The global sensor fusion market was valued at USD 8,252.9 million in 2023, which is expected to reach USD 25,401.3 million by 2030, progressing with a CAGR of 17.6% during 2024–2030. The market is being propelled by the increasing demand for autonomous vehicles, home automation systems, military equipment, as well as consumer electronics, such as smartphones, tablets, and smart wearable devices.
The automotive industry is witnessing a quick surge in the need for advanced driver assistance systems (ADAS) and autonomous vehicles. The sensor fusion technology acts as a major driver for this progression, by enabling the continuous monitoring of vehicle systems and the outside environment to ensure better safety and enable self-driving capabilities. Some of the important features autonomous vehicles possess are collision warning, adaptive cruise control, and lane-keeping assistance. ADAS systems strengthen safety measures, boost driving assistance, and open the path for additional improvements in the autonomous driving technology, by integrating data from many sensors.
Moreover, the rising demand for advanced technologies, such as IoT, AI, and ML, in intelligent sensors is boosting the growth of the market. In this regard, the increasing popularity of smartphones worldwide is driving the adoption of the sensor fusion technology. According to Statista, as of 2022, the total number of smartphone subscriptions was around 6.5 billion, and it is projected to reach nearly 8 billion by 2028. Sensor fusion enhances smartphone camera systems by integrating data from different sensors, thus enabling advanced features, such as image stabilization, automatic scene detection, and low-light photography.
The Kalman filter algorithm is highly efficient when it comes to sensor fusion, making it an invaluable asset in various applications. Through the integration of measurements from multiple sensors and the inclusion of system dynamics, the Kalman filter facilitates a precise and dependable evaluation of system states. This, in turn, enhances the performance and reliability of sensor fusion systems and the data they produce.
Moreover, the primary areas where the Kalman filter algorithm finds considerable application in sensor fusion include tracking & localization, robots, autonomous vehicles, navigation, smartphones, aerospace & aviation, as well as health monitoring & medical diagnostics.
The non-MEMS sensor fusion technology is the faster-growing category, mainly driven by the booming demand for image- and radar-based detection systems in advanced automated vehicles. Additionally, it finds applications in environmental monitoring, for measuring temperature, humidity, and air quality, as well as in robotics, smart cities, aerospace equipment, and healthcare facilities. The healthcare sector benefits from AI, ML, and IoT, which enable the real-time monitoring of patients.
The software offering category is growing significantly due to the availability of a wide range of sensor fusion software, including the Sensor Fusion Toolbox, Robot Operating System (ROS), Kalman Filter Libraries, MATLAB Sensor Fusion and Tracking Toolbox, Nvidia DRIVE Software, and C++ Sensor Fusion Libraries. These software tools and platforms provide algorithms and different functionalities for data integration, calibration, filtering, and estimation. They are used in various industries, such as robotics, autonomous vehicles, and aerospace, to integrate data from multiple sensors and enhance perception and tracking capabilities.
The consumer electronics industry has become the largest market for sensor fusion technologies. Essentially, the increasing demand for smart devices, such as smartphones, tablets, wearables, and smart home appliances, has propelled the need for multiple sensors, to enhance user experiences by enabling advanced functionalities. This technology combines data from various sensors to provide more-accurate and reliable information, thus leading to improved motion sensing, gesture recognition, location tracking, and augmented reality functionalities.
The advancements in sensor miniaturization and the cost reduction of these components have made it feasible and affordable for manufacturers to integrate multiple sensors into compact consumer electronic devices. Additionally, the intense competition among consumer electronics manufacturers and their strong focus on innovation drive investments in research and development, to improve sensor fusion algorithms and integrate more sensors.
North America is expected to witness a significant CAGR, of 18.2%, over the forecast period in the global sensor fusion market, due to the presence of leading technology companies. Moreover, the U.S. is one of the top semiconductor designers, which, combined with the large investments in R&D and the presence of major autonomous car manufacturers, generates a high demand for various kinds of sensors and the need to fuse their data for precise information.
Some of the key players in the sensor fusion market are Amphenol Advanced Sensors, Analog Devices Inc., Asahi Kasei Microdevices Corporation, BASELABS GmbH, InvenSense, Infineon Technologies AG, NXP Semiconductors, Qualcomm Technologies Inc., Renesas Electronics Corporation, and STMicroelectronics N.V.