Global Optical Sensors Market - 2022-2029

Global Optical Sensors Market - 2022-2029

Market Overview

The global optical sensors market reached US$ XX million in 2021 and is expected to reach US$ XX million by 2029, growing at a CAGR of 16.2% during the forecast period 2022-2029.

An optical sensor is a sensing tool used for measuring, employing the optical principle of the sensor to take measurements and because the measurement is not contacted, it won't harm the environment while taking the measurements. As a result, the optical sensor's measurement is extremely accurate and rarely influenced by outside forces. Optical measuring tools, encoders, optical fibers, gratings and other gadgets are examples of optical sensors. Together, these components allow the optical sensor to function correctly and precisely measure various data. The optical sensor is designed primarily with the possibility of the detection target appearing in mind. Optical sensors are mostly used for various industrial, electronic and automated parts to achieve the necessary goals.

Market Dynamics

Growing demand for consumer electronics is a major market driver for the respective market. Nonetheless, expensive R&D and comparatively slow-paced adoption restrict the growth of the global optical sensor market.

Growing demand for consumer electronics

Living standards have increased and millions of people were pulled out of poverty due to the robust economic expansion in the previous 20 years, particularly in emerging economies. A growing global middle class with more disposable income has resulted from it. The global middle class is expanding, which has led to a rise in demand for consumer electronics like televisions, cellphones, laptops, desktop computers and other smart gadgets.

Although COVID-19 caused a downturn in the global consumer electronics industry, pent-up demand from the pandemic and expanding demand have provided an unparalleled boost to consumer electronics sales. In order to boost sales and market share, consumer electronics manufacturers are responding to this increased demand by increasing manufacturing and introducing fresh, cutting-edge features.

Optical sensors are among the most important parts of contemporary consumer electronics, especially for a variety of items, including televisions, cellphones and laptops. In the upcoming years, consumer electronics consumption is anticipated to rise drastically as technology continues to permeate all aspects of modern life. The aforementioned factor will be a significant market driver for optical sensors worldwide.

Expensive R&D and comparatively slow-paced adoption

Due to their many advantages in advanced technical fields, optical sensors have witnessed increasing industry acceptance across various sectors in recent years. However, the practical application is a new technology that has only recently gained significant industrial use. Since the optical sensor market is value-driven, new, innovative products must be created and made available for purchase to spur further growth and open up new markets. Nevertheless, it takes years for research and development outcomes, which is a highly specialized process involving numerous important parties.

For research operations, specialized high-tech equipment and laboratories are needed. Similarly, the research requires highly qualified personnel, many of whom have years of experience. The facilities and laboratories cost a huge sum of money. The greatest talent needed for research activities is attracted with higher remuneration. Every year, many companies set aside billions of dollars for R&D. Smaller businesses cannot afford to invest significant quantities of money in R&D. Wider research and innovation in the sector are prevented by the high cost of R&D, which stunts growth and is a significant hurdle for the market.

COVID-19 Impact Analysis

2020 saw a drop in the market for optical sensors due to COVID-19's effects. Beginning in March 2020, governments worldwide implemented stringent lockdowns and other restrictions with varied time frames to stop the spread of the COVID-19 pandemic. The lockdowns disrupted end-user industries' operations. Because government laws significantly negatively impacted their earnings, several industries were forced to reduce or stop operations. Due to the pandemic's consequences, several sectors had to cut, halt, or postpone capital projects due to lower earnings. By May 2020, lockdown limitations in China, one of the biggest markets for optical sensors, were eased and by late 2020, pre-pandemic levels of economic activity had been attained. The decline in end-user industry demand affected the global market for optical sensors. The optical sensors sector primarily depends on research and development operations to provide cutting-edge products and fuel market expansion. The pandemic had a detrimental impact on research and development activities in the optical sensors market. The optical sensors market has seen supply chain difficulties due to the worldwide COVID-19 outbreak. The market has a diverse global supply chain, with component manufacturers, programmers, suppliers and distributors from different nations. Manufacturers frequently hire a range of different contractors to produce their components.

Optical sensor applications require lengthy production, testing and distribution lead periods. As a result, the supply chain is weak and exposed to outside shocks. As a result, the supply chain is weak and exposed to outside shocks. Long manufacturing durations and a drop in nanophotonic production have been brought on by the COVID-19 pandemic's aftershock effects on the raw material supply and transportation. Production is still falling short of demand even as it gradually returns to pre-pandemic levels as demand recovers. Nonetheless, the market is expected to skyrocket due to the increasing implementation of AI and IoT, among others, in various industrial verticals.

Segment Analysis

The global optical sensors market is classified based on type, product, application and region.

The increasing adoption of photoelectric sensors and the development of automated warehouses in various end-user verticals

Due to their high level of object detection accuracy, photoelectric sensors are widely used in the industrial automation sector. These sensors are increasingly included in various automated machines, mostly for non-contact detections and measurements such as monitoring, machine tools, conveyor mechanisms, counting, transport systems and measurements throughout assembly lines.

Precision in operations is crucial because modern industries have a stronger propensity for using robotics and automation, resulting in the requirement for photoelectric sensors. Due to their integration of IoT technology with Big Data and reliance on information from smart sensors, the packaging, automotive and material have highlighted the requirement for photoelectric sensors. Over the forecast period, increasing adoption of photoelectric sensors and the development of automated warehouses in many end-user verticals, including manufacturing, packaging, food and beverage and pharmaceuticals, are expected to further fuel market growth.

Geographical Analysis

The huge consumer electronics market and its consistently growing economy boost North America’s optical sensors market

Due to its huge consumer electronics market and consistently growing economy, North America controls the regional market for optical sensors worldwide. Optical sensors are commonly built into smartphones, smart wearables and smartwatches for ambient light and other uses. The wearable technology, Internet of Things (IoT) and health and fitness technologies have completely changed the North American market and are the main factors driving an increase in optical sensor demand there. Further, the U.S. now has a relatively high smartphone household penetration rate, indicating a strong potential for household penetration. The newest product advancements on the market largely drive the North American market.

Due to their extensive multi-functionality, smart TVs are likewise anticipated to experience rapid growth in U.S. By 2023; it is anticipated that 60% of American households will have a smart TV, which will likely rise higher. Autonomous vehicles with optical sensors in the U.S. and Canada have increased. In order to support the development of driverless cars, several jurisdictions, including California, have started easing testing regulations. The respective factor is predicted to boost optical sensor sales. Additionally, several significant market participants, including Waymo and On Semiconductors, have offices in the nation and have been growing their operations to promote the usage of autonomous cars. The existence of such market participants helps to accelerate growth.

Competitive Landscape

The number and strength of producers in the international market for optical sensors is very active. As a result of the presence of so many large-scale producers, including ROHM Co. Ltd, Rockwell Automation Inc., SICK AG, Vishay Intertechnology Inc., Honeywell International Inc., On Semiconductor Corporation, FM Efector Inc., Keyence Corporation, Pepperl+Fuchs GmbH and STMicroelectronics NV, the market is fragmented. Pivotal market stakeholders use strategies like mergers, acquisitions, product launches, contributions and collaborations to obtain a competitive edge and recognition in their respective markets.

ON Semiconductor

Overview: ON Semiconductor is the industry's leading supplier of high-performance silicon components for green technology. Due to the company's extensive selection of power and signal management, logic, discrete and bespoke devices, customers may successfully overcome design difficulties in LED lighting, computer, automotive, communications, consumer, medical, military/aerospace, industrial and power industries. ON Semiconductor has a top-notch, value-added supply chain in key markets throughout North America, Europe and the Asia Pacific region and a network of manufacturing sites, sales offices and design centers. The company was founded in 1999 and headquartered in Arizona, U.S. The company employs 33,000 personnel worldwide.

Product Portfolio:

AR0134CS: CMOS Image Sensor: The AR0134CS is a 1/3-inch, 1.2-megapixel CMOS digital image sensor having a 1280 (H) x 960 active-pixel array (V). The product has a global shutter that allows it to capture moving scenes in low light accurately. Advanced camera features include auto exposure adjustment, windowing, scaling, row skip option and single frame and video modes. The product can be programmed using a straightforward two-wire serial interface. The AR0134CS is ideal for various applications, including industrial inspection and scanning, because it creates incredibly clear, sharp digital images and can record continuous video and single frames.

Key Development:

On July 27, 2021 ON Semiconductor unveiled the most recent CMOS image sensor in the XGS series. The 16 Megapixel XGS 16000 sensor offers excellent global shutter imaging for robotics and inspection systems used in factory automation. With 65 frames per second (fps), the product uses just 1 Watt while providing excellent performance. The XGS 16000 and other XGS CMOS image sensors have the same architecture and physical footprint. The respective technology makes it possible for manufacturers to create products with various resolutions using a single camera architecture. The sensor comes in various speed ratings, all with Bayer color or monochrome options and supports readout rates of up to 65 frames per second at full resolution.

Why Purchase the Report?
• To visualize the global optical sensors market segmentation based on type, product, application and region, as well as understand key commercial assets and players.
• Identify global optical sensors market commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of optical sensors market-level with four segments.
• PDF report consisting of cogently put together market analysis after exhaustive qualitative interviews and in-depth market study.
• Product mapping available as excel consisting of key products of all the major market players

The global optical sensors market report would provide approximately 61 tables, 61 figures and almost 173 pages.

Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies