Position Sensor Market Size, Share, Growth Analysis, By Technology(Photoelectric, Linear, Proximity, Rotary), By Application(Military & Aerospace, Electronics & Semiconductors, Packaging, Others), By Contact Type(Non-Contact Type, Contact Type), By Output(Digital Output, Analog Output), By Region - Industry Forecast 2024-2031

Position Sensor Market size was valued at USD 5.89 billion in 2019 and is poised to grow from USD 6.37 billion in 2023 to USD 11 billion by 2031, growing at a CAGR of 8.12% in the forecast period (2024-2031).

The nature of the position sensor market is highly competitive on account of the presence of multiple players. The top players are involved in collectively striving to make position sensors a part of varied electronic devices and simplify its integration in various systems. Moving consumer preferences from contact to non-contact position sensing technologies are enabling key players to offer innovative contactless sensors. For instance, Honeywell International offers a broad range of SMART position sensors that provides non-contact angular position sensing. Companies are also focusing on developing strategic partnerships and acquisitions to gain a competitive advantage.  Brand and geographical expansion are other strategies adopted by some players to gain a competitive edge in the overall market competition. The German economy has been driving automation significantly, and happens to be the most highly automated economy in the European Union. Demand for position sensors in the European market is driven by automation in systems. Increasing demand for automation across different industry verticals is one of the major factors driving market growth in Germany. 'Allegro Microsystems LLC', 'AMS AG', 'Analog Devices Inc.', 'Broadcom Inc.', 'Bourns Inc.', 'CTS Corporation', 'Honeywell International Inc.', 'Infineon Technologies AG', 'Magnetic Sensors Corporation', 'Melexis Microelectronic Integrated Systems N.V.', 'Microchip Technology Inc.', 'NXP Semiconductors N.V.', 'Renesas Electronics Corporation', 'Robert Bosch GmbH', 'Sensata Technologies Inc.', 'STMicroelectronics N.V.', 'TE Connectivity Ltd.', 'Texas Instruments Inc.', 'TT Electronics PLC', 'Vishay Intertechnology Inc.'

High accuracy degree is required by all manufacturing industries to match industry standard products in order to provide high quality products, be it electronic or automotive. Position sensors also help to sensor other parameters such as gap, width, profiling, edge, bend, angle, groove, height, surface, and others. Position sensors are suitable for different applications such as heavy-duty machinery, construction equipment, mobile hydraulics, industrial equipment, transportation systems, HVAC systems, and smart buildings. Position sensors are used for monitoring processes, testing, and automating processes, the demand for which will further create new growth opportunities for this market in the coming years as well.

With constant development in technology and connecting networks, consumer electronic devices such as smartphones and tablets are now being equipped with wireless communications, localization technologies, and new sensory capabilities. The use of cutting-edge positioning-based systems has been increasingly made in such devices as they possess more processing memory and battery power. These positioning systems aid users in various application fields like tracking, healthcare, tourism, manufacturing, navigation, and personal security activities. The increased demand for such devices has offered major growth opportunities for the market. Assembling or manufacturing a position sensor is done using numerous components, such as sensing rods, diagnostic light-emitting diodes (LEDs), position magnets, electronics housing fixtures, and connectors; which are delivered by various vendors. Thereby, high costs are associated with the manufacturing of the position sensor. The product profitability depends on the availability and cost of raw materials and components along with the time consumed till the launch of the end product in the market. Increasing manufacturing capabilities, providing improved quality products, and reducing the overall cost of production are the major challenges faced by the companies functioning in this segment. Industry 4.0 has enabled the rapid expansion of advanced technologies, thereby motivating industry manufacturers to adopt automation of industrial processes. Industrial manufacturers across various regions are predominantly investing to improve their manufacturing infrastructure with the application of fully automated machine tools. For instance, according to IFR (International Federation of Robotics), nearly 373,000 units of industrial robots were dispatched globally. In addition, a recent report of World Robotics 2020 Industrial Robots has mentioned a 12% increase in industrial robots functioning in factories worldwide which is a record of 2.7 million robots in total. The inclination of manufacturers toward automation has thus driven the growth of the Global Position Sensor Market.

Being a lucrative industry for consumer electronics devices such as smartphones and laptops, as well as a promising regional sector for industrial manufacturing, the Asia Pacific held the largest global position sensor market share in 2021 and will dominate the global position sensor market. Outsourcing of manufacturing activities to low-cost developing countries in Asia is expected to witness strong demand for high-quality precision equipment and sensors in this region. Robust development in the manufacturing sector and tremendous appetite for new machine tools in the Chinese market are expected to boost regional growth over the next seven years. Proximity to the U.S. market and free trade agreements with the U.S., Canada, Japan, and the European Union have propelled the packaging machinery manufacturers to start manufacturing and assembly of components in countries such as Brazil and Mexico. This has resulted in the high adoption of position sensors in the Latin American region. Rising trends towards the adoption of wireless sensor technology are further expected to trigger industry growth in North America and Europe.