Optical Position Sensing Detector (PSD) Market - Forecast(2024 - 2030)

The Global market for optical position sensing detector is forecast to reach $1.7 billion by 2025, growing at a CAGR of 6.2% from 2020 to 2025. The market growth is attributed to the factor such as growing deployment for energy, process control, safety and security, high precision, automobile, healthcare, automation and others. Moreover, with high resolution and precision, the optical position sensing detector plays a protruding role in computing orientation, displacement and proximity. Tools such as optical position sensing detectors found in the industrial instrumentation when combined with digital technologies such as cloud storage consistently assist engineers or consumers to finish the tasks.

Optical position sensing detector market is segmented into contact type and non-contact type on the basis of contact type. The non-contact type segment is anticipated to hold the highest market share during the forecast period 2020-2025. The market growth is attributed to benefits of non-contact position sensors offering greater life, less wear and tear and unmatchable accuracy, consistent excellent performance, fast response, well suited to a range of environments and others. Moreover, applications of non-contact position sensor in precision motion control, robotic movement, medical diagnostics, MEMS accelerometers, vibration monitoring and others benefits the market growth.

Rotary type segment held the highest market share for optical position sensing detector in 2019. Moreover, it is anticipated to witness the significant market growth during the forecast period 2020-2025. Rotary position sensors enable precise angle measurements. These sensors convert mechanical rotary positions into electrical signals. The market growth is attributed to benefits of rotary type such as long service life and high precision. Additionally, wear-free operation,  compact form factor, cost effectiveness of rotary type contributes to the market growth. Furthermore, its adoption for various applications including machinery (pulp and paper production), drive technology, automotive industry, aerospace, and others leverages a positive impact on the market growth of optical position sensing detector. 

North America held the highest market share of the optical position sensing detector market in 2019. The market growth is attributed to the factors such as massive requirement for energy efficient solutions in this region. Companies are investing on R&D operations in the optical sensor technology for innovative output to manufacture power-efficient optical location sensors and devices to meet the rising demand from these energy and manufacturing sectors. In September 2018, supply order of advanced development sensors to be deployed in US Department of Defence (DOD) systems was issued to MTS System. The order amount was approximately $187 m. In October 2019, Verizon entered into a partnership with NEC for fibre optic AI smart city pilot. The findings obtained from the NEC and Verizon Joint Research Initiative are a significant breakthrough for smart city market prospects, in particular for healthier community approaches such as road maintenance and traffic information usage. In March 2020, launch of series 292 Optical Ring Encoder was announced by CTS Corporation. The Series 292 incorporates non-contact optical technology with a 2-bit quadrature performance that provides improved efficiency and durability with digital optical encoding processing. Such partnerships and products launches propels the market growth.

Growing implementation of artificial intelligence (AI), internet of things (IOT), virtual reality (VR), big data analytics in tandem with the introduction of 4 G and emerging 5 G and others are fuelling advancements in electronic technology. This leads to increase in customers demand along residential, commercial as well as industrial applications. Optical position sensor detectors have expedited developments for remote control and other interactive technologies such as audio and video sensors in wireless systems. Such major applications coupled with the developments in IOT are fuelling the development of the demand for optical PSD in the consumer electronics field.

The manufacture of an optical position sensor cannot provide a standard collection of rules for determining the efficiency of optical position sensors. Machines and systems based on optical location sensors need a degree of regulation to guarantee that they are safe for the end-user electrically, technically, chemically and physically. The required degree of control and the quality rely on the level of risk associated with the commodity. Consequently lack of processes for measuring performance standards hinders the market growth.

Partnerships and acquisitions along with product launches are the key strategies adopted by the players in the optical position sensing detector market. As of 2019, the market for optical position sensing detector market is consolidated with the top players including First Sensors AG, Siemens AG, Panasonic Corporation, Opto Diode Corporation, Sharp Corporation, Micro-Epsilon, Balluff GmbH, Sensata Technologies, Hamamatsu Photonics K.K., and Melexis N.V. and among others.