Market Trends of Optical Sensor Industry
This section covers the major market trends shaping the Optical Sensor Market according to our research experts:
Photoelectric Sensor is Expected to Register a Significant Growth
- These sensors have been recognized for their full use in the industrial automation marketplace, owing to their high precision in detecting objects. These sensors have found a rising integration into a wide range of automated machinery, mainly for non-contact detections and measurements, including counting, monitoring, conveyor mechanisms, transport systems, machine tools, and assembly lines. For instance, in the parking assistance system, these sensors can detect the presence of objects in the pathway of the reversing vehicle and can raise the alarm to warn the driver.
- Furthermore, in August 2022, Rockwell Automation announced Photoelectric Sensors for global applications. The latest Allen-Bradley 42EA RightSight S18 and 42JA VisiSight M20A photoelectric sensors are economical and easy-to-apply sensing solutions that deliver a wide range of sensing modes, mounting options, and unique features, making them optimal solutions for global operations. All samples have a visible red-light source to ease alignment, while multiple connection options and adjustment knobs for light or dark operation help reduce installation, setup, and maintenance.
- In addition, favorable government policies promoting the manufacturing industry, coupled with the rising adoption of IIoT solutions, are the major factors driving the demand for photoelectric sensors. In addition, growing year-on-year automotive production and booming demand for processed food will further boost the demand for these sensors. Additionally, Philips recently announced an investment of INR 300 crores (USD 40.41 million) and planned to recruit 1,500 employees in India. The company announced plans to expand its Pune operations to increase manufacturing in India.
- Moreover, with a greater inclination toward employing robotics and automation through Industry 4.0, there is a pressing need for precision in operations. Thus, driving the need for photoelectric sensors. The packaging, material handling, and automotive industries have emphasized the need for photoelectric sensors, owing to their collaboration of IIoT with Big Data and the reliance on data from smart sensors.
- According to IBEF, in April 2022, 19 companies filed applications for the PLI Scheme for White Goods in the dual round of applications, with committed investments of INR 1,548 crore (USD 194.79 million). Further, as a part of the PLI scheme, 61 companies have installed component manufacturing facilities in 111 locations throughout 14 states and UTs, creating jobs across India. Such developments in the manufacturing industry will further drive market growth.
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Asia Pacific to Experience Significant Market Growth
- Rapid Expansion of the end-user industries, like consumer electronics, industrial, automobile, and textile, are contributing significantly to the growth of the optical sensors market as these sensors themselves are used to improve the productivity of manufacturing set-ups as the data gathered by the sensors can be collated and acted upon immediately. According to IBEF, the Indian appliances and consumer electronics industry stood at USD 9.84 billion recently and is expected to more than double to reach INR 1.48 lakh crore (USD 21.18 billion) by 2025.
- Furthermore, the increase in the demand and production of automobiles in the Asia-Pacific region is expected to promote the need for sensors in the market. For instance, as per the International Organization of Motor Vehicle Manufacturers (OCIA), the total production of automotive (including cars and commercial vehicles) in India increased to 30%, and the entire production of automotive (including cars and commercial vehicles) in China increased to 3%. Indonesia's total automotive output (including cars and commercial vehicles) increased to 63%. Various companies have expanded their presence in Asia-Pacific in response to such growth potential.
- For instance, in August 2022, Renesas Electronics Corporation, a premier supplier of advanced semiconductor solutions, agreed to acquire Steradian Semiconductors Private Limited, a fabless semiconductor company that provides 4D imaging radar solutions based in Bengaluru, India. The acquisition of Steradian's radar technology would enable Renesas to extend its market presence in the radar market and boost its industrial and automotive sensing solution offerings.
- According to IBEF, the Government of India expects the automobile sector to attract USD 8-10 billion in local and foreign investments by 2023. Furthermore, in April 2022, Tata Motors announced plans to invest INR 24,000 crore (USD 3.08 billion) in its passenger vehicle business over the next five years. Such investments in the automotive sector may further drive the studied market.
- Furthermore, the increasing applications of a wide range of sensors in the smartphone market are expected to increase the demand for sensors in the market. For instance, in June 2022, Sony Group announced its plan to enhance its image sensor technology to expand its product portfolio and strengthen its market position. The company has been investing in its R&D capabilities to provide its customers with a solution for focusing on multiple targets when taking a picture via a smartphone. Such infinitives by the companies in the market are expected to increase the demand for sensors in the smartphone, thereby fueling the demand growth for sensors in the Asia-Pacific region.
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