Asia-Pacific Proximity and Displacement Sensor Market Expected to Reach $7.97 Billion by 2030

According to a recent report published by Allied Market Research, titled, “Asia-Pacific Proximity and Displacement Sensor Market by Type, Application, and End User: Regional Opportunity Analysis and Industry Forecast, 2021–2030”, the Asia-Pacific proximity and displacement sensor market size was valued at $2.97 billion in 2020, and is projected to reach $7.96 billion by 2030, registering a CAGR of 10.5% from 2021 to 2030.

The market for proximity and displacement sensors experiences gradual growth in Asia-Pacific. The report on Asia-Pacific proximity and displacement sensors market states that the companies operating in the manufacturing of proximity and displacement sensors find the market highly complex and fragmented in nature. Presence of large number of regional players have created a perfect competitive environment.

Application of proximity and displacement sensors in the development of automation systems for manufacturing added significant value to Asia-Pacific proximity and displacement sensors market share. Advancement of mobile devices in the form of smartphones and tablets generate ample demand for proximity sensors from mobile manufacturers. Presently, the application area of wireless proximity sensors in automobile is limited to the extent of security and infotainment systems. However, the Asia-Pacific proximity and displacement sensors industry is poised to grow in the area of assisted functionality during the forecast period.

Technological advancement in defense sectors have largely facilitated the use of sensor-based technologies in applications such as anti-aircraft warfare systems. Rise intrend of factory and process automation paired with increase inawareness of rationalization for optimum energy consumption, surge inpopularity of contactless sensing technology, and technological improvements in automotive security & infotainment system are major driving factors for proximity and displacement market. These factors are anticipated to drive the Asia-Pacific proximity and displacement sensors market size during the forecast period (2021-2030).

Analysis of the market based on Porter’s five-force model reveals that buyers in the market enjoy higher bargaining power compared to suppliers. Ability of buyers to switch to a new supplier in a cost effective manner reduces the bargaining power of suppliers. The market features lower threat of forward and backward integration from suppliers and buyers respectively. This leaves a moderate bargaining for the buyers in the market.

COVID-19Impact

COVID-19 has caused the overall semiconductor industry to mobilize quickly and make short-term decisions with long-term implications. Major companies operate in a complex ecosystem, working across the value chain with numerous raw materials, assembly, test, package, and equipment suppliers &partners across the region.

Demand from the IT & telecommunication segment is expected to increase, owing to factors such as rise in broadband usage, increase indemand for cloud services, and surge in video streaming. In addition, in the medium to long term, COVID-19 is expected to further push the need for digital transformation and technologies, such as 5G, Internet of Things (IoT), Artificial intelligence (AI), and intelligent edge computing for future optimization.

Some of the proximity and displacement sensor manufacturers in Asia-Pacific have witnessed temporary delays in production, increased costs, and revenue losses dueto the pandemic.

The manufacturing sector witnessed severe loss, and thus, no new orders were placed during the pandemic. In addition, this impact was estimated to continue till 2021. Moreover, international consumer electronics and proximity and displacement sensormarket trends are in a very weak state, owing to lockdowns imposed to tackle the pandemic. Although the markets in the U.S. and Europe witnessed mild recovery in the second half of 2020, they are still significantly down on pre-crisis levels. Therefore, the Asia-Pacific proximity and displacement sensor market growth faced major obstacles due to the emergence of COVID-19 pandemic.

The pandemic impacted the production process of several industries, including semiconductor and electronics. Trade barriers have further constrained the demand and supply outlook. The overall production process is adversely affected as governments of different countries have already announced completelockdown and temporary shutdown of industries.

Key Findings Of Study

• The inductive sensor segment is expected to generate the highest revenue during the forecast period.
• The manufacturing segment is expected to generate the highest revenue during the forecast period.
• China segment is expected to register the highest revenue during the forecast period.

The key players profiled in the report include Canon Inc., Matterport, Lytro Inc., Fujifilms, GoPro Inc., Eastman Kodak Company, Nikon Corporation, Panasonic Corporation, Sony Corporation, and Faro Technologies. These key players have adopted several strategies, such as new product launch &development, acquisition, partnership &collaboration, and business expansion to strengthen their footholdin the Asia-Pacific proximity and displacement sensor market during the forecast period.