Sensor Fusion Market Trends Forecast Report

Updated on : Sep 18, 2024

Sensor Fusion Market Size & Share

According to MarketsandMarkets, the global sensor fusion market size is projected to grow from USD 8.0 billion in 2023 to USD 18.0 billion by 2028, growing at a CAGR of 17.8% during the forecast period.

Growing demand for advanced driver assistance systems (ADAS) and deployment of autonomous vehicles, increasing demand for smart homes and buildings, growing trend of miniaturization in electronics, and increasing demand for integrated sensors in smartphones are expected to propel the market in the next five years. However, calibration across multiple sensors and security and safety concern are likely to pose challenges for the industry players.

The objective of the report is to define, describe, and forecast the sensor fusion industry based on algorithms, offering, technology, end-use application, and region.

Sensor Fusion Market Forecast to 2028

To know about the assumptions considered for the study, Request for Free Sample Report

Sensor Fusion Market Trends

Driver: Increasing demand for integrated sensors in smartphones

Consumer electronics is a rapidly changing and dynamic industry with increasing competitiveness among the market players and game-changing technological developments. Latest developments in mobile computing and sensor technologies are making smartphones and tablets popular worldwide.

In the present market scenario, smartphone manufacturers are under pressure to bring exclusive and differentiated products. Thus, if a manufacturer successfully offers a unique product to the customers, that product will gain popularity and tend to create a trend in the market. There is a growing trend of integrating various sensors in smartphones. Thus, innovation and development in the sensor fusion technology would assist the smartphones manufacturers in enhancing the features of their products. The 9-axis inertial sensor is one of the common sensor fusion solutions that are being integrated into smartphones for detecting the location of the user.

Moreover, manufacturers of smartphones like Apple Inc., Samsung Electronics Co., Ltd., and Huawei Technologies Co. are investing in R&D to create sensor-based applications that will set their products apart from the competitors. For instance, in 2022, Xiaomi and Leica launched a series of smartphones with advanced optical and imaging sensors. For example, Apple released iPhone X with a front-facing 3D sensor for face ID, a facial recognition technology that takes the place of a fingerprint sensor to unlock the device. This factor is expected to drive the market over the forecast periods.

Restraint: Calibration across multiple sensors

In order to ensure that the data from various sensors are reliable, precise, and consistent with one another, sensor calibration is a crucial stage in the sensor fusion process. Incorrect or inaccurate sensor fusion outcomes may emerge from sensor data that contains errors, noise, and inaccuracies as a result of improper sensor calibration.

The requirement for calibration across numerous sensors, each with its own unique characteristics and properties, is an important challenge in sensor fusion. Differences in the sensitivity, resolution, or noise levels of various sensors may impact the accuracy and consistency of the sensor data.

To address these challenges, sensor fusion systems need to incorporate sophisticated algorithms and techniques that can account for sensor variability and adapt to changes in sensor performance over time. This requires a deep understanding of sensor characteristics and properties, as well as expertise in signal processing, machine learning, and statistical analysis. Thus, the lack of proper calibration across multiple sensors is acting as a restrain for the market.

Opportunities: Growing demand for advanced driver assistance systems (ADAS) and deployment of autonomous vehicles

The advanced driver assistance systems depend on the sensing capabilities provided mainly by the combo inertial and image sensors. The MEMS inertial combo sensors are used for the detection of the state of motion in the vehicles.

The increasing use of the GPS-IMU (Inertial Measurement Unit) fusion principle and advancements in ADAS are assisting in resolving dead reckoning interval accumulation errors with absolute location measurements. Using information gathered from a forward-facing camera, Tesla's Autopilot automatic driving feature is an example of an ADAS that can carry out tasks like maintaining the vehicle's center in a highway lane and directing the vehicle accordingly. Since many of the functionalities introduced within the ADAS require sensor fusion systems, the growing deployment of ADAS is anticipated to have a positive impact on the sensor fusion market.

Further, the increasing deployment of autonomous vehicles also creates an opportunity for the market. Autonomous vehicles require sensors such as, camera, LiDAR, and radar to view and evaluate their surroundings. In addition, increasing collaboration between car manufacturers and sensor fusion platform developers is expected to boost the adoption of the sensor fusion technology. For instance, in December 2022, Baidu, a Chinese automobile manufacturer, and Pony.ai, a startup company backed by Toyota Motors, announced that they were granted their first license to test fully autonomous vehicles in Beijing.

Challenges: Security and safety concern

The sensor fusion market involves integrating data from multiple sensors to obtain a more accurate and comprehensive understanding of the environment. While this technology has many benefits, it also raises security and safety concerns, including: Privacy: Sensor fusion systems have the potential to gather private information that might be misused, such as location data, health status data, or biometric data. It is critical to ensure that users' privacy is maintained and that data is collected and stored securely.

Cybersecurity: Sensor fusion systems are susceptible to hacking or cyberattacks, which could compromise the system's accuracy and dependability. To defend against such attacks, strong cybersecurity measures like encryption and authentication must be put in place.

Safety: Sensor fusion systems can be in applications requiring high levels of safety, like driverless vehicles, where a system failure could lead to significant harm or even death. It is essential to confirm that the system has been developed and tested in accordance with safety requirements.

Market Map/Ecosystem

Sensor Fusion Market: Key Trends

The prominent players in the market are InvenSense Inc. (U.S.), NXP Semiconductors N.V. (Netherlands), and Bosch Sensortec GmbH (Germany), among others. These companies boast mixing trends with comprehensive product portfolio and strong geographic footprint.

Hardware offering to acquire significant share in sensor fusion market

The hardware offering is expected to hold the largest market share during the forecast period. The hardware segment comprises the physical components of sensor fusion systems, such as processors, communication modules, sensors, and microcontrollers. Development kits, evaluation boards, and reference designs are examples of hardware products. In addition, various product type has been taken into consideration such as inertial combo sensor, radar + image sensors+ lidar, environment sensors, IMU + GPS, and others.

Consumer electronics end-use application holds largest share in sensor fusion market in 2023

The consumer electronics segment accounted for the largest market share in 2023. The consumer electronics segment is an important market for sensor fusion. A wide range of consumer electronics devices use sensors, including smartphones, tablets, wearables, and gaming equipment. Sensor fusion technology is used in these devices to provide logically fused data from different sensors for various applications such as gesture recognition, image stabilization, navigation, and motion-based gaming.

The major players providing consumer electronics products are InvenSense Inc. (U.S.), NXP Semiconductors N.V. (Netherlands), and Bosch Sensortec GmbH (Germany). Bosch Sensortec is one of the major players for the development of smartphones by sensor fusion. For instance, December 2021, Bosch Sensortec partnered with Nextnav, a one of the leaders in next-generation GPS. Bosch Sensortec will make use of the partnership to assess measurement precision and provide original equipment manufacturers (OEMs) that utilise its sensors in widely available products like smartphones, tablets, and wearables with strict performance guarantees.

Sensor fusion market to witness highest demand from Asia Pacific

The governments in the Asia Pacific are also playing a crucial role in promoting the growth of the sensor fusion market through various initiatives and policies. For instance, the government of China has set targets to become a world leader in autonomous driving. It is investing heavily in the development of advanced sensor technologies such as LiDAR and radar. Thus, the above factor is driving the market growth in the region.

Further, China held the largest share of the sensor fusion market in the Asia Pacific in 2023 and is projected to dominate both markets during the forecast period. China is witnessing rapid economic development. It has been focusing on shifting from a manufacturing-driven to an innovation-driven economy. China is a global manufacturing hub for industries for semiconductor and consumer electronic devices, which produce smartphones, smart TVs, and wearables.

Considering the country's large population and growing economy, China is a high potential market for sensor fusion technology for consumer electronic devices. The country has seen considerable increase in sales for innovative devices in smartphones and wearable devices which use sensor fusion technology. This is helping the growth of the market for sensor fusion. According to Mobile Economy China 2021 published by GSM Association, the country's total number of smartphone connections is estimated to reach ~1.5 billion in 2025.

Sensor Fusion Market by Region

To know about the assumptions considered for the study, download the pdf brochure

Key Market Players in Sensor Fusion Maket Growth

Major vendors in the sensor fusion companies include include

• STMicroelectronics (Switzerland),
• InvenSense, Inc. (US),
• NXP Semiconductors N.V. (Netherlands),
• Infineon Technologies (Germany),
• Bosch Sensortec GmbH (Germany),
• Analog Devices, Inc. (US),
• Renesas Electronics Corporation. (Japan),
• Amphenol Corporation (US),
• Texas Instruments (US), and
• Qualcomm Technologies, Inc. (US), among others.

Sensor Fusion Market Report Scope

Sensor Fusion Market Highlights

This report categorizes the sensor fusion market based on algorithms, offering, technology, end-use application,  and region.

Recent Developments in Sensor Fusion Industry

• In February 2023, 221e srl, an innovator in embedded AI software, leader in intelligent precision sensing, and ST Authorized Partner, has extended its collaboration with STMicroelectronics, a global semiconductor leader serving customers across the spectrum of electronics applications, to include the latest offerings of both companies.
• In January 2023, Bosch Sensortec announced a new smart sensor system that delivers a best-in-class performance/power consumption ratio. . However, it is simple to integrate due to its small size and built-in, ready-to-use software algorithms.
• In June 2022, Infineon Technologies AG launched its battery-powered Smart Alarm System (SAS). The technology platform achieves high accuracy and very low-power operation using sensor fusion based on artificial intelligence/machine learning (AI/ML). This technology, combined with low-power wake-on acoustic event detection, provides remarkable performance.

Frequently Asked Questions (FAQ):

To speak to our analyst for a discussion on the above findings, click Speak to Analyst