Driven by sensors that enable automated vehicles and ADAS (Advanced Driver Assistance Systems), the global automotive sensors market is set to grow to over $92 billion by 2026 -- a 30 per cent increase over 2021, a new report showed on Monday.
The majority of revenue from vehicle automation and ADAS sensors will come from CMOS image sensors (cameras used for image recognition), which will remain more cost-effective than LiDAR (light detection and ranging) in many situations in the short term.
Sensors monitoring various vehicle safety parameters in internal combustion engines will experience substantial decline from increased electrification of vehicles, following the COP26 climate conference's initiatives to move countries to 100 per cent electric vehicle sales by 2030, according to the report from Juniper Research.
"Electrification will change the game for many sensor providers in the coming years", said Miles Agbanrin, research co-author.
"With less need for air monitoring in electric vehicles, sensor manufacturers need to develop new relationships with battery manufacturers and the elements that need monitoring for those systems, or face severe losses in revenue," said Agbanrin.
The research found operational safety sensors, which make up over half of the sensors shipped between 2021-2026, will see revenue decline over the forecast period, thanks to accelerating electrification.
Juniper Research expects over a third of consumer vehicles shipped in 2026 to be electric.
"This means different sensors will be needed to monitor engine conditions; resulting in declining demand for traditional O2 and NOX sensors. However, this change will take longer for commercial vehicles, where internal combustion engines will remain the norm for far longer," it noted.