Optical Position Sensor Market - Forecasts from 2024 to 2029

The optical position sensor market is evaluated at US$973.651 million for the year 2022 and is projected to grow at a CAGR of 9.9% to reach a market size of US$1,885.923 million by the year 2029.

Optical position sensors are used to measure the location of a light or an object in one, two, or several axes, depending on the user's needs. The market is predicted to expand as a result of continuous technical innovation, which is resulting in the creation of smaller, more efficient chipsets and modules with additional functionality. Increasing demand for automobile safety is one of the significant factors giving potential to the market growth of the global optical position sensor market. Optical position sensors are actively employed to determine car location and provide parking assistance. Furthermore, these sensors are utilized to determine the driver's position in the event of a collision and release the airbags accordingly. 

MARKET TRENDS:

The rising applications of optical sensors in the medical and industrial automation field are also some prominent factors driving the market for optical position sensors. The efficiency showcased by optical position sensors in maintaining accuracy and providing more automation support is raising the applications of optical position sensors in large industries and manufacturing centers. The government support and enormous investment of major market players in the research and development of optical position sensors are expected to bring technological development in optical position sensors. 

The technological developments in optical position sensors are expected to increase the applications of optical position sensors in the future. Owing to the surge in research and development initiatives in the virtual reality segment, the manufacturing of optical position sensors is projected to have a high growth potential in the forecasting years. The rising market for gadgets and smart devices is also expected to fuel the market growth of optical position sensors during the forecast period.

MARKET DRIVERS:

The rise in demand for automobile safety is anticipated to drive the market’s growth.

The increasing demand for optical position sensors in the automobile industry is driving the market of optical position sensors in the global market. Optical position sensors are used to ensure more safety and protection in automobiles. The efficiency showcased by optical position sensors in preventing accidents and determining automobile position is increasing the application of optical position sensors in the automobile industry. The spreading safety concern and consciousness of people about automobile safety are expected to surge the demand for optical position sensors in the upcoming years. 

Several countries in North America and Europe are passing legislation to improve automotive safety, leading to a surge in demand for optical position sensors in the automotive industry. Furthermore, the actions and policies of IRU (International Road Transportation Union) for more road safety also increased the need for proper safety measures in automobiles, which is anticipated to have a positive impact on the market demand for optical position sensors in the automobile sector.

Rising penetration of automation in the industrial field might impact the optical position sensor market growth.

The rising penetration of automation in various industrial applications is highly contributing to the market growth of the optical position sensors market. In addition, global investments in the high-revenue automobile industry have also been surging greatly over the years. As a result, businesses from diverse locations and industries are focusing their efforts on enhancing their production infrastructure by implementing fully automated machine tools, resulting in a surge in demand for optical position sensors.

RESTRAINTS:

Numerous obstacles might obstruct the optical position sensor market's upward trajectory. The high initial cost of optical position sensors in comparison to conventional mechanical or magnetic sensors is one major obstacle. For some applications, especially in price-sensitive sectors, the sophisticated technology and precise components needed for optical sensing frequently lead to increased production costs, making these sensors less accessible. 

Adoption may also be hampered by compatibility problems and interoperability problems with current interfaces or equipment, particularly when integrating optical position sensors into intricate automation or machinery. It could be essential to conduct compatibility testing and standardization activities to overcome these obstacles and guarantee smooth integration with various industrial systems.

The Asia Pacific optical position sensor market is anticipated to grow substantially.

Geographically, the Asia Pacific region is expected to show drastic market growth and is estimated to hold a significant market share. In the Asia-Pacific region, the rising population increased R&D spending, and growing manufacturing and electronics sectors are likely to boost demand for optical position sensors during the forecast period.  

The need for optical position sensors is fueled by the region's booming industrial sector, which is especially evident in the automobile, manufacturing, and electronics industries. These sensors provide precise and accurate position sensing in a variety of applications, including assembly lines, CNC machines, and industrial robots. They are crucial parts of machinery, robotics, and automation systems. Furthermore, government programs and financial commitments to smart manufacturing, industrial automation, and infrastructure upgrading in the Asia Pacific area are driving up demand for optical position sensors. 

Key Developments:

• In October 2023, the inductive position sensor (IPS) technology for extremely precise motor position sensor integrated circuits (ICs) for robotics, industrial, and medical applications was unveiled by Renesas Electronics Corporation, a leading provider of innovative semiconductor solutions. Position sensing technology that makes use of non-contact coil sensors can take the place of costly optical and magnetic encoders that are often employed in motor control systems that need absolute position sensing together with high speed, precision, and dependability.
• In October 2023, Melexis introduced the MLX90423, a new addition to its well-liked MLX9042x line of 3D magnetic position sensor products. This novel device combines ISO26262 (supporting up to ASIL D system integration), stray field immunity (SFI), and good precision for lengthy strokes (up to 30mm). For automobile ADAS applications where space is at a premium, such as brake systems (brake rods), this economical option is perfect.
• In September 2023, the In-Sight SnAPP vision sensor, which redefines standards for functionality, accuracy, and simplicity of use in an industrial sensor, was introduced by Cognex Corporation, a pioneer in industrial machine vision. With the release of this product, the Company's reach into the visual sensing industry has increased by $1 billion, and its capabilities are further enhanced.

Segmentation:

By Type

• One-dimensional
• Two-dimensional
• Multiaxial

By Application

• Aerospace & Defense
• Automotive
• Consumer Electronics
• Healthcare
• Others

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others 
• Europe
• United Kingdom
• Germany
• France
• Spain
• Others 
• Middle East and Africa
• Saudi Arabia
• UAE
• Israel
• Others 
• Asia Pacific
• China
• Japan
• India
• South Korea
• Taiwan
• Thailand
• Indonesia
• Others