable conditions arising due to Covid-19 pandemic, growth of the global magnetic sensors market is hampered.

Figure 2. Global Magnetic Sensors Market Share (%), By Segment Type, 2021

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Global Magnetic Sensors Market Segmentation:

The global magnetic sensors market report is segmented into Technology, Application, and Region.

Based on Technology, the market is segmented into Hall Effect, Anisotropic Magneto Resistance (AMR), Giant Magneto Resistance (GMR), Tunneling Magneto Resistance (TMR), and Other Technologies. Out of which, Hall Effect is expected to dominate the global market over the forecast period and this is attributed to the increasing growth of gaming sector creating potential growth opportunities for hall effect sensors in the near future. For instance, Thrustmaster offers Thrustmaster T16000M FCS and Thrustmaster HOTAS Warthog PC, joysticks maintain extreme precision, as they rely on Hall Effect magnetic sensors for orientation.

Anisotropic Magneticresistance (AMR) segment is also expected to witness significant growth in the near future and this is owing to the increasing shift of manufacturers towards autonomous vehicle system. AMR sensors are often used in applications of angle measurement such as engine control and steering control, which is critical for safety. Thus, increasing number of automotive manufacturers adopting autonomous vehicle system is leading to rise in demand for AMR sensors. And this in turn is driving growth of the segment.

Based on Application, the market is segmented into Automotive, Consumer Electronics, Industrial (apart from Automotive), and Other Applications. Out of which, Automotive is expected to dominate the global market over the forecast period and this is attributed to the rise in deployment of magnetic sensors in auto parts. There is significant shift in automobile transportation towards higher fuel efficiency and running plug-in and electric/fuel hybrid EVs. Moreover, government initiatives towards use of these vehicles are also increasing, which in turn is boosting the demand for magnetic sensors in automotive sector.

Consumer Electronics segment is also expected to witness significant growth in the near future and this is owing to the rise in modern applications of magnetic sensors such as navigation and motion gaming that are deployed in devices like mobile phones.

Global Magnetic Sensors Market: Key Developments

In May 2018, Nfineon Technologies AG announced the plans for building a new plant for power semiconductors in Austria, owing to the rise in demand from battery-powered and connected devices, electric vehicles, and data centers. The new manufacturing plant will be completely automated for production of 300 million thin wafers.

In June 2019, Analog Devices Inc. entered into collaboration with First Sensor AG, for the development of products focusing on speeding the launch of autonomous sensing technology that severs underwater, aerial, and unmanned automotive vehicles in smart agriculture, transportation, and industrial manufacturing among others.

Global Magnetic Sensors Market: Key Companies Insights

The global magnetic sensors market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis.

Some of the key players in the global magnetic sensors market are Texas Instruments Inc., Infineon Technologies AG, TE Connectivity Ltd., Analog Devices, TDK Corporation, Crocus Technology, STMicroelectronics NV, Honeywell International Inc., Omron Corporation, Allegro Microsystems (Sanken Electric Company), NXP Semiconductors NV, Murata Manufacturing Co. Ltd., and NVE Corporation.

*Definition:

Magnetic sensors detect changes in the magnetic field strength, direction, and angle. The sensor is designed to be compact and can be integrated into electronic systems. These sensors are widely used in navigation systems. The sensor is also used in medical applications.