According to the International Trade Administration, China is the largest manufacturer and buyer of automobiles in the world. Moreover, domestic manufacturing in the country is predicted to rise to 35 million vehicles by 2025. Furthermore, as per the data released by the country’s Ministry of Industry and Information Technology, more than 25 million vehicles were sold in the country in 2019, including 4.32 million commercial vehicles and 21.44 million passenger vehicles.
Another major factor propelling the worldwide demand for position sensors is the booming packaging industry in several countries. For example, in India, the plastic packaging industry surged at a CAGR of more than 14% between 2010 and 2017. Moreover, due to the surging pharmaceutical and food packaging sectors and the increasing exports, the industry will continue expanding in the coming years. As position sensors are extensively used in packaging machines, the growth of the industry is positively impacting the sales of these sensors.
Due to the aforementioned factors, the revenue of the position sensor market is predicted to grow from $9.1 billion in 2018 to $14.2 billion by 2024. The market is also expected to grow at a CAGR of 7.7% from 2019 to 2024. Depending on type, the market is classified into linear and rotary. Between these, the rotary category contributed higher revenue to the market in 2018. These sensors are extensively used in various consumer electronic devices and also for pedal and throttle position detection and control in vehicles.
On the other hand, in the upcoming years, the linear category is predicted to demonstrate faster growth in the market. Geographically, the position sensor market will exhibit the fastest growth in the Asia-Pacific (APAC) region in the forthcoming years, as per the estimates of the market research company, PS Intelligence. This is ascribed to the burgeoning requirement for automobiles and consumer electronics in the regional countries, on account of the surging population.
Hence, it can be said without any hesitation that the demand for position sensors will skyrocket in the upcoming years, mainly because of the surging manufacturing of automobiles and consumer electronic devices, especially in the APAC region.
