Industrial Sensors Market Size, Share Analysis

Updated on : Oct 22, 2024

The global industrial sensors market size is projected to grow from USD 27.9 billion in 2024 and is expected to reach USD 42.1 billion by 2029, growing at a CAGR of 8.5% during the forecast period from 2024 to 2029.

Industrial sensors provide manufacturers with greater visibility into their operations. This allows them to track production progress, monitor resource utilization, and make informed decisions based on real-time data. This improved transparency enables better planning, scheduling, and decision-making, leading to increased efficiency and profitability in the manufacturing industries.

The objective of the report is to define, describe, and forecast the industrial sensors industry based on sensor type, type, end user, and region.

Industrial Sensors Market Forecast to 2029

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Industrial Sensor Market Trends

Drivers: Rising adoption of Industry 4.0 and IIoT in manufacturing

The adoption of Industry 4.0 and Internet of Things (IIoT) in manufacturing is a major driver for the increasing demand for industrial sensors. IIoT relies on real-time data, industrial sensors collect vast amounts of real-time data from various points within manufacturing processes.

This data includes parameters like temperature, pressure, vibration, and flow. This data is then analyzed using advanced software and algorithms to gain insights into process performance, identify potential issues, and optimize production processes. By continuously monitoring equipment health and performance, sensors facilitate predictive maintenance programs. This allows for proactive maintenance, preventing costly downtime and breakdowns before they occur. Machine learning algorithms can analyze sensor data to predict failures and schedule maintenance interventions before they impact production.

Furthermore, manufacturers are increasingly adopting these advanced technologies as automated machinery offers benefits such as higher production speed, more efficient use of materials, and lower process time. There is an increasing need for finer control over products manufactured or services delivered across industries, which fuels the need for the adoption of industry 4.0 and IIoT.

Restraint: Competitive pricing resulting in decline in average selling prices

While the demand for industrial sensors is growing, competitive pricing within the market presents a significant restraint on its growth. Intense competition among sensor manufacturers injects a pressure on profit margins which leads to downward pressure on selling prices. This can be challenging for companies to maintain healthy profit margins, particularly for established players facing new entrants offering lower-cost alternatives.

The pressure to reduce prices can also discourage manufacturers from investing in research and development, hindering innovation and limiting the introduction of new, advanced sensors.

Opportunity: Predictive maintenance to offer lucrative opportunities to market players

Condition monitoring has been around for years, it is evolving with the Internet of Things (IoT).

Predictive maintenance is a subset of condition monitoring which is  a proactive approach to equipment maintenance that uses data analysis to predict when a component or system is likely to fail, allowing for timely repair or replacement before the actual breakdown occurs. This differs from traditional preventive maintenance, which schedules maintenance based on predetermined intervals or operating hours, regardless of the actual condition of the equipment.. In today's competitive business environment, manufacturers are constantly striving for increased efficiency and uptime. Predictive maintenance offers a powerful tool to achieve these goals by minimizing unplanned downtime and ensuring optimal equipment performance.

Challenge: Precise performance requirements from upcoming advanced/ technologically sensors

Modern industrial processes are becoming increasingly complex, demanding sensors with higher accuracy, wider operating ranges, and greater sensitivity. This is especially true for applications in robotics, automation, and precision manufacturing. Moreover, there is a growing demand for smaller and more compact sensors that can be easily integrated into complex machinery and equipment. This presents challenges in miniaturizing sensor components while maintaining high performance and reliability. Therefore, manufacturers need to conform to such stringent requirements based on the end-user segment. 

Industrial Sensor Map/Ecosystem:

Industrial Sensor Market Segment

Market for level sensors is expected to have largest market share during the forecast period.

Level sensors in various industries aids in ensuring process control and safety. They provide accurate and real-time data on liquid, solid, and granular material levels. These sensors also help in maintaining consistent levels in tanks, reactors, and other vessels optimizing the production efficiency and minimizing waste. Additionally, they are often easy to install and integrate into existing systems, further contributing to their widespread adoption.

Market for manufacturing segment in the industrial sensor market to have largest market size during the forecast period.

In today's competitive and increasingly complex manufacturing environment, industrial sensors are playing a crucial role in achieving and maintaining high levels of quality. These sensors provide precise and objective measurements of various parameters, such as dimensions, weight, color, and composition.

This eliminates human error and ensures consistent quality throughout the production process. Sensors allow for continuous monitoring of production lines and individual components. This enables real-time identification of potential defects and allows for immediate corrective action to be taken. Overall, the growing importance of quality control in the manufacturing sector is driving significant demand for industrial sensors.

Non-contact sensors segment is expected to witness highest growth rate in the industrial sensor market by 2029.

The increasing adoption of Industry 4.0 and the Internet of Things (IoT) in various industries is driving the demand for remote monitoring solutions. Non-contact sensors play a crucial role in this by providing real-time data on various parameters from a distance, enabling operators to monitor processes and make informed decisions remotely.

Industrial Sensor Market Regional Analysis

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

The Asia Pacific region is undergoing a period of continuous infrastructure development, encompassing projects ranging from transportation networks and energy grids to smart cities and renewable energy installations.

Smart city projects heavily rely on sensor technology for data collection, analysis, and decision-making. Sensors monitor various aspects of urban life, such as traffic flow, energy consumption, air and water quality, and public safety. This rapid expansion presents a significant opportunity for the industrial sensor market, as these projects require advanced sensing technologies for various purposes.

Industrial Sensors Market by Region

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Top Industrial Sensor Companies - Key Market Players

Major vendors in the industrial sensor companies include

• Rockwell Automation (US),
• Honeywell International Inc. (US),
• Texas Instruments Incorporated (US),
• Panasonic (Japan),
• STMicroelectronics (Switzerland),
• TE Connectivity (Switzerland),
• Siemens (Germany),
• Amphenol Corporation (US),
• Dwyer Instruments, LLC. (US), and
• Bosch Sensortec (Germany).

Industrial Sensors Market Report Scope

Industrial Sensors Market Highlights

This research report categorizes the industrial sensor market based on Sensor type, Type, and End user and Region

Recent Developments in Industrial Sensors Industry

• In October 2023, Rockwell Automation announced the acquisition of Clearpath Robotics Inc. (Canada), including the industrial division OTTO Motors, which provides AMRs (autonomous mobile robots) for industrial applications. This acquisition will help the company in simplifying and transform the difficult function of material handling throughout the manufacturing plant with an end-to-end production logistics solution.
• In January 2023, Dwyer Instruments, LLC announced the release of the piston in-line variable area flowmeters, Series PI. These patented spring-loaded piston flowmeters are ideal for applications including cooling water monitoring, plastic injection molding coolant control, oil and gas measurement, lubricant flow control, hydraulic flow measurement, pump protection, and hazardous areas.
• In October 2023, Amphenol Corporation subsidiary Piher Sensing Systems, announced the introduction of its new HCSO-1W open loop current sensor. The HCSO-1W is a high-accuracy sensor that is ideal for measuring AC and DC currents in battery management systems, industrial battery chargers and motor control applications.

Critical questions answered by this report:

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