Position Sensor Market Forecasts to 2028 – Global Analysis By Type (Linear Position Sensors and Rotary Position Sensors), Specification (Non-Contact and Contact), Output (Digital and Analogue), Application (Machine Tools, Material Handling, Motion Systems

Position Sensor Market Forecasts to 2028 – Global Analysis By Type (Linear Position Sensors and Rotary Position Sensors), Specification (Non-Contact and Contact), Output (Digital and Analogue), Application (Machine Tools, Material Handling, Motion Systems, Robotics, Test Equipment and Other Applications), End User (Aerospace, Automotive, Other End Users) and By Geography

According to Stratistics MRC, the Global Position Sensor Market is accounted for $5.81 billion in 2022 and is expected to reach $10.98 billion by 2028 growing at a CAGR of 11.2% during the forecast period. A position sensor is a device that measures position when displacement, distance, position, or length measurements are used to automate, test, or monitor processes. They are frequently utilized in a variety of devices, including robotics, industrial machinery, computer hard drives, CD/DVD drives, and steering wheels. Position sensors are becoming more and more important as more small and medium-sized end users learn about them. Because of ongoing technological advancements in optical position sensors, the market is expected to expand.

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Market Dynamics

Driver:

Industry 4.0 to drive the market growth

Industry 4.0 has facilitated the quick development of cutting-edge technologies, encouraging industry manufacturers to automate industrial processes. Industrial producers in many different regions are primarily making investments to upgrade their manufacturing facilities through the use of fully automated machine tools. For instance, the IFR (International Federation of Robotics) reports that nearly 373,000 industrial robot units were shipped worldwide in 2019. A recent report from World Robotics 2020 Industrial Robots also mentioned a 12% increase in the number of industrial robots operating in factories around the world, for a record-breaking total of 2.7 million robots. The market for position sensors has thus expanded due to manufacturers' propensity for automation.

Restraint

High cost of ownership

Numerous parts, including position magnets, sensing rods, electronics housing fixtures, diagnostic light-emitting diodes (LEDs), and connectors—all of which are supplied by different vendors—are used in the manufacturing and assembly of a position sensor. The cost and availability of raw materials and components, as well as the length of time it takes to introduce a product to the market, are the main factors that affect profitability. Since they are created to meet the needs of the end user, position sensors can be made to order. Every application requires a different specification for these sensors, which drives up their price. Such aspects hinder market expansion.

Opportunity

Growth and expansion in small scale businesses

The semiconductor and electronics industry has a tremendous amount of room to grow as a result of the improving global economy. The use of advanced technologies is receiving more attention from the major manufacturers, which will increase the potential for growth. Growth in market value is fueled by increasing urbanization, modernization, and globalization. Other factors influencing market growth include the rise in cyberthreats and security breach worries, improvements in position sensor technology, and increased awareness of vehicle safety and technological advancements by the automotive industry. Additionally, during the forecast period, profitable opportunities are made available to market participants by advances in manufacturing technology.

Threat

Lack of standards to measure performance indicators

The definitions of terms like precision, non-linearity, accuracy, and resolutions are currently lacking and differ greatly between manufacturers and researchers. Additionally, the design and fit of position sensors vary depending on the application. The majority of the major industry players have their own methods for building these sensors. As a result, it is challenging to extrapolate the performance of a position sensor from a set of specifications due to the absence of global standards. Because OEMs can't use these sensors interchangeably for various applications, this factor is also impeding the adoption of position sensors in various applications.

Covid-19 Impact

The COVID-19 outbreak has proven to be a tragedy for the industry. Due to the coronavirus pandemic, business activity has been suspended, and there have been disruptions to international supply chains, border restrictions, and travel bans by government agencies as a result of the pandemic. The strict measures to limit commercial activities caused a slowdown in the market's growth rate. However, following global easing and the slow recovery from the pandemic in some nations, including China, Germany, and France, the market is anticipated to rise.

The digital segment is expected to be the largest during the forecast period

Due to factors like their pervasive use in the manufacturing of high-volume, inexpensive, and small-size devices, digital position sensors will hold the largest share over the prediction period. In 2022, the digital segment accounted for 56.5% of market share. Furthermore, it offers low-cost customer-specific versions and has a potentiometer, voltage, current, or incremental encoder in its signal output, which are driving the segment expansion.

The non-contact segment is expected to have the highest CAGR during the forecast period

During the forecast period, the non-contact segment is expected to witness lucrative growth. Users of non-contact technology benefit from its simplicity, dependability, resistance to contamination, and high accuracy. Compared to position sensors that use contact technology, contactless position sensors are more durable and have higher resolution capabilities. Contactless position sensors are anticipated to maintain their lucrative position in this market because non-contact position sensors are available in a wide variety of sizes, shapes, and measurement principles and can be used in a wide range of applications, including automotive, industrial, and consumer electronics.

Region with largest share

Europe accounted for 40% of the market for position sensors, and it is anticipated that it will continue to hold the largest share throughout the forecast period. The major contributors to the expansion of the position sensor market in Europe are Germany, the UK, France, and Italy. Europe has a robust industrial base and is renowned throughout the world for its exceptional engineering capabilities, top-notch workforce, and R&D endeavors. With companies like Volkswagen (Germany), Daimler (Germany), Airbus (Netherlands), Dassault Aviation (France), and Novartis (Switzerland) in the area, the demand for laser goods and solutions is anticipated to increase.

Region with highest CAGR

Due to the ongoing demand from a variety of industry verticals for inexpensive and highly effective position sensors, the Asia-Pacific region is anticipated to experience the highest growth rate during the forecast period. This is a result of the region's rapidly growing populations, which are driving up demand for automobiles and consumer electronics. As the region's two largest auto producers, particularly of electric vehicles, China and Japan serve as the primary engines of industry growth in the area. Due to their severe air pollution problems, both of these nations are providing financial incentives to promote EV adoption and production. The significance of such devices in automobiles is primarily what drives the position sensor market in the region.

Key players in the market

Some of the key players profiled in the Position Sensor Market include Allegro Microsystems Inc., AMS OSRAM AG, Balluff GmbH, Bourns, Inc, CTS Corporation, Dr. Johannes Heidenhain GmbH, Hans Turck GmbH & Co. Kg, Honeywell International, Inc., iFM Efector, Inc., Infineon Technologies AG, Keyence Corporation, Leuze Electronics GmbH & Co. KG, MTS Systems, Novotechnik Messwertaufnehmer Ohg, Optek Technology, Qualcomm Technologies, Inc, Renishaw plc, Schneider Electric SA, Sensata Technologies, Sick AG, Siemens AG, STMicroelectronics N.V., TE Connectivity and Vishay Intertechnology, Inc.

Key Developments

In March 2023, Allegro MicroSystems, a global leader in power and sensing solutions for motion control and energy efficient systems, announces the release of samples for the ACS37601, an ASIL C safety rated, high-precision, field current sensor with best-in-class accuracy for traction and auxiliary inverter systems as well as battery management systems (BMS) in electric vehicles (EVs).

In February 2023, CTS Corporation announced the acquisition of maglab AG, a privately held magnetic system design and current measurement solution provider. Based in Basel, Switzerland, maglab offers products designed for smart and fail-safe position and current measurement for electric mobility, renewable energy, robotics, and automation. The company leverages magnetic material and sensor engineering experience to deliver solutions to fit customers’ unique applications.

In November 2022, Allegro MicroSystems, Inc. a global leader in sensing and power solutions for motion control and energy-efficient systems, announced the A31316 3D Hall-effect position sensor, the latest addition to the company’s 3DMAG™ line of 3D sensors. Offered in an industry-smallest 4 × 4 mm body PCB-less package, this new sensor is ideal for automotive safety and advanced driver assistance systems (ADAS) applications that require high levels of flexibility and reliable performance in harsh conditions such as powertrain and chassis applications, as well as industrial applications that require linear or rotary sensing.

Types Covered:
• Linear Position Sensors
• Rotary Position Sensors

Specification Covered:
• Non-Contact
• Contact

Outputs Covered:
• Digital
• Analogue

Applications Covered:
• Machine Tools
• Material Handling
• Motion Systems
• Robotics
• Test Equipment
• Other Applications

End Users Covered:
• Aerospace
• Automotive
• Electronics
• Healthcare
• Manufacturing
• Packaging
• Other End Users

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements