Proximity Sensor Market Research Report - Forecast till 2027

Proximity Sensor Market Research Report: By Technology (Inductive, Capacitive, Photoelectric, Magnetic) by End User (Aerospace & Defense, Automotive, Industrial, Consumer Electronics, Food & Beverage, Others) by Region (North America, Europe, Asia-Pacific, Middle East and Africa, Central and South America) - Forecast till 2027

ID: MRFR/SEM/6719-HCR | February 2021 | Region: Global | 111 pages

Proximity Sensor Market Synopsis

Proximity Sensor Market is expected to grow from USD 2,325.4 million in 2018 to USD ~3,630 million by 2025, at a CAGR of ~7% during the forecast period. The proximity sensors are used to detect the proximity or the distance between the target object and the receiver. The various proximity sensors in the market are used to detect various material types and serve various purposes. The wide range of end-user applications includes defense, automotive, consumer electronics, aerospace, and other crucial areas. Several applications are reducing the sizes to fit into the miniature applications. The proximity sensors are also evolving according to the demand of the applications. The increasing growth of industrial activities and the automotive industry is further stimulating the overall growth of the Proximity sensor industry.

COVID 19 Analysis:

The COVID 19 has increased the Proximity sensor market growth as many organizations were finding alternative business strategies to continue their business processes. Several businesses have digitized their business procedures, including sales, supply, production, and other management activities. The increasing development of IT and telecom sectors is getting digitalized as well. The mitigating government regulation regarding COVID 19 has encouraged the industrial sectors to invest in the R and D developments and advanced sensor technologies. The pandemic has increased the usage of work from home trends which thereby increased the usage of smart devices and mobile phones more than ever. Such factors are stimulating the overall growth of the Proximity sensor industry.

Market Dynamics:

Market Drivers:

The increasing demand for wireless technologies, user experience in the automotive, automated, and energy-saving lighting systems in the hotels and residential sectors are driving the Proximity sensor market growth.

The accurate detection of obstacles using ultrasonic proximity sensors is extremely useful in the automotive industry. The ultrasonic proximity sensors produce pulsating sound with a higher frequency range that alarms the driver in parking the vehicle safely without bumping into a post or other vehicle.

Market Opportunities:

The increasing investment in the automotive industry is presenting lucrative opportunities for the Proximity sensor market growth. The advent of the PLI scheme in India which has a budget of INR 26,000 crore and the INR 120 crore budgets for the manufacturing process are expected to boost the automotive industry in India. The development of the automotive industry is expected to influence the Proximity sensor market growth eventually.

The sophisticated information and communication sector in China is presenting lucrative opportunities for the Proximity sensor market growth. The increasing utilization of proximity sensors in smartphones in the endeavor to reduce the power consumption during calls has stimulated the Proximity sensor market demand. A study shows that smartphone production in China has grown from 237.2 million units in the year 012 to 901.2 million units in the year 2017 and now has reached over 1.5 billion in the year 2020.

Market Restraints:

The ultrasonic proximity sensors used in the automotive can detect prominent vehicles but they are not capable of obstacles that are too thin to reflect the sound emitted by the sensors. Objects that don’t effectively reflect sounds such as thin posts curbs or any other obstacle cannot be detected by the ultrasonic proximity sensors in the vehicles. On the other hand, the counterparts of the electromagnetic proximity sensors are costlier than ultrasonic proximity sensors. Such factors are currently restraining the overall growth of the Proximity sensor industry.

The conventional ultrasonic proximity sensor exhibits some common disadvantages such as detection affected by the distance, inaccurate readings, and inflexible scanning methods. On the other hand, if the probe fails to emit the sound, the detection procedures can lead to false detection.

Market Challenges:

In industrial applications, the ultrasonic proximity sensors have to be planned and located carefully and to check if any industrial fans are running near the installation areas. The primary challenge with the Ultrasonic proximity sensor is that the sound waves are easily affected by the wind produced by 50 cm industrial fans.

The designing of the proximity sensor is generally difficult, the body of the proximity sensor in a way that it doesn’t get affected by the temperature and humidity is considered as the major challenge for the Proximity sensor market growth.

Cumulative Growth Analysis:

The proximity sensors are intensively used in smartphones to recognize air gestures and hover manipulations which enhance the user experience and reduce the power consumption by the display when the user is not viewing the contents displayed on the screen. The Proximity sensor market demand is constantly growing since optimizing the power consumption in smartphones is considered the major concern for several companies. Also, the varied end-user applications of proximity sensors such as smartphones, recycling plants, self-driving cars/vehicles, anti-aircraft systems, assembly lines are projecting the overall growth of the Proximity sensor industry. The proximity sensor market value was at USD 2,325.4 million in the year 2018 and is expected to reach over USD 3,630 million by the year 2025 while registering a CAGR of 7% during the forecast period. The different types of proximity sensors are used for varied applications and usage. Inductive proximity sensors are used for detecting the metallic targets, while the capacitive proximity sensors are used to detect anything capable of carrying electrical charge, magnetic proximity sensors are used to detect the proximity of the magnetic substances, Ultrasonic proximity sensors measure the distance between the target and the receiver by emitting the high pitch sound. 

Value Chain Analysis:

Compared to other end-user applications, the consumer electronic industry and automotive industries are the two intensive users of Proximity sensors, as the demand for proximity sensors in these two industrial areas is constantly rising. The increasing consumer base for automotive and smartphones in several developing countries are continuously fuelling the overall growth of Proximity sensors. The proximity sensors are used in the cars at the bumpers to help the drivers safely park the vehicle in the congested parking areas. Both Ultrasonic proximity sensors and electromagnetic proximity sensors are used in cars to calculate the proximity of other vehicles or obstacles.

The Proximity sensors are intensively used in airports, hotels, especially at the automated washrooms and kitchens. They are also used in the penthouses in residential sectors where the lights are on once the proximity sensors detect the hand movement. The increasing demand for consumer electronics and increasing investment in automotive are impacting the Proximity sensor market growth.

Segment Overview:

Based on End-user:

  • Aerospace & defense

  • Automotive

  • Industrial

  • Consumer electronics

  • Food & beverage

  • Others.

Based on Types:

  • Inductive proximity sensors

  • Conductive proximity sensors

  • Magnetic proximity sensors

  • Ultrasonic proximity sensors

  • Electromagnetic proximity sensors

Regional Analysis:

Over other regions, China is currently dominating the proximity sensor market share owing to the huge number of proximity sensor suppliers and manufacturers in the region. The China manufacturers of proximity sensors have been producing proximity sensors with external synchronization, time delay, surface mounting process, work area stability, self-diagnosis, anti-interference, and similar intelligent features. Such features are propelling the overall growth of the Proximity sensor industry in the region. On the other hand, the rising demand for smartphones in North America is presenting lucrative opportunities for the Proximity sensor market growth in North America. Additionally, the presence of key market players such as Honeywell and Rockwell automation in North America is adding weightage to the Proximity sensor market value. 

Competitive Landscape:

  • Avago Technologies Inc. (Singapore)

  • Schneider Electric (France)

  • Panasonic Corporation (Japan)

  • Balluff GmbH. (Germany)

  • Hans Turck GmbH & CO., KG. (Germany)

  • Pepperl + Fuchs GmbH (Germany)

  • Rockwell Automation (US)

  • Omron Corporation (Japan)

  • Honeywell International Inc. (US)

  • Sick AG (Germany).

Recent Developments:

In the year 2021, one of the leading AI software companies has developed a virtual smart sensor to be utilized in Xiaomi. The AI-embedded proximity sensors have been found effective in developing the 3D gesture and presence sensing capability in smartphones. The sensors were installed in both Xiaomi’s Mi 11 lite 5G (snapdragon 732 G and Snapdragon 780 G).

The VL53L3CX Time of Flight Ranging sensor has been introduced to the market in the year 2020 and since then has been utilized in service robots and obstacle detecting vacuum cleaners, smart buildings, smart lighting, IoT, laser-assisted camera systems. This sensor combines the most favorable features such as higher performance proximity, short distance linearity, and robust, miniature structure to fit in several applications that require smaller installation space.

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

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Frequently Asked Questions (FAQ) :

At 7% CAGR, the worldwide market of proximity sensor is expected to value at USD 3636 Mn.

Avago Technologies Inc. (Singapore), Panasonic Corporation (Japan), and Schneider Electric (France) are some renowned players of the proximity sensor market.

Inductive, magnetic, capacitive, and photoelectric are technologies that proximity sensors use.

In 2018, the proximity sensor market was recorded at USD 2,325.4 million.

Market trends and dynamics, and role of market players are discussed in the proximity sensor market report.

A proximity sensor detects the presence of nearby objects without any physical contact. It functions by detecting a change in the local electromagnetic field

Proximity sensors are largely used in automotive and aerospace & defense industries.

adoption of proximity sensors in various applications including parking assistance systems, infotainment systems, 3D gesture control systems