U.S. Motor Vehicle Sensors Market Size, Share, and Growth Forecast for 2024 - 2031

U.S. Motor Vehicle Sensors Market Size and Share Analysis

The U.S. motor vehicle sensors market is projected to witness a CAGR of 6.6% during the forecast period from 2024 to 2031. It is anticipated to increase from US$ 4 Bn attained in 2024 to a considerable US$ 6.3 Bn by 2031.

The market is projected to be pushed by rising demand for Advanced Driver Assistance Systems (ADAS) that enhance vehicle safety and comfort. Lane departure warnings, adaptive cruise control, automatic emergency braking, and parking assistance are increasingly sought after due to increasing awareness of safety.

Rising cases of road accidents are anticipated to propel the adoption of ADAS in modern-age vehicles in the U.S. For example, at nearly 12.4 per 100,000, the road fatality rate in the U.S. is lower than the global average but greater than that of most countries in Europe.

Regulatory mandates by the National Highway Traffic Safety Administration (NHTSA) have further accelerated ADAS adoption. These have mandated the installation of systems like automatic emergency braking in all new vehicles.

Stringent safety and emissions regulations set by the Environmental Protection Agency (EPA) and NHTSA have also played a pivotal role in bolstering market growth. These standards target reduced emissions and improved fuel efficiency, requiring novel sensors to monitor critical parameters. For example, pressure sensors in exhaust systems ensure emissions compliance, while temperature sensors help optimize engine performance and fuel use.

Key Highlights of the Market

• Increasing number of vehicles on the road, particularly in developed areas of the U.S., is set to fuel demand for motor vehicle sensors to enhance safety and efficiency.
• Adoption of Level 1 and Level 2 ADAS in the U.S. exceeded 80% by 2023, as consumer awareness grew regarding the safety and convenience benefits these systems provide.
• Based on application, the engine and drivetrain segment will likely dominate at a CAGR of 6.9% through 2031 amid developments in engine management systems.
• By product, the temperature sensors category is predicted to lead at a CAGR of 6.8% through 2031 as vehicle manufacturers adopt MEMS.
• Increasing use of solid-state LiDAR sensors in autonomous vehicles to enhance reliability and performance is a key trend.
• Enhanced focus on sensor fusion to improve the accuracy of environment detection systems will likely create opportunities for market players.

Market Attributes	Key Insights
U.S. Motor Vehicle Sensors Market Size (2024E)	US$ 4 Bn
Projected Market Value (2031F)	US$ 6.3 Bn
U.S. Market Growth Rate (CAGR 2024 to 2031)	6.6%
Historical Market Growth Rate (CAGR 2019 to 2023)	6.3%

Engines and Drivetrains to Lead as Customers Seek Enhanced Emission Control

Category	CAGR through 2031
Application- Engine and Drivetrain	6.9%

In 2024, the engine and drivetrain segment held the most prominent U.S. motor vehicle sensors market share. It was driven by innovations in engine management systems that support the increased complexity of modern engines. These systems rely on specialized sensors, such as oxygen, temperature, and pressure sensors.

They play a key role in optimizing fuel injection, ignition timing, and emission control, ensuring peak engine performance and regulatory compliance. In electric and hybrid vehicles, these sensors are essential for monitoring battery health, electric motor efficiency, and energy management. These help in aligning with the shift toward clean transportation solutions.

The safety and security segment, on the other hand, is anticipated to witness a significant CAGR over the forecast period. It is attributed to rising vehicle theft rates and surging demand for novel security solutions. For example,

• Over 1 million car thefts were reported in the U.S. in 2023, translating to a national theft rate of about 303 per 100,000. With 1,150 thefts per 100,000, the District of Columbia had the highest rate, which was almost three times higher than the national average.
• The states with the highest theft rates were California, Texas, and Florida. In California alone, more than 200,000 cars were stolen.

Sensors such as motion, glass break, shock/impact, and tilt are integral for detecting unauthorized access and enhancing vehicle security. Additionally, as concerns over security rise, manufacturers are increasingly integrating these sensors into ADAS. These are essential in the evolution of semi-autonomous and fully autonomous vehicles.

ADAS technologies, including automatic emergency braking and blind-spot detection, rely on real-time data from these sensors. These help improve safety, further solidifying the role of novel sensor technologies in modern vehicle design.

Temperature Sensors Gain Impetus as Adoption of MEMS Surges

Category	CAGR through 2031
Product- Temperature Sensors	6.8%

In 2024, the temperature sensors segment held a dominant market share, primarily driven by innovations in sensor technology, such as Microelectromechanical Systems (MEMS) and infrared temperature sensors. These have significantly improved the accuracy, reliability, and cost-effectiveness of temperature sensors. These also cater to the growing demand for enhanced vehicle performance and efficiency.

NOx sensors, on the other hand, are projected to experience a decent CAGR over the forecast period, mainly due to the increasing adoption of Selective Catalytic Reduction (SCR) systems in vehicles. SCR systems use NOx sensors to monitor and reduce nitrogen oxide emissions. These help in transforming them into harmless nitrogen and water to comply with stringent emissions regulations.

U.S. Motor Vehicle Sensors Market Introduction and Trend Analysis

The U.S. motor vehicle sensors market is projected to surge significantly due to the increasing demand for Advanced Driver Assistance Systems (ADAS) and the tightening of regulatory standards. Key trends include the integration of sensors in electric and autonomous vehicles.

Components such as temperature, NOx, pressure, and motion sensors are important for optimizing performance, monitoring emissions, and ensuring security. As automakers focus on innovation in ADAS and energy management systems, motor vehicle sensors will likely play a key role in enhancing driver safety and promoting environmental sustainability.

The shift toward Electric Vehicles (EVs) and Autonomous Vehicles (AVs) has substantially increased demand for motor vehicle sensors. EVs rely on sensors to monitor battery health, manage energy consumption, and ensure safety.

Avs, in contrast, depend on sensors for navigation, obstacle detection, and decision-making, utilizing a combination of cameras, radar, lidar, and ultrasonic sensors to operate safely. The ongoing development of AV technology is set to sustain high demand for unique sensors in the years ahead.

Historical Growth and Course Ahead

The U.S. motor vehicle sensors industry recorded a decent CAGR of 6.3% in the historical period from 2019 to 2023. In recent years, the country has shown steady growth, primarily fueled by developments in automotive technology, enhanced safety regulations, and increasing adoption of autonomous and electric vehicles.

Initially, growth was moderate as sensors supporting ADAS and emissions monitoring gained traction in both premium and mid-range vehicles. The COVID-19 pandemic caused temporary production disruptions, affecting the market’s expansion.

Demand, however, quickly rebounded, bolstered by rising consumer interest in safety features and the electrification push. Reflecting the market’s dynamic evolution, leading companies continue to introduce new sensor technologies to keep pace with rising demand. For instance,

• In May 2022, Continental introduced a new line of sensors designed to safeguard the batteries of electrified vehicles.

Market Growth Drivers

Incorporation of ADAS to Comply with Safety Norms Fuels Demand

In the U.S., the rising demand for Advanced Driver Assistance Systems (ADAS) is anticipated to push sales of motor vehicle sensors. With safety becoming a top priority for consumers, automakers are increasingly incorporating a variety of ADAS technologies. These are aimed at enhancing vehicle safety and improving one’s driving experience.

Consumer awareness of the benefits associated with ADAS has also risen, supported by studies indicating that these systems can significantly reduce accident rates. For example,

• The Insurance Institute for Highway Safety (IIHS) revealed that vehicles equipped with automatic emergency braking are involved in fewer rear-end collisions, reinforcing consumer confidence in these safety features.
• Regulatory bodies, including the National Highway Traffic Safety Administration (NHTSA), have been instrumental in promoting the integration of ADAS features in new vehicles.
• In 2020, the NHTSA released guidelines recommending that all new cars be equipped with automatic emergency braking systems.

Emergence of Telematics and Predictive Maintenance to Spur Demand

Demand for automotive sensors in the U.S. is rising because of the incorporation of telematics and predictive maintenance systems in automobiles. By using cutting-edge sensors to track a vehicle’s performance in real time, predictive maintenance enables the early identification of possible mechanical problems.

To help avoid unplanned breakdowns, these sensors gather information on key characteristics like tire pressure, braking function, oil levels, and engine temperature. Predictive maintenance is becoming crucial for prolonging vehicle lifespans while maintaining safety and dependability in the U.S., where the average vehicle age is above 12 years.

Telematics systems, on the other hand, are frequently used by fleet operators in industries like ride-hailing, logistics, and transportation in the U.S. These systems' integrated sensors offer important information about driving habits, fuel economy, and vehicle health. For example,

• The National Highway Traffic Safety Administration (NHTSA) has mandated the use of Tire Pressure Monitoring Sensors (TPMS) in telematics. These would help in reducing the number of road accidents caused by underinflated tires.

Market Restraining Factors

High Costs Remain a Key Barrier to Automotive Sensor Adoption

A key restraint in the U.S. automotive sensor industry is the high cost of sensor technologies, which restricts their widespread adoption, particularly in price-sensitive markets. This cost burden is primarily driven by the expensive raw materials and complex manufacturing processes required to produce these sensors, combined with rising demand in modern vehicles.

Sensors play a critical role in multiple vehicle functions such as safety, engine management, and comfort. These necessitate the integration of various sensor types within a single vehicle, further raising costs.

The development of new sensor technologies also requires significant investment in research, testing, and prototyping to meet the evolving demands of the automotive industry. Rapid technological developments are set to lead to frequent design updates, adding further expenses as manufacturers strive to remain competitive.

Compliance with stringent regulatory standards and customization for specific automotive applications contributes to these high costs. Innovations, such as solid-state LiDAR technology, as well as growing competition are gradually reducing prices. However, high costs continue to be a leading barrier to the surging adoption of automotive sensor technologies.

Key Market Opportunities

Companies to Offer Cost-effective Aftermarket Sensors for Aging Vehicles

The aftermarket for automotive sensors is rising as consumers seek to enhance aging vehicles with new safety and connectivity features. Driven by high demand for safety improvements, aftermarket products such as blind-spot monitoring, lane departure warnings, parking sensors, and telematics upgrades are gaining impetus. These sensors allow aging vehicles to achieve functionality commonly found in new models, including remote diagnostics and vehicle tracking, at a lower cost than new purchases.

The rise of electric vehicles and the popularity of vehicle customization has created new opportunities for aftermarket sensor solutions. Companies are providing cost-effective options to meet consumer demand for enhanced safety, connectivity, and performance.

Competitive Landscape for the U.S. Motor Vehicle Sensors Market

The U.S. motor vehicle sensors market is undergoing a transformative phase marked by significant technological developments and strategic collaborations. Launch of the unique vehicle computer by Robert Bosch GmbH and Qualcomm Technologies, Inc. underscores the industry's shift toward software-defined vehicles.

Tenneco’s DRiV business group’s introduction of Wagner Sensors reflects the growing competition and innovation in sensor offerings. Additionally, Continental’s new line of sensors for electric vehicles demonstrates the increasing importance of safeguarding battery performance in the context of rising EV adoption.

The developments collectively indicate a dynamic market landscape where integration, innovation, and a focus on electrification are essential for companies. They aim to thrive and meet the evolving needs of consumers and regulatory standards.

Recent Developments in the U.S. Motor Vehicle Sensors Market

• In January 2024, Germany-based Robert Bosch GmbH, in collaboration with Qualcomm Technologies, Inc., launched a cutting-edge vehicle computer designed to manage both infotainment and Advanced Driver Assistance System (ADAS) functions on a single System-on-Chip (SoC). This partnership focuses on creating highly integrated solutions, contributing to the evolution of software-defined vehicles.
• In August 2024, Wagner™, a prominent brand from Michigan-based Tenneco’s DRiV business group, announced its plan to launch an innovative product line, Wagner Sensors, in the U.S. and Canada. This new range of parts is set to launch in the second half of 2024, with a subsequent rollout in Europe scheduled for September.

U.S. Motor Vehicle Sensors Industry Report Scope

Attributes	Details
Forecast Period	2024 to 2031
Historical Data Available for	2019 to 2023
Market Analysis	US$ Billion for Value
Key Zones Covered	West U.S. Midwest U.S. Southwest U.S. Southeast U.S. Northeast U.S.
Key Market Segments Covered	Product Application Zone
Key Companies Profiled in the Report	Continental AG DENSO CORPORATION Aptiv Robert Bosch GmbH Hitachi, Ltd. Sensata Technologies, Inc. Autoliv Eaton Valeo
Report Coverage	Market Forecast and Trends Company Share Analysis Competitive Intelligence DROT Analysis Market Dynamics and Challenges Strategic Growth Initiatives
Customization and Pricing	Available upon request

U.S. Motor Vehicle Sensors Industry Segmentation

By Product

• Temperature Sensors
• Pressure Sensors
• NOx Sensors
• Others

By Application

• Engine and Drivetrain
• Safety and Security
• Emission Control
• Others

By Zone

• West U.S.
• Midwest U.S.
• Southwest U.S.
• Southeast U.S.
• Northeast U.S.

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