The Global Market for optical position sensing detector is forecast to reach $1.7 billion by 2025, growing at a CAGR of 6.2% from 2020 to 2025. The market growth is attributed to the factor such as growing deployment for energy, process control, safety and security, high precision, automobile, healthcare, automation and others. Moreover, with high resolution and precision, the optical position sensing detector plays a protruding role in computing orientation, displacement and proximity. Tools such as optical position sensing detectors found in the industrial instrumentation when combined with digital technologies such as cloud storage consistently assist engineers or consumers to finish the tasks.
By Contact type- Segment Analysis
Optical Position Sensing Detector Market is segmented into contact type and non-contact type on the basis of contact type. The non-contact type segment is anticipated to hold the highest market share during the forecast period 2020-2025. The market growth is attributed to benefits of non-contact position sensors offering greater life, less wear and tear and unmatchable accuracy, consistent excellent performance, fast response, well suited to a range of environments and others. Moreover, applications of non-contact position sensor in precision motion control, robotic movement, medical diagnostics, MEMS accelerometers, vibration monitoring and others benefits the market growth.
By Linearity type- Segment Analysis
Rotary type segment held the highest market share for optical position sensing detector in 2019. Moreover, it is anticipated to witness the significant market growth during the forecast period 2020-2025. Rotary position sensors enable precise angle measurements. These sensors convert mechanical rotary positions into electrical signals. The market growth is attributed to benefits of rotary type such as long service life and high precision. Additionally, wear-free operation, compact form factor, cost effectiveness of rotary type contributes to the market growth. Furthermore, its adoption for various applications including machinery (pulp and paper production), drive technology, automotive industry, aerospace, and others leverages a positive impact on the market growth of optical position sensing detector.
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Geography - Segment Analysis
North America held the highest market share of the optical position sensing detector market in 2019. The market growth is attributed to the factors such as massive requirement for energy efficient solutions in this region. Companies are investing on R&D operations in the optical sensor technology for innovative output to manufacture power-efficient optical location sensors and devices to meet the rising demand from these energy and manufacturing sectors. In September 2018, supply order of advanced development sensors to be deployed in US Department of Defence (DOD) systems was issued to MTS System. The order amount was approximately $187 m. In October 2019, Verizon entered into a partnership with NEC for fibre optic AI smart city pilot. The findings obtained from the NEC and Verizon Joint Research Initiative are a significant breakthrough for smart city market prospects, in particular for healthier community approaches such as road maintenance and traffic information usage. In March 2020, launch of series 292 Optical Ring Encoder was announced by CTS Corporation. The Series 292 incorporates non-contact optical technology with a 2-bit quadrature performance that provides improved efficiency and durability with digital optical encoding processing. Such partnerships and products launches propels the market growth.
Drivers – Optical position sensing detector market
Technological advancements in Consumer electronics and its growing demand
Growing implementation of artificial intelligence (AI), internet of things (IOT), virtual reality (VR), big data analytics in tandem with the introduction of 4 G and emerging 5 G and others are fuelling advancements in electronic technology. This leads to increase in customers demand along residential, commercial as well as industrial applications. Optical position sensor detectors have expedited developments for remote control and other interactive technologies such as audio and video sensors in wireless systems. Such major applications coupled with the developments in IOT are fuelling the development of the demand for optical PSD in the consumer electronics field.
Challenges – Optical position sensing detector market
Lacking processes to measure performance standards
The manufacture of an optical position sensor cannot provide a standard collection of rules for determining the efficiency of optical position sensors. Machines and systems based on optical location sensors need a degree of regulation to guarantee that they are safe for the end-user electrically, technically, chemically and physically. The required degree of control and the quality rely on the level of risk associated with the commodity. Consequently lack of processes for measuring performance standards hinders the market growth.
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Market Landscape
Partnerships and acquisitions along with product launches are the key strategies adopted by the players in the optical position sensing detector market. As of 2019, the market for optical position sensing detector market is consolidated with the top players including First Sensors AG, Siemens AG, Panasonic Corporation, Opto Diode Corporation, Sharp Corporation, Micro-Epsilon, Balluff GmbH, Sensata Technologies, Hamamatsu Photonics K.K., and Melexis N.V. and among others.
Acquisitions/Technology Launches/Partnerships
In March 2020, 71.87% shares of First Sensor was acquired by a Switzerland based consumer electronics company with leading positions in connectivity and sensing solutions TE Connectivity. The agreement between the companies was made in June 2019 for strengthening their combined position in sensor technology. Such acquisitions is beneficial for addressing growing customers need.
In June 2019, the world's leading supplier of high-performance sensor solutions AMS unveiled innovatory optical sensing applications at Sensors Expo's that change personal health tracking, cell phones, vehicle innovation and smart farming. Such innovations boosts the market growth.
Key Takeaways
Optical position sensing detector deployment in robotics is fuelling market growth. The benefits of optical location sensing detectors in robotics vertical include high accuracy and repeatability of the activities with improved efficiency. Adding to it, extraction of 3D knowledge about a scene to determine the target's direction and orientation adds up to the market growth.
North America region dominated the global optical position sensing detector market in 2019. The market growth is owing to the presence of developed countries, industrialization and the key market players in this region that tends for innovative developments that would provide the consumers with more advanced products.
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Most of these areas include energy, process control, safety and security, high precision, automobile, and healthcare automation.
These potential benefits in the optical position sensing detector market are increasing their applications in the industrial sector.The global Optical Position Sensing Detector Market size has attained a value of $1.43 billion in 2018.
Furthermore, the total revenue is projected to increase with a CAGR of 8.7% over the forecast period 2019-2025.Dynamic applications in Robotics Surging the Optical Position Sensing Detector Market DemandRobots play a substantial role in automation.
Some of which includeIn Jun 2019, TE Connectivity Limited, a Switzerland-based consumer electronics company signed a business combination agreement with First Sensor AG.
Furthermore, the team plans to address growing consumer needs aligned with global growth trends in transportation, medical, and other industrial segments.In July 2019, Hamamatsu Photonics K.K, a Japanese organization in manufacturing optical sensors, electric light sources and other related instruments for technical, medical, and scientific use expanded its facility.
The company completed the construction of a new factory Building No.
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