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The global position sensor market was valued $9.1 billion in 2018, and is expected to register a CAGR of 7.7% during the forecast period. The market for position sensor is mainly driven by the growing demand for position sensors from aerospace and automobile industries, as well as increasing focus of manufacturing industries toward accurate measurements and inspection.
Among all the regions, Asia-Pacific (APAC) was the largest market for position sensor in 2018, and is projected to be the fastest-growing regional market during the forecast period as well. This can be mainly attributed to increasing automobile production, mainly in China; growing manufacturing sector, as well as growing packaging industry in the region. Moreover, increasing production of aircrafts is further driving the position sensor market in the region.
Factors Governing Position Sensor Market
Development of smart position sensor is an emerging trend observed in the position sensor market. Smart position sensor offers an accurate motion control, and is a non-contacting sensing solution, which offers self-calibration, and can be used in various types of harsh applications such as in healthcare and aerospace applications. With the technological advancements, market players are increasingly launching smart position sensors with various features to offer better services to its customers. For instance, in 2012, Honeywell International Inc. launched a new addition to its smart position sensor portfolio with a rotary configuration that offers non-contact, 360-degree angular position sensor. This sensor can be used in transportation applications in determining articulation angle, steering angle, and in boom arm detection for the use in wind turbines or solar panels.
Increasing use of position sensors in automobiles is a major factor driving the growth of the market. Position sensor is used in clutch plates, sensing steering angle, pedal positioning, and various other applications. Moreover, hybrid engines and parking assistance systems in vehicles also requires use of position sensors for their proper functioning. Owing to the rising number of vehicle production across the globe, primarily in developing countries such as China, Indonesia, and Thailand, there is an increasing demand for these sensors globally. For instance, it has been recorded that, in 2017, the production of motor vehicles in China increased to 29.7 million units from 7.7 million units in 2013. Hence, with increasing production of motor vehicles and due to various applications of position sensors in motor vehicles, the market for position sensor is growing at a healthy rate globally.
Position Sensor Market Segmentation Analysis
Based on type,rotary category held the larger revenue share in the position sensor market in 2018. This is due to large application of these sensors in various applications such as pedal position, throttle position control, and in various consumer electronics appliances. Moreover, linear category is expected to grow faster during the forecast period. This can be attributed to increasing demand for these sensors in critical applications in aerospace and manufacturing industry, where accurate measurement is a key focus area.
Based on linear position sensor type, linear potentiometer accounted for largest revenue share in the market in 2018. Linear potentiometer is cheaper and is more temperature stable as compared to other type of position sensors. Due to this, demand for these sensors are high, globally. However, laser sensor is expected to grow fastest over the forecast period. This can be attributed to rising demand for fast and accurate measurements applications in aerospace, manufacturing, and electronics industries. As laser sensor offers accurate measurement results, the demand for laser sensors in these industries is expected to grow during the forecast period.
Based on contact type, contact position sensor category accounted for larger share in the market in 2018. As contact position sensors are cheaper than non-contact type, the demand for these sensors is high in developing countries such as China, India, Indonesia. However, non-contact position sensor is expected to grow faster over the forecast period. This can be attributed to increasing demand for accuracy in measurements with up to sub-micron, and nanometer resolution; along with rising demand for measurement applications over the surfaces that cannot be touched during measurements.
Geographical Analysis of Position Sensor Market
Globally, APAC accounted for the largest share in the market in 2018, and is expected to grow fastest over the forecast period. Growing automotive industry, rising population, and growing demand for consumer electronics appliances in the region are the major factors driving the market. China and Japan are the two major countries driving the growth of the market in the region. In terms of automotive industry, the market is predominantly driven by the adoption of electric vehicles, wherein China and Japan constituted largest share driven by government support. For instance, the government of both China and Japan are offering subsidies to increase the sales of electric vehicles. Further, the Chinese government has allotted a subsidy of over $10,000 per vehicle in 2017, due to which China recorded rise in adoption of electric vehicles by over 42% from 2016. As position sensors are an important component in electric vehicles. Hence, increasing production of vehicles in the region, is driving the demand for position sensor in APAC.
Competitive Landscape of Position Sensor Market
The position sensor market is highly fragmented in nature, with the presence of numerous players in the market. The key players in the market witnessed an increase in their sales value, primarily in the APAC region, predominantly due to the growing automotive and industrial equipment markets. This growth is further projected to intensify the market competition during the forecast period.
Recent Strategic Developments of Major Position Sensor Market Players
The major players in the global position sensor market are focusing on mergers and acquisitions, partnerships, product launches, and client wins to gain a competitive edge in the market. For instance, in 2018, SICK AG launched AHS/AHM36 IO-link absolute encoder with a single turn resolution of 24 bits, 12 bits for multiturn. The product is compact, cost effective, fully magnetic, and is suitable for harsh environments.
Key Questions Answered in the Report