Market Trends of Automotive Temperature and Humidity Sensors Industry
This section covers the major market trends shaping the Automotive Temperature & Humidity Sensors Market according to our research experts:
Rise in Electric and Autonomous Driving Vehicle is Expected to Drive the Market
- Automotive manufacturers all over the world are focusing on vehicle electrification. Cars need to charge more quickly and have a more extended range on a single charge. This implies electrical and electronics circuits within the vehicle should be able to handle extremely high power and manage losses effectively, creating a need for robust thermal-management solutions to ensure that safety-critical applications remain operational and are expected to impact automotive temperature sensors positively.
- Moreover, The demand for humidity sensors is increasing due to the automotive industry's quick electrification. The need for battery management systems is growing sharply as electric vehicles (EV) and hybrid electric vehicles gain popularity. Humidity sensors are an essential part of battery management systems because they increase the safety of electric vehicles by keeping track of the lithium-ion batteries' current, voltage, humidity, and temperature.
- Additionally, it starts the ventilation process only when the humidity level rises above the threshold, reducing power consumption and boosting the overall effectiveness of electric vehicles. This enables the market growth for humidity and temperature sensors.
- According to EV-volumes.com, Tesla was named the best-selling electric vehicle manufacturer in the world by EV Volumes after selling nearly 936,200 units in 2021. Tesla's market share is 14% based on its sales volume. Among the runners-up were BYD and Volkswagen Group. Also, registrations of plug-in electric vehicles increased in 2021, with the Chinese electric vehicle market growth. Such rise and adoption of EVs will boost the global demand for temperature and humidity sensors.
- Furthermore, The increasing adoption of autonomous cars is also expected to positively impact the market as there specific sensors on an autonomous vehicle, such as a Coolant temperature sensor or an Intake Air Temperature sensor. In May 2020, Volvo announced LIDAR-equipped cars, where the company mentioned that users could drive themselves on highways with no human intervention; the company started its production line in 2022.
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Asia Pacific to Witness the Significant Growth
- The growth in the Asia-Pacific region owes to the growing automotive industry in countries such as China and India. The region's safety and emission control regulations are expected to boost the market during the forecast period significantly.
- Rapid urbanization in the region has also resulted in increased pollution levels, thereby propelling the demand for fuel-efficient vehicles that are equipped with a temperature sensor in the engine and exhaust. Major companies in the market, such as Panasonic and TDK, are based out of Japan.
- In addition, the Asia-Pacific automotive temperature sensor market benefits from ongoing pollution regulations and rising demand for safety devices like ECU. Additionally, rapid urbanization has increased emissions, driving demand for fuel-efficient cars with temperature sensors in the engine and exhaust.
- The growing adoption of electric vehicles in the developing countries of Asia Pacific also favors market growth over the forecast period. For Instance, China is the primary producer and consumer of sensors and holds a prominent position in the global market.
- China made up about 32.5% of the world's auto production in 2021; according to the China Association of Automobile Manufacturers (CAAM), China's annual production of passenger cars had surpassed that of Japan, Germany, India, and South Korea put together. In 2021, China ranked first in the world for automobile sales. Such a rise in vehicles will bring more demand for sensors such as temperature and humidity sensors in the region.
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