Industrial Automation Sensors Market by Sensor Type (Level Sensors, Flow Sensors), Type (Contact Sensors, Non-contact Sensors), Mode of Automation, End User, and Geography - Global Forecast to 2029

The Industrial Automation Sensors Market is projected to reach $22.59 billion by 2029 at a CAGR of 9.6% from 2022 to 2029. The growth of this market is attributed to the rising adoption of industry 4.0 and IIoT in manufacturing, the surging demand for smart sensor-enabled wearable devices, and the growing technological advancements in industrial sensors. Furthermore, the use of smart sensors for predictive maintenance and increasing utilization of smart sensors in the automotive industry are the factors expected to offer significant opportunities for the growth of this market.

Impact of COVID-19 on the Industrial Automation Sensors Market

The outbreak of the COVID-19 pandemic severely impacted the growth of several industries, including manufacturing and oil & gas. Oil & gas is a major end-use industry of the industrial automation sensor market. The outbreak of the COVID-19 pandemic posed several challenges to many ongoing or new projects across the oil & gas value chain in project execution, planning, and risk management. More than 2000 EPC oil & gas projects across various segments, including LNG, petrochemical, and oil storage & refineries, came to a halt or were delayed due to the pandemic.

The energy research firm Rystad Energy has predicted that a 25% decline in oil prices is expected to cut oil and gas investments by $30 billion worldwide. Apart from oil & gas, many other industries worldwide, including power generation and mining, suspended production activities due to the pandemic. The suspension of production activities hindered the demand for industrial automation sensors.

Furthermore, the COVID-19 pandemic led several manufacturing companies to temporarily work at reduced capacities to contain the spread of infection, negatively impacting the market's supply chain by creating shortages of materials, components, and finished goods. The lack of business continuity negatively impacted shareholder returns and revenue, which are expected to create financial disruptions in the industrial automation sensors industry.

The industrial automation sensors market is segmented based on sensor type, type, mode of automation, end user, and geography. The study also evaluates industry competitors and analyses the market at the country level.

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Rising Adoption of Industry 4.0 and IIoT in Manufacturing to Support the Market Growth

The automation sensors market is growing due to government support and initiatives, high demand for industrial automation for mass production, and mounting pressure to reduce operational costs. Product lifecycle management and enterprise-level solutions are gaining high demand across the globe.

Singapore is emerging as a dominating automation country in Southeast Asia due to initiatives such as National Robotics Program. In 2019, Singapore witnessed the roll-out of the Narrowband IoT (NB-IoT) network, a connectivity standard backed by Telcos and the GSM Association, accelerating the progress of Singapore’s digital economy. In September 2019, Thailand announced its plans to develop the Digital Park Thailand to provide digital infrastructure to companies to support Thailand’s agenda to become a digital innovation hub. Thailand’s Digital Agenda 2018 was focused on five areas: digital infrastructure, digital government, digital manpower, cybersecurity, and digital tech developments. The Ministry of Digital Economy and Society (Thailand) also presented a Smart City Framework designed to make habitable cities with the help of digital technologies.

In October 2018, Malaysia proposed a National Industry 4.0 Framework to boost the manufacturing sector. One of the initiatives includes smart cities to accelerate the progression of the digital economy. Hence, such developments are expected to drive the growth of the industrial automation sensors market.

Key Findings in the Industrial Automation Sensors Market Study:

Image Sensors Segment Expected to Grow at Highest CAGR During Forecast Period

Based on sensor type, the industrial automation sensors market is segmented into level sensors, temperature sensors, flow sensors, gas sensors, position sensors, pressure sensors, force sensors, humidity & moisture sensors, and image sensors. The image sensors segment is projected to grow at the highest CAGR during the forecast period. The growth of this segment is attributed to factors such as the increasing demand for sensors for digital cameras and imaging devices; the increasing need for advanced functionalities such as higher sensitivity and lower dark noise; and the growing popularity of image sensors across medical imaging equipment and night vision equipment.

Non-contact Sensors Segment Expected to Grow at Highest CAGR During Forecast Period

Based on type, the industrial automation sensors market is segmented into contact sensors and non-contact sensors. The non-contact sensors segment is projected to grow at the highest CAGR during the forecast period. The growth of this segment is attributed to the various advantages offered by non-contact sensors over contact devices, such as spontaneity, reliability, longevity, and performance consistency. Non-contact sensors are used for process and control, automation, manufacturing, engineering, and other operations across many industries, driving the growth of this segment.

Fully-Automatic System Segment Expected to Grow at Highest CAGR During Forecast Period

Based on mode of automation, the industrial automation sensors market is segmented into semi-automatic systems and fully-automatic systems. The fully-automatic system segment is expected to grow at the highest CAGR during the forecast period. The increasing focus on maintaining hygiene and food safety and the need to boost production capabilities, minimize human interventions, and increase the ROI are expected to propel the demand for fully-automatic systems in the industrial automation sensors market.

Automotive Segment Expected to Grow at Highest CAGR During Forecast Period

Based on end user, the industrial automation sensors market is segmented into oil & gas, automotive, food & beverage, semiconductors & electronics, chemicals & materials, consumer goods, mining & metals, power, pharmaceuticals & biotech, machines & tools, paper & pulp, aerospace & defense, and other end users. The automotive segment is expected to grow at the highest CAGR during the forecast period. The growth of this segment is attributed to the increasing acceptance of IoT sensors in processing plants and manufacturing. In addition, the IoT-based industrial automation sensors allow manufacturers to monitor plant sites remotely, improve the safety of industrial assets and workers, and optimize operational efficiency. Integrating these industrial sensors in manufacturing services helps decrease maintenance costs by achieving early fault detection.

Asia-Pacific to be the Fastest-growing Regional Market

Based on geography, Asia-Pacific is expected to record the highest CAGR during the forecast period. The high market growth in Asia-Pacific is driven by the growing industrial sector; the increasing presence of SMEs in countries such as India, China, and Japan; the growing need for sensors in the pharmaceutical, manufacturing, and automobiles industries; rapid industrialization and technological advances; growing electronics and automobile industries; rapid technological advances; the emergence of industry 4.0; and the increasing number of foreign investments. Furthermore, the increase in manufacturing units, the presence of several semiconductor manufacturing units, favorable government initiatives, the automation of traditional manufacturing and industrial activities through modern smart technologies, and growth in the electronics and automobile industry drive the growth of this market in Asia-Pacific.

Key Players

The key players operating in the industrial automation sensors market are Amphenol Corporation (U.S.), Honeywell International Inc. (U.S.), Infineon Technologies AG (Germany), NXP Semiconductors N.V. (Netherlands), Renesas Electronics, Corporation (Japan), Rockwell Automation, Inc. (U.S.), Siemens AG (Germany), STMicroelectronics International N.V. (Switzerland), TE Connectivity Ltd. (Switzerland), Texas Instruments Incorporated (U.S.), Dwyer Instruments Ltd. (U.K.), Bosch Sensortec GmbH (Germany), ABB Ltd. (Switzerland), Analog Devices, Inc. (U.S.), and Sensirion AG (Switzerland).

Scope of the Report:

Industrial Automation Sensors Market, by Sensor Type              

• Image Sensors
• Pressure Sensors
• Temperature Sensors
• Position Sensors
• Humidity & Moisture Sensors
• Level Sensors
• Flow Sensors
• Gas Sensors
• Force Sensors
• Other Sensors

Industrial Automation Sensors Market, by Type

• Contact Sensors
• Non-contact Sensors
  • Photonic Sensor
  • Hall Effect Sensor
  • Capacitive Sensor
  • Ultrasonic Sensor
  • Inductive Sensor
  • Laser Displacement Sensor

Industrial Automation Sensors Market, by Mode of Automation

• Semi-automatic Systems
• Fully-automatic Systems

Industrial Automation Sensors Market, by End User

• Oil & Gas
• Automotive
• Food & Beverage
• Semiconductor & Electronics
• Chemicals & Materials
• Consumer Goods
• Mining & Metals
• Pharmaceuticals & Biotech
• Power
• Machines & Tools
• Paper & Pulp
• Aerospace & Defense
• Other End-users (Textile and Agriculture)

Industrial Automation Sensors Market, by Geography 

• Asia-Pacific 
  • China
  • Japan
  • India
  • South Korea
  • Singapore
  • Taiwan
  • Thailand
  • Rest of Asia-Pacific (RoAPAC)
• Europe 
  • Germany
  • U.K.
  • Italy
  • Netherlands
  • Sweden
  • France
  • Spain
  • Rest of Europe (RoE)
• North America 
  • U.S.
  • Canada 
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America (RoLATAM)
• Middle East & Africa
  • South Africa
  • UAE
  • Saudi Arabia
  • Rest of the Middle East & Africa (RoMEA)

Key Questions Answered in the Report: