The global temperature sensor market is propelled by high degree of competition in terms of price. The spiraling demand for environment-friendly and low cost temperature sensors is creating a large scope for small players to venture into the market. However, the dominance of established players and the high initial investment requirement are restricting the entry of new players, finds Transparency Market Research (TMR) in a new study.
In 2015, the top six players commanded less than 20% of the global temperature sensors market. Among these, Texas Instruments Inc., Honeywell International Inc., and General Electric Company were the top three players in the same year. “These players are aiming at improving research and development facilities along with continuous innovation to introduce sensors that are in line with the changing requirements of end-use industries,” says the author of the report.
The global temperature sensors market was valued at US$4.75 bn in 2016 and is expected to rise to US$6.69 bn by 2024, expanding at a CAGR of 4.6% therein.
North America to Remain at Forefront Due to Increasing Demand for Infrared Temperature Sensors
By sensing method, contact temperature sensor will continue to dominate the market until 2024, representing 63.7% of the overall market revenue. The flourishing growth of the end-use sectors such as automotive and electronics is fuelling the growth of the segment. The demand for contact temperature sensors will rise at a higher CAGR than the non-contact type during the same period.
By geography, North America will continue to be the frontrunner in the global arena until 2024. The presence of advanced healthcare infrastructure and the surging usage of infrared temperature sensors in the oil and gas industry are supplementing the growth of the region. Asia Pacific, on the other hand, will be the most promising market, progressing at a CAGR of 5.9% during the review period.
Widening Scope of Applications in Healthcare Sector Stimulates Growth
The soaring demand for consumer electronics products is providing a significant momentum to the global temperature sensors market. “The adoption of temperature sensors in consumer electronics is stimulated by the soaring demand for higher functionalities, resource efficiency requirements, and performance features,” says a TMR analyst.
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Moreover, the increasing scope of application of temperature sensors in healthcare is escalating the growth of the market. These sensors are being increasingly incorporated medical equipment. Apart from this, they are used in hospitals for maintaining temperatures for critically unwell patients who need to be monitored on a continuous basis. The increasing demand for non-contact temperature sensors across various end-use sectors, including automotive, aerospace, medical, and industrial is also stoking the growth of the global market. The advent of infrared sensors is further driving the demand for non-contact temperature sensors.
The low prices of temperature sensors are translating into their higher demand; however, this is adversely affecting the overall profit margins and revenue generation of companies. This is, therefore, acting as a major deterrent to the growth of the market. The declining demand for contact temperature sensors is also impacting the growth of the market negatively. On the flip side, the growing popularity of body-worn temperature sensors is unfolding ample growth opportunities for the market.