Proximity Sensor Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The proximity sensor market was valued at USD 3790.5 million in 2020 and is expected to reach USD 5761.12 million by 2026 and grow at a CAGR of 7.3% over the forecast period (2021 - 2026). The proximity sensor can detect the presence of objects within its vicinity without any physical contact. For sensing objects, this sensor radiates or emits a beam of electromagnetic radiation, usually in the form of infrared light, and detects the reflection to determine the object's proximity or distance from the sensor.

• The growing industrial automation has been emerging to be a relatively more attractive space for investment by organizations across the world. The dependence on robots in industrial controller mechanisms is an established trend, paving the way for more extensive and wider adoption of the industrial control and automation equipment.
• The rise in automation of complex production systems has increased the demand for components capable of providing critical data related to the production process. These sensors facilitate process control in factories by detecting the presence and position of metal objects. Proximity sensors can also help in automating procedures and even repetitive tasks, resulting in an efficient production line.
• The technology complexity can be reduced to an extent with the implementation of non-contact sensing technology. This is the primary reason for the increasing demand for sensing components, like a proximity sensor.
• However, limitations in sensing capabilities and availability of other sensors at a lower cost may hinder the growth of the proximity sensor market.

Key Market Trends

Automotive Industry is Expected to Hold the Largest Market Share

• The touch-free user interface is driving the adoption of proximity sensors in automotive applications. Applications, where these sensors can be used in automotive, include infotainment system, keyless entry system, 3D gesture, and interior lighting control.
• 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. Proximity sensors also prevent collision with pedestrians while parking.
• Due to the increasing purchasing power of the millennial population, there is a constant demand for passenger cars. Globally, the number of passengers crossed 86 million units mark in 2018, and the market is expected to follow the trend during the forecast period.
• For an average consumer, trucks are reliable options, as they have better fuel efficiency and safety features. These factors drive the growth of the heavyweight vehicle segment. Premium vehicles and utilities continue to drive the sales of light vehicles, which cumulatively contribute to an increase in the demand for inductive proximity sensors market during the forecast period.

North America to Witness a Significant Growth

• Inductive proximity sensors are used majorly in the industrial and automotive segments. These sensors are set to witness an increased growth rate in these industries, as they are cheaper and efficient, and industries, like automotive, require such technologies to match the growing consumer demand.
• The industrial applications of proximity sensors need a robust structure to sustain harsh environment. North America is one of the largest markets for industrial automation that involves in integrating the latest technological advancements.
• Nowadays, each smartphone is equipped with proximity sensors to reduce the battery consumption by turning the display off by detecting it is close to ears while calling. According to the GSMA, the smartphone penetration crossed 69% mark in 2017, which contributed 4.0% to the GDP.
• Tech giants, like Apple Inc., are putting efforts in the developments of smartphones with the applications of proximity sensors. For instance, in June 2018, Apple Inc. patented a system that uses a motion sensor inside the smartphone to detect when it has been dropped and begin preparing for an impact. Inductive proximity sensors on the outside of the device will also be used to spot a potential impact surface.

Competitive Landscape

The availability of several players providing proximity sensors has intensified the competition in the market. Therefore, the market is fragmented with many companies developing expansion strategies.

• Apr 2019 - SICK AG partnered with a software solution provider, AutoCoding Systems (ACS). This partnership may enable SICK to provide customers with a combined package of SICK’s sensor technology and ACS’s software platform.
• Jan 2019 - Sensor manufacturer, Ams launched a new in-display ambient light and proximity sensor solution for smartphones equipped with OLED displays, which essentially makes those modules invisible. The TCS3701 senses the light that passes through the display and using unique algorithms. The sensor can detect ambient light levels accurately without any information regarding the display pixel brightness above the sensor.

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