Environmental Sensor Market Size, Share & Growth

Updated on : October 23, 2024

Environmental Sensor Market Size & Share

The global environmental sensor market size was valued at USD 1.8 billion in 2023 and is estimated to reach USD 3.0 billion by 2028, growing a CAGR of 11.0% during the forecast period 2023 to 2028

The growth of the environmental sensor market is driven by implementation of stringent regulations to reduce air pollution, health and safety concerns, and increased deployment of air quality monitoring stations.

Environmental Sensor Market Forecast to 2028

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Environmental Sensor Market Trends & Dynamics

Drivers: Growing demand for environmental sensors from manufacturers of consumer electronics

Environmental sensors are being increasingly adopted in various products such as consumer electronics, HVAC, and air purifiers. Consumer electronics include smartphones, tablets, and wearable devices, and the growing number of integrated environmental sensors in these devices is expected to drive the growth of the environmental sensor market. Companies like Bosch Sensortec (Germany), Sensirion (Switzerland), Omron (Japan), and ams AG (Austria) provide environmental sensors for consumer electronics. Additionally, people’s growing concern about environmental pollution is expected to fuel the demand for environmental sensors, especially in products like air purifiers and low-cost air quality monitors. HVAC systems mainly use environmental sensors to monitor temperature, humidity, and air quality. The increasing adoption of HVAC in industrial, commercial, and residential applications is expected to drive the growth of the environmental sensor market. Furthermore, the HVAC market is being driven by factors such as increasing construction activities, particularly in the Asia Pacific region, growing urbanization, rising disposable income, replacement needs, strict energy regulations, and technological innovations. All of these factors contribute to the demand for environmental sensors.

Restraint: Adverse impact of extreme temperatures on sensors’ operational life

Most environmental sensors are electrochemical and contain electrodes that are wetted with an aqueous or gel electrolyte, often sulfuric acid (H2SO4). The working electrode is treated with a catalyst to generate a small current when the target gas, such as carbon monoxide (CO) or hydrogen sulfide (H2S), is either oxidized or reduced. The sensor is then connected to an amplifier that indicates the gas concentration on a required scale. Temperature extremes can affect sensor life, which is why the manufacturer typically sets an operating temperature range of -30°C to +50°C. However, high-quality sensors can withstand temporary excursions beyond these limits. Short exposure of 1-2 hours to 60–65°C for H2S or CO sensors is acceptable, but repeated incidents can lead to evaporation of the electrolyte, shifts in the baseline reading, slower response, and reduced sensor efficiency.

Opportunities: Need to monitor water pollution in industrial and residential sectors

There has been a significant increase in the demand for environmental sensors due to the need to monitor water pollution in various settings, such as industrial facilities, residential areas, and natural water bodies. This demand is a result of the alarming increase in water pollution levels globally, which requires strict regulations and monitoring measures. According to statistics from the Natural Resources Defense Council in 2022, approximately 70% of river and lake pollution is caused by industrial discharges, making effective monitoring solutions urgent. Additionally, according to the Food and Agriculture Organization in Italy, 80% of municipal wastewater is discharged into water bodies untreated, and industries dump millions of tonnes of heavy metals, solvents, toxic sludge, and other wastes into water bodies each year. Real-time water quality monitoring has become essential for public health due to the rise in population and urbanization, which has increased pollution in residential areas. Furthermore, continuous environmental monitoring is crucial due to the deterioration of natural water bodies caused by climate change and human activities. The environmental sensor market is expanding due to the growing adoption of advanced environmental sensors equipped with cutting-edge technologies.

Challenge: Complexities associated with installation and maintenance in remote and harsh environments

Maintaining environmental sensors in remote or harsh environments can be a difficult task, as it involves dealing with various challenges such as limited accessibility, extreme weather conditions, potential equipment damage, and power supply concerns. These factors can make it hard to collect accurate data in a timely manner. Inadequate infrastructure and transportation can limit accessibility to the sensors, which can hinder prompt maintenance. Weather conditions, such as extreme temperatures and corrosive elements, can cause significant wear and tear to sensors located in deserts or polar regions.

Environmental Sensor Ecosystem

Environmental Sensor Market Segmentation

Temperature sensor segment to hold larger market share during the forecast period.

The temperature sensor segment is expected to hold high market share during the forecast period. The high market share is credited to the increasing awareness of climate change and its impact on various sectors. Industries, enterprises, commercial, healthcare, and even households are recognizing the significance of accurate temperature monitoring to optimize processes and enhance productivity. With climate variability affecting businesses and everyday activities, precise temperature sensors have become critical. Moreover, the rise in smart homes and smart cities initiatives has led to an upsurge in the adoption of temperature sensors for efficient energy management and ensuring the comfort of inhabitants. Furthermore, technological advancements have made these sensors more affordable, compact, and reliable, making them accessible to a broader range of applications. As a result, the temperature sensor segment is poised to dominate the market, securing a significant and growing market share in the foreseeable future.

Indoor segment account for the largest share of the environmental sensor market for during the forecast period

Indoor segment to hold high market share during the forecast period. The high market share is driven by the proliferation of smart buildings, IoT integration, and the increasing emphasis on workplace efficiency and safety. Businesses and institutions recognize real-time data's value for optimizing operations, enhancing security, and improving the overall user experience. Indoor environmental sensors enable accurate tracking of environmental parameters, assets, employees, and visitors, fostering streamlined workflows, resource optimization, and emergency response management. Moreover, the ongoing digital transformation across various industries has led to the integration of indoor technologies for personalized customer experiences, asset management, and efficient space utilization. As businesses continue to invest in smart technologies to gain a competitive edge, the indoor segment is poised for sustained growth, addressing the escalating demand for intelligent solutions in indoor environments.

Smart home segment to exhibit highest growth in terms of environmental sensor market during the forecast period

The smart home automation sector in the environmental sensor industry is set to experience rapid growth in the coming years due to various driving factors. Increasing awareness of environmental conservation and the demand for energy-efficient solutions are propelling this expansion. Environmental sensors cater to the growing eco-conscious consumer base by monitoring and optimizing energy usage. The advent of the Internet of Things (IoT) and the widespread use of connected devices are turning conventional homes into smart, interconnected spaces. Environmental sensors, facilitating real-time data collection and analysis, enhance the efficiency of systems like heating, ventilation, air conditioning, lighting, and irrigation. This data-driven approach elevates user comfort and leads to substantial energy savings, making it an appealing choice for homeowners. Furthermore, stringent government regulations and initiatives promoting sustainable living encourage incorporating environmental sensors in residential spaces. With advancing technology making sensor solutions more affordable and sophisticated, the smart home automation segment within the environmental sensor market is poised for robust growth.

Commercial segment account for the largest share of the environmental sensor market for during the forecast period

The commercial vertical is expected to secure a high market share during the forecast period. Heightened awareness of climate change and environmental sustainability is driving businesses worldwide to adopt eco-friendly practices. Environmental sensors, pivotal in enabling companies to monitor and reduce their carbon footprint, are integral to these initiatives. Moreover, stringent regulations mandating environmental compliance and energy efficiency are pushing businesses to invest in cutting-edge sensor technologies. These sensors enhance energy management and ensure optimal use of resources, leading to significant cost savings in the long run.

Environmental Sensor Market Regional Analysis

Environmental sensor market in Asia Pacific estimated to grow at the fastest rate during the forecast period

Asia Pacific region in the environmental sensor market is expected to grow at the fastest rate during the forecast period. The swift urbanization and industrialization are likely to have resulted in increased pollution levels and environmental concerns. Governments across Asia Pacific countries are implementing stringent regulations and initiatives to curb pollution, such as the National Clean Air Programme (NCAP) by the Government of India, the Special Measures Act on Fine Dust Reduction, and the Air Quality Management Act by the South Korea government, the Act on Promotion of Measures to Cope with Global Warming in Japan, etc. escalating the demand for advanced environmental sensors. Additionally, the awareness of climate change and its impact on the region's diverse ecosystems is driving investments in environmental monitoring technologies. Moreover, the Asia Pacific region is witnessing significant growth in manufacturing, agriculture, and healthcare sectors, requiring precise environmental data for efficient operations. Environmental sensors are instrumental in ensuring sustainable agricultural practices, industrial emissions monitoring, and healthcare facilities' air quality control, driving their adoption across various industries. The rapid advancement of smart city projects in countries like China, India, and South Korea further fuels the demand for environmental sensors, enhancing urban sustainability efforts.

Environmental Sensor Market by Region

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Top Environmental Sensor Companies: Key players

Major vendors in the environmental sensor companies include

• Honeywell International Inc. (US),
• Sensirion AG (Switzerland),
• Siemens (Germany),
• ams-OSRAM AG (Austria),
• Bosch Sensortec GmbH (Germany),
• OMRON Corporation (Japan),
• Raritan Inc. (US),
• Texas Instruments Incorporated (US),
• Schneider Electric (France), and
• Amphenol Corporation (US).
• Apart from this, Aeroqual (New Zealand),
• Alphasense (England),
• Apogee Instruments (US),
• Avtech (US),
• METER Group (US),
• Analog Devices, Inc. (US),
• STMicroelectronics (Switzerland),
• Figaro Engineering (US),
• TE Connectivity (Switzerland),
• Renesas Electronics Corporation (Japan),
• NuWave Sensors (Ireland),
• eLichens (France),
• RioT Technology (Canada),
• Develco Products (Denmark), and
• Breeze Technologies (Germany) are among a few emerging companies in the environmental sensor market.

Environmental Sensor Market Report Scope:

Environmental Sensor Market size  Highlights

This research report categorizes the environmental sensor market based on Type, Deployment, Application, Vertical, and Region.

Recent Developments in  Environmental Sensor Industry

• In January 2023, Bosch Sensortec GmbH (Germany) announced the launch of BMV080, the world’s tiniest PM2.5 air quality sensor, 450 times smaller than alternatives. It's ideal for compact IoT devices, ensuring reliable, maintenance-free operation due to its fanless design. It enhances indoor and outdoor air monitoring and is suitable for applications like air quality monitors, smart thermostats, speakers, switches, and air purifiers.
• In January 2023, Bosch Sensortec GmbH (Germany) launched barometric pressure sensor designed for challenging environments, including underwater and harsh conditions. Its liquid-proof gel cover allows use in water-exposed wearables, such as swimming devices. The sensor maintains high accuracy and low power consumption for extended battery life, ensuring precise altitude tracking in fitness applications without compromising durability.
• In September 2023, Sensirion AG (Switzerland) announced new SEN54 and SEN55 environmental sensors, integrated into Grove's all-in-one sensors, monitor indoor air quality parameters for HVAC and air quality applications. The sensors measure VOCs, particulate matter, humidity, AND temperature (SEN54) and also detect nitrogen oxides (SEN55).

Key Questions Addressed in the Report :

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