Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Motor vehicle sensor control and monitor the chemical, physical, and process changes of automobiles. Sensors are used to reduce fuel consumption as well as onboard the weight of vehicles and also comply with government norms for passengers’ safety. With the advent of technology, automobiles are now equipped with a diverse range of sensors providing information about safety, comfort, and other convenience and comfort functions. The demand for sensors is dependent on a number of factors, ranging from technological advances to foreign trade to micro- and macro-economic variables that seek to improve the system functionality.
The global motor vehicle sensor market is estimated to account for US$ 75,447.5 Mn in terms of value by the end of 2027.
Market Dynamics- Drivers
- Increasing need for legal and regulatory compliance is expected to drive growth of the global motor vehicle sensor market during the forecast period
Since vehicle laws and regulations have become stringent, there is rising need to comply with these regulations. As a result of this, the demand for motor vehicle sensors is increasing. For instance, the TREAD Act of 2000 mandates the requirement of tire pressure monitoring systems (TPMS) for all model year 2007 light vehicles for monitoring the air pressure in the vehicle tire and alerting the driver when the pressure in the tire is low. The new regulation requiring light vehicles to be equipped with ESC systems for all vehicles in 2012 creates new sales opportunities for sensor suppliers. Moreover, government mandates have increased the demand for proximity and positioning sensors. Hence, these factors are expected to drive growth of the global motor vehicle sensor market in the near future.
- Rising aftermarket sales are expected to propel the global motor vehicle sensor market growth over the forecast period
There is an increasing need to install sensor dependent systems in vehicles, due to enforcement of new regulatory laws by the government. As a result of this, there has been a massive growth of aftermarket sales of motor vehicle sensors. For instance, the U.S. government has enforced the requirement of replacing the TPMS (tire pressure monitoring system) every time the tires of the vehicle are changed, which approximates to once in four years. This ensures after-sale service once in four years for every vehicle sold. Moreover, global vehicle sales are increasing rapidly due to rising disposable income, which in turn, has increased the demand for vehicle sensors. Therefore, these factors are expected to boost the market growth in the near future.
APAC held dominant position in the global motor vehicle sensor market in 2019, accounting for 43.1% share in terms of value, followed by Europe, North America and RoW respectively.
Figure 1: Global Motor Vehicle Sensor Market Share (%), in terms of Value, By Region, 2019
Market Dynamics- Restraints
- High cost of implementation is expected to restrain growth of the global motor vehicle sensor market during the forecast period
The demand for automotive sensors is cost-sensitive, and the newly introduced vehicle sensors having a high cost of implementation find their application only in premium automotive. This cost sensitivity of the market has led to a decline in the sales of sensors, which in turn, is expected to restrain growth of the market during the forecast period.
- Challenges associated with safety threats in autonomous cars is expected to hinder the global motor vehicle sensors market growth over the forecast period
When it comes to autonomous cars, installing motor vehicle sensors becomes challenging. These challenges include safety of sensors and unauthorized access to car. As a result of this, the demand for these sensors is declining. Therefore, these factors are expected to hinder the market growth over the forecast period.
Motor Vehicle Sensor Market Report Coverage
||Market Size in 2019:
||US$ 28,659.0 Mn
|Historical Data for:
||2016 to 2019
||2020 to 2027
|Forecast Period 2020 to 2027 CAGR:
||2027 Value Projection:
||US$ 75,447.5 Mn
- North America: U.S., Canada
- Europe: Germany, U.K., Spain, France, Italy, Russia, Rest of Europe
- Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, Rest of Asia Pacific
- RoW: Brazil, Argentina, Mexico, GCC Countries, Israel, South Africa, North Africa, Central Africa, Rest of the world.
- By Application: Engine and drivetrain, Safety and Security, Emission control, Others.
- By Product Type: Physical property sensors, Process variable sensors, Proximity and positioning sensors, Chemical property sensors, Other sensors.
Hitachi Ltd, Robert Bosch GmbH, Robert Bosch GmbH, Eaton Corporation, Denso Corporation, Continental AG, Delphi, and Valeo.
- Increasing need for legal and regulatory compliance
- Rising aftermarket sales
|Restraints & Challenges:
- High cost of implementation
- Challenges associated with safety threats in autonomous cars
- Rising mergers and acquisitions among market players can present lucrative growth opportunities
Key players in the market are focused on merger and acquisition activities, in order to enhance the market presence. For instance, in September 2012, Robert Bosch GmbH acquired SPX Service Solutions with an aim to become a comprehensive supplier of diagnostics and repair solutions in the automotive domain.
- Advent of sensor fusion can provide major business opportunities
Sensor fusion is combining sensory data or data obtained from disparate sources such that the resulting information has less uncertainty as compared to the sources when they are used individually. Sensor fusion reduces latency, increases performance speed, and collects more data for better decisions. Market players can capitalize on these opportunities and gain a competitive advantage in the market.
Figure 2: Global Motor Vehicle Sensor Market Value (US$ Mn), 2017 - 2027
The global motor vehicle sensor market was valued at US$ 28,659.0 Mn in 2019 and is forecast to reach a value of US$ 75,447.5 Mn by 2027 at a CAGR of 11.2% between 2020 and 2027.
- Research and development activities to innovate novel products
Key players in the market are focused on research and development activities, in order to innovate novel products and gain a competitive edge in the market. For instance, in July 2012, Denso Corporation developed a new vision sensor used in active safety systems. Moreover, in July 2012 Denso Corporation launched sensors for lane departure warning and automatic high beam control systems.
- High growth of Chinese market
China is the world’s largest market for motor vehicles and also the biggest manufacturer of motor vehicle products and equipment. The sensor demand across all major motor vehicle systems is closely tied to the developments in-vehicle use and production. The production of motor vehicles in China is continuously rising and this in turn is creating potential opportunities for the sensor market. Since the automobile market matures, Chinese consumers are becoming more concerned about fitting more technologically advanced sensors in their vehicles. Many have already purchased an entry-level vehicle and are ready to upgrade to newer and better models.
Value Chain Analysis
There are a variety of sensors available based on their application in the motor vehicle industry. The magnetic sensors used for measuring fluid flow rate, angular rotation and position, uses different soft magnetic core materials in addition with the other electronics and metal components. Photoelectric sensors are semiconductor devices that typically convert light energy into electrical measurements, but also can be used to measure humidity, strain, and temperature. Optoelectronic sensors include fiber optic, infrared, and laser devices. Fiber optic sensors are constructed from optical fiber components, and receive light signals through long, thin, flexible fibers made from glass or plastic.
Global Motor Vehicle Sensor Market- Impact of Coronavirus (Covid-19) Pandemic
According to Coherent Market Insights’ analysis, the impact of coronavirus (COVID-19) pandemic on the motor vehicle sensor market is moderate. Due to lockdown in countries such as China and India, supply chain is mainly disturbed. Furthermore, auto manufactures in India are temporary shut down their factoring to ensure safety of the workers. For instance, in March 2020, Bharat Forge Limited, an India based auto manufacture temporary closed Pune based main plant till further notice. Automotive industry before, pandemic also witnessed strong sales fall, this trend is expected to continue for few months, which will hamper the growth of the global motor vehicle sensor market during the forecast period.
Key players operating in the global motor vehicle sensor market are Hitachi Ltd, Robert Bosch GmbH, Robert Bosch GmbH, Eaton Corporation, Denso Corporation, Continental AG, Delphi, and Valeo.
- Key players in the market are focused on product launches, in order to expand product portfolio. For instance, in January 2020, Hitachi Ltd. launched a stereo camera that allows automatic emergency braking (AEB) at intersections.
- Major market players are involved in product development, in order to gain a competitive edge in the market. For instance, in December 2019, Robert Bosch GmbH launched a new interior monitoring system that features camera and artificial intelligence.