Proximity Sensor Market Size, Share and Growth

Updated on : October 22, 2024

Proximity Sensor Market Size & Growth

The proximity sensor market size was valued at USD 4.3 billion in 2024 and is likely to reach USD 6.6 billion by 2030, growing at a CAGR of 7.5% between 2024 to 2030.

Crucial drivers for the proximity sensor market are: the application of proximity sensors in smart logistics and supply chain management systems, increasing infection control measures within the healthcare sector, and growing emphasis on smart infrastructure and building automation. One of the major applications of proximity sensors in Industry 4.0 is predictive maintenance and machine monitoring. In this regard, inductive proximity sensors measure distance variation between a shaft and its support bearing, which constitutes vital information needed for vibration monitoring of machines.

Especially in the rapid development of IoT and smart technologies in the industrial sector, wireless proximity sensors play a significant role in connecting the industrial environment. Besides, smart home security has proximity sensors as an integral element in ensuring protection for a house from any unauthorized access and, at the same time, providing peace of mind to the homeowner. These sensors detect movement or presence in designated areas, consequently setting off alarms, switching on surveillance cameras, or sending warnings directly to the house owner or security systems. Furthermore, increasing usage of proximity sensors in smart devices and consumer electronics is further expected to propel the proximity sensor market.

Attractive Opportunities in the Proximity Sensor Market Size

Proximity Sensor Market Forecast to 2030

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Proximity Sensor Market Trends:

Drivers: Growing integration of proximity sensors in smart devices and consumer electronics

The growing integration of proximity sensors in smart devices and consumer electronics will likely powerfully drive demand in the proximity sensor market share. They are used in cases for detecting an object or a user next to the device, powering features like auto screen dimming during calls, gesture recognition for navigation, and even ambient display modes that help users with device pick-up display notifications. Such proximity sensors use infrared light, ultrasound, or capacitive sensing technologies to provide non-contact and very accurate proximity detection. These capabilities help make the devices energy-efficient while enhancing user interaction through smooth transitions between active and standby modes. Apple has non-contact proximity sensors installed to track when the device is on call and against a person's ear, which turns off the display to preserve the battery life or prevent accidental screen touches.

Restraint: Limitations in Sensing Capabilities

Issues associated with fixed detection ranges in proximity sensors are broad in varied industries. Manufacturing and industrial automation often have these sensors where a change in the distance between different objects positioned around assembly lines or robotic arms may be unable to adapt to it and, hence, lead to operational inefficiency or result in an inaccurate determination of an object's presence.Size and placement variations of the objects being scrutinized may equally be noted during logistics and material handling. For this reason, the fixed-range sensors cannot be relied upon in detecting those objects within their narrow scope of operation. Apart from that, environmental interference caused by moisture, dust, and temperature extremes may impact the performance of outdoor sensors, shrinking their effective range and often reducing the reliability in vehicle detection and perimeter security systems. Such limitations therefore underline the demand for flexible sensor solutions able to cope with and overcome dynamic environmental conditions and provide trustworthy operation in a number of industrial and commercial applications.

Opportunities: Miniaturization of sensors and the development of innovative materials

Advancements in sensor technology, with special mention of miniaturization of sensors and the development of novel materials, have opened up substantial growth opportunities in proximity sensors. Industrial evolution in automotive, consumer electronics, and healthcare has later extended to industrial automation and beyond. Here is a discussion about how these developments are fueling the growth of the proximity sensor market. There is a growing trend towards the miniaturization of technology—smaller, lighter, and even more power-efficient while the performance remains the same or keeps improving. Miniaturization will allow the sensor to be fitted into compact devices and systems with limited space—such as smartphones, wearables, IoT devices, and other medical implants. Very small sensors add aesthetic value to consumer electronics and enable new applications in healthcare monitoring, automotive safety systems, and industrial automation. In miniaturized form, proximity sensors could be mounted into the door handles or bumpers for vehicle applications in keyless entry systems and parking assistant features.

Challenge: Competition from Alternative Sensing Technologies

Alternative sensing technologies extensively compete with the proximity sensor market and influence growth and adoption rates across several industries.

Another proximity sensor type uses sound waves for detection and is known as an ultrasonic sensors. Since the application that needs long-range detection does not affect the surface color or material property, an ultrasonic sensor will work well in many scenarios, such as for parking assistance in an automotive setting. The ability to detect beyond line-of-sight and in bad weather gives them an edge over conventional proximity sensors in outdoor and industrial applications, where reliability under differing conditions is essential. The other competing technology is infrared sensors, which detect objects by sensing the heat emitted or reflected off-targets. IR sensors find broad applications in consumer electronics for proximity detection in devices such as smartphones and automatic faucets. They measure distance precisely, thus efficiently recognizing different objects with temperature differences, and are therefore quite apt for applications requiring accurate object detection and differentiation.

Proximity Sensor Matket Ecosystem

Proximity Sensor Market Segmentation

Inductive proximity sensor to hold the largest market share in the Technology segment in the proximity sensor market during the forecast period.

Inductive sensors are used for safety applications, such as detecting metallic objects in hazardous areas, preventing accidents, and ensuring the safety of the workers. The major companies offering inductive proximity sensors are OMRON Corporation, KEYENCE CORPORATION, Panasonic Corporation, SICK AG, Rockwell Automation, Balluff Automation India Pvt. Ltd., and Pepperl+Fuchs SE. Increasing industrial automation demands fuel demand for inductive proximity sensors. IFR has announced that according to the latest World Robotics report, 553,052 new industrial robots were installed in factories worldwide.

Fixed Distance segment to hold the largest market share in the Product Type segment in the proximity sensor market during the forecast period.

Fixed Distance segment to hold the largest market share in the Product Type segment in the proximity sensor market during the forecast period."

Smaller and more sensitive sensors can be integrated into compact and complex systems, expanding their range of applications, particularly in consumer electronics where space is limited. For example, proximity sensors in smartphones turn off the display when one holds the phone at the ear during a call. The consumer electronics market is increasing. According to the India Brand Equity Foundation, India's smartphone market is likely to reach USD 90 billion by 2032, driven by a booming economy and changing demographics that may drive up demand for proximity sensors.

<10 mm segment to hold the largest market share in the Range segment in the proximity sensor market during the forecast period.

The <10 mm segment will hold the largest market share in the Range segment of the proximity sensor market share during the forecast period.

This means that proximity sensors are intrinsic parts of modern automotive systems; however, significant applications include keyless entry and interior object detection. Companies like Tesla, BMW, and Mercedes-Benz apply the sensors, giving way to auto-unlocking and engine start in the presence of a critical fob sensed at a close range. For example, Tesla has used capacitive proximity sensors in the Model S for keyless entry and ignition to maximize convenience and safety. Equally, thanks to the capacitive proximity sensors in use, BMW's Comfort Access system helps users to unlock and fire up their vehicle without removing the key fob from their pocket or purse. The addition of sophisticated features impels the automotive proximity sensor market, as these sensors are highly required to improve vehicle functionality and user experience.

Analog segment to hold the largest market share in the Output segment in the proximity sensor market during the forecast period.

Analog devices have better resolution and sensitivity, enabling them to detect minimal changes in proximity; this is an essential feature for high-accuracy applications. The demand for analog proximity sensors is highly driven by the rapidly increasing adoption of automation technologies by different industrial sectors. Since industries keep automating their productions in order to maximize efficiency and save on labor costs, the accuracy and full-time monitoring associated with these devices have become crucial. For instance, on automobile production lines, analog proximity sensors are applied in many areas, such as accurately measuring metal sheet thickness and detecting the accurate position of parts that compose the car part. This significantly improves production efficiency and product quality.

Automotive in the end-use industry to hold the highest market share of the market during the forecast period.

Proximity sensors on today's automobiles feature ultrasonic and electromagnetic designs. Ultrasonic sensors are the kinds of electronic devices that emit high-frequency sound waves to detect obstacles by measuring the echo times of sound waves reflected from objects around, much like bats in their navigation mechanism of sonar. Electromagnetic sensors create a field around the bumper and detect if an object enters this created field. Both facilitate warnings for the driver of any obstacle in proximity, usually through beeps or flashing digital displays. These sensors find broad applications in parking assistance and burglar alarms, either factory-integrated or aftermarket additions, which raise vehicle safety and comfort of operation.

Proximity Sensor Industry Regional Analysis

The proximity sensor industry in the Asia Pacific is estimated to grow at a higher CAGR during the forecast period.

The Asia Pacific region will likely register the largest CAGR in the proximity sensor industry from 2024 to 2030. Proximity sensors are in demand in China because of the aggressive adoption of Industry 4.0, which has broken all conventional boundaries of automation and control principles in process and manufacturing industries. The "China Manufacturing 2025" initiative espouses China's commitment to changing its manufacturing sector into a global leader that is powerfully innovative and efficient. This campaign aims to integrate advanced technologies, including proximity sensors, into manufacturing processes to achieve productivity and precision. Research and development programs are being conducted by critical institutions, such as the Chinese Academy of Science and Applied Institutes of the market is also further backed up by industrial ministries, where continuous innovation and improvement of sensor technology are pursued. These developments serve the goal of maintaining and increasing the competitiveness of Chinese industries on a global scale.

Proximity Sensor Matket by Region

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Top Proximity Sensor Companies - Key Market Players

Major vendors in the proximity sensor companies include

• OMRON Corporation (Japan),
• KEYENCE CORPORATION (Japan),
• Panasonic Corporation (Japan), 
• SICK AG (Germany),
• STMicroelectronics (Switzerland),
• Rockwell Automation (US), 
• Delta Electronics, Inc. (Taiwan), 
• Honeywell International Inc. (US), 
• Broadcom (US), 
• Schneider Electric (France), 
• ZF Friedrichshafen AG (Germany), 
• Balluff Automation India Pvt. Ltd. (India), 
• Pepperl+Fuchs SE (Germany), 
• Baumer (Switzerland), 
• Banner Engineering Corp. (US), among others.

Apart from this, Autonics Corporation (South Korea), ifm electronic gmbh (Germany), Leuze electronic Pvt. Ltd. (Germany), Hans Turck GmbH & Co. KG (Germany), Fargo Controls Inc. (New Jersey), TMSS France (France), Migration Corp. ( Australia), Infinite Electronics International, Inc. (US), Senstronic (France), HTMSensors (US),  are among a few emerging companies in the proximity sensor industry.

Proximity Sensor Market Report Scope

Proximity Sensor Market Highlights

The study categorizes the proximity sensor market based on the following segments:

Recent Developments in Proximity Sensor Industry

• In December 2020, STMicroelectronics launched the VL5313CX, a JoF sensor with a range of 2.5 cm to 3 m, using its patented statistical algorithm for higher accuracy. It identifies multiple targets immune to color, with smudge compensation and enhanced performance under ambient light, which raises all kinds of applications to a new level, from occupancy detection to industrial equipment.
• In December 2023, Mouser Electronics and Panasonic Corporation signed a distribution agreement. Mouser Electronics distributes high-tech sensors, controllers, and servo motors from Panasonic to versatile automation industries. Those items include EX-10 Photoelectric Sensors, PM U-shaped micro sensors, and FPOR Programmable Controllers, which are mentioned as innovations and uses against industries like automotive and semiconductors. Those technologies have been put in proximity sensors, significantly increasing detection accuracy and automated systems' reliability.

Key Questions Addressed in the Report:

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