The International Organization of Motor Vehicle Manufacturers (OICA) states that 21,787,126 commercial vehicles and 55,834,456 cars were produced across the world in 2020. Furthermore, the International Energy Agency (IEA) reveals that the global stock of battery electric vehicles (BEVs) and plug-in hybrid electric vehicles stood at 6,850,327 units and 3,346,713 units, respectively, in 2020. The increasing adoption of conventional automobiles and electric vehicles (EVs) is creating a huge requirement for position sensors, due to the surging need for these instruments in parking assistance systems, clutch plates, and hybrid engines.
Moreover, the flourishing packaging industry, particularly in India and China, will also assist the position sensor market to demonstrate a CAGR of 7.7% during the forecast period (2019–2024). According to P&S Intelligence, the market was valued at $9.1 billion in 2018, and it is expected to reach $14.2 billion revenue by 2024. The expansion of the packaging sector can be attributed to the burgeoning demand for packaging solutions from the food and pharmaceutical industries. Position sensors are installed in the packaging machines for better outcomes.
Nowadays, position sensor manufacturers are increasingly focusing on product launches, partnerships, mergers and acquisitions, and client pool expansion to reach out to more customers. For example, in 2018, SICK AG introduced the AHS/AHM36 IO-link absolute encoder with a multiturn resolution of 12 bits and a single turn resolution of 24 bits. It is a fully magnetic, cost-effective, and compact sensor that can be used in harsh environments. Similarly, ams AG launched a magnetic rotary position sensor with an I2C interface named AS5200L, in 2018. This instrument aids in the development of safety-critical automotive solutions.
The type segment of the position sensor market is bifurcated into linear and rotary. Of these, the rotary category accounted for the larger market share in 2018, due to the extensive use of rotary sensors in consumer electronics and automobiles. These sensors are used for detecting throttle and pedal positions in vehicles. Whereas, the linear category is expected to witness the faster growth during the forecast period, due to the surging need for linear sensors in the aerospace and manufacturing industries for accurate measurements.
These sensors are being used in the aerospace, manufacturing, automotive, packaging, healthcare, consumer electronics, oil and gas, and power generation industries for various applications. In the coming years, linear and rotary position sensors will be adopted at the highest rate in the manufacturing sector, due to the ongoing Industry 4.0 revolution. The advent of industry 4.0 has fueled the adoption of automated solutions, smart sensors, and internet of things (IoT) technology in the manufacturing sector.
Globally, the Asia-Pacific (APAC) position sensor market generated the highest revenue in 2018, and it is also expected to demonstrate the fastest growth during the forecast period. This can be primarily ascribed to the burgeoning demand for consumer electronics and automobiles in the region. Moreover, the presence of two of the world's leading EV manufacturers i.e., China and Japan, will also drive the demand for position sensor market in the in the region in the foreseeable future. Besides, the escalating focus of China on the local production of aircrafts will also complement the market growth in the region in the forecast years.
Therefore, the booming automobile sales and expanding packaging industry will fuel the adoption of position sensors in the foreseeable future.
