Market Size of Electric Vehicle Sensor Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | > 15.00 % |
| Fastest Growing Market | North America |
| Largest Market | Asia-Pacific |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Electric Vehicle Sensor Market Analysis
The electric vehicle sensor market is expected to reach USD 20.09 billion, registering a CAGR of 15% over the next five years.
The COVID-19 pandemic and associated bottlenecks in the supply chain hampered the electric vehicle manufacturing supply chain during the first half of 2020. However, as the lockdown measures were eased, the demand for electric vehicles started picking up pace. In 2020, electric vehicle sales (battery electric vehicles) witnessed an increase of around 33%, which continued in 2021. Such growth in electric vehicle sales is anticipated to drive the demand for a variety of sensors. These sensors include sensors associated with battery management, driver assistance systems, active and passive safety systems, etc.
Over the long term, the growing use of semi-automated and automated vehicles in transportation and logistics will spur the development of electric vehicle sensors. Many prominent players are integrating various sensors such as radar, image, LiDAR, and infrared to improve road safety and autonomous mobility. Growing concerns about the safety of autonomous vehicles have led governments to accept and adopt them across the world. One of the key factors driving market demand is the increasing use of sensors in autonomous vehicles. The increased use of image sensors, temperature sensors, position sensors, and speed sensors in ADAS/AD systems will boost the market growth as the electric vehicle demand is anticipated to be driven by the development of autonomous and semi-autonomous vehicles.
Due to restraining factors like the high cost of electric vehicles, along with a shortage of semiconductors, the market faces challenges.
In the coming years, the European electric vehicle sensor market is anticipated to grow significantly, attributing to the rising demand for cutting-edge technologies, like IoT and AI, in the automotive sector for electric mobility. To ensure passenger safety, systems like ADAS (Advanced Driver Assistance Systems) and EBD (Electronic Brake Force Distribution) are increasingly incorporated into electric vehicles, which further supports product acceptance. Furthermore, the policy environment still drives the uptake of electric vehicles. The 10 leading countries, such as China, the United States, Norway, Germany, the United Kingdom, France, Sweden, and the Netherlands, in electric vehicle adoption have a range of policies to promote the uptake of electric vehicles.
Governments are implementing initiatives and reforms, with heavy investments in the electric vehicles sector, to boost demand and encourage the adoption of electric vehicles in their countries worldwide. In August 2021, the United Kingdom government promised to invest GBP 20 million in projects that help develop zero-emission heavy goods vehicles (HGVs). The Department for Transport (DfT) estimates that the money may help increase the number of zero-emission HGVs on UK roads and improve the infrastructure for such vehicles.
