Industry: IT and Telecommunication
Published Date: December-2024
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 194
Report ID: PMRREP35009
The global occupancy sensor market is projected to be valued at US$ 2.6 Bn in 2024. It is anticipated to experience a CAGR of 12.3% during the assessment period to reach a value of US$ 6.1 Bn by 2031. AI-powered occupancy sensors that analyze complex behavioural patterns, predict occupancy trends, and enable better automation are likely to see adoption in building management systems (BMS). AI-enabled sensors can optimize HVAC and lighting systems based on historical usage patterns, potentially decreasing energy costs by 20% to 40%.
Sensors incorporating edge processing capabilities are likely to enable real-time analytics without being dependant on cloud computing, thereby enhancing latency and security. Multi-functionality sensors are gaining traction as they integrate features like temperature monitoring, CO2 detection, and air quality sensing, thereby making versatile for applications in healthcare and smart buildings.
Key Highlights of the Industry
Market Attributes |
Key Insights |
Occupancy Sensor Market Size (2024E) |
US$ 2.6 Bn |
Projected Market Value (2031F) |
US$ 6.1 Bn |
Global Market Growth Rate (CAGR 2024 to 2031) |
12.3% |
Historical Market Growth Rate (CAGR 2019 to 2023) |
9.1% |
North America is estimated to hold a share of 42% in 2024. The U.S. Department of Energy (DOE) mandates energy efficiency standards under programs including the Energy Star and Building Energy Efficiency Standards, thereby encouraging the installation of energy-saving technologies, including occupancy sensors. California’s Title 24 building standards require advanced lighting controls, such as occupancy sensors, in new and retrofitted buildings.
The region has accounted for 36% of global smart building investments in 2023. By 2025, 70% of new commercial buildings in the U.S. are estimated to incorporate advanced occupancy sensors as a part of their energy management systems.
Prominent firms in the industry including Honeywell International Inc., Legrand, Schneider Electric, and Johnson Controls are based in North America. They are continuously advancing sensor technologies, thereby riving expansion.
A survey conducted in 2023 revealed that over 40% of IoT deployments in North America are in smart building applications. The U.S. Green Building Council reported that 65% of commercial building renovations in 2023 included the integration of smart controls, including occupancy sensors.
Passive infrared (PIR) is estimated to lead the technology segment with a share of 41% in 2024. PIR sensors are relatively inexpensive compared to other technologies like ultrasonic or microwave sensors, making them attractive for mass adoption.
PIR sensors are easy to integrate into lighting systems, HVAC controls, and smart devices, decreasing installation and maintenance costs. Their low power consumption further makes them ideal for battery-operated devices and energy-harvesting systems.
PIR sensors work by detecting infrared radiation (heat) emitted by human bodies, making them highly reliable for motion detection in stationary or low-activity areas. PIR sensors are widely used in indoor lighting control, where they can detect motion within a range of 6 meters to 10 meters with minimal errors.
Wireless is predicted to hold a share go 56% in 2024. Wireless occupancy sensors do not require extensive wiring, making them easy and quick to install, especially in retrofitting projects. This assists in decreasing installation costs by 30% to 50% compared to wired systems. They can be installed in challenging locations without requiring rewiring, making them suitable for diverse applications.
Wireless sensors integrate seamlessly with IoT platforms, enabling real-time monitoring and control through BMS or smart home applications. By 2025, 80% of smart buildings global are expected to use wireless occupancy sensors.
Technologies like Zigbee, Z-Wave, and Bluetooth Low Energy (BLE) consume minimal power, extending the battery life of wireless sensors to 5–10 years. Modern wireless protocols provide robust connectivity, even in complex environments like high-rise buildings or industrial facilities.
Potential growth in the global occupancy sensor market is predicted to be driven by increasing adoption of smart city projects across the globe as these sensors are used in public lighting and transportation systems.
Advanced sensors with with Artificial Intelligence and ML capabilities are likely to enhance predictive maintenance, space optimization, and energy efficiency. Sensors are estimated to witness increased adoption in warehouses and factories to optimize energy use and enhance safety.
The occupancy sensor market exhibited a CAGR of 9.1% during the historical period. Growing emphasis on energy conservation coupled with the rising demand for automation in residential, commercial, and industrial applications were the key growth drivers. The period witnessed adoption of dual/multi-technology sensors to enhance accuracy and reliability.
The popularity of wireless solutions rose owing to easy installation and scalability, contributing to expansion. Occupancy sensors increasingly became part of IoT ecosystems, enabling data sharing with Building Management Systems (BMS) and smart home platforms like Amazon Alexa and Google Home.
Occupancy sensors were instrumental in lighting control and HVAC optimization, decreasing operational costs by up to 30% in commercial buildings. Affordability and user-friendliness of occupancy sensors is likely to bolster their growth in coming years.
Rising focus on sustainability and energy conservation is driving businesses to use eco-friendly materials while incorporating environment-friendly practices in their supply chains.
Smart Building Integration
According to the U.S. Energy Information Administration (EIA), lighting accounts for around 10% to 20% of a building's total energy use, and smart lighting solutions, including occupancy sensors, can significantly cut this figure. As energy costs continue to rise, smart buildings with occupancy sensors offer businesses and homeowners a way to reduce energy bills.
Building owners can save between 15% and 30% on energy costs by implementing smart building technologies. Occupancy sensors are integral in smart building systems as they assist in managing and optimizing the use of recourses by detecting the presence or absence of people in space.
Based on statistics provided by the National Renewable Energy Laboratory (NREL), smart buildings can decrease overall energy consumption by 30% to 50%, owing to the integration of occupancy sensors and other smart technologies. The Internet of Things is becoming a key enabler of smart buildings.
Government Regulations and Incentives
Governments across the globe are implementing several energy efficiency regulations and building codes to decrease energy consumption and greenhouse gas emissions. International Energy Conservation Code (IECC) used by the United States, mandates the use of occupancy sensors in commercial spaces to control lighting.
ASHRAE Standard 90.1 has set minimum energy efficiency requirements for commercial buildings, including requirements for automatic lighting controls, such as occupancy sensors, in areas like restrooms, offices, and meeting rooms.
Governments offer financial incentives to encourage the adoption of energy-saving technologies, including occupancy sensors, in buildings. U.S. states and local governments offer rebates or subsidies on the purchase and installation of energy-efficient lighting systems, including those equipped with occupancy sensors. For instance, in California, the California Energy Commission offers rebates for installing energy-efficient lighting controls, including occupancy sensors, under the California Lighting Technology Center (CLTC).
Privacy Concerns Remain a Key Barrier
Advanced occupancy sensors collect detailed information such as movement patterns, heat signatures, or even audio and video feeds. This data can be potentially used to infer personal habits, routines, or occupancy patterns within a home or office. If this data is stored improperly or shared without user consent, it can result in misuse or unauthorized access.
Nearly, 81% of consumers are concerned about how companies handle their data while 50% of consumers have taken steps to protect their privacy. Lack of transparency exacerbates privacy concerns and reduces trust in the technology from several consumers as well as businesses.
Privacy concerns deter users from adopting occupancy sensors, especially in regions with high sensitivity to personal data security, such as Europe under the General Data Protection Regulation (GDPR). A survey revealed that 54% of smart home users have cited privacy concerns as their main reason to hesitate to adopt technologies like smart cameras and occupancy sensors.
Increasing Use of Wearable Occupancy Sensors
Wearable occupancy sensors use various technologies such as Bluetooth, RFID, infrared, or ultrasonic sensors to detect an individual's presence and movement. These sensors are gaining traction in several industries due to their ability to provide real-time occupancy data and ensure safety.
Wearable sensors are increasingly used in industries such as manufacturing, construction, and logistics to ensure worker safety. Workplace injuries in high-risk industries could be reduced by up to 30% with the adoption of wearable safety sensors, which can monitor vitals, detect falls, and alert workers to dangerous conditions.
Wearables can trigger alarms in case of a fall or if workers are exposed to dangerous conditions in factories. Wearable occupancy sensors can be integrated into smart building systems to collect data about how spaces are being used. In offices, wearable sensors can track how frequently meeting rooms, break areas, and individual workstations are used, leading to better space planning and resource allocation.
Increasing Use of Occupancy Sensors in Residential Homes
Residential occupancy sensors are often integrated into smart home ecosystems, which can be controlled remotely via smartphones or voice assistants. One of the prominent uses of occupancy sensors in residential homes is for controlling smart lighting systems.
Lighting accounts for approximately 10% of a home’s energy use, according to the U.S. Department of Energy. With occupancy sensors, homeowners can decrease lighting energy use by 30% to 50%.
Occupancy sensors are also used to control HVAC systems, adjusting the heating or cooling based on the occupancy of rooms. For instance, in a multi-story home, HVAC systems with occupancy sensors can automatically adjust the temperature settings in rooms based on whether they are in use, maintaining comfort while saving energy.
Several modern homes are integrating smart home technology, where occupancy sensors work alongside devices such as smart thermostats, smart lighting, voice assistants, and smart locks. This enables seamless automation while enhancing the overall convenience of managing a home.
Companies in the occupancy sensor market are continuously developing and improving sensor technology like integrating advanced features like motion detection, wireless connectivity, and infrared sensors. They are exploring new types of sensors like acoustic or thermal to increase accuracy and functionality.
Several businesses are focusing on integrating occupancy sensors with smart building systems and IoT platforms, thereby allowing better energy management, lighting control, and HVAC systems. Brands are offering customizable solutions tailored to specific industries and use cases, thereby assisting them to attract a wide range of consumers.
Growing concerns regarding energy consumption has resulted in the companies to emphasize on the energy-saving benefits of their products. Several companies are establishing partnerships with technology providers, building automation system suppliers or facility management companies.
Recent Industry Launches
Attributes |
Detail |
Forecast Period |
2024 to 2031 |
Historical Data Available for |
2019 to 2023 |
Market Analysis |
US$ Billion for Value |
Key Regions Covered |
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Key Market Segments Covered |
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Key Companies Profiled in the Report |
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Report Coverage |
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Customization and Pricing |
Available upon request |
By Type
By Connectivity
By Technology
Application
By Region
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The market is anticipated to reach a value of US$ 6.1 Bn by 2031.
Passive infrared (PIR) sensors are ideal for detecting prominent motion.
Lifetime of occupancy sensors is up to 15 years, depending on sensor type, configuration, environment, and use.
North America is predicted to emerge as the leading region with a share of 42% in 2024.
Honeywell International Inc., Legrand, and Schneider Electric are the prominent companies in the market.