Next-Generation IoT Sensors Market

Global Next-Generation IoT Sensors Market Size, Share & Trends Analysis Report By Power Source, By Connectivity, By Sensor Type, By Deployment Type, By Technology, By End-Use, By Regional Outlook and Forecast, 2024 - 2031

Report Id: KBV-25370 Publication Date: November-2024 Number of Pages: 469
2023
2.7 Billion
2031
66.14 billion
CAGR
50.2%
Historical Data
2020 to 2022

“Global Next-Generation IoT Sensors Market to reach a market value of 66.14 billion by 2031 growing at a CAGR of 50.2%”

Analysis of Market Size & Trends

The Global Next-Generation IoT Sensors Market size is expected to reach $66.14 billion by 2031, rising at a market growth of 50.2% CAGR during the forecast period.

The consumer electronics segment is propelled by the increasing demand for smart devices and connected home technologies. IoT sensors are embedded in products like smartphones, wearables, smart TVs, and home automation systems to enhance user experiences. These sensors make features such as voice recognition, motion detection, and environmental sensing possible, enabling devices to interact with users and other systems. As consumer interest in smart living and connected devices continues to grow, the consumer electronics segment remains a key driver of IoT sensor adoption. Thus, the consumer electronics segment witnessed 10% revenue share in the next-generation IoT sensors market in 2023.

Next-Generation IoT Sensors Market Size - Global Opportunities and Trends Analysis Report 2020-2031

The major strategies followed by the market participants are Partnership as the key developmental strategy to keep pace with the changing demands of end users. For instance, 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 partnershiip, 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. Additionally, In July, 2023, Infineon Technologies AG announced a partnership with Semikron Danfoss, a power semiconductor manufacturer, for silicon-based electromobility chips, including IGBTs and diodes. This partnership supports the growing demand for electrified drivetrains and contributes to automotive decarbonization.

KBV Cardinal Matrix - Market Competition Analysis

Based on the Analysis presented in the KBV Cardinal matrix; Siemens AG, Texas Instruments, Inc., Honeywell International, Inc. are the forerunners in the Next-Generation IoT Sensors Market. Companies such as STMicroelectronics N.V., ABB Group, Infineon Technologies AG are some of the key innovators in Next-Generation IoT Sensors 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.

Next-Generation IoT Sensors Market - Competitive Landscape and Trends by Forecast 2031

Market Growth Factors

The increased adoption of IoT is driving a substantial rise in demand for advanced sensors, largely due to their vital role in enabling real-time data collection, remote monitoring, and automation. According to the World Bank’s Digital Progress and Trends Report 2023, in 2022, more than 13 billion IoT devices were in use. Driven largely by the almost real-time connectivity of 5G technology, these devices are expected to more than double between 2023 and 2028.

Additionally, Advancements in sensor technology are transforming next-generation IoT sensors by significantly improving their sensitivity, miniaturization, and power efficiency. Enhanced sensitivity enables more accurate detection of environmental changes, which is crucial for healthcare, automotive, and smart home systems applications. This improvement allows for real-time data collection and better decision-making, enhancing operational efficiency across various industries. Thus, these advancements in sensor technology are making next-generation IoT sensors more reliable, cost-effective, and scalable, driving the market's growth.

Market Restraining Factors

Next-generation IoT sensors often incorporate cutting-edge technologies like artificial intelligence (AI), machine learning, and edge computing, significantly enhancing their data processing capabilities, real-time decision-making, and predictive analytics. However, the integration of these sophisticated technologies also drives up the manufacturing costs. The sensors require specialized materials, complex components, and advanced engineering, contributing to higher production expenses. Hence, the high cost of next-generation IoT sensors slows the market's overall growth.

Next-Generation IoT Sensors Market Share 2023

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.

Driving and Restraining Factors
Next-Generation IoT Sensors Market
  • Increased adoption of IoT in various industries
  • Advancements in sensor technology
  • Growth in smart homes and connected devices
  • High cost of advanced sensors
  • Limited standardization and interoperability issues
  • Expansion of 5G networks across the globe
  • Increasing investments in Industrial IoT (IIoT)
  • Data privacy and security concerns
  • Power consumption and battery life limitations

Sensor Type Outlook

Based on sensor type, the market is classified into temperature sensors, pressure sensors, motion sensors, proximity sensors, image sensors, and others. The pressure sensors segment procured 18% revenue share in the market in 2023. These sensors are essential in industries such as oil and gas, automotive, aerospace, and healthcare, where they monitor pressure levels in real-time to ensure systems' safety, efficiency, and performance.

Technology Outlook

On the basis of technology, the market is divided into MEMS (Micro-Electro-Mechanical Systems), CMOS (Complementary Metal-Oxide-Semiconductor), NEMS (Nano-Electro-Mechanical Systems), RFID (Radio Frequency Identification), and others. The MEMS (Micro-Electro-Mechanical Systems) segment acquired 33% revenue share in the market in 2023. MEMS sensors are heavily employed because of their compact size, high accuracy, and low power consumption.

Connectivity Outlook

By connectivity, the market is segmented into Wi-Fi, Bluetooth, ZigBee, LPWAN, 5G, and others. The 5G & others segment garnered 21% revenue share in the market in 2023. The ultra-low latency and high-speed capabilities of 5G technology make it particularly suited for mission-critical IoT applications such as autonomous vehicles, industrial automation, and smart cities.

Deployment Outlook

Based on deployment, the market is bifurcated into on-premises and cloud-based. The on-premises segment procured 45% revenue share in the market in 2023. On-premises IoT sensor deployments involve installing and managing sensors within a company’s local infrastructure, giving businesses greater control over data, security, and operational processes.

Next-Generation IoT Sensors Market Share and Industry Analysis Report 2023

Power Source Outlook

Based on component, this market is bifurcated into solution and services. The services segment procured 33% revenue share in this market in 2023. Many organizations lack in-house cybersecurity expertise, making professional services valuable to their security strategies. Services such as initial setup, ongoing monitoring, and customization of sandboxing tools help businesses leverage these solutions more effectively.

End Use Outlook

By end-use, the market is segmented into healthcare, automotive, manufacturing & industrial, energy & utilities, consumer electronics, retail, transportation & logistics, and others. The healthcare segment recorded 22% revenue share in the market in 2023. It is becoming more common for healthcare providers to provide more personalized and efficient care by incorporating IoT sensors into smart medical equipment, remote patient monitoring, and peripheral devices.

Free Valuable Insights: Global Next-Generation IoT Sensors Market size to reach USD 66.14 billion by 2031

Regional Outlook

Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Asia Pacific segment witnessed 30% revenue share in the market in 2023. The region is becoming a center for IoT innovation at a rapid pace, fueled by the growing urbanization, smart city initiatives, and expanding manufacturing sector.

Market Competition and Attributes

Next-Generation IoT Sensors Market Competition and Attributes

The Next-Generation IoT Sensors Market is highly competitive, driven by the demand for advanced connectivity and data-driven insights across sectors like healthcare, automotive, and smart cities. Key attributes include miniaturization, low power consumption, and high sensitivity, enabling precise real-time data collection. Integration with AI and machine learning is enhancing predictive capabilities, while interoperability and security remain critical for widespread adoption. Rapid technological advancements continue to raise performance standards, fueling innovation and intense market rivalry.

Next-Generation IoT Sensors Market Report Coverage
Report Attribute Details
Market size value in 2023 USD 2.7 Billion
Market size forecast in 2031 USD 66.14 Billion
Base Year 2023
Historical Period 2020 to 2022
Forecast Period 2024 to 2031
Revenue Growth Rate CAGR of 50.2% from 2024 to 2031
Number of Pages 469
Tables 723
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 Power Source, Connectivity, Sensor Type, Deployment Type, Technology, End-Use, Region
Country scope
  • North America (US, Canada, Mexico, and Rest of North America)
  • Europe (Germany, UK, France, Russia, Spain, Italy, and Rest of Europe)
  • Asia Pacific (Japan, China, India, South Korea, Singapore, Malaysia, and Rest of Asia Pacific)
  • LAMEA (Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria, and Rest of LAMEA)
Companies Included STMicroelectronics N.V., NXP Semiconductors N.V., Honeywell International, Inc., Siemens AG, Robert Bosch GmbH, Infineon Technologies AG, ABB Group, Analog Devices, Inc., Texas Instruments, Inc. and TE Connectivity Ltd.
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Recent Strategies Deployed in the Market

  • May-2024: Infineon Technologies AG released OPTIGA Authenticate NBT, high-performance NFC I2C bridge tag designed for single-tap authentication and secure IoT device configuration. Certified as a Type 4 Tag by the NFC Forum, it supports both symmetric and asymmetric cryptography, offering fast, secure data exchange and versatility for various applications.
  • Feb-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.
  • Jan-2024: NXP Semiconductors N.V. signed an agreement with Honeywell, an Americna 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.
  • Dec-2023: STMicroelectronics introduced a compact global-shutter image sensor, VD55G1, ideal for AR/VR, robotics, and smart-home devices. Measuring 2.7mm x 2.2mm with 800x700 resolution, it offers low power consumption, high image clarity, and innovative features like native background removal and autonomous 'always-on' mode, enhancing smart computer vision applications.
  • Nov-2023: Infineon Technologies AG took over GaN Systems, a Taiwanese semiconductor company. The acquisition enhances Infineon's position in power components for automotive, motor control, and green industrial applications.

List of Key Companies Profiled

  • STMicroelectronics N.V.
  • NXP Semiconductors N.V.
  • Honeywell International, Inc.
  • Siemens AG
  • Robert Bosch GmbH
  • Infineon Technologies AG
  • ABB Group
  • Analog Devices, Inc.
  • Texas Instruments, Inc.
  • TE Connectivity Ltd.

Next-Generation IoT Sensors Market Report Segmentation

By Power Source

  • Battery-Powered Sensors
  • Energy-Harvesting Sensors
  • Plugged-In Sensors

By Connectivity

  • Wi-Fi
  • Bluetooth
  • ZigBee
  • LPWAN
  • 5G & Other

By Sensor Type

  • Temperature Sensors
  • Pressure Sensors
  • Motion Sensors
  • Proximity Sensors
  • Image Sensors
  • Other Sensor Type

By Deployment Type

  • Cloud-Based
  • On-Premises

By Technology

  • MEMS (Micro-Electro-Mechanical Systems)
  • CMOS (Complementary Metal-Oxide-Semiconductor)
  • NEMS (Nano-Electro-Mechanical Systems)
  • RFID (Radio Frequency Identification)
  • Other Technology

By End-Use

  • Healthcare
  • Automotive
  • Manufacturing & Industrial
  • Energy & Utilities
  • Consumer Electronics
  • Transportation & Logistics
  • Retail & Other

By Geography

  • North America
    • US
    • Canada
    • Mexico
    • Rest of North America
  • Europe
    • Germany
    • UK
    • France
    • Russia
    • Spain
    • Italy
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Singapore
    • Malaysia
    • Rest of Asia Pacific
  • LAMEA
    • Brazil
    • Argentina
    • UAE
    • Saudi Arabia
    • South Africa
    • Nigeria
    • Rest of LAMEA

Frequently Asked Questions About This Report

The Market size is projected to reach USD 66.14 billion by 2031.

Increased adoption of IoT in various industries are driving the Market in coming years, however, High cost of advanced sensors 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, Analog Devices, Inc., Texas Instruments, Inc. and TE Connectivity Ltd.

The expected CAGR of this Market is 50.2% from 2024 to 2031.

The Battery-Powered Sensors segment is leading the Market by Power Source in 2023; thereby, achieving a market value of $39.9 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 $21.6 billion by 2031.

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