The market for sensors is expected to explode in the coming decade, outpacing forecasts for global auto production to keep up with the rollout of night vision, hands-free steering systems, and numerous other features. That’s because the new innovations in electronic gadgetry require ever more sensors—up to 100 of them at the moment, with that number sure to grow.
A recent study by Roland Berger found the overall bill for the electronics in a midsize premium car with an internal combustion engine was USD $3.2bn in 2019. By 2025, that cost will rise to $7bn for a comparable battery-electric car. A significant chunk of that increase of about $413 per vehicle will be just for the sensors to facilitate the radar, lidar and camera components to support driving assistance.
Safety regulations are one of two key drivers in the growing sensor market. Bosch’s multicamera parking system combines four cameras and relies on ultrasonic sensors to create a 360-degree representation.
It can be difficult to measure the size of the sensor market because nearly every supplier considers it from a different angle, according to their strengths. All agree that the sector will continue to grow strongly for the next decade in most, but not all, areas, because the automotive megatrends—connected, automated, shared, and electric—are not possible without sensors.
Consequently, ADAS and automated driving sensors will drive growth for the overall sector, with demand for lidar, radar and cameras growing by 12% annually.