Optical Sensing Market - Forecast(2024 - 2030)

Optical Sensing Market Overview

The market for Optical Sensing is analyzed to be $23.3 bn in 2023 and is projected to grow at a CAGR of 14.5% during the forecast period 2024-2030. A device that transforms light or infrared rays into electronic impulses is referred to as an Optical Sensing. Optical Sensing are frequently utilized in a wide range of cutting-edge applications, including smart heating and lighting, gesture recognition, occupancy sensing and gesture capture. To process electronic signals, Optical Sensing are frequently used as sensing components. Light sensors, photoelectric sensors, image sensors, infrared detectors, motion sensors, position sensors and many more are examples of the various types of Optical Sensing. The market's expansion is entirely attributable to the growing emphasis on building automation and the rising demand from the automotive, industrial, consumer electronics and defense sectors, where the government's safety laws have increased the use of these sensors. The global market for Optical Sensing is expanding quickly due to the rising adoption of automation across a variety of industries, including manufacturing, aerospace and military, oil and gas and others. Additionally, Optical Sensing have several advantages, including flexibility, compactness and lightweight due to the utilization of these technologies in end-user sectors.

Market Snapshot

Report Coverage

The report: “Optical Sensing Market – Forecast (2024-2030)” by IndustryARC, covers an in-depth analysis of the following segments in the Optical Sensing market. 
By Light Source: LED and Laser.
By Product Type: Position sensors, Light Sensors, Image Sensors, Photoelectric Sensors, Photo Detectors, Safety Sensors, Motion Sensors, Infrared Sensors, Through Beam Sensors, Retro -Reflective Sensors and Diffuse Reflective Sensors.
By Application: Ambient Light Sensor, Fiber Optical Chemical sensor, Liquid Level Indicator, Temperature Sensor, Radiation Sensor, Magnetic fields, Acoustic field, Humidity, Velocity, Strain, Force, Pressure, Vibration, Rotation, Displacement and pH Level Indicator.
By End-use Industry: Aerospace and Defense, Automotive, Building Automation, Chemical, Consumer Electronics, Food & Beverages, Manufacturing, Material Handling, Medical & Scientific Devices, Office Equipment, Packaging, Paper & Print, Security & Surveillance and Wireless Communications.
By Geography: North America (the US, Canada and Mexico); South America (Brazil, Venezuela, Argentina, Ecuador, Peru, Colombia, Costa Rica and the Rest of South America); Europe (the UK, Germany, Italy, France, Netherlands, Belgium, Spain, Denmark and the Rest of Europe); Asia-Pacific (China, Australia, Japan, South Korea, India, Taiwan and Malaysia) and RoW (the Middle East and Africa).

Key Takeaways

• The Asia-Pacific region accounts for the dominant market share during the forecast period, since Asia-Pacific markets have been enormous and it is a massive market for any company that manufactures smartphones.
• The image sensor market is predicted to have the largest share in 2023 because camera makers use them extensively to meet the demands of demanding industrial and automotive applications as well as wearable devices and consumer electronics.
• The Fiber Optical Chemical sensor accounts for the dominant market share during the forecast period owing to the wide usage to measure volatile petroleum constituents including benzene, toluene, ethylbenzene and Volatile Organic Compounds (VOCs) including TCE, PCE and carbon tetrachloride in water, air, soil or gas.
• Increased use of Optical Sensing in various end-use industries such as the chemical industry, automotive sector and others are expected to boost the demand for the Optical Sensing Market during the forecast period.

Optical Sensing Market Segmentation Analysis – by Product Type

The Image Sensor segment is analyzed to hold the highest share in 2023, owing to its wide usage by camera manufacturers to satisfy the requirements of end applications from wearables and consumer electronics to demanding industrial and automotive applications. It enables flexibility in configuration and combines optimal performance characteristics, such as high speed, high sensitivity and high image quality to match specific application requirements. The Saudi Vision 2030 is a prestigious project currently under construction. This is set to enhance AI and automation in the country. The demand for image sensors for machine vision is rapidly increasing in this country. However, the motion sensors segment is also analyzed to grow at a high rate, owing to its wide usage in safety applications such as security cameras or burglar alarms, turning on when they detect nearby motion. Passive Infrared (PIR), Microwave and Dual Tech/Hybrid motion sensors can be broadly grouped into these three categories. These are also utilized in robotics, therefore the market growth rate is increased by analyzing the escalating investments in the sector. Micropsi announced $30M in investment in February 2022. The business offers pre-built artificial intelligence (AI) systems for industrial robot control, enabling the automation of hitherto non-automatable production processes.

Optical Sensing Market Segmentation Analysis - by Application

The Fiber Optical Chemical sensor accounts for the dominant market share during the forecast period 2024-2030. This is due to the wide usage to measure volatile petroleum constituents including benzene, toluene, ethylbenzene and Volatile Organic Compounds (VOCs) like TCE, PCE and carbon tetrachloride in water, air, soil or gas. These sensors mainly operate by emitting light by wavelength or intensity to provide information about analytes in the sensor’s surroundings. The extrinsic sensors are used to detect the presence of fluorescing hydrocarbons in the subsurface. These systems are small and portable, and can also be used for a wide range of applications, including the detection and identification of groundwater and surface soil contamination among others. However, the radiation sensor segment is also analyzed to grow at a higher rate during the forecast period. Optical Sensing are highly durable and also possess the ability to work under strong electromagnetic fields. Optical fibers whose cores are made with phosphorus or aluminum are very sensitive to ionizing and non-ionizing radiations. The solutions incorporate radio-sensitive fiber with an optical reflectometer to measure the radiation dose along a fiber with a sub-metric resolution. The diameter of commonly used optical fibers is s 125 µm and the diameters of advanced multi-material multi-functional fibers are a few hundred microns, making the whole fiber-based sensors occupy diameters less than 1 mm. Additionally, the optical radiation sensors are flexible and bendable, making them ideal for attaching to curved surfaces. Frequent product launches and increasing investments by key players in this vertical are set to boost the demand for the market segment.

Optical Sensing Market Segmentation Analysis - by Geography

In terms of geography, the Asia-Pacific region accounts for the dominant market share in 2023, since Asia-Pacific is a massive market for any company that manufactures smartphones. This industry is rapidly expanding in countries such as India and China, with fierce competition from companies such as Apple, Samsung, HTC, Xiaomi, Oppo, Vivo and Karbonn, among others. The region's sensor market is growing due to high demand. The presence of companies such as SRI Electronics & Embedded Solutions which is a leading manufacturer, trader, wholesaler, retailer and supplier of a wide range of electronic and electrical products is driving the Optical Sensing market in this region. Furthermore, they manufacture and supply an exceptional quality range of Optical Sensing, owing to their robust infrastructure market in this region. However, North America is analyzed to grow at a high rate owing to the constant product innovation and development, which has kept demand for Optical Sensing high in the US market. 

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Optical Sensing Market Drivers

A rise in demand from end-use industry:

During the forecast period, there is likely to be an increase in the use of Optical Sensing across a range of end-use sectors, including the chemical industry, the automotive sector and others. The most recent innovation in the sector is the use of Optical Sensing in autonomous vehicles to monitor the environment. One of the important technologies for sophisticated driver assistance systems to gradually lighten the load on the driver is Optical Sensing based on LEDs and infrared lasers. These sensors are mostly utilized in driver assistance systems such as parking assistants, lane keepers, stop-and-go assistants and emergency brake assistants. Due to technological advancements, the use of Optical Sensing in the automotive sector is significantly expanding, particularly with the use of image sensors. Common uses for these sensors include adaptive cruise control, ADAS, 360-degree views and blind spot detection. Due to the wide range of image applications in the automobile industry, the market for image sensors is anticipated to expand quickly. On a variety of vehicles, Optical Sensing are quickly assuming the status of standard equipment. Self-driving cars and driver assistance safety features rely heavily on outside sensors like LIDAR. Inside the car, Optical Sensing are utilized to track the driver's attention and recognize gestures.

Government support for advanced technology to replace existing sensors is growing:

Initiation from the government is crucial to the growth of any sector. Government investment aids in increasing demand and market share. To support local manufacturing companies and lessen reliance on East Asian nations, the governments have even raised their budget and put new restrictions into place. The UK government is putting plans in place to encourage the expansion of its manufacturing industry. The government in November 2023, announced $5.7 billion in funding for British manufacturing to increase investment in eight sectors across the UK. The funding will be available from 2025 for five years, providing industry with longer term certainty about their investments. The market's potential would grow as a result of these features. Regional governments in North America have started putting new plans into action to boost market trends for Optical Sensing in the area. These programs are meant to bring modern lighting technology to the area. The demand for these devices in the area would rise as a result of the Chicago government's proposal to replace approximately 270,000 city lights with LEDs and implement intelligent lighting systems with smart sensors as of 2022.

Optical Sensing Market Challenges 

The Expensive Cost of Optical Sensing:

There has recently been an increase in the prices of raw materials used in the manufacturing of Optical Sensing and the high cost of the optical detector may act as a limiting factor for market growth. The cost of raw materials is continuously increasing or fluctuating because of factors such as transportation & logistics, supply chain and more, which are affecting the price of Optical Sensing as well. The disparity between image quality, high cost and product acceptability due to a lack of awareness tend to limit the growth of the Optical Sensing market. The cost of designing Optical Sensing is a critical requirement. Many factors influence the overall cost of Optical Sensing design, including hardware/software purchases, testing and R&D. Thus, the volatility and increase in prices of Optical Sensing are expected to be significant challenges for the Optical Sensing Market manufacturers, which would hinder the market growth during the forecast period.

Optical Sensing Market Competitive Landscape

Product launches, acquisitions, market penetration and R&D activities are key strategies adopted by players in the Optical Sensing market. The top 10 companies in the Optical Sensing market are:

1. Hamamatsu Photonics K.K.
2. Baumer Electric Ag
3. Sofradir Ec Inc
4. Texas Instruments
5. Carlo Gavazzi Automation Spa
6. Teledyne Technologies
7. Omron Corp.
8. STMicroelectronics N.V.
9. Ams-Osram ag
10. Sony Corp.

Recent Developments

• In January 2024, ABB announced that it agreed to acquire Canadian company Real Tech, a leading supplier of innovative Optical Sensing technology that enables real-time water monitoring and testing. Through the acquisition, ABB will expand its strong presence in the water segment and complement its product portfolio with optical technology critical for smart water management.
• In September 2023, defense contractor General Atomics announced that it had acquired EO Vista, a supplier of space and airborne electro-Optical Sensing. EO Vista is providing an electro-optical infrared (EO/IR) weather sensor payload that will fly on a General Atomics polar-orbiting satellite designed for weather imaging and cloud characterization.
• In February 2023, Oxsensis was acquired by WIKA Group. Oxsensis has been a leader in innovative optical instrumentation technology, bringing this to market in high value applications including Power Generation, Aerospace, and Oil and Gas.

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