The production and sales of automobiles has increased considerably across the globe. The demand for vehicles is particularly increasing from emerging economies, including South Korea, China, and India, as the disposable income of people in these regions is growing at a rapid pace. Because of this increasing production of automobiles, the demand for components and devices integrated in them is rising as well. Temperature sensors are among the devices that are integrated in automobiles.
These devices are usually used in heating, ventilation, and air conditioning systems of vehicles. A temperature sensor measures the temperature of its environment and converts the collected data into electronic data for monitoring, recording, or signaling temperature changes. According to a report by P&S Intelligence, the global temperature sensor market is predicted to reach a value of $11.1 billion by 2030, increasing from $6.9 billion in 2019, advancing at a 4.4% CAGR during the forecast period (2020–2030).
Different product types of temperature sensors are thermocouple, temperature IC, resistance temperature detector (RTD), and thermistor, among which, the demand for RTDs has been the highest up till now. These products are stable, highly accurate, linear, and can be customized easily. Apart from this, the demand for thermistors is also projected to rise in the years to come, since they offer a number of advantages. Thermistors have low cost, are easy to use, have high sensitivity, smaller size, and faster response rate.
Various industries utilize temperature sensors, namely automotive and aerospace, utilities, industrial, petrochemical & oil & gas, food & beverage, consumer electronics, and pharmaceuticals. Out of all these, the demand for temperature sensors has been the highest from the automotive & aerospace industry, owing to strict government regulations mandating the use of these devices in vehicles. The regulations have been implemented to make vehicles more efficient when it comes to fuel consumption, as the surging pollution levels are creating a need for reducing greenhouse gas emissions.
Other than this, the food & beverage industry is also projected to make considerable usage of these temperature sensors in the years to come. Temperature sensors are used to monitor temperature of beverages and food products during processing, storage, shipment, and quality checks. In addition to this, these devices are also incorporated in food and beverage processing machines, since their temperature needs to be monitored as well. The growth of the food and beverages industry is predicted to drive the demand for temperature sensors.
Geographically, the temperature sensors market is being dominated by the Asia-Pacific (APAC) region, owing to the surging demand for these devices from the processed food sector. The demand for processed food has increasing substantially in the region in the past few years, which can be ascribed to the rapid urbanization and rising disposable income of people. Moreover, the expanding automobile sector is also creating high demand for temperature sensors in the region.
In conclusion, the market is being driven by the growing demand for vehicles in emerging economies and expanding food & beverages industry.
