Sensor market growth will be dictated by an expected increase in demand for electric vehicles. The Strategy Analytics Powertrain Body Chassis and Safety (PBCS) service report, “Global xEV Sensor Market 2018-2027 (http://sa-link.cc/1pI),” forecasts that the global market for current, position/speed and temperature sensors, will grow at a CAAGR of 25.7% over the 2019 – 2024 timeframe.

The subsequent market for xEV automotive sensors will grow to $1.2 billion by 2027. Demand for speed/position sensors used to monitor xEV electric motor speeds will represent the largest market, but lowest volume. Current sensors used across the broad array of xEV systems, from battery monitoring through to inverters and converters will account for the second largest market, representing almost 40% of overall demand in 2027. Battery monitoring systems will also represent the primary demand for temperature sensor, accounting for 71% of total temperature sensor volumes in 2027.

The strong growth will be dictated by an expected push towards xEV platforms, driven by continued government regulations. In addition, the expected pent-up consumer demand post COVID-19 will be coupled with an expected shift in consumer preferences towards electric vehicles.

There are some notable market trends including a move towards the elimination of magnets in motors, a push towards higher voltages, e.g. 800V, and the increasing use of wide bandgap power electronic technologies that will also influence sensor demand. There are also several sensor technology trends. For example, the increasing use of sensors built with a ferroelectric core, based on XMR (magneto resistance including anisotropic, giant and tunnel-based) technology offers fertile ground for companies such as ams, Allegro and Melexis to offer competing solutions for resolver-based speed/position sensors.

The increasing need to monitor temperature and current to optimise cell performance will provide opportunities for companies including Maxim, NXP and TI that can offer IC-based solutions. Companies best positioned will be those that can leverage a portfolio of solutions that combine sensing solutions with communication interfaces and data processing capabilities to offer the best mix of cost effectiveness and value-add to their customers.. 

Check out the report “Global xEV Sensor Market 2018-2027” (subscription required) for the full analysis and thanks for reading!

Feel free to contact me if you want to discuss this post and the underlying questions raised. For more information on Strategy Analytics’ extensive coverage of the automotive industry, take a look at the PBCS (Powertrain, Body, Chassis & Safety), AVS (Autonomous Vehicles Service), AIT (Automotive Infotainment and Telematics) and ACM (Automotive Connected Mobility) services.