179 pages report analyses the global Optical Sensors Market size, recent trends, competitive intelligence and future market outlook. The market is estimated to grow at a CAGR of 16.2% till 2030. Photoelectric sensors usage is on the rise among the optical sensors. Demand from consumer electronics in North America is booming and the US market controls regional share for optical sensors.
Metrics |
Details |
Market CAGR |
16.2% |
Segments Covered |
By Type, By Product, By Application, and By Region |
Report Insights Covered |
Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other vital insights. |
Fastest Growing Region |
Asia Pacific |
Largest Market Share |
North America |
An optical sensor is a sensing tool used for measuring, employing the optical principle of the sensor to take measurements and because the measurement is not contacted, it won't harm the environment while taking the measurements. As a result, the optical sensor's measurement is extremely accurate and rarely influenced by outside forces. Optical measuring tools, encoders, optical fibers, gratings, and other gadgets are examples of optical sensors. Together, these components allow the optical sensor to function correctly and precisely measure various data. The optical sensor is designed primarily with the possibility of the detection target appearing in mind. Optical sensors are mostly used for various industrial, electronic, and automated parts to achieve the necessary goals.
Growing demand for consumer electronics is a major market driver for the respective market. Nonetheless, expensive R&D and comparatively slow-paced adoption restrict the growth of the global optical sensor market.
Living standards have increased and millions of people were pulled out of poverty due to the robust economic expansion in the previous 20 years, particularly in emerging economies. A growing global middle class with more disposable income has resulted from it. The global middle class is expanding, which has led to a rise in demand for consumer electronics like televisions, cellphones, laptops, desktop computers, and other smart gadgets.
Although COVID-19 caused a downturn in the global consumer electronics industry, pent-up demand from the pandemic and expanding demand have provided an unparalleled boost to consumer electronics sales. To boost sales and market share, consumer electronics manufacturers are responding to this increased demand by increasing manufacturing and introducing fresh, cutting-edge features.
Optical sensors are among the most important parts of contemporary consumer electronics, especially for a variety of items, including televisions, cellphones, and laptops. In the upcoming years, consumer electronics consumption is anticipated to rise drastically as technology continues to permeate all aspects of modern life. The aforementioned factor will be a significant market driver for optical sensors worldwide.
Due to their many advantages in advanced technical fields, optical sensors have witnessed increasing industry acceptance across various sectors in recent years. However, the practical application is a new technology that has only recently gained significant industrial use. Since the optical sensor market is value-driven, new, innovative products must be created and made available for purchase to spur further growth and open up new markets. Nevertheless, it takes years for research and development outcomes, which is a highly specialized process involving numerous important parties.
For research operations, specialized high-tech equipment and laboratories are needed. Similarly, the research requires highly qualified personnel, many of whom have years of experience. The facilities and laboratories cost a huge sum of money. The greatest talent needed for research activities is attracted to higher remuneration. Every year, many companies set aside billions of dollars for R&D. Smaller businesses cannot afford to invest significant quantities of money in R&D. Wider research and innovation in the sector are prevented by the high cost of R&D, which stunts growth and is a significant hurdle for the market.
2020 saw a drop in the market for optical sensors due to COVID-19's effects. Beginning in March 2020, governments worldwide implemented stringent lockdowns and other restrictions with varied time frames to stop the spread of the COVID-19 pandemic. The lockdowns disrupted end-user industries' operations. Because government laws significantly negatively impacted their earnings, several industries were forced to reduce or stop operations. Due to the pandemic's consequences, several sectors had to cut, halt, or postpone capital projects due to lower earnings. By May 2020, lockdown limitations in China, one of the biggest markets for optical sensors, were eased and by late 2020, pre-pandemic levels of economic activity had been attained. The decline in end-user industry demand affected the global market for optical sensors. The optical sensors sector primarily depends on research and development operations to provide cutting-edge products and fuel market expansion. The pandemic had a detrimental impact on research and development activities in the optical sensors market. The optical sensors market has seen supply chain difficulties due to the worldwide COVID-19 outbreak. The market has a diverse global supply chain, with component manufacturers, programmers, suppliers, and distributors from different nations. Manufacturers frequently hire a range of different contractors to produce their components.
Optical sensor applications require lengthy production, testing, and distribution lead periods. As a result, the supply chain is weak and exposed to outside shocks. As a result, the supply chain is weak and exposed to outside shocks. Long manufacturing durations and a drop in nanophotonic production have been brought on by the COVID-19 pandemic's aftershock effects on raw material supply and transportation. Production is still falling short of demand even as it gradually returns to pre-pandemic levels as demand recovers. Nonetheless, the market is expected to skyrocket due to the increasing implementation of AI and IoT, among others, in various industrial verticals.
The global optical sensors market is classified based on type, product, application, and region.
Due to their high level of object detection accuracy, photoelectric sensors are widely used in the industrial automation sector. These sensors are increasingly included in various automated machines, mostly for non-contact detections and measurements such as monitoring, machine tools, conveyor mechanisms, counting, transport systems, and measurements throughout assembly lines.
Precision in operations is crucial because modern industries have a stronger propensity for using robotics and automation, resulting in the requirement for photoelectric sensors. Due to their integration of IoT technology with Big Data and reliance on information from smart sensors, the packaging, automotive and material have highlighted the requirement for photoelectric sensors. Over the forecast period, increasing adoption of photoelectric sensors and the development of automated warehouses in many end-user verticals, including manufacturing, packaging, food, beverage, and pharmaceuticals, are expected to further fuel market growth.
Due to its huge consumer electronics market and consistently growing economy, North America controls the regional market for optical sensors worldwide. Optical sensors are commonly built into smartphones, smart wearables, and smartwatches for ambient light and other uses. Wearable technology, the Internet of Things (IoT), and health and fitness technologies have completely changed the North American market and are the main factors driving an increase in optical sensor demand there. Further, the U.S. now has a relatively high smartphone household penetration rate, indicating a strong potential for household penetration. The newest product advancements on the market largely drive the North American market.
Due to their extensive multi-functionality, smart TVs are likewise anticipated to experience rapid growth in the U.S. By 2023; it is anticipated that 60% of American households will have a smart TV, which will likely rise higher. Autonomous vehicles with optical sensors in the U.S. and Canada have increased. To support the development of driverless cars, several jurisdictions, including California, have started easing testing regulations. The respective factor is predicted to boost optical sensor sales. Additionally, several significant market participants, including Waymo and On Semiconductors, have offices in the nation and have been growing their operations to promote the usage of autonomous cars. The existence of such market participants helps to accelerate growth.
The number and strength of producers in the international market for optical sensors are very active. As a result of the presence of so many large-scale producers, including ROHM Co. Ltd, Rockwell Automation Inc., SICK AG, Vishay Intertechnology Inc., Honeywell International Inc., On Semiconductor Corporation, FM Efector Inc., Keyence Corporation, Pepperl+Fuchs GmbH, and STMicroelectronics NV, the market is fragmented. Pivotal market stakeholders use strategies like mergers, acquisitions, product launches, contributions, and collaborations to obtain a competitive edge and recognition in their respective markets.
ON Semiconductor
Overview: ON Semiconductor is the industry's leading supplier of high-performance silicon components for green technology. Due to the company's extensive selection of power and signal management, logic, discrete and bespoke devices, customers may successfully overcome design difficulties in LED lighting, computer, automotive, communications, consumer, medical, military/aerospace, industrial, and power industries. ON Semiconductor has a top-notch, value-added supply chain in key markets throughout North America, Europe, and the Asia Pacific region and a network of manufacturing sites, sales offices, and design centers. The company was founded in 1999 and headquartered in Arizona, U.S. The company employs 33,000 personnel worldwide.
Product Portfolio:
Key Development:
What is the Growth Rate of the Optical Sensors Market?
Growing at a CAGR of 16.2% during the forecast period 2022-2029.
Which Companies Are Included in the Optical Sensors Market?
ROHM Co. Ltd, Rockwell Automation Inc., SICK AG, Vishay Intertechnology Inc., Honeywell International Inc., On Semiconductor Corporation, FM Efector Inc., Keyence Corporation, Pepperl+Fuchs GmbH, and STMicroelectronics NV, the market is fragmented.
What is The COVID-19 Impact on Optical Sensors Market?
The optical-sensor industry relies on r and d to provide innovative companies with gasoline market expansion. The pandemic influenced the research and development of optical sensors. Due to the worldwide COVID-19 outbreak, the supply chain of optical devices has been hampered. Component manufacturers, programmers, suppliers, and distributors from different nations are present in the global supply chain. To produce their components, manufacturers often hire a variety of installers.