Electric Vehicle Sensor Market Size, Share & Industry Analysis, By Vehicle Type (Passenger Car and Commercial Vehicle), By Type (Temperature Sensor, Current/Voltage Sensor, Position Sensor, and Others), By Propulsion Type (BEV and HV), and Regional Forecast, 2024 - 2032

The global electric vehicle sensor market size was valued at USD 4.97 billion in 2023. The market is expected to grow from USD 6.72 billion in 2024 to USD 22.40 billion by 2032, exhibiting a CAGR of 16.2% during the forecast period.

The electric vehicle sensor market refers to the segment within the automotive industry that focuses on sensors specifically designed for electric vehicles (EVs). These sensors play a crucial role in monitoring various aspects of EV performance, safety, and efficiency. It includes temperature, current, position, and speed sensors. They gather data on parameters such as battery status, temperature, speed, acceleration, and environmental conditions to ensure optimal vehicle operation and enhance the driving experience. Growing consumer interest in electric vehicles and associated advanced features such as autonomous driving, connectivity, and safety systems fuels demand for electric vehicle sensors.

The COVID-19 pandemic sent shockwaves across most of the industries globally. However, the electric vehicle industry and electric vehicle sensor industry remained resilient during tough times. The pandemic induced lockdowns globally in early 2020 and the resumption of production at a reduced capacity led to an unprecedented drop in global car sales, a disturbed supply chain, along with a drop in demand for the product. However, the market returned to normalcy and gained momentum in the last months of 2020 as lockdown restrictions were lifted. The market growth started to pick up pace as various governments introduced supportive policies and funding in order to accelerate the electric vehicle industry. In addition, the electric mobility industry outperformed expectations in 2020. According to the International Energy Agency (IEA), over 3 million electric cars were sold in 2020 (a growth of 40% year-on-year), and they accounted for over 4% of total car sales (a new record).

Electric Vehicle Sensor Market Trends

Adoption of Advanced Driver Assistance Systems (ADAS) to Fuel the Market Growth

Electric vehicles are increasingly equipped with advanced driver assistance systems such as adaptive cruise control, lane-keeping assist, and automatic emergency braking, driving the demand for electric vehicle sensors. ADAS technologies contribute to a more comfortable, convenient, and stress-free driving experience for electric vehicle owners. Features such as traffic jam assist, lane-keeping assist, and driver fatigue monitoring utilize sensors to assist drivers in challenging driving conditions and reduce driver workload. Electric vehicle manufacturers are investing in sensor technologies that enhance the overall driving experience, including gesture recognition, voice control, and personalized settings based on driver behavior and preferences.

For instance, in February 2024, BYD announced that the company is set to launch its newly developed smart driving ADAS (Advanced Driver Assistance System) tech by the end of March. This strategic move positions the company to vie against other premium EV brands renowned for offering sophisticated smart driving features as standard.

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Electric Vehicle Sensor Market Growth Factors

Technological Advancements in Sensor Technology to Propel Market Growth

Continuous advancements in sensor technology, including improvements in accuracy, reliability, and functionality, drive innovation in the market. Sensor manufacturers invest in research and development to enhance sensor capabilities, optimize performance, and meet evolving industry needs, such as higher levels of autonomy and connectivity, driving the electric vehicle sensor market growth.

For instance, in October 2023, Foxconn and NVIDIA signed a partnership contract to develop the next wave of intelligent electric vehicle (EV) platforms for the global automotive market. Under this partnership, Foxconn will serve as a contract manufacturer for highly automated and autonomous EVs infused with advanced artificial intelligence, utilizing NVIDIA's forthcoming DRIVE Hyperion 9 platform. This platform encompasses DRIVE Thor alongside a cutting-edge sensor architecture, promising state-of-the-art capabilities.

RESTRAINING FACTORS

Limited EV Infrastructure May Restrain Market Growth

The widespread adoption of electric vehicles is heavily dependent on the availability of charging infrastructure. Inadequate charging infrastructure, particularly in certain regions or countries, can act as a restraining factor for the overall electric vehicle market, including the demand for electric vehicle sensors. Without a robust charging network, consumers may hesitate to invest in electric vehicles, impacting the demand for sensor technologies. Thus, limited EV infrastructure may restrain market growth.

Electric Vehicle Sensor Market Segmentation Analysis

By Type Analysis

Diverse Applications Across Vehicle Systems to Drive Temperature Sensor Segment Growth

By type, the market is classified into temperature sensor, current/voltage sensor, position sensor, and others.

The temperature sensor segment depicts the highest market share and is slated to lead during the forecast period. The segment’s growth is attributed to the diverse applications of these sensors across vehicle systems. In addition, temperature sensors are not limited to battery management. They are also utilized in various other systems within electric vehicles, such as climate control, motor cooling, power electronics, and cabin comfort features. Their versatility and wide range of applications are slated to drive the market expansion during the forecast period 2024-2032.

The position sensors segment holds the second-largest share of the electric vehicle sensor market due to its critical role in drive system control, electric power steering, regenerative braking, transmission control, vehicle stability, autonomous driving, and customization features. With the rising adoption of electric vehicles, the demand for position sensors is expected to increase during the forecast period 2024-2032.

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By Vehicle Type Analysis

High Volume of Production to Boost Passenger Car Segment Growth  

Based on vehicle type, the market is classified into passenger car and commercial vehicle.

Passenger cars represent the largest segment of the automotive market in terms of production volume. Due to the rising adoption of electric vehicles and the heavy investment by manufacturers in electrification, a significant portion of new passenger car models are being introduced as electric or hybrid vehicles (plug-in hybrid electric vehicles). The large volume of electric passenger cars being produced drives the demand for electric vehicle sensors, including those for battery management, motor control, safety systems, and driver assistance features. For instance, in May 2023, Toyota Motor Corporation announced that it had introduced a new flexible engine line at Toyota Kentucky. The flex line, representing a USD 145 million previously announced investment, can now produce three different engine types simultaneously on one line, making Toyota Kentucky the only Toyota plant in North America with this capability. This development drives the market growth.

The commercial vehicle segment held the second-largest market share in 2023. The segmental growth is attributed to the rising demand for sustainable transportation solutions. Commercial fleet operators are increasingly prioritizing sustainability and environmental responsibility in their operations. Electric commercial vehicles offer lower emissions, reduced operating costs, and improved energy efficiency compared to their diesel or gasoline counterparts. Thus, increasing the adoption of electric commercial vehicles fuels the demand for the product.

By Propulsion Type Analysis

Increasing Launches of Battery Electric Vehicles (BEV) by OEMs to Fuel the Segment Growth

Based on propulsion type, the market is categorized into BEV and HV.

The BEV segment holds the maximum share of the electric vehicle sensor market due to increasing launches of battery electric vehicles (BEV) by OEMs. The sensor plays a crucial role in electric vehicles. The rising demand and launches of electric vehicles drive its demand. For instance, in February 2023, GAC Group announced that it would roll out a number of new models across most of its brands as part of its efforts to achieve double-digit year-on-year growth in its annual vehicle output and sales for the year 2023. GAC AION will launch some annual models for its AION series. In addition, three new models will be launched under Hyper.

The HV (hybrid vehicle) segment holds the second-largest electric vehicle sensor market share. The segmental growth is attributed to increasing sales of hybrid vehicles. Moreover, the demand for sensors is directly propulsion to the sales of hybrid vehicles. This development fosters the market growth.

REGIONAL INSIGHTS

The market is analyzed across Europe, Asia Pacific, North America, and the rest of the world.

Asia Pacific Electric Vehicle Sensor Market Size, 2023 (USD Billion)

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The Asia Pacific market stood at USD 2.55 billion, dominated in 2023 and is anticipated to continue its dominance throughout the forecast period, with the fastest- growing CAGR. The high electric vehicle sales and vehicles in use propel the demand for electric vehicle sensors in the region. The presence of a strong auto sector in emerging economies of the region, such as China, India, Japan, South Korea, and others, further supports the market expansion.

Europe holds the second-largest share of the market as the region is an early adopter of new energy vehicles and the second-largest manufacturing hub for vehicles globally. There are several leading automotive manufacturers, technology companies, and research institutions that drive innovation in electric mobility and sensor technologies in the region.

The increase in adoption of electric vehicles for personal/commercial transportation in the North American region fuels the demand for electric vehicle sensors. Technological advancement and higher vehicle sales, mainly in the commercial vehicle (light and heavy commercial) segment, are slated to bolster the demand for the product for the efficient working of modern automobiles.

The rest of the world holds a significant market share. The market growth is attributed to companies focusing on reducing their carbon footprint, leading to higher adoption of electric fleets. This adoption drives the electric vehicle sensor market growth.

KEY INDUSTRY PLAYERS

Companies Focus On Expansion of Sales Networks and Product Portfolio to Enhance Their Position

Major players in this market include Continental, Bosch, and Denso Corporation. The electric vehicle sensor machine manufacturers focus on expanding their product portfolio and sales networks and partnerships.

Denso Corporation is one of the leading electric vehicle sensor manufacturers. The company focuses on research and development activities to create high-quality new products with improved capabilities. It develops, manufactures, and distributes tool and equipment solutions across the globe.

List of Top Electric Vehicle Sensor Companies:

• Robert Bosch GmbH (Germany)


• Denso Corporation (Japan)


• Continental AG (Germany)


• Sensata Technologies Inc (U.S.)


• Renesas Electronics (Japan)


• NXP Semiconductors (Netherlands)


• Panasonic Corporation (Japan)


• Melexis (Belgium)


• Valeo (France)


• Amphenol Advanced Sensors (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• In October 2023, KOITO MANUFACTURING CO., LTD, and Denso Corporation signed an agreement to develop a system to enhance the object recognition rate of vehicle image sensors by coordinating lamps and image sensors, with the aim of improving driving safety at night.


• In September 2023, Infineon Technologies AG introduced an XENSIV tire pressure sensor with intelligent features for tire pressure monitoring systems. The sensor integrates MEMS sensors and ASIC and provides innovative tire features that enable advanced tire pressure monitoring systems. It features a powerful 32-bit Arm M0+ core, a large flash memory and RAM, Low Power Monitoring (LPM), and optimized fast acceleration sensing.


• In December 2022, Bosch announced that it is presenting smart products and services for mobility and the home of the future. The technology and services company will highlight connected solutions for greater safety, efficiency, and comfort. In addition, the company introduced smart sensors and solutions.


• In June 2022, Microchip introduced the LX34070 IC, a new inductive position sensor designed specifically for the electric vehicle motor control market. This sensor is tailored for EV motor control applications and features differential outputs, fast sample rates, and characteristics that ensure it is functional-safety-ready for ISO 26262 compliance, meeting the requirements of the Automotive Safety Integrity Level–C (ASIL–C) classification.


• In April 2022, Continental unveiled its line of exhaust gas temperature sensors (EGT sensors) designed for Volkswagen Group brands such as VW, Audi, Skoda, and Seat. In addition, the technology company broadened its EGT sensor portfolio to encompass Opel brand vehicles, now offering models for high-volume delivery.

REPORT COVERAGE

The report provides a detailed market analysis and focuses on key aspects such as leading market participants, competitive landscape, and type. Besides this, it includes insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the market's growth in recent years.

An Infographic Representation of Electric Vehicle Sensor Market

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REPORT SCOPE & SEGMENTATION

ATTRIBUTE	DETAILS
Study Period	2019-2032
Base Year	2023
Estimated Year	2024
Forecast Period	2024-2032
Historical Period	2019-2022
Growth Rate	CAGR of 16.2% from 2024 to 2032
Unit	Value (USD Billion)
Segmentation	By Type Temperature Sensor Current/Voltage Sensor Position Sensor Others (Speed, Lidar, and Radar)
	By Vehicle Type Passenger Car Commercial Vehicle
	By Propulsion Type BEV HV
	By Region North America (By Type, By Vehicle Type and By Propulsion Type) U.S.  (By Vehicle Type) Canada (By Vehicle Type) Mexico (By Vehicle Type) Europe (By Type, By Vehicle Type and By Propulsion Type) Germany (By Vehicle Type) U.K. (By Vehicle Type) France (By Vehicle Type) Rest of Europe (By Vehicle Type) Asia Pacific (By Type, By Vehicle Type and By Propulsion Type) China (By Vehicle Type) Japan (By Vehicle Type) India (By Vehicle Type) Rest of Asia Pacific (By Vehicle Type) Rest of the World (By Type, By Vehicle Type, and By Propulsion Type)