Sensor Market Research

One-third of all sensors shipped in 2022 were IoT sensors, meaning they were part of an IoT-connected device. According to the 136-page IoT Sensor Market Report 2022–2027, the market for IoT sensors reached $10.9B in 2022 and is predicted to grow at a compound annual growth rate of 16% in the next five years.

The market for MEMS-based IoT sensors is particularly strong and accounted for 50% of global sensor revenue in 2022. The leading companies in this market segment are Bosch Sensortec and ST Microelectronics.

The market for image sensors is also particularly important for the IoT because three of the most important IoT use cases drive its adoption, i.e., machine vision, connected surveillance cameras, and advanced driver-assistance systems for cars. Leading sensor vendors in this segment include Sony and AMS AG.

Sensors are becoming smarter and can act as edge devices

Sensors are becoming increasingly advanced. Key IoT sensor technology innovations include a much higher computing capacity and the ability to detect signals from multiple discrete sensing elements. The industry refers to these more advanced devices as “smart sensors.” Instead of simply passing on the sensor signals to the next level in the value chain, smart sensors can process signals directly (e.g., validating and interpreting the data, displaying the results, or running specific analytics applications); in this way, sensors become edge devices.

The most advanced smart sensors are now also incorporating AI into their design. These sensors are designed for AI inference, which has numerous advantages, e.g., decisions can be made immediately, and sensitive data can be processed without sending it elsewhere and creating the risk of data theft.

Companies, including Sony, Mobileye, and Waymo, are currently focusing on IoT sensor technology innovation by combining cameras with other sensing technologies like LiDAR and radar to improve the image analysis of their autonomous driving solutions. As cameras, radars, and LiDARs sense different features of the environment, the idea behind this combination (also referred to as “sensor fusion” or “redundancy”) is to provide systems with a richer single-world model to decide a course of action or calculate an output. Overall, the sensors in an autonomous vehicle work together to provide a complete picture of the vehicle’s surroundings, enabling it to make safe and efficient driving decisions.