Global HEV Sensors

European markets are expected to account for a large share of global HEV sensor sales growth through 2026, with rapid gains expected in both Western and Eastern Europe. Market expansion will be fueled by aggressive targets for the phaseout of ICE vehicles – including hybrid vehicles – under EU climate policy. EU-wide targets include a date of 2035 for ending sales of new ICE cars, while many countries in the region have adopted even more ambitious targets of their own.

Western Europe will account for the larger portion of growth, reflecting high income levels that will allow for rapid adoption of electric vehicles. East European HEV markets are less developed and are therefore expected to grow even faster from small bases. Demand for HEV sensors in Eastern Europe will be boosted by the region’s increasing importance in manufacturing vehicles for export to Western Europe. Attempts to develop domestic HEV markets in Eastern Europe will also provide opportunities for manufacturers of lower-end EVs, as consumers in the region are expected to remain relatively income-constrained compared to those in Western Europe.

EV Market to Overtake Hybrid Vehicle Market

While hybrid vehicles accounted for the majority of global HEV output in 2021, EVs are expected to capture a larger share by 2024. Countries with particularly ambitious EV adoption targets – such as those in Europe – are expected to decrease regulatory support for hybrid vehicles going forward because the internal combustion engines therein still contribute to greenhouse gas emissions. However, hybrid vehicles hold potential for growth globally; this is especially true of lower-income nations where infrastructure is, at least in the near term, expected to remain insufficient for large-scale EV adoption.

Due to the stronger growth outlook for EV production, the HEV sensor products that are expected to post the fastest gains are those that find particularly intensive use in EVs. Temperature and current sensors will account for an increased share of the market in 2026, while products used more intensively in hybrid vehicles – such as chemical property sensors and flow and level sensors – will post below average growth.

Strong Opportunities for Sensors in Value-Added Systems

While HEVs are expected to become increasingly cost-competitive going forward, these vehicles will continue to represent higher-end products on average. As a result, growth in deployment of HEVs will fuel increased sales of sensors used in value-added systems, which have relatively strong penetration in these vehicles. In particular, the increased prevalence and capabilities of advanced driver assistance systems (ADAS) will fuel demand growth for proximity and positioning sensors; imaging sensors will post even more rapid gains.

Study Description

This Freedonia industry study analyzes the $2.7 billion global HEV sensor industry. It presents historical demand data (2011, 2016, and 2021) and forecasts (2026 and 2031) by type (proximity and positioning, speed and motion, chemical property, temperature, pressure, current, flow and level, imaging, and other sensors), vehicle system (safety and security, engine and drivetrain, emissions control, navigation and communications, and other systems), vehicle type (light vehicles, medium and heavy vehicles), and region (North America, Central and South America, Western Europe, Eastern Europe, Asia/Pacific, Africa/Mideast). The study discusses the impact of the COVID-19 pandemic. The study also evaluates competitive analysis on industry competitors including Bosch, DENSO, Sensata Technologies, STMicroelectronics, and Vitesco Technologies.