Environmental Sensor Market

Industry Overview

The global environmental sensor market is expected to witness a significant surge from USD 1.8 billion in 2023 to USD 3.0 billion by the end of the forecast period, accomplishing a CAGR of around 11.0%.

Environmental sensors help in collecting reliable data across a wide range of environmental parameters. This includes particulate material, humidity, and volatile organic compounds. The global environmental sensor market is growing at a significant rate due to continuous development in technologies and their use such as cloud and IoT. It is also attributed to the strict environmental regulations set by the governments to reduce air pollution. The size of the global environmental sensor market is attributed to different types.

This demand and adoption of environmental sensors will be high during the forecast period due to the shifting proclivity from standalone sensors to integrated sensors for analyzing different aspects and conditions of the environment such as humidity, dust intensity, temperature, UV radiation, and more. This will need to integrate these sensors into several consumer devices.

Market Segmentation

Insight by Type

Based on the type, the global environmental sensor market is divided into temperature, ultraviolet, water quality, humidity, integrated, air quality, and soil moisture. Among all these segments, the integrated environmental sensors segment is expected to grow at a higher rate during the forecast period. This is due to the higher usage of these sensors instead of traditional standalone sensors as well as the growing attention of the stakeholders and governments in smart city applications.

Insight by Vertical                                         

Based on the industry verticals, the global environmental sensor market is divided into commercial, healthcare and pharmaceutical, enterprise, industrial, residential, government agencies, public utilities, and consumer electronics, which is further divided into wearable devices, smartphones and tablets.

Among all these segments, the consumer electronics segment accounts for the larger share and is expected to grow at a faster rate than the others in the forecast period. This is because these sensors will be used extensively in tablets, smartphones, and wearable devices.

Insight by Location

According to the location, the global environmental sensor market is divided into indoor, portable, and outdoor sensors. Among all segments, the portable environmental sensor accounts for the larger share of the market and is expected to grow at a faster rate than the others in the market during the forecast period. This is attributed to the rising environmental regulations to reduce air pollution and growing concerns for health and safety. These sensors are usually used in handheld devices such as tablets, fitness bands, wristbands, and smartphones.

Global Environmental Sensor Market Report Coverage

Industry Dynamics

Industry Trends

There is a growing adoption and use of temperature sensors across several devices and for a wide range of purposes. These specialized sensors help in dealing with extreme heat, hazards, or inaccessible measuring points.

There is a rise in demand for high-performing, reliable, yet low-cost sensors. The smaller sensors designed with microtechnology and nanotechnology offer such effective solutions. These are easy to use and serve the purposes of a wide range of industries, such as automobile, medical, environmental, chemical, and food processing.

Smart homes are also using these sensors extensively in order to ensure higher energy efficiency inside the property. This is accomplished by the sensors by adjusting the heat within the homes based on the occupancy. These useful sensors are also used extensively in smart camera systems. These sensors ensure accurate non-contact temperature monitoring across numerous disciplines. The applications include product deployment, manufacturing process control, emissions monitoring, waste management, facilities maintenance, and environmental, health, and safety (EHS) enhancements.

In addition, in the healthcare sector, temperature sensors especially are used extensively for accurate non-contact measurement of temperature in the forehead, ear, or skin.

Moreover, several companies in the chemical industry are using IIoT sensors to drive the automation of processes by using a combination of triaxial vibration, sound, and ultrasound sensors.

Growth Drivers

Stricter government regulation to reduce air pollution is one major growth driver of the global environmental sensor market. In addition to that, there is an increase in the number of air quality monitoring stations that need to use more of these sensors, thereby pushing its market further.

Also, there is a significant growth in the use of smart home systems that use these sensors and will push the market northward during the forecast period.

Most importantly, the growing health and safety concerns also drive the growth of the global environmental sensor market due to the rise in awareness among people regarding pollution and harmful medical implications on skin, eyes, respiratory, and other organs.

There is also a significant growth in technological advancements such as IoT and cloud services and expansion of nanotechnology, which has pushed the market growth for these environmental sensors being used in a wide range of consumer products such as HVAC, air purifiers, and others.

Challenges

The lifespan of the environmental sensors is pretty short. Therefore, these cannot be used for long-term applications for monitoring environmental parameters. This hinders the growth of the global environmental sensor market. Also, the reforms for pollution control are pretty weak in developing countries especially, which hinders the widespread growth of the global environmental sensor market. The execution requirements of these sensor applications are also pretty strict posing additional challenges to the growth of the global environmental sensor market.

Opportunities

The major players in the industry are launching new products which is creating more opportunities for the growth of the global environmental sensor market. It is also leveraged by the efforts of the manufacturing companies who are trying to enter this market to maintain strict regulatory standards.

Additionally, the high capital requirement also prevents the entry of new players into the market. This however offers an additional advantage to the established players in the industry by reducing the chances of growing competition.

Industry Ecosystem

Globally industry players are leveraging market growth through launching new products. In addition, the manufacturing companies trying to enter the environmental sensors market are required to maintain stringent regulatory standards. Moreover, the high level of capital requirement also poses a major barrier for the entry of new players. This offers an edge to the established players in the industry competition.

Geographic Overview

The Asia-Pacific region is the largest contributor to the global environmental sensor market. This region is also expected to grow at a faster rate during the forecast period due to the growing number of smart device users. In addition, the growing pollution level, population, urbanization, development of smart cities, and need for sensors in healthcare and medical care also promote the growth of the global environmental sensor market in this region.

North America, on the other hand, is expected to grow at a significant rate as well to become the holder of the largest market share of USD 1.3 billion by the end of 2032. This is because this region is believed to be the most advanced country and uses several innovative technologies to monitor environmental impacts, which it is prone to. Also, the rise in the number of enterprises and stricter environmental regulations will drive the growth of the global environmental sensor market in this region during the forecast period. Several government initiatives to promote awareness about environmental sensors will also propel the growth of this market further.

Competitive Insight

Key players in the Environmental Sensor Market are catering the demand by collaborating, and acquiring with small players and investing on technologically advanced product portfolio across the globe. Sensirion introduced SGPC3, the ultra-lower gas sensor which manages indoor air quality detecting for mobile and battery-driven applications. Bosch Sensortec, Honeywell International Inc, Schneider Electric, Sensirion, Texas Instruments, Omron, AMS AG, Siemens AG and Amphenol are the key players offering environmental sensor.

Recent Developments by Key Players

RF Code and Schneider Electric collaborated to improve autonomous asset lifecycle management in data centers. This integration delivers best-in-class infrastructure to support the demand for real-time critical asset data for critical decisions involving asset utilization, audit efficiency, asset disposition, capacity planning and sustainability.

Sensirion collaborated with STMicroelectronics to provide improved humidity and temperature sensing systems. After years of competition in this portion of the sensor market, they have began working together to solve end-customer problems. This included the development of the transition guide to assist designers who were already using the HTS221 sensor.