Market Size of Optical Sensor Industry
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
CAGR | 6.33 % |
Fastest Growing Market | Asia Pacific |
Largest Market | Asia Pacific |
Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
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Optical Sensor Market Analysis
The optical sensors market is expected to grow at a CAGR of 6.33% over the forecast period. Primarily due to the increasing number of smartphone users and advanced technologies driving the market growth. Furthermore, IoT-connected devices have opened massive opportunities for sensors in several applications like industrial, medical, consumer electronics, automotive, etc. According to Cisco's Annual Internet Report, by 2023, there will be nearly 30 billion network-connected appliances and connections, up from 18.4 billion in 2018.
- Increasing demand for advanced security features in smartphones has led to features such as an on-screen fingerprint scan and an optical sensor that detects and verifies fingerprints, driving the fiber optic sensor market. For instance, in May 2022, Vivo announced its latest flagship phone, the X80 Pro, and its most prominent new hardware feature is a larger in-display fingerprint sensor. The active area is far more significant than the tiny sensors found on most Android phones, meaning it's easier to unlock the phone without looking at the screen to align your thumb.
- Further, Ambient sensors measure the room's light and adjust the screen's brightness accordingly. Thus, the increasing demand for smartphones is expected to drive the demand for these sensors. Countries like India, with a limited market penetration of smartphones, have witnessed double-digit growth in recent years. The same trend is anticipated to continue shortly. Also, the current trend of 4G feature phones is expected to aid the smartphone demand, driving the need for optical sensors.
- Furthermore, the increasing adoption of electric vehicles creates opportunities for printed electronics to be used in battery condition monitoring. For instance, according to the IEA estimates, plug-in electric light vehicle worldwide sales amounted to 6.7 million units recently. Further, the IEA projects that, as a part of the Net Zero Emissions by 2050 Scenario, 300 million electric cars would be on the road and account for over 60% of new car sales.
- Also, the adoption of these lighting systems in commercial and residential applications is expected to increase the demand for optical sensors. With LEDs and intelligent controls, Chicago planned to replace 270,000 city lights over the next four years till 2022. This initiative is expected to save Chicago USD 10 million in energy costs annually. With other cities following suit, the demand for optical sensors in these intelligent light systems is expected to increase.
- The imbalance between image quality and price has led to increased competition, particularly for the consumer electronics segment, which has some of the most established players facing peer pressure over optimal pricing. Several small players are also facing difficulty with product differentiation, which leads to a potential barrier to their entry into high-volume applications. In this case, product differentiation can move a product from pure pricing to non-pricing factors.
- Due to the outbreak of COVID-19, the global supply chain and demand for multiple sensors were majorly disrupted. With the shutdown in production in countries such as China, multiple industries observed a supply shortage of various products. Due to supply chain disruption, the raw material price increased, impacting the overall pricing of the proximity sensor.
Optical Sensor Industry Segmentation
Optical sensors are light-based biosensors based on the change in wavelength measurement after the analyte's interaction with the bio-recognition element. The purpose of an optical sensor is to measure a physical quantity of light and, depending on the type of sensor, then translate it into a form readable by an integrated measuring device.
The Optical Sensor Market is segmented by Type (Extrinsic Optical Sensor, Intrinsic Optical Sensor), Sensor Type (Fiber Optic Sensor, Image Sensor, Photoelectric Sensor, Ambient Light, and Proximity Sensor), Application (Industrial, Medical, Biometric, Automotive, Consumer Electronics), and Geography (North America, Europe, Asia Pacific, Latin America, MEA). The market sizes and forecasts are provided in terms of value (USD million) for all the above segments. The impact of Covid-19 on the market and its impacted components are also covered under the scope of the study. Further, the disruption of the factors affecting the market's expansion has been covered in the survey regarding drivers and restraints.
By Type | |
Extrinsic Optical Sensor | |
Intrinsic Optical Sensor |
By Sensor Type | |
Fiber Optic Sensor | |
Image Sensor | |
Photoelectric Sensor | |
Ambient Light and Proximity Sensor |
By Application | |
Industrial | |
Medical | |
Biometric | |
Automotive | |
Consumer Electronics |
By Geography | ||||||
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Optical Sensor Market Size Summary
The optical sensors market is poised for significant growth, driven by the increasing adoption of smartphones and advanced technologies. The proliferation of IoT-connected devices across various sectors such as industrial, medical, consumer electronics, and automotive is creating substantial opportunities for optical sensors. The demand for enhanced security features in smartphones, such as on-screen fingerprint scans, is propelling the market forward. Additionally, the rise in electric vehicle adoption and the integration of optical sensors in intelligent lighting systems are further contributing to market expansion. The competitive landscape is marked by a focus on product differentiation and strategic partnerships, as companies strive to balance image quality and pricing in the consumer electronics segment.
The market is also experiencing a surge in demand due to the rapid expansion of end-user industries like consumer electronics, industrial automation, and automotive. The increasing production of automobiles in the Asia-Pacific region and the growing applications of sensors in smartphones are expected to drive market growth. Investments in manufacturing and favorable government policies are further bolstering the market. The global optical sensors market is highly competitive, with major players leveraging strategic collaborations and technological advancements to enhance their market presence. Innovations such as AI virtual proximity sensors and advanced image sensors are setting new benchmarks in the industry, indicating a robust growth trajectory for the optical sensors market.
Optical Sensor Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Market Overview
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1.2 Industry Attractiveness - Porters Five Forces Analysis
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1.2.1 Bargaining Power of Suppliers
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1.2.2 Bargaining Power of Buyers
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1.2.3 Threat of New Entrants
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1.2.4 Threat of Substitutes
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1.2.5 Intensity of Competitive Rivalry
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1.3 Industry Value Chain Analysis
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1.4 Assessment of Impact of COVID-19 on the Market
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2. MARKET SEGMENTATION
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2.1 By Type
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2.1.1 Extrinsic Optical Sensor
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2.1.2 Intrinsic Optical Sensor
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2.2 By Sensor Type
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2.2.1 Fiber Optic Sensor
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2.2.2 Image Sensor
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2.2.3 Photoelectric Sensor
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2.2.4 Ambient Light and Proximity Sensor
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2.3 By Application
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2.3.1 Industrial
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2.3.2 Medical
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2.3.3 Biometric
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2.3.4 Automotive
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2.3.5 Consumer Electronics
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2.4 By Geography
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2.4.1 North America
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2.4.1.1 United States
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2.4.1.2 Canada
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2.4.2 Europe
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2.4.2.1 Germany
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2.4.2.2 United Kingdom
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2.4.2.3 France
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2.4.2.4 Rest of the Europe
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2.4.3 Asia Pacific
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2.4.3.1 China
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2.4.3.2 Japan
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2.4.3.3 India
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2.4.3.4 Rest of the Asia Pacific
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2.4.4 Latin America
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2.4.4.1 Brazil
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2.4.4.2 Mexico
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2.4.4.3 Rest of the Latin America
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2.4.5 Middle East & Africa
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2.4.5.1 United Arab Emirates
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2.4.5.2 Saudi Arabia
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2.4.5.3 Rest of the Middle East & Africa
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Optical Sensor Market Size FAQs
What is the current Optical Sensor Market size?
The Optical Sensor Market is projected to register a CAGR of 6.33% during the forecast period (2024-2029)
Who are the key players in Optical Sensor Market?
ROHM Co. Ltd, Rockwell Automation Inc., SICK AG, Vishay Intertechnology Inc. and Honeywell International Inc. are the major companies operating in the Optical Sensor Market.