IoT Sensor Market - Growth, Trends, and Forecasts (2020 - 2025)

The IoT Sensor Market is segmented by Type (Pressure, Temperature, Chemical, Motion/Proximity), End-user (Healthcare, Automotive and Transportation, Manufacturing / Industrial), and Geography.

Market Snapshot

Study Period:

2020-2025

Base Year:

2019

Fastest Growing Market:

Asia Pacific

Largest Market:

North America

CAGR:

24.05 %

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Market Overview

The global IoT Sensor market was valued at USD 11.91 billion in 2019, and it is expected to reach USD 42.67 billion by 2025, registering a CAGR of 24.05% during the period of 2020-2025. The new emerging applications and business models, coupled with the falling device costs, have been significantly driving the adoption of IoT, and consequently, the number of connected devices - connected cars, machines, meters, wearables, and consumer electronics. According to Ericsson, of the 28 billion total devices connected by 2021, close to 16 billion will be IoT devices. This robust growth is expected to be driven by the increased industry focus on deploying a connected ecosystem, and the standardization of 3GPP cellular IoT technologies.

  • Industry 4.0 initiatives across regions like Europe, China, etc., are the major drivers of the IoT deployments, and therefore, the IoT sensors. According to Accenture, 60% of the manufacturing companies are already engaged in IoT projects, and more than 30% of them are at an early stage of deployment. Moreover, the decreasing cost of IoT sensors is one of the prominent factors that would fuel the technology's adoption over the forecast period.
  • In addition, smart city initiatives are also instrumental in driving the demand for IoT sensors. Singapore has already implemented a sensor-based Elderly Monitoring System that helps office working family members to receive alerts when the health condition of their home living elderly parents or dependents deteriorates or exhibits abnormal behaviors.
  • IoT sensors enable the user to record physical space utilization, frequently track inventory, and many more. The warehouses, to cut the need for manual handling and increase the speed, quality, flexibility, and efficiency of logistics processes, have started transitioning into smart warehouses that have IoT sensors deployed into the system. This is expected to boost market growth over the forecast period.
  • Also, according to Cisco, 46% of network devices are likely to be machine-to-machine or IoT by 2020, which are vulnerable to attacks. To fully realize the potential of these connected devices, manufacturers need to invest in additional network devices, to address the security issues. Such other investments and security issues may be a challenge for the adoption of IoT sensors.
  • Owing to the recent outbreak of COVID-19, the global supply chain and demand for multiple products have been disrupted, owing to which the IoT sensor adoption is expected to be influenced until the end of 2020. Moreover, due to the production shutdown in countries, such as China, multiple industries have been observing a shortage of supply of various products during February and March.
  • Furthermore, the demand for IoTs in government-deemed essential industries, such as healthcare, food, and agriculture, is increasing, primarily due to the lack of workforce and requirement of remote monitoring and working. However, in the case of industrial demand, IoT is expected to be influenced severely.
  • In April 2020, the Shanghai Public Health Clinical Center (SPHCC) used the California-based connected health start-up VivaLNK's continuous temperature sensor, primarily to monitor COVID-19 patients, to reduce the risk of caregivers being exposed to the virus. The SPHCC also announced that they were using a Bluetooth IoT products and solutions provider Cassia Network's gateways, combined with VivaLNK's medical wearable sensors to monitor their COVID-19 patients.

Scope of the Report

Internet of things is a network of objects/devices that are primarily surrounded by sensors, network connectivity, and software to exchange and collect data. Their applications are found in multiple industries, such as healthcare, automotive, transportation, and manufacturing. IoT systems connect specialized devices designed for specific purposes with a limited degree of programmability and customizability. Moreover, IoT systems also store and process data in a distributed manner.

By Type
Pressure
Temperature
Chemical
Motion/Proximity
Other Types
By End User
Healthcare
Automotive and Transportation
Manufacturing / Industrial
Other End Users
Geography
North America
United States
Canada
Europe
United Kingdom
France
Germany
Rest of Europe
Asia-Pacific
China
Japan
South Korea
India
Rest of the Asia-Pacific
Rest of the World
Latin America
Middle-East & Africa

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Key Market Trends

Automotive and Transportation Industry to Drive the Market Growth

  • The automotive sector across the globe is steadily transitioning toward an autonomous era, owing to the recent business collaborations and joint ventures among automotive giants, cybersecurity providers, chip makers, and system integrators.
  • This indicates the inevitable advent of highly (Level 4) and fully (Level 5) autonomous vehicles, at the earliest, by 2020. Vehicle connectivity is expected to become necessary in the future for proper communication among vehicles for 'decision-making' proper assimilation and comprehension of visual, geographical, audio, and other data.
  • As smart cities emerge, Car2Car connectivity and advanced fleet management are expected to emerge, thus, providing scope for IoT sensors. This has fuelled rapid innovation and adoption of intelligent sensor technology, therefore, driving the demand for IoT sensors.
  • Companies, such as Mercedes-Benz, Volkswagen, Volvo, Toyota, and Google Inc. are increasingly investing in developing smart cars with rich features that deliver safer, convenient, and comfortable driving experiences. According to a NASDAQ, driverless cars are likely to dominate the market by 2030. Moreover, DHL SmarTrucking aims to build a fleet of 10,000 IoT- enabled trucks by 2028. This is expected to boost the adoption of the IoT sensors over the forecast period.
  • IoT is also bringing a massive revolution in the automotive, transportation, and logistics industries. Access to preventative maintenance, connected mobility, and real-time data access are some of the major factors driving IoT adoption in the studied segment. The global IoT transportation and logistics spending almost increased by an exponential rate in 2019 compared to 2015.
  • The IoT has enabled many transportation organizations to map the most efficient routes, maximize fuel usage, logistics companies track-and-trace their shipments, and parking start-ups to monitor their available spots in real-time. IoT devices are deployed in traffic congestion control systems in telematics systems within motor vehicles, in reservation and booking systems used by transport operators, security and surveillance systems, and remote vehicle monitoring systems.

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North America to Account for a Significant Market Share

  • North America is one of the largest markets, due to the presence of several established vendors in the region and the earliest adoption of IoT technology in various industries. Most of the companies in this region are increasingly adopting IoT to keep track of their offering's performance, thus, avoiding costly breakdowns or inefficient routine maintenance shutdowns.
  • The usage of IoT in the region is also significantly driving the studied market. For instance, according to a study by Stanford University and Avast, North American homes have the highest density of IoT devices in any region in the world. Notably, 66% of homes in the region have at least one IoT device. Additionally, 25% of North American homes boast more than two devices.
  • Further, devices like IoT enabled medical wearable temperature sensors to transmit data to a central monitoring system remotely are already being implemented. Medical staff is alerted based on trends and thresholds, identifying the patient and room, and can respond accordingly.
  • As of February 2020, to help the industry, the federal government announced a CAD 818,000 grant support and a CIO Strategy Council project, to oversee the setting of standards. The council is expected to work together with the North American Electric Reliability Corporation (NERC) to set industrial IoT standards.
  • Further, the demand for the IoT sensors in the region is anticipated to grow with the increasing demand for ADAS systems. According to Deutsche Bank, the US ADAS unit production volume is expected to reach 18.45 million by 2021.
  • The global outbreak of COVID-19 is portraying a short-term impact on demand as most IoT projects have been put on hold. This will further lead toward a supply-side disruption. The major IoT end-users, such as the automotive industry, witnessed similar disruptions because of the pandemic.
  • For instance, General Motors temporarily closed its production plants to stop the spread of the virus. Additionally, the sensors, devices, and other components assembly stood in China where the production is restarting. However, the production of components and raw materials is still halted in countries like Germany and Malaysia.

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Competitive Landscape

The IoT sensor market is fragmented, with several sensor manufacturers striving to maintain a competitive edge in the market. This factor is, thereby, intensifying the competition in the market. Players in the market adopt strategic activities such as partnerships, product development, mergers, and acquisitions to capture the market share. Some of the key developments in the market are:

  • In July 2020 - Texas Instruments launched the industry's first zero-drift Hall-effect current sensors TMCS1100 and TMCS110. According to the company, the new sensors can enable the lowest drift and highest accuracy over time and temperature while providing reliable 3-kVrms isolation, which is especially important for AC or DC high-voltage systems such as industrial motor drives, solar inverters, energy-storage equipment and power supplies.
  • In March 2020 - TE Connectivity acquired the majority share of First Sensor AG and now holds 71.87% share. In combining the First Sensor and TE portfolios, TE can now offer an even broader product base, including innovative, market-leading sensors, connectors, and systems plus best-in-class capabilities that supports the growth strategy of TE's sensors business and TE Connectivity as a whole.

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Table Of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHT

    1. 4.1 Market Overview

    2. 4.2 Industry Value Chain Analysis

    3. 4.3 Industry Attractiveness - Porter's Five Force Analysis

      1. 4.3.1 Bargaining Power of Suppliers

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

    2. 5.2 Market Restraints

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Type

      1. 6.1.1 Pressure

      2. 6.1.2 Temperature

      3. 6.1.3 Chemical

      4. 6.1.4 Motion/Proximity

      5. 6.1.5 Other Types

    2. 6.2 By End User

      1. 6.2.1 Healthcare

      2. 6.2.2 Automotive and Transportation

      3. 6.2.3 Manufacturing / Industrial

      4. 6.2.4 Other End Users

    3. 6.3 Geography

      1. 6.3.1 North America

        1. 6.3.1.1 United States

        2. 6.3.1.2 Canada

      2. 6.3.2 Europe

        1. 6.3.2.1 United Kingdom

        2. 6.3.2.2 France

        3. 6.3.2.3 Germany

        4. 6.3.2.4 Rest of Europe

      3. 6.3.3 Asia-Pacific

        1. 6.3.3.1 China

        2. 6.3.3.2 Japan

        3. 6.3.3.3 South Korea

        4. 6.3.3.4 India

        5. 6.3.3.5 Rest of the Asia-Pacific

      4. 6.3.4 Rest of the World

        1. 6.3.4.1 Latin America

        2. 6.3.4.2 Middle-East & Africa

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles

      1. 7.1.1 ABB Ltd

      2. 7.1.2 Schneider Electric SE

      3. 7.1.3 TE Connectivity

      4. 7.1.4 Robert Bosch GmbH

      5. 7.1.5 OMRON Corporation

      6. 7.1.6 Sensata Technologies

      7. 7.1.7 Honeywell International Inc.

      8. 7.1.8 TDK Corporation

      9. 7.1.9 STMicroelectronics NV

      10. 7.1.10 Texas Instruments Inc.

  8. *List Not Exhaustive
  9. 8. INVESTMENT ANALYSIS

  10. 9. MARKET OPPORTUNITIES AND FUTURE TRENDS

** Subject to Availability

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