The global temperature sensor market generated a revenue of $6.9 billion in 2019 and it is predicted to reach $11.1 billion revenue by 2030. Furthermore, the market will advance at a CAGR of 4.4% from 2020 to 2030 (forecast period), as per the forecast of P&S Intelligence, a market research company based in India. The major factors driving the growth of the market are the surging sales of smartphones and the burgeoning requirement for temperature sensors in the automotive industry.
In the automotive industry, temperature sensors are extensively used for measuring the temperature of several liquids, systems, and gases within automobiles in order to ensure their proper functioning. These sensors are majorly used in heating, ventilation, and air conditioning (HVAC) systems, which are one of the critical components of automobiles. Because of this reason, the soaring sales of vehicles, especially in the Asia-Pacific (APAC) countries such as China, South Korea, and India, are propelling the requirement for temperature sensors.
Besides the aforementioned factor, the mushrooming need for body-worn sensors is also fueling the expansion of the temperature sensor market. With the increasing adoption of the internet of things (IoT) in the healthcare sector and the rapid advancements being made in this industry, the usage of body-worn temperature sensors is soaring. These devices are incorporated in custom-made systems or in smartwatches for measuring the pulse rate and temperature of the wearer. Moreover, the growing demand for wearable medical monitoring devices, fitness bands, and smart watches is fueling the popularity of body-worn temperature sensors.
When vertical is taken into consideration, the temperature sensor market is classified into automotive & aerospace, petrochemical and oil & gas, consumer electronics, food & beverage, pharmaceuticals, industrial, and utilities. Out of these, the automotive & aerospace category dominated the market in 2019, because of the implementation of strict regulations by several governments that made the usage of temperature sensors in vehicles mandatory. This was done to improve the fuel efficiency of vehicles, on account of the surging requirement for reducing the emission of greenhouse gases (GHG) from automobiles.
Furthermore, the expansion of the automotive industry and the automotive aftermarket is massively boosting the sales of temperature sensors. Across the globe, the APAC region held the largest share in the temperature sensor market between 2014 and 2019. This was ascribed to the booming sales of smartphones and the high urbanization rate, especially in India and China. APAC is also expected to be the largest region in the market during the forecast period. This will be due to the surging popularity of processed foods, increasing urbanization rate, and thriving automobile industry in the region.
