The global IoT sensor market is expected to reach $27.4 billion in 2022, compared to $21.8 billion in 2021.
The year-on-year growth rate in 2021-2022 is expected to be 25.7%. The convergence of technologies such as artificial intelligence, machine learning, and connectivity is driving growth across all sectors. Continuing deployment of 5G and increasing electronic content in automobiles, electric vehicles, and AVs, and expansion of IoT devices in smart homes are emerging trends in the global IoT sensor market.
Rising demand for Industrial Internet of Things (IIoT) integration in industries that require sensor-based measurements for observation and decision support purposes is expected to drive IoT sensor market expansion over the forecast period. On the basis of region, North America is expected to dominate the market during the forecast period. The U.S. alone is projected to generate $33.8 billion in revenue by 2032. The US is expected to be the strongest player globally. This can be attributed to the presence of well-known companies such as Honeywell. In addition, other cities such as San Francisco have pioneered smart parking systems that help drivers find a parking space among 8,200 parking spaces with sensors installed.
In addition, Chicago has installed various sensors to detect and respond to flooding or traffic. Additionally, New York, Chicago, and San Francisco are some of the US cities that embed sensor nodes into lampposts in urban environments to regulate air quality in crowded areas and perform predictive analytics. Due to these factors, the North American market is likely to boom in the coming years.
The market is expected to strengthen its expansion with increasing smart city initiatives, development of field devices, robots, sensors, and the advent of Industry 4.0. According to the latest report by Fact.MR, from 2015 to 2021, the growth rate of the industry is 23.9%. The unfolding of modern applications and business models, along with the low cost of devices, has played a major role in driving the IoT sensor market over the previously mentioned time span. As a result, various connected devices such as; connected cars, machines, consumer electronics, and meters are beginning to flourish in the market.
Industry 4.0 initiatives across regions, such as; China and Europe are key drivers for IoT implementation and thus benefit the market during the forecast period. According to Accenture, 60 percent of manufacturing organizations are already involved in IoT projects, and more than 30 percent are in the early stages. Furthermore, the decreasing cost of IoT sensors is one of the important reasons that may drive the market in the future.
With the increasing popularity of microelectromechanical systems (MEMS) technology and the rapid reduction in sensor size, sensors are in increasing demand in automotive, consumer products, and healthcare. According to Fact.MR, the global IoT sensors market is expected to expand at a CAGR of 20.3% during the forecast period from 2022 to 2032. In the past 5 years, smaller sensors have been implemented in the following devices; drones, smartphones, robots, and wearables, thus significantly expanding the market size.
