Key Market Overview:
Temperature Sensors Market size was valued at USD 5.8 Billion in 2022, registering a CAGR of 4.6% during the forecast period (2023-2030), and the market is projected to be worth USD 8.7 Billion by 2030.
A temperature sensor is an electronic device that measures temperature and converts the reading into an electrical signal further interpreted by a computer. The temperature sensor market is growing due to the increasing demand across industries such as automotive, food & beverage, healthcare, industrial, and energy & power. Also, the sensors are required to monitor the temperature of pharmaceutical products during storage and transportation to ensure stability and efficacy, is boosting the market growth.
Maintaining a standard temperature to increase the shelf life of perishable products is a crucial step in the food and beverage industry. Temperature sensors are used in beverage production to control the temperature during brewing and distillation to ensure the quality and consistency of the final product. Moreover, companies are designing sensors to comply with HACCP regulations and guidelines for pasteurization, for monitoring critical temperature points to ensure food safety. For instance, Therma, a US-based company, 2021 launched the Therma Degree sensor that uses artificial intelligence and a patented algorithm to automate the energy optimization of refrigerators in kitchens. The sensor consists of data loggers to monitor the temperature of chilled cabinets in a refrigerator. Overall, the temperature sensor market is expected to show strong growth in the coming years, due to the increasing demand in various end-use industries.
Market Dynamics:
Driver:
The increasing adoption of wearable devices such as smartwatches and fitness trackers that use temperature-sensing technology to monitor the wearer’s body temperature and provide health-related insights is driving the market growth. The adoption of temperature sensors in smart home devices such as smart lights and smart blinds is also accelerating market growth. Smart lighting systems use temperature sensing technology to adjust the color temperature of the light to create a warm and inviting atmosphere in the home.
Moreover, smart blinds monitor the temperature in homes and adjust the blinds accordingly. For instance, when the outside temperature is high, the smart blinds automatically close to balance the internal temperature. For instance, Omniablinds, a U.S. based company, launched Eve Motion Blinds with Apple Home-kit technology that controls smart blinds directly from the phone. The blinds are supported by Bluetooth technology and are supported by app operated under operating systems such as Android and iOS.
Restraint:
The major restraint of the temperature sensor market is the high sensitivity of the sensor that results in error even if small changes in the temperature of the wire or in the environment is made. Such sensitivity is problematic particularly in high-temperature industrial processes, such as in oil and gas industry where temperature up to 1500 °C exist, hindering the growth of the market.
Opportunities:
The increasing adoption of temperature sensors in automotive industries will create lucrative opportunities for market growth. Sensors are used for improving the engine’s performance by monitoring the temperature of various components, such as the engine coolant, oil, and air. By setting an optimal temperature range, the sensors monitor the temperature of exhaust gases and ensure that the catalytic converter operates within the installed range, is expected to create opportunities for the market growth.
Temperature Sensors Report Coverage:
| Report Attributes | Report Details |
| Study Timeline | 2017-2030 |
| Market Size in 2030 (USD Billion) | 8.7 Billion |
| CAGR (2023-2030) | 4.6% |
| By Product | Contact and Non-Contact Sensors |
| By Output | Digital and Analog |
| By Connectivity | Wired and Wireless |
| By End-User | Food & Beverages, Healthcare, Automotive, Chemicals, Oil & Gas, Energy & Power, Defense & Aerospace, and Others |
| By Geography | North America, Europe, Asia Pacific, Latin America, the Middle East, and Africa |
| Key Players | Texas Instruments, Honeywell International Inc., Panasonic Corporation, OMEGA Engineering, Inc., NXP Semiconductors, Murata Manufacturing Co., Ltd., TE Connectivity, AMETEK Inc., GE Measurement & Control Solutions, ABB Ltd. |
Market Segmentation:
By Product
The product segment is bifurcated into contact and non-contact sensors. Contact sensors measure temperature by maintaining a contact with the surface of the object being measured. The most common type of contact temperature sensors includes thermocouples, resistance temperature detectors (RTDs), and thermistors. The contact segment dominated the market and generated maximum revenue in the year 2021 due to the wide application in the medical industry and agriculture. Moreover, contact sensors are used in medical equipment, such as incubators and dialysis machines, to monitor the temperature of liquids and air. Contact sensors have also gained application in soil monitoring and irrigation systems to measure the temperature of soil that has a significant impact on crop yield and water affecting the evaporation rate of the soil.
Moreover, the contactless segment is anticipated to register the fastest CAGR during the forecast period and includes infrared (IR) thermometers and pyrometers that measure the temperature of an object by sensing the thermal radiation emitted by the object. The market for non-contact sensors is expected to show a considerable growth as they do not make physical contact with the object being measured, that eliminates the potential for errors caused by thermal mass and heat transfer. Non-contact sensors are used in infrared thermometers, to measure body temperature eliminating the risk of communicable infection that spreads by injecting the thermometer physically into the patient’s mouth.
By Output
The output segment is bifurcated into digital and analog. The analog segment dominates the market by generating the largest revenue in the year 2021. Analog temperature sensors provide an analog output signal that represents the temperature measurement. Analog temperature sensors are typically less expensive than digital temperature sensors and are commonly used in applications that require a simple, low-cost solution such as consumer electronics. For instance, thermostats are analog sensors used to accurately measure the ambient temperature of a room and adjust the heating or cooling accordingly.
The digital segment is expected to register the fastest CAGR during the forecast period. Digital temperature sensors provide a digital output signal that is highly accurate and provides a clear and precise representation of the temperature measurement in the form of a numerical value. Moreover, digital temperature sensors have gained vast application in computer systems to monitor the temperature of critical components such as central processing units (CPUs) and graphics processing units (GPUs) allowing users to see the temperature levels in real time. Also, digital sensors help to prevent overheating in computer systems by alerting users when the temperature of critical components exceeds safe levels.
By Connectivity
The connectivity segment is classified into wired and wireless. The wired temperature segment dominates the market by generating maximum revenue and use a physical cable to transmit temperature data from the sensor to the control system. Wired sensors have gained industrial applications such as in power generation industry due to the stability and reliable connection. Wired temperature sensors are used in power generation facilities to monitor temperatures in boilers, turbines, and other equipment to improve efficiency, reduce downtime, and prevent equipment damage.
The wireless segment is expected to register the highest CAGR during the forecast period. Wireless temperature sensors use radio waves to transmit temperature data from the sensor to the control system. The sensors offer greater flexibility and ease of installation, eliminating the need for a physical cable connection. Wireless temperature sensors are commonly used in consumer applications, such as home automation systems and environmental monitoring. Home automation systems use wireless sensors to control heating and cooling systems as well as to track indoor and outdoor temperatures for energy efficiency and comfort. Also, the deployment of wireless sensors in remote and challenging environments, such as forests, wetlands, and oceans, to gather data on temperature patterns and the impact on the environment is fueling the market growth.
By End-User
The end-user segment is categorized into food & beverages, healthcare, automotive, chemicals, oil and gas, energy and power, defense & aerospace, and others. The oil and gas segment dominates the market and generates the maximum revenue. To ensure safe and efficient drilling operations in oil & gas industries, temperature sensors are used to monitor the temperature of the wellbore that provides important information about the thermal state of the reservoir. Also, the sensors detect equipment malfunctions, such as overheating, that cause damage and pose safety risks and regulate the refining temperature of crude oil into gasoline.
The automotive industry is expected to register the fastest CAGR during the upcoming years owing to the use of temperature sensors in climate control systems to measure the temperature inside the vehicle and adjust accordingly to maintain a comfortable cabin temperature. In electric and hybrid vehicles, temperature sensors are employed to monitor the temperature of the battery, which is crucial for ensuring safe and efficient battery performance. Temperature sensors have also gained application in emissions control systems to monitor the temperature of the exhaust system, which is important for ensuring that emissions are within regulatory limits.
By Region
North America holds the largest share of the temperature sensor market due to the increasing adoption of wearable devices like smartwatches and the development of HVAC systems. North America has a strong base for automotive industries that uses temperature sensors in monitoring engines hence, fueling the growth of the market. Also, the region has strict regulations for automotive safety that has led to an increasing demand for temperature sensors in the automotive industry. Europe is the second largest shareholder of the market owing to the growing demand for smart and connected devices such as smart thermostats and smart homes, and temperature sensors are an essential component of many of the devices. Such factors have led to a large demand for temperature sensors that provides accurate and real-time temperature readings.
Asia-Pacific is projected to register the highest CAGR during the forecast period. The easy availability of raw materials and labor in countries including China and India helps in the growth of the manufacturing sector and hence, raises the demand for temperature sensors. Also, the presence of key players such as Texas Instruments, Omron Corporation, and Analog Devices, Inc. is further propelling the market growth.
Temperature Sensor Market Competitive Landscape:
The temperature sensor market is highly competitive, with a large number of companies operating in the market. The companies compete based on factors such as product innovation, quality, price, and delivery time. Many of the companies have established strong distribution networks and have developed partnerships with key customers, which helps them to gain a competitive advantage in the market. Following are the major market players that comprise the latest market concentration–
- Texas Instruments
- Honeywell International Inc.
- Panasonic Corporation
- OMEGA Engineering, Inc.
- NXP Semiconductors
- Murata Manufacturing Co., Ltd.
- TE Connectivity
- AMETEK Inc.
- GE Measurement & Control Solutions
- ABB Ltd.
Recent Developments:
- In 2022, TE Connectivity launched a new series of temperature sensor solutions, designed for use in automotive and industrial applications. These new temperature sensor solutions are expected to provide enhanced performance and accuracy and meet the growing demand for temperature sensing in a variety of applications.
- In 2021, Texas Instruments acquired Digi-Key Electronics, a leading global manufacturer of electronic components, to expand its reach in the Asia-Pacific region and further grow its presence in the temperature sensor market.
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