Optical Sensor Market

Optical Sensor Market Size, Growth and Forecast (2023-2028)

The Global Optical Sensor Market size was valued at US$ 1.4 billion in 2022 and is anticipated to reach the valuation of US$ 3.6 billion by 2028 and is predicted to register a CAGR of 17% during 2023-2028.

Market Overview:

The Optical Sensor Market is being driven by the growing need for enhanced security features in smartphones, such as on-screen fingerprint scan, an optical sensor that detects and validates fingerprints. In 2022, Synaptics stated that mass production of their first optical in-display fingerprint sensor has begun. The demand for these sensors is projected to rise as more organizations employ on-screen fingerprint authentication.

Because of the speedy and exact measurements, they give, optical sensors are becoming a vital tool for manufacturers to save power, time, and money. Furthermore, because these sensors are used in intelligent lighting, they assist save energy by not relying on a manual on-off switch and instead turning on lights based on the amount of natural light in the space.

Recent Developments in Optical Sensor Industry:

• OpSens Inc., a Canadian medical device firm, announced a four-year extension of its Sensor Technology supply deal with Abiomed, Inc. in February 2022.
• Xiaomi, the Chinese consumer electronics behemoth, announced the debut of the Gaming Mouse Lite, a new gaming mouse featuring a Pixart 3327 optical sensor that supports up to 6,200 DPI, in China in January 2022.

OPTICAL SENSORS MARKET REPORT COVERAGE:

Optical Sensor Market Drivers:

On the other hand, a rise in smart home automation, a rise in the use of wearable devices for medical purposes, emerging semiconductor technologies, an increase in the use of 3D optical sensing technology in mobile devices, and an increase in the use of biomedical applications IOT adoptions are all expected to drive the growth of the primary optical sensors market between 2020 and 2027. Furthermore, increasing IoT use in the Oil & Gas industry, expanding importance of health monitoring devices, and improving semiconductor standards will all contribute to the Optical Sensor Market growth in the next years.

Optical sensors are important in the construction sector because they help to improve building site safety. Optical sensors are important in the robotics industry because they modify the way robotic vacuums work. BAUMER's Optical Miniature Sensors are utilized to correctly detect the items, and these applications will aid the global expansion of the optical sensor market. The ability to identify objects accurately allows the development of portable optical sensors prototypes for the detection of gas compounds. Longer operating distances for optical sensors will be highly suggested by all types of sectors, resulting in market growth. Researchers have created fibre optic sensing technology to detect magnetic fields from the heart and brain, demonstrating the necessity for optical sensors in the medical business and assisting Optical Sensor Market share in the near future.

Optical Sensor Market Restraints:

The Optical Sensor Market volume will be hampered by a lack of suitable manufacturing standards. The high cost also limits the market's development. Furthermore, environmental changes will have an impact on optical sensors, limiting their market potential. Physical damage is a major concern for optical sensors, which poses a significant barrier to their commercial expansion.

Optical Sensor Market Opportunities:

Due to a boom in global demand, consumer electronics businesses are rapidly developing consumer electronics gadgets, which is supporting Optical Sensor Market expansion for optical sensors. Optical sensors are used in consumer electronic devices such as smartphones, tablets, and other portable devices to control the display backlight automatically. These sensors have also been shown to extend battery life. These sensors have also been shown to extend battery life. It's also employed in various applications such as pressure, proximity, touch, temperature, motion, and so on.

Optical Sensor Market Challenges:

Optical sensors are more expensive than other types of sensors, raising the overall cost of the electronic gadget. As a result, gadget makers are increasingly exploring for alternatives in order to maintain their prices competitive. Magnetic rotating position sensors, for example, are gaining traction as a potential replacement for optical sensors. These sensors are also less expensive than optical sensors and provide superior precision. These limitations could hinder the global Optical Sensor Market growth in the approaching years.

Optical Sensors Market Segmentation Analysis:

By Type:

• Intrinsic
• Extrinsic

Depending on the type, the extrinsic segment will hold the largest global optical sensor market share in the upcoming years. Since extrinsic optical sensors are utilized in various applications like temperature, pressure, etc. moreover, these are less expensive and sensitive. Therefore, owing to these factors extrinsic segment further propels the global optical sensors market growth.

By Industrial Vertical:

• Aerospace & Defense
• Oil & Gas
• Industrial & Automation
• Healthcare
• Construction
• Consumer Electronics
• Others

Based on industrial vertical, industrial and automation dominate the global optical sensors market growth in the upcoming years. For example, optical sensors are commonly employed in lane-keeping assistants, parking assistants, and emergency brake helper systems in driver assistance systems. In addition, these infrared laser-based optical sensors are increasingly being integrated into a wide range of automated machinery, primarily for non-contact detection applications such as monitoring conveyor systems, transport systems, and assembly lines.

By Application:

• Partial Discharge Detection
• Biochemical Sensing
• Biometric & Ambience Sensing
• Others

Based on application, biochemical sensing holds the largest global optical sensors market share during 2020-2027. A biochemical sensor is a device that can transform chemical (or biological) quantities into electrical signals. The sensor's primary components are the analyte molecule, chemically sensitive layer, and transducer. Biochemical sensors, such as EIS and ISFET, are microelectronic devices that have sparked interest in the fast burgeoning subject of bioelectronics, which spans a wide range of applications.

Geographical Segmentation Analysis:

• North America - the United States and Canada
• Europe - United Kingdom, Spain, Germany, Italy, and France
• The Asia Pacific - India, Japan, China, Australia, Singapore, Malaysia, South Korea, New Zealand, and Southeast Asia
• Latin America  - Brazil, Argentina, Mexico, and Rest of LATAM
• The Middle East and Africa - Africa and Middle East (Saudi Arabia, UAE, Lebanon, Jordan, Cyprus)

Regional Analysis:

In 2019, the optical sensor market in North America conquered more than 20% revenue share and was estimated over 9.5% market growth during the forecast timeline. In the U.S. market, the growth is attributed to the rate of smart home connected devices. More than 69% of the total households in the U.S. have at least one smart home technology product, and 18% of the households have at least two smart home technology products, according to January 2020 press notes release by Consumer Technology Association. In addition, optical Sensors are integrated with smart home devices such as service robots, smart door locks, smart security systems, and robotic cleaners. In addition to that, the proliferation of IoT (Internet of Things) connected devices will further boost the market revenue growth in North America. According to GSM Association, 2.8 billion IoT-connected devices in 2019 are projected to cross the 5.4 billion mark by 2025 by amplifying the adoption of the optical sensor in the North American region.

The Asia-Pacific region dominated the global optical sensors market during 2020-2027, contributing $9.50 billion, and is predicted to rise at a CAGR of 10.46 percent over the forecast period, owing to an increase in the number of manufacturing and processing industries, as well as an increase in automation rates, especially in countries including India, China, Japan, and South Korea.

The optical sensors market is predicted to grow to USD 6.67 billion by 2021 at a CAGR of 8.04% over 2016-2021in the European region. As a result, Europe is expected as the second-largest country in the global optical sensors market and is predicted to maintain its position during 2020-2027.

Impact of COVID-19 on Global Optical Sensor Market:

The covid-19 pandemic has severely impacted the semiconductor sector. As a result, the semiconductor sector is highly restraining the optical sensor industry in this pandemic situation. Moreover, in the first quarter of 2020, according to the Semiconductor Industry Association, global semiconductor sales rapidly decreased due to major disruption in international supply-chain activities in the situation of the COVID-19 pandemic. In addition to that, the consumer electronics OEMs and several major automotive works decreased their manufacturing operations due to lockdown situations imposed by various governments that resulted in a decrease in sales in the optical sensors market.

Key Players in the Market:

Major key Players in the Global Optical Sensor Market are

• Keyence Corporation
• Omron Corporation
• Sick AG
• ROHM Co. Ltd
• Texas Instruments Incorporated
• Vishay Inter-technology
• Panasonic Corporation
• ON Semiconductors
• TE Connectivity