Sensor Fusion Market Size, Share, Growth Analysis, By Technology(MEMS, Non- MEMS), By Offering(Hardware [Inertial Combo Sensors (Accelerometers + Gyroscopes, Accelerometers + Magnetometers, 9-Axis (3-Axis Gyroscope, 3-Axis Accelerometer), By End-Use Application(Consumer Electronics [Smartphones, Tablets and Notebooks, Video Game Consoles, Wearables), By Region - Industry Forecast 2024-2031

Global Sensor Fusion Market size was valued at USD 7.5 billion in 2022 and is poised to grow from USD 8.84 billion in 2023 to USD 33.01 billion by 2031, growing at a CAGR of 17.90% during the forecast period (2024-2031).

In the next five years, the market is anticipated to be driven by the following factors: growing demand for smart homes and buildings, growing demand for advanced driver assistance systems (ADAS) and autonomous vehicle deployment, growing trend of electronics miniaturization, and growing demand for integrated sensors in smartphones. The industry participants will probably face difficulties with calibration across various sensors as well as security and safety issues. LiDAR sensors, radar, and cameras are required for autonomous vehicles to observe and evaluate their environment. In milliseconds, they often need many data inputs from different sources to provide the vehicle with a complete and cohesive view of its environment. 

To analyze complex challenges, one must also incorporate artificial intelligence and computing power. To address all these requirements, self-driving cars need to apply sensor fusion. Furthermore, it is anticipated that development of appropriate legislative measures, government’s budget allocations, and investment into digital capabilities will play a significant role in market expansion over the entire forecast horizon. Sales of self-driving cars went up even during the pandemic; there was a 78% increase in sales of level 2 cars, that is 11.2 million units in 2020 alone. Thus, level increase in sales of autonomous vehicles is the key factor responsible for the growth in sensor fusion market revenue. Sensor fusion is gaining popularity in cars due to its many technological benefits.