Electric Vehicle Sensors Market Poised for Breakout Growth

electric vehicle sensors industryOver the years, technological advancements have upgraded electric vehicles (EVs). These EVs are now equipped with newer devices and are powered by the battery pack present in the vehicle for different functionalities and features.

These changes in technology include monitoring temperature, current, and pressure changes. It has been observed that electric vehicles are subject to various types of temperature variations and load changes. Hence, these are monitored to ensure that any increase or decrease outside their range of functioning is detected and solved while driving the vehicle.

The electric vehicle sensor market is influenced by several current and future trends. These include:

  • Battery technology – With the decreasing cost of lithium-ion battery cathodes, the overall cost of the EVs is expected to decline as well, thus making it an even more attractive option to buy.
  • Two and three-wheeler vehicles – They have transformed the EV market as they involve low capital cost and have improved supply channels.
  • Ride-hailing services – Currently, major ride-hailing service organizations, including Uber and Lyft, along with a few others, are opting for electric vehicles.
  • Last-mile delivery – Several companies are moving towards the electrification of their vehicles and these are the ones included in last mile delivery. This segment holds the potential for emission reduction.
  • Enhanced infrastructure – A properly established public charging infrastructure is the key to increase the adoption of electric vehicles in the market. A well-established charging network can also reduce the anxiousness associated with the range of EVs.

According to a market intelligence report published by BIS Research, the electric vehicle sensor market was estimated at $206.1 million in 2019 and is expected to reach $353.5 million by 2025.

Factors Influencing the Electric Vehicle Sensors Market

The market growth is accredited to various drivers, including the growing demand for premium vehicles leading to an increase in the application of sensors in EVs, increasing push from government and consumers to develop safety features for vehicles, and the increasing number of electronic components in EVs.

The demand for higher quality, increased performance, a higher degree of comfort, and innovative design and technology has led to increased demand for luxury vehicles. The high-end electric vehicles by original equipment manufacturing companies (OEMs) have more than 100 individual sensors installed. These sensors usually work in cohesion with microcontrollers and embedded systems present inside the engine control unit (ECU). There is also an increase in the number of ECUs due to consumers' rising demand to incorporate a higher number of features in vehicles, which is expected to increase the demand of more technologically advanced sensors simultaneously.

Also, OEMs are integrating numerous sensors in their vehicles to meet the performance demands of customers regarding increased productivity and minimization of vehicle downtime. The rising demand for driver-assistance systems which focus on improving safety and comfort is going to increase the demand for advanced sensing techniques. Moreover, improvements in traditional sensors and sensing mechanisms are expected to increase the performance, accuracy, and reliability of the vehicle.

Further, an increase in the number of electronic components in vehicles enhances the integration of different sensors as they serve as an essential component in the EV electronic systems, battery management systems, and EV transmission systems, among others. The increase in EV production, technological developments, industry regulations, and changing customer preferences are expected to raise the demand for automotive sensors cumulatively.

However, the market growth is restricted by certain challenges, including reliability and safety issues with the automotive sensors and lack of standardization in MEMS fabrication. Reliability is very crucial in applications, such as braking, e-motor, and battery systems, as these factors are leading to an increase in the development costs of sensors. It is crucial that the usage of the components in an electric vehicle is done in a monitored manner in order to ensure that the components are optimized.

One of the key challenges being faced is the lack of a standardized fabrication process for MEMS. The designing of a MEMS sensor is unique, and it can take five to seven years to bring the product from the production phase to the market. This is hampering the vision to ramp up the production of the sensors.

Which Market Segments Are Expected to Dominate

The electric vehicle sensor market is segmented on the basis of application, product, and region. The applications are sub-segmented by vehicle type. The vehicle type is categorized into passenger and commercial vehicles. The passenger vehicle segment dominated the market in 2019, both in terms of value and volume. The passenger vehicle segment is expected to dominate the market in 2025.

The electric vehicle sensor market based on product by application is segmented into battery electric vehicles (BEVs), hybrid electric vehicles (HEVs), and plug-in electric vehicles (PHEVs). Among the three, HEVs dominated the market in 2019 in terms of value and volume. However, it is the battery electric vehicles segment that is projected to grow with the highest CAGR.

The product segment of the sensor market includes types of sensors such as temperature sensors, current/voltage sensors, pressure sensors, and position sensors. In terms of volume, the current/voltage sensors dominated the market in 2019. It is also expected to dominate the market during the forecast period 2019-2025.

The regional segment of the market includes regions such as North America, Europe, Asia-Pacific, and Rest-of-the-World. In 2019, the Asia-Pacific region dominated the market in terms of volume.

Major Players Operating in the Market

      • Allegro MicroSystems, LLC
      • Amphenol Advanced Sensors
      • AMS AG
      • Analog Devices
      • Denso Corporation
      • Infineon Technologies AG
      • Kohshin Electric Corporation
      • LEM
      • Melexis
      • NXP Semiconductors
      • Renesas Electronics Corporation
      • Sensata Technologies
      • STMicroelectronics
      • Texas Instruments Incorporated
      • Vishay Intertechnology, Inc

Electric Vehicle Sensors Market Research

For more information, download a sample of the industry report by BIS Research, which provides critical insights into the market. This comprehensive report draws on research from a mix of primary interviews and secondary research, along with analytical tools that have been used to build the forecast and predictive models.

About the Publisher: BIS Research is a global market intelligence, research and advisory company that focuses on emerging technology trends that are likely to disrupt the market. Its team includes industry veterans, experts, and analysts with diverse backgrounds in consulting, investment banking, government, and academia.

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