Optical Sensing Market Research Report - Global Forecast 2027

Optical Sensing Market: By Type (Fiber Optic Sensors, Ambient Light Sensors, Image Sensors, Position Sensors and Others), By Method (Extrinsic and Intrinsic), By Technology (Fiber Braggs Grating (FBG) based, Fabry-Perot Interferometers, Spectroscopy, Laser Doppler velocimetry and Others), By Application (Metrology, Pressure and Strain Sensing, Medical Instruments, Temperature sensing, Remote Sensing Satellite, Biometric and Ambience Sensing, Geographical Survey), By Vertical (Aerospace & Defense, Healthcare, Automotive, Consumer Electronics, Oil & Gas, Government & Utilities, Transportation, Construction and Others) - Forecast till 2027

ID: MRFR/SEM/2363-CR | April 2019 | Region: Global | 139 pages

Optical Sensing Market Overview

Optical sensing market expected to reach USD 4.85 billion by the year 2023 while registering a CAGR of 21.4%. The optical sensors are sensing devices that are used to measure the light intensity level and convert them into electrical signals that can be read using digital devices. The optical sensors are intensively utilized in the oil and gas industries and healthcare sector due to their compact sizes, flexibility, the non-toxic materials utilized in the manufacturing processes. Major end-user applications of the optical sensors are automotive, consumer electronics, oil and gas market, medical sector, construction, and other essential end-user industries.


Although there are several end-user applications, the major demand for automatic lighting, position detection sensors when the moving objects interrupt the light beam, flash detection sensors, photoelectric sensors that detect the distance, absence, and presence of the objects, and so on. On the other hand, smartphone manufacturers are intensively utilizing optical sensors to automatically adjust the screen brightness according to the environment, additionally, smartwatches utilize optical sensors to measure the heartbeat of the wearer.


COVID 19 Analysis:


The COVID 19 pandemic has hugely impacted the critical manufacturing and production processes across several industrial verticals. However, the COVID 19 has increased the demand for diagnostics and prevention measures in the healthcare sector. Therefore the manufacturers and the key market players have adopted strategies and collaborations to develop the Optical sensing market. 


The potential features such as energy optimization and other optimizing features in the optical sensing devices are propelling the overall growth of the Optical sensing market. On the other hand, the demand for biosensors, biomarkers has increased during the pandemic which has also created a larger scope for the optical sensing industry growth. 


Market Dynamics:


Market Drivers:


The growing prevalence of smartphones and smartwatches which are considered as the intensive users of optical sensors are considered as the major driver of the optical sensing industry. 


The potential benefits of the optical sensors and the capability of the optical sensors to perform effectively under harsh environments are considered as the primary growth-stimulating factor of the Optical sensing market. Additionally, ambient sensors are increasingly deployed in offices, hospitals, commercial and residential units, such factors are driving the overall growth of the Optical sensing industry.


Market Opportunities:


The varied end-user applications of the optical sensing market which includes, oil and gas market, healthcare, construction, transportation, and increasing demand of these industries have a tremendous influence on the growth of the optical sensing market.


The increasing awareness of optical sensing devices and the intensive utilization of the optical sensors in medical devices and monitoring devices, accompanied with the intensive usage of those optical sensors during critical operations are expected to propel the overall growth of the Optical sensing market.


Market Restraints:


The increasing utilization of alternatives rather than optical sensors is hindering the overall growth of the optical sensing market. The smaller pixel size of the microlens arrays in the camera sensors is not capable of focusing onto the micro-pixels. Such factors produce brighter center and darker corners in the image. Such factors are restraining the overall growth of the Optical sensing market.


Market Challenges:


The price of the optical sensors and the deployment in the number of end-users are presenting lucrative challenges for the optical sensing market. The price and the number of operations they perform demand higher costs. Such factors have increased the pressure for the emerging market players for the reduction of optical sensors.


The requirement for higher resolution lenses has increased with the increasing demand for consumer electronics. Although the size of the sensors has remained unchanged. The previous models of the lenses are not compatible with the present generation devices and are not capable of transmitting optical information. Such factors are considered the primary challenge of the optical sensing market.


Cumulative Growth Analysis:


The increasing deployment of the market 4.0 in several countries and the increasing automation of the manufacturing facilities have propelled the Optical sensing market demand. Additionally, the demand for medical and biometric services across the globe has also impacted the Optical sensing market demand in recent times. The market value of the Optical sensing industry is expected to surpass the market value of USD 4.85 billion by the year 2023 while registering a CAGR of 21.4%. 


The tremendous growth in the biometrics market and the tracking features have also impacted the overall growth of the optical sensing market. Additionally, experts estimate that the distance tracking feature of optical sensing devices is expected to gain momentum in the automotive market. Also, the effective communicating feature of the optical sensors is expected to be integrated into the vehicles to eliminate road-mishap incidences.


Value Chain Analysis:


The Optical sensing market share for the medical market is expected to witness substantial growth during the forecast period, owing to the rising demand for optical sensing devices such as biochemical sensing, pressure and temperature sensing, optical coherence tomography. Also, while performing the surgical operations, the requirement to monitor the pressure and temperature of the patient is essential. As the optical sensors don’t include toxic materials during manufacturing, they are considered to be the efficient and safest options in determining the health parameters during operations. Such factors are the major growth stimulating factors of the Optical sensing market. 


On the other hand, consumer electronics like smartphones and smartwatches are increasing in terms of sales across the globe. Smartphones are the major end-users of the optical sensors which monitor the environmental changes and adjust the brightness of the device accordingly. Such factors are stimulating the overall growth of the Optical sensing market.


Segment Overview:


Based on Type:

  • Image sensors

  • Fiber optic sensors

  • Ambient light sensors

  • Position sensors

  • Others


Based on Method:

  • Intrinsic

  • Extrinsic


Based on Operations:


  • Displacement sensing

  • Temperature sensing

  • Pressure sensing

  • Vibration sensing

  • Others


Based on Technology:


  • Laser Doppler Velocimetry

  • Fiber Braggs Grating

  • Fabry-Perot interferometers

  • Spectroscopy

  • Others


Based on End-User Applications:


  • Construction

  • Aerospace

  • Healthcare

  • Transportation

  • Consumer electronics

  • Navigation and sensing

  • Free space communication

  • Others


Regional Analysis:


North America is currently dominating the Optical sensing market share across the globe. Countries such as the US, Canada, Mexico are intensively utilizing optical sensing devices for measuring the parameters such as pressure, strain, and temperature. On the other hand, one of the leading market players from the European region, ROHM semiconductors have recently launched the heart rate monitoring device that is optimized in the wearable. Such innovation in the market and increasing demand for the smartphones and devices that are major end-users of the optical sensors are impacting the overall growth of the Optical sensing market.


The Asia-pacific region is exhibiting increasing technological development and increasing adoption in automotive standards and artificial intelligence in the automotive manufacturing sectors. Such factors are stimulating the overall growth of the Optical sensing market. 


Competitive Landscape:


  • Oxsensis Ltd (U.K.) 

  • TE Connectivity Ltd. (Switzerland)

  • AMS AG. (Austria) 

  • ABB Ltd. (Switzerland)

  • Texas Instrument Incorporated (U.S.)

  • Infineon Technologies AG. (Germany)

  • Sony Corporation (Japan)

  • ROHM Company Ltd (Japan)

  • Hamamatsu Photonics K.K. (Japan)

  • Analog devises Inc. (U.S.)

  • STMicroelectronics N.V. (Switzerland)

  • Teledyne Technologies Incorporated (U.S.)


Recent Developments:


Recent research done at the Oregon University has developed an optical sensor that is capable of mimicking the human eye functions, which is designed to be deployed in humanoid robots and automated machinery. The sensors light up in the presence of light and go dark in the absence of light.


In the year 2021, one of the leading market players, Vishay Intertechnology Inc. has released the AEC-Q101 which is designed to increase the power density, and efficiency in the automotive features that include, battery management, high side load switching, reverse polarity protection, and so on.


Report Overview:


This report has covered:

  • Market Overview

  • COVID 19 Analysis

  • Market Dynamics

  • Cumulative Growth Analysis

  • Value Chain Analysis

  • Segment Overview

  • Regional Analysis

  • Competitive Landscape

  • Recent Developments

Report Scope:
Report Attribute/Metric Details
  Market Size   USD 4 Billion
  CAGR   21.4%
  Base Year   2019
  Forecast Period   2020-2024
  Historical Data   2018
  Forecast Units   Value (USD Billion)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   Type, Method, Technology, Application, Vertical
  Geographies Covered   North America, Europe, Asia-Pacific, and Rest of the World (RoW)
  Key Vendors   Analog Devices Inc., Teledyne Technologies Incorporated, Oxsensis Ltd, TE Connectivity Ltd., ABB Ltd., ROHM Company Ltd., Hamamatsu Photonics K.K., Sony Corporation, STMicroelectronics N.V., Infineon Technologies AG., ams AG, Texas Instrument
  Key Market Opportunities   Increasing adoption of optical sensors in machine vision applications.
  Key Market Drivers

  • The increasing penetration of smartphones.
  • The rising adoption of optical sensors.

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    Frequently Asked Questions (FAQ) :

    The market is assessed to mark 21.41% CAGR.

    The market is supposed to earn USD 4 Bn by 2023.

    North America market is expected to mark 20.06% CAGR.

    By type, the segments profiled are fiber optic sensors, image sensors, position sensors, ambient light sensors, and others.

    Different applications identified in the report are metrology, medical instruments, pressure and strain sensing, temperature sensing, biometric and ambience sensing, remote sensing satellite, and geographical survey.

    The verticals are - aerospace & defense, automotive, healthcare, consumer electronics, government & utilities, oil & gas, transportation, and construction among others.

    The market share analysis offered covers the following key players - Hamamatsu Photonics K.K., ABB Ltd., Analog Devices Inc., STMicroelectronics N.V., Texas Instrument Incorporated, Teledyne Technologies Incorporated, ams AG., Oxsensis Ltd, Infineon Technologies AG., ROHM Company Ltd, Sony Corporation, TE Connectivity Ltd.