Proximity and Displacement Sensors Market Expected to Reach $14.85 Billion By 2030

According to a new report published by Allied Market Research, titled, “Proximity and Displacement Sensors Market By Type and End User: Global Opportunity Analysis and Industry Forecast, 2021–2030”, the proximity and displacement sensors market size was valued at $5.89 billion in 2020, and is estimated to reach $14.85 billion by 2030, growing at a CAGR of 9.8% from 2021 to 2030.

The proximity and displacement sensors market size experiences gradual growth in Asia-Pacific. The report on 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 create a perfect competitive environment.

Application of proximity and displacement sensors in the development of automation systems for manufacturing add significant value to the 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 market is poised to grow in the area of assisted functionality during the forecast period.

Technological advancement in the defense sectors have largely facilitated the use of sensor-based technologies in applications, such as anti-aircraft warfare systems. Rise in trend of factory and process automation, increase in awareness of rationalization for optimum energy consumption, surge in popularity of contactless sensing technology, and technological improvements in the automotive security & infotainment system are major factors that drive the growth of the proximity and displacement sensors industry.

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 buyers in the market.

COVID-19 Impact Analysis

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 in demand 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 witnessed temporary delays in production, increased costs, and revenue losses due to 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 sensor market 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, proximity and displacement sensors market growth faced major obstacles due to the emergence of COVID-19 pandemic.

Key Findings of the Study

• By type, inductive sensor segment accounted for the highest revenue in 2020 at a CAGR of 6.3% during 2021 to 2030.
• By end user, manufacturing segment will dominate the proximity and displacement sensors market throughout the forecast period.
• Asia-Pacific region will contribute the highest market share with a notable CAGR of 10.5% during the forecast period.

The key players profiled in the report include Omron Corporation, IFM Electronics GmbH, Kaman Corporation, Keyence Corporation, Lion Precision, Micron Optics Inc., Panasonic Corporation, Pepperl+Fuchs, Standex-Meder Electronics Inc., and Turck Inc. These market players have adopted various strategies, such as product launch, collaboration & partnership, joint venture, and acquisition, to expand their foothold in the industry.