IoT Sensors Market Size, Share, Growth Report 2028

IoT Sensors Market: Industry Perspective

The global IoT sensors market size was worth around USD 8.5 billion in 2021 and is predicted to grow to around USD 27.9 billion by 2028 with a compound annual growth rate (CAGR) of roughly 27.9% between 2022 and 2028.

The report analyzes the global IoT sensors market's drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the IoT sensors industry.

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IoT Sensors Market: Overview

IoT is a network that is embedded with sensors, network connectivity, electronics, and software enabling physical objects to collect and exchange data. Sensors in IoT play a vital role in measuring the physical quality of objects and enumerating it into a value that is further read by another device or user. IoT devices are equipped with different sensors that are capable of registering changes in pressure, motion, temperature, light, and sound. In the physical world, many objects can now communicate with each other through embedded IoT sensors and actuators.

As the IoT industry expands, new types of sensors, as well as new ways to use and derive value from them, emerge regularly. As a result, a growing number of industries are investing in the field to extract more value from data in a more effective manner. IoT sensors have proven valuable for both consumers and corporate networks, enabling rapid, simple, and precise data transfer in both cases. Sensors, in all of their forms, are essential to achieving optimal asset performance in all IoT applications. They provide a clear view of everything that is going on in the surroundings.

COVID-19 Impact Analysis:

The COVID-19 outbreak and dissemination have had a significant influence on the global growth of the IoT sensor industry. Due to the spread of the virus in different regions of the world, global sales of IoT sensors for major industrial and commercial verticals dropped by 10–15 percent in the fiscal year 2020. The IoT sensors industry has been impacted by a drop in the number of new industrial projects, temporary shutdowns of production facilities, and a drop in crude oil prices, to name a few issues.

Market expansion in key areas was also hampered by short-term supply chain interruptions. Due to the closure of several manufacturing sites throughout the world, COVID-19 has had a significant influence on the global industrial sector.

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IoT Sensors Market: Growth Drivers

Snowballing the use of sensors in IoT applications as a result of technological developments and cost & size reductions to boost market expansion

Sensors are being largely used in healthcare, automotive, and consumer items as a result of the fast decrease in sensor size and widespread use of microelectromechanical systems technology. This has contributed significantly to the overall expansion of the sensor industry. Smaller sensors have been quickly used in devices such as wearables, smartphones, drones, and robotics over the last five years, which is also supporting the growth of the market.

Increasing usage of IoT sensors in the automotive sector and booming industrial IoT sensors are major factors driving the growth of the IoT sensor market. Further, the rising demand for smart TVs in the consumer electronics sector is escalating the demand for the IoT sensor market.  The increasing adoption of smartphones and related products is the impelling demand of the IoT sensor market. Furthermore, stringent government regulations and policies for developing smart cities are likely to offer new opportunities for the IoT sensor market. However, privacy and security issues are restraining the market growth of IoT sensors.

IoT Sensors Market: Restraints

Concerns related to data security may hamper the market growth

Despite the enormous promise of the Internet of Things, there are worries about data privacy and security linked with IoT devices. The Internet of Things is fully data-driven. IoT-enabled sensors and gadgets create massive amounts of data every second. Companies and organizations monitor this data using a variety of sensors and make choices based on the information.

They must assure the legitimacy of the data as well as the security, resilience, and dependability of the devices that gather data, as they rely more on machine-derived data for real-time commercial activities. As the Internet of Things links more devices, malware has more dispersed access points. Cybercriminals may exploit IoT devices as entry points to harm other devices in the network if they are not properly protected.

IoT Sensors Market: Opportunities

IoT Sensors Market: Increasing government funding and initiatives to support IoT projects

Because the government sector is projected to be one of the major potential users of IoT, governments throughout the world are promoting and funding IoT-related developments. Smart traffic control systems, energy saving through smart meters, and security system enhancements via smart cameras are all areas where governments are seeking advancements. Furthermore, governments are sponsoring new IoT research initiatives for smart city development. This assistance is predicted to be critical in the IoT's expansion over the next few years.

IoT Sensors Market: Challenges

IoT Sensors Market: Shortage of raw materials and disruption of the supply chain became the biggest challenge for market expansion

To limit the COVID-19 epidemic, social distancing is a preventative and obligatory step. Manufacturing firms used this precaution to limit the number of staff on the shop floor during the initial periods of the outbreak. As a result, production operations and capacity were reduced. Manufacturing activities at certain organizations have been entirely halted, causing supply chain disruption.

Other sectors of the manufacturing ecosystem, such as transportation, have also seen social separation. It became impossible to get crucial industrial components and raw materials to areas that were under total lockdown. This further halted business activity, significantly impacting the market growth, particularly in the industrial sector.

IoT Sensors Market: Segmentation

The global IoT sensors market is segmented based on sensor type, network technology, vertical, and region.

Based on Sensor Type, the global IoT sensors market is divided into magnetometers, gyroscopes, inertial sensors, image sensors, touch sensors, temperature sensors, pressure sensors, humidity sensors, flow sensors, accelerometers, and others.. Pressure sensors and temperature sensors are expected to hold the major share of the IoT sensor market over the forecast period. Temperature sensors are used in healthcare, automotive, and consumer electronics industries and have proved to be useful in catering growing demand for advanced automation in these sectors.

On the basis of Network Technology, the global IoT sensors market is bifurcated into ZIGBEE, Z-WAVE, NFC, RFID, wired, wireless, and Others.

By Vertical, the global IoT sensors market is segmented into industrial, consumer, commercial, and others. The Industrial segment dominates the IoT Sensors Market, fueled by smart manufacturing, automation, and predictive maintenance initiatives in sectors like automotive, healthcare, and logistics. However, the Consumer segment continues to expand due to smart home adoption, wearable technology, and connected healthcare, while the Commercial segment is rapidly growing with increased investments in smart buildings, retail automation, and infrastructure monitoring.

IoT Sensors Market: Report Scope

IoT Sensors Market: Regional Analysis

North America is expected to dominate the global market

North America is presently the largest market for IoT sensors holding more than 35% of the global market share. Because of the region's established suppliers and early use of IoT technology in numerous sectors, North America is one of the major marketplaces. Most businesses in this region are increasingly using IoT to monitor the functioning of their products, preventing costly breakdowns and wasteful routine maintenance shutdowns. The use of IoT in the area is also propelling the market under study. According to research conducted by Stanford University and Avast, households in North America have the largest concentration of IoT devices of any location on the planet. Interestingly, at least one IoT device is found in 66% of residences in the region. Furthermore, 25% of North American households have more than two IoT gadgets.

During the forecast period, the market in Asia Pacific is predicted to grow at the fastest rate of all regions. India, China, Japan, South Korea, and Australia are among the major IoT sensor user countries. Consumer electronics, vehicles, and healthcare items all have a strong presence in APAC. This region has emerged as a global hotspot for large-scale investments and corporate growth.

Recent Developments

• In Feb 2022, Ericsson announced the launch of IoT Accelerator Connect to make connecting IoT devices for businesses easier than ever before.
• Texas Instruments introduced the company's breakthrough zero-drift Hall-effect current sensors in July 2020.
• In October 2020, NXP will expand reliable ultra-wideband offerings with novel sensing solutions to support upcoming IoT use cases.

IoT Sensors Market: Competitive Landscape

• Bosch Sensortec
• TDK
• Infineon Technologies
• Analog Devices
• Omron
• Texas Instrument
• TE Connectivity
• Broadcom
• NXP Semiconductors
• STMicroelectronics

The global IoT sensors market is segmented as follows;

By Sensor Type

• Magnetometer
• Gyroscope
• Inertial Sensor
• Image Sensor
• Touch Sensor
• Temperature Sensor
• Pressure Sensor
• Humidity Sensor
• Flow Sensor
• Accelerometer
• Others

By Network Technology

• ZIGBEE
• Z-WAVE
• NFC
• RFID
• Wired
• Wireless
• Others

By Vertical

• Industrial
• Consumer
• Commercial
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa