United States Smart Sensors Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The United States Smart Sensors Market is expected to grow at a CAGR of 19.1% over the forecast period 2021-2026.

Key Highlights

• The increasing market demand for smart sensors is being driven by the growing need for energy-saving devices. The changing scenario demands energy-efficient equipment and products considering the fact that the businesses are in energy-saving mode.
• The demand for sensors across various industries has also increased, increasing traction in the overall market. In addition to that, the demand to reduce the average weight of a car is also driving the demand for sensors in the automotive sector. Lightweight cars help in fuel efficiency as well as optimization of energy.
• During the projected period, consumer electronics are expected to dominate the smart sensor market. Consumer electronics businesses are currently under tremendous pressure to introduce innovative and differentiated items to the market. Smart sensors, including motion, temperature, image, touch, and pressure sensors, are key components in all of these items to assure the user's comfort and control.
• Apart from several drivers, the market is being hindered by many challenges. One of the restraints that affect the growth of the market is miniaturization and lack of integration. The high cost of the sensor is also a restrain for the sensor market.
• The COVID-19 outbreak forced companies worldwide to adjust their strategies to survive in the "new normal." The COVID-19 outbreak affected the various manufacturing industries, resulting in a temporary shutdown of industrial operations. The production of consumer electronics, automotive, healthcare devices, and other sectors, which are prominent adopters of smart sensors, were affected by the disruption in the supply chains.

Key Market Trends

The temperature & humidity smart sensor to drive the market

• During the projected period, demand for temperature and humidity sensors is expected to expand at the fastest rate. In measurement control systems and equipment, smart temperature sensors are commonly employed. Temperature sensors offer a digital temperature reading that can be interpreted in a variety of applications, including healthcare, automotive, and building automation. Researchers have been able to integrate bipolar transistors in temperature sensors and interface circuits, thanks to advancements in IC technology.
• The temperature sensor market is growing due to the constant demand for temperature sensors, which are integrated into products such as wearable bands, smartphones, and patient monitoring devices, from industries like consumer electronics and healthcare.
• The usage of smartphones and other devices is growing in the consumer electronics industry, which includes wearables, laptops, desktops, and other appliances, which is boosting the expansion of the temperature sensor market.
• The demand for thermometers, MRI machines, and imaging diagnostics equipment that have temperature sensors was also high in the healthcare industry. As a result, the healthcare industry is anticipated to account for a major portion of the temperature sensor market both during and after the pandemic.
• The market for temperature sensors has expanded in tandem with the increased need for reliability, comfort, and other innovative features in automobiles. Engine coolant temperature management, outside air temperature management, active in-vehicle temperature management, steering wheel and seat heat temperature control, exhaust gas temperature management, battery temperature management, e-motor temperature management, and cylinder heat temperature management, for example, are all growing in popularity.

Consumer Segment to Drive the Market

• Due to fast increasing technology and changing consumer preferences and buying behavior, the consumer electronics market is dynamic, and the life cycle of consumer electronic equipment is quite brief. As a result, there is fierce competition among consumer electronics suppliers to obtain or maintain market share in specific product categories. Products/devices that can perform more functions and are based on improved technology are expected to lead the market in such instances. Most consumer electronics gadgets include a smart sensor, and this trend is projected to continue during the forecast period.
• The majority of consumer electronics and devices in the United States will see growth in the coming future, as predicted by the CTA, Consumer Technology Association.
• CTA predicts the record year-over-year growth trend of 2020 to continue in 2021, with many Americans still working from home. Laptop shipments will hit 76 million units (up 9%), bringing in USD 45 billion in revenue, an increase of 11%.
• Connected exercise equipment such as stationary bikes, rowers, and treadmills see huge growth in the health and fitness segment. With demand for products such as Peloton and MYXfitnesssoaring, roughly 1.5 million units were shipped in 2020, and in 2021 the devices will cross 2 million (a 43% rise) and earn USD 3.9 billion (a 40% increase).
• Overall, the region’s market demand is driven by the faster replacement rate of electronics in the US. In addition to this, the region imports a significant share of devices from the Asia Pacific region, China in particular.

Competitive Landscape

Infineon Technologies AG, Microchip Technology Inc., Analog Devices, Inc., TE Connectivity, STMicroelectronics, Eaton Corporation plc, Honeywell International Inc., and others are among the leading competitors in the smart sensor market. The presence of multi-national corporations such as ABB, Siemens, Honeywell, etc., makes the market concentrated. Sensor technology also requires high initial investment along with high continuous research and development of the product.

• June 2020 - Salesforce and Siemens AG bundled their workplace management tools in a new IoT suite to help businesses reopen after lockdown and embrace new practices for physical workplaces, as the “new normal” took shape in the shadow of the global COVID-19 pandemic. The principle is to provide better space management solutions through IoT-based sensors, sense-making tools, and social-media-style user apps.
• February 2020, TE Connectivity showcased its extensive portfolio of innovative and highly precise sensor solutions at MD&M West 2020.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support