This market research report was originally published at the Yole Group’s website. It is reprinted here with the permission of the Yole Group.
The convergence of two automotive megatrends, electrification and ADAS, is fueling the sensors market.
OUTLINE
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Sensors for electrification and ADAS both show remarkably strong growth in revenue between 2019 and 2029, with 24% and 17% CAGR, respectively, during this period.
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The overall sensors market for automotive applications was $9.3 billion in 2023 and is pointing to $14.3 billion by 2029 (7% CAGR).
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The biggest segments are radars and CIS, with more than $4 billion and more than $3 billion, respectively, in 2029. LiDARs will have the biggest growth at 48% to $649 million during this period.
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Ecosystem: the German Tier-one, Bosch, leads the market due to strong revenue in MEMS (pressure, accelerometer, IMU) and radar.
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6.5 billion semiconductor sensors for the automotive market were shipped in 2023 globally, generating $9.3 billion in revenue. Yole Group expects a 7% revenue CAGR between 2023 and 2029 to $14.3 billion, with almost 9 billion sensors shipped worldwide. During these coming years, the automotive industry is expected to go through massive transformations in all four car domains:
- In powertrain and electrification, the automotive industry is transitioning from cars based on internal combustion engines (ICE) to electrified cars, which are expected to represent 43% of production in 2029. In terms of sensors, this segment will grow with a 3% CAGR between 2023 and 2029. In the long term, the electrification of cars will induce critical changes in the sensor landscape by giving birth to new applications while removing others.
- In the ADAS and safety segment, cars are becoming more intelligent, enhancing safety while driving autonomously. Revenue is by far the largest of all segments and Yole Group forecasts about $8 billion in revenue by 2029.
- Infotainment and telematics: with customers demanding greater entertainment options for both drivers and passengers, this sector is projected to achieve a favorable 7% CAGR from 2023 to 2029. This segment should exceed $2.9 billion by 2029.
- In the chassis domain, OEMs strive to improve passenger safety, send valuable data to the ADAS computing unit, and even remove hydraulic systems in the car. In this context, the global sensorization of cars is driving sensor volumes to a 3% CAGR between 2023 and 2029. In terms of revenue, Yole Group expects almost $1.9 billion to be generated in 2029.
“The upcoming years are poised to witness a dynamic transformation in automotive sensor technology driven by advancements in ADAS, autonomous driving, electrification, and the widespread adoption of sensors across global car fleets. Consequently, substantial reorganization within the industry and its supply chain is anticipated. Therefore, there is a pressing need to develop strategic business plans and collaborate with suitable partners to capitalize on emerging opportunities.”
Pierrick Boulay
Senior Technology and Market Analyst for Automotive Semiconductors, Yole Group
Yole Group presents today the 2024 Semiconductor Sensors for Automotive report, providing an in-depth exploration of semiconductor sensors in automotive applications. This comprehensive analysis delves into market dynamics, technological advancements, and recent innovations, offering valuable insights. Analysts provide a thorough examination of sensor trends and forecast market value and shipments from 2023 to 2029. Additionally, Yole Group elaborates on the automotive ecosystem, including player rankings, market shares, and pertinent analysis of emerging challenges.
This new report is based on Yole Group’s automotive teardown activities. Indeed, with over 25 years of experience and access to extensive teardown data, Yole Group’s teams meticulously select and disassemble cutting-edge systems for technology and cost evaluations. Through high-resolution photography, analysts capture detailed component identifications, cost breakdowns, and estimated manufacturer pricing. Yole Group’s Automotive Teardown Track is continuously updated by analysts and spans from systems to semiconductor components.
Yole Group has been extensively covering the global semiconductor industry for some time now. From materials to equipment, encompassing devices and modules, our company diligently investigates the markets to gain profound insights into innovations and their industry impact. Our analysts actively participate in over 100 conferences annually to exchange perspectives, discuss the latest developments, and address challenges.
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