“Global IoT Sensors Market to reach a market value of USD 177.7 Billion by 2031 growing at a CAGR of 27.9%”
The Global IoT Sensors Market size is expected to reach $177.7 billion by 2031, rising at a market growth of 27.9% CAGR during the forecast period.
Europe is known for its strong industrial base, particularly in automotive manufacturing, aerospace, and advanced manufacturing, where these sensors play a crucial role in enhancing productivity and efficiency. The European Union's commitment to Industry 4.0 and its emphasis on sustainability and energy efficiency have driven the adoption of IoT technologies across the region. Consequently, the European region would acquire nearly 30% of the total market share by 2031.
The major strategies followed by the market participants are Partnerships as the key developmental strategy to keep pace with the changing demands of end users. For instance, in February, 2024, NXP Semiconductors N.V. announced a partnership with SECO, a semiconductor company, to optimize SECO’s Clea AIaaS Platform for industrial and IoT applications. Under the partnership, Clea would integrate with NXP’s MCX and i.MX portfolios, supported by NXP’s eIQ machine learning environment. This partnership would simplify AI deployment and accelerate product development for edge devices. Moreover, in January, 2024, NXP Semiconductors N.V. signed an agreement with Honeywell, an American technology company, to enhance building energy efficiency through smart automation. By integrating NXP’s neural network-enabled processors with Honeywell’s building management systems, the two companies would improve energy consumption and sustainability using AI, machine learning, and real-time data analytics.
Based on the Analysis presented in the KBV Cardinal matrix; Siemens AG and General Electric Company are the forerunners in the Market. Companies such as Texas Instruments, Inc., Honeywell International, Inc. and STMicroelectronics N.V. are some of the key innovators in Market. In January, 2023, Texas Instruments, Inc. teamed up with TDK, a wireless connectivity solutions provider, to launch the i3 Micro Module, the first module combining edge AI and wireless mesh connectivity. The module integrates TI's SimpleLink platform and TDK's MEMS accelerometer, enabling real-time monitoring and predictive maintenance for smart factories by simplifying sensor deployment and data aggregation processes.
The emergence of advanced wireless communication technologies, particularly 5G, has significantly transformed the connectivity landscape for these sensors. Furthermore, 5G’s ability to support higher bandwidths and a denser array of connected devices drives IoT adoption across healthcare, manufacturing, and agriculture industries. Hence, advancements in wireless communication are a foundational force behind the market's robust growth trajectory.
Smart city initiatives are designed to enhance urban living by leveraging technology to improve infrastructure, optimize resources, and ensure better public services. These smart city projects are being implemented in developed and developing nations, with government initiatives and private sector collaborations accelerating their progress. Thus, these global efforts underscore the growing demand for these sensors.
The high initial costs associated with deploying IoT solutions are a significant barrier to widespread adoption, particularly for small- and medium-sized enterprises (SMEs). Upgrading network infrastructure is another major cost factor. These sensors require reliable, high-speed connectivity to function effectively, which often necessitates significant investment in network upgrades. Hence, the high initial deployment costs continue to hamper the growth of the market.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Partnerships, Collaborations & Agreements.
Based on network technology, the market is bifurcated into wireless and wired. The wired segment procured 36% revenue share in the market in 2023. Wired sensors are preferred in environments where reliability, data security, and consistent power supply remain paramount. Industries such as manufacturing, utilities, and large-scale industrial operations often rely on wired sensors due to their stable and interference-free connections, critical for real-time data transmission and control.
Based on end use, the market is segmented into consumer electronics, automotive, industrial, healthcare, food & beverage, aerospace & defense, and others. The automotive segment recorded a 21% revenue share in the market in 2023. The increasing integration of advanced driver-assistance systems (ADAS) connected vehicle technologies, and autonomous driving features in modern vehicles has increased demand for these sensors.
On the basis of type, the market is divided into pressure sensor, temperature sensor, proximity sensor, image sensor, optical sensor, gyroscope sensor, humidity sensor, accelerometer sensor, and others. The temperature sensor segment procured 18% revenue share in the market in 2023. Temperature sensors are crucial in various applications, including consumer electronics, industrial automation, and healthcare.
Free Valuable Insights: Global IoT Sensors Market size to reach USD 177.7 Billion by 2031
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America segment witnessed a 38% revenue share in the market in 2023. The strong presence of key industry participants, high adoption rates of IoT solutions, and the region's advanced technological infrastructure are all contributing factors to its dominance.
The market is highly competitive, featuring numerous key players and new entrants. Leading companies leverage advanced technology and innovation to capture market share. Competition intensifies as firms focus on developing cost-effective, high-performance sensors with enhanced connectivity and integration capabilities, driving rapid advancements in IoT applications.
| Report Attribute | Details |
|---|---|
| Market size value in 2023 | USD 25.9 Billion |
| Market size forecast in 2031 | USD 177.7 Billion |
| Base Year | 2023 |
| Historical Period | 2020 to 2022 |
| Forecast Period | 2024 to 2031 |
| Revenue Growth Rate | CAGR of 27.9% from 2024 to 2031 |
| Number of Pages | 415 |
| Number of Tables | 663 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Market Share Analysis, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
| Segments covered | Network Technology, Type, End-use, Region |
| Country scope |
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| Companies Included | STMicroelectronics N.V., NXP Semiconductors N.V., Honeywell International, Inc., Siemens AG, Robert Bosch GmbH, Infineon Technologies AG, ABB Group, General Electric Company, Texas Instruments, Inc. and Sensirion AG |
By Network Technology
By End Use
By Type
By Geography
This Market size is expected to reach $177.7 billion by 2031.
Advancements in wireless communication technologies are driving the Market in coming years, however, High initial costs of deployment restraints the growth of the Market.
STMicroelectronics N.V., NXP Semiconductors N.V., Honeywell International, Inc., Siemens AG, Robert Bosch GmbH, Infineon Technologies AG, ABB Group, General Electric Company, Texas Instruments, Inc. and Sensirion AG
The expected CAGR of this Market is 27.9% from 2024 to 2031.
The Consumer Electronics segment led the Market by End Use in 2023; thereby, achieving a market value of $44 billion by 2031.
The North America region dominated the Market by Region in 2023, and would continue to be a dominant market till 2031; thereby, achieving a market value of $65 billion by 2031.
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