Research Nester’s recent market research analysis on “Temperature Sensor Market size is anticipated to reach USD 17 Billion by the end of 2035. The market is estimated to grow at a 7.5% CAGR during the forecast period, i.e., 2023 – 2035. In the year 2022, the industry size of temperature sensors was around USD 7.14 Billion.
Significant Presence of Data Centers Around the World to Promote Global Market Share of Temperature Sensor
The global temperature sensor market is estimated to grow majorly on account of the growth in the number of data centers established all over the world. Temperature and humidity are crucial factors determining the working conditions of a data center’s infrastructure, including servers and networking hardware. Hence temperature sensors are used widely in data centers to maintain the optimal humidity and temperature required for the efficient functioning of the different infrastructural components. As of now, the world has about 7999 data centers. Further, 32% of these data centers are in the U.S. Thus, the high number of data centers in the world should encourage market growth considerably.
Another factor that is expected to result in market growth is the increasing aircraft manufacturing. Most of the vital components in aircraft and aerospace are expected to function in a predetermined range of temperatures. Here, a temperature sensor is of use as it helps monitor the temperature of the components during their functioning. Hence, the growing number of aircraft is believed to contribute to the market growth considerably. For instance, the total number of airplanes in the world, which was calculated at about 24000 during 2019, has been projected to grow to ~47000 by 2041.
Some of the major growth factors and challenges that are associated with the growth of the global temperature sensor market are:
Growth Drivers:
- Increase in Construction Activities Around the World
- Worldwide Demand for Smartphones
Challenges:
The expensive nature of temperature sensors is the major factor that is expected to restrict the market growth during the forecast period. Several aspects of the sensors influence their pricing. Some of these aspects include the degree of accuracy in their measurements, the different functionalities and features incorporated into the sensors, the range of monitored temperature, and the type of the sensor. Some other temperature sensors should also clear costly certification processes and compliance tests. The expenses involved in these processes often get added to the final cost of the temperature sensors.
Hence the strict compliance needed of the companies towards the stringent regulations on the use of temperature sensors should hinder the market growth. Another factor that is expected to restrict the market size for temperature sensors is the occurrence of inaccurate and unreliable measurements by the sensors.
Temperature Sensor Market, Segmentation by End Use Industry
- Healthcare
- Consumer Electronics
- Automotive
- Aerospace & Defense
- Food & Beverages
- Energy & Power
- Oil & Gas
- Chemicals
By end-user, the global temperature sensor market is segmented into health care, automotive, food & beverages, oil & gas, chemicals, energy & power, aerospace & defense, and consumer electronics. Of these, the oil & gas end-user subsegment should hold the largest market revenue share by the end of the forecast period. Monitoring the temperature of elements such as equipment and pipelines involved in the production of oil and gas is imperative to maintain safety throughout the production process. Temperature sensors often incorporate sound alarms that go off with the temperature exceeding the safe limits.
These alarms could also initiate the automatic shutting down of equipment to avoid accidents and equipment failure. Hence, the large-scale production of oil and gas is expected to boost the market growth. Further, the temperature sensors could also be used to monitor the temperature of underground reservoirs to make informed decisions about oil and gas resources.
By region, the North American temperature sensor market is to generate the highest revenue by the end of 2035. This growth is anticipated by the growth in the use of Internet of Things (IoT) technology throughout the region. For instance, the number of IoT connections in North America has been projected to reach ~4 billion by 2025. With an increase in the population in urban areas, the number of devices being connected to the internet for various uses is also on the rise. However, these devices in smart homes and other buildings require to regulate their temperature continuously.
Temperature sensors help monitor the temperature of these devices and gadgets, thereby ensuring safety and their proper functioning. Other important applications of temperature sensors in the region are observed in the food & beverages and pharmaceuticals industry. The products in these industries are to be maintained at a predetermined temperature throughout the supply chain, and this is expected to boost market growth.
Key Companies-
- Honeywell International Inc
- TE Connectivity Corporation
- Amphenol Corporation
- Infineon Technologies AG
- Siemens AG, Emerson Electric Co.
- Analog Devices, Inc.
- NXP Semiconductors
- STMicroelectronics
