At the core of various IoT applications lies two things- the internet and physical devices like sensors and actuators. Even before the advent of IoT, industries and enterprises have been using sensors, but IoT has taken this to an entirely different level, thus paving the way for the development and evolution of cutting-edge sensors. These sensors basically collect data from the surrounding environment, which is then shared through an entire network of connected devices.
Different IoT applications require different sensors. The most commonly used sensors in IoT applications are temperature sensors, proximity sensors, pressure sensors, chemical sensors, smoke sensors, gas sensors, image sensors, level sensors, and IR sensors. These sensors enable a two-way communication between a man and machine. This is driving the use of IoT sensors in various end-use industries. For example, in manufacturing, IoT sensors help reduce the cost of manufacturing and maintenance, while in the automotive industry, they are used for increasing the safety of vehicles and facilitating their parking.
The global IoT sensors market is expected to reach USD 45 billion by 2026, from USD 4 billion in 2017. The market will grow at an impressive CAGR of 40% during this period. The rapid growth of the market can be attributed to factors like proliferation of IoT and connected devices, development of cheaper, smarter, and advanced sensors, increasing demand for smart devices and wearable, and rising application of IoT sensors across different industry verticals.
Further, the growing demand for consumer electronics like smartphones and smart home appliances, as well as the increasing demand for sensors in the healthcare industry, will also drive the market for IoT sensors. Even government initiatives like smart city projects will give a major boost to the growth of the global IoT sensors market.
However, since IoT is a completely data-driven concept, data security remains a major concern, which is likely to restrain the market growth. IoT-enabled sensors and devices generate a huge volume of data and therefore, ensuring safe storage and handling of this data is important.
So far, North America has held the largest share in the global IoT sensors market, followed by Europe. Together, these two regions accounted for more than 50% of the global market in the past few years. However, the Asia-Pacific IoT sensors market is expected to grow at the highest CAGR during 2018 to 2023, owing to the increasing penetration of the internet across both residential and commercial sectors, rising disposable income, improvement in the IT infrastructure, and a wide consumer base.
Some of the major players operating in the global IoT sensors market are, Texas Instruments Incorporated, Te Connectivity Ltd., NXP Semiconductors N.V., Honeywell International, Inc., Broadcom Limited (Avago), Robert Bosch GmbH, Infineon Technologies AG, Analog Devices, Inc., Invensense, Inc., Arm Holdings PLC., Mirada Medical Limited, Sciencesoft USA Corporation, Siemens Healthineers, Toshiba Medical Systems Corporation, and Xinapse Systems Ltd.