Speed Sensor Market Analysis

Speed Sensor Market Analysis

style="text-align:justify">The hall effect segment dominated around 50% of the market share in 2020 and is poised to witness a 5% growth rate till 2027 led by technological advancements in hall-based speed sensors, such as Circular Vertical Hall (CVH) technology. The development will help sensor manufacturers to provide low insertion losses, lower cost, smaller sensor footprint, and improved sensor lifecycle.

The hall-based speed sensor provides several intuitive features such as contactless speed sensing with high linearity, precision accuracy, and wide frequency bandwidth. These speed sensors can withstand high temperature environments and also provide pre-programmability features that are suitable for industrial and aeronautics applications. The market players are proactively focusing on development and new innovations in hall-based sensing components and ICs to achieve a competitive advantage in the market.

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The automotive application captured over 50% of the revenue share in 2020 and will grow at a CAGR of 5.5% till 2027 on account of growing usage of ADAS in vehicle electronics systems. The speed sensor is used in various ADAS components such as electronic stability control (ESC), automatic emergency braking (AEB), adaptive cruise control (ACC), forward collision warning, lane departure warning systems, among others.
 

The stringent government regulations pertaining to compulsory inclusion of ADAS systems in upcoming vehicles have resulted in expansion of the market. For instance, in September 2018, the Ministry of Road Transport & Highways, Government of India, announced mandatory inclusion of autonomous emergency braking (AEB) and electronic stability control (ESC) in all upcoming vehicles by 2022.    
 

Asia Pacific speed sensor market accounted for over 35% of revenue share in 2020 and is predicted to attain a CAGR of 5.5% from 2021 to 2027 owing to favorable government initiatives, supporting the consumer electronics manufacturing sector in the region. For example, in September 2020, the Ministry of Economy, Trade and Industry (METI), Japan, announced to fund USD 225 million to Japanese consumer electronics manufacturers to relocate their manufacturing bases from China to other APAC countries. Through this initiative, the Japanese Government aims to reduce the dependence on raw materials and components from a particular country and realign its supply-chain activities in the market.
 

Additionally, the government of India is also focusing on development of domestic consumer electronics manufacturing hub in the country by providing supportive initiatives and funding to the local as well as international leaders. For instance, in March 2020, the Union Cabinet, Government of India passed a production-linked incentive (PLI) scheme to augment the domestic manufacturing of consumer electronics and healthcare sector. The total incentive budget of the scheme is approximately USD 5.6 billion by 2025. Such supportive government initiatives will provide new opportunities to speed sensor manufacturers in the APAC market.