Global Next-Generation IoT Sensors Market Size, Share & Trends Analysis Report By Power Source, By Connectivity, By Sensor Type, By Deployment Type, By Technology, By End-Use, By Regional Outlook and Forecast, 2024 - 2031
The Global Next-Generation IoT Sensors Market size is expected to reach $66.14 billion by 2031, rising at a market growth of 50.2% CAGR during the forecast period.
The consumer electronics segment is propelled by the increasing demand for smart devices and connected home technologies. IoT sensors are embedded in products like smartphones, wearables, smart TVs, and home automation systems to enhance user experiences. These sensors make features such as voice recognition, motion detection, and environmental sensing possible, enabling devices to interact with users and other systems. As consumer interest in smart living and connected devices continues to grow, the consumer electronics segment remains a key driver of IoT sensor adoption. Thus, the consumer electronics segment witnessed 10% revenue share in the next-generation IoT sensors market in 2023.
The major strategies followed by the market participants are Partnership as the key developmental strategy to keep pace with the changing demands of end users. For instance, February, 2024, NXP Semiconductors N.V. announced a partnership with SECO, a semiconductor company, to optimize SECO's Clea AIaaS Platform for industrial and IoT applications. Under the partnershiip, Clea would integrate with NXP's MCX and i.MX portfolios, supported by NXP's eIQ machine learning environment. This partnership would simplify AI deployment and accelerate product development for edge devices. Additionally, In July, 2023, Infineon Technologies AG announced a partnership with Semikron Danfoss, a power semiconductor manufacturer, for silicon-based electromobility chips, including IGBTs and diodes. This partnership supports the growing demand for electrified drivetrains and contributes to automotive decarbonization.
Based on the Analysis presented in the KBV Cardinal matrix; Siemens AG, Texas Instruments, Inc., Honeywell International, Inc. are the forerunners in the Next-Generation IoT Sensors Market. Companies such as STMicroelectronics N.V., ABB Group, Infineon Technologies AG are some of the key innovators in Next-Generation IoT Sensors Market. In January, 2023, Texas Instruments, Inc. teamed up with TDK, a wireless connectivity solutions provider, to launch the i3 Micro Module, the first module combining edge AI and wireless mesh connectivity. The module integrates TI's SimpleLink platform and TDK's MEMS accelerometer, enabling real-time monitoring and predictive maintenance for smart factories by simplifying sensor deployment and data aggregation processes.
Market Growth Factors
The increased adoption of IoT is driving a substantial rise in demand for advanced sensors, largely due to their vital role in enabling real-time data collection, remote monitoring, and automation. According to the World Bank's Digital Progress and Trends Report 2023, in 2022, more than 13 billion IoT devices were in use. Driven largely by the almost real-time connectivity of 5G technology, these devices are expected to more than double between 2023 and 2028.
Additionally, Advancements in sensor technology are transforming next-generation IoT sensors by significantly improving their sensitivity, miniaturization, and power efficiency. Enhanced sensitivity enables more accurate detection of environmental changes, which is crucial for healthcare, automotive, and smart home systems applications. This improvement allows for real-time data collection and better decision-making, enhancing operational efficiency across various industries. Thus, these advancements in sensor technology are making next-generation IoT sensors more reliable, cost-effective, and scalable, driving the market's growth.
Market Restraining Factors
Next-generation IoT sensors often incorporate cutting-edge technologies like artificial intelligence (AI), machine learning, and edge computing, significantly enhancing their data processing capabilities, real-time decision-making, and predictive analytics. However, the integration of these sophisticated technologies also drives up the manufacturing costs. The sensors require specialized materials, complex components, and advanced engineering, contributing to higher production expenses. Hence, the high cost of next-generation IoT sensors slows the market's overall growth.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Partnerships & Collaborations.
Sensor Type Outlook
Based on sensor type, the market is classified into temperature sensors, pressure sensors, motion sensors, proximity sensors, image sensors, and others. The pressure sensors segment procured 18% revenue share in the market in 2023. These sensors are essential in industries such as oil and gas, automotive, aerospace, and healthcare, where they monitor pressure levels in real-time to ensure systems' safety, efficiency, and performance.
Technology Outlook
On the basis of technology, the market is divided into MEMS (Micro-Electro-Mechanical Systems), CMOS (Complementary Metal-Oxide-Semiconductor), NEMS (Nano-Electro-Mechanical Systems), RFID (Radio Frequency Identification), and others. The MEMS (Micro-Electro-Mechanical Systems) segment acquired 33% revenue share in the market in 2023. MEMS sensors are heavily employed because of their compact size, high accuracy, and low power consumption.
Connectivity Outlook
By connectivity, the market is segmented into Wi-Fi, Bluetooth, ZigBee, LPWAN, 5G, and others. The 5G & others segment garnered 21% revenue share in the market in 2023. The ultra-low latency and high-speed capabilities of 5G technology make it particularly suited for mission-critical IoT applications such as autonomous vehicles, industrial automation, and smart cities.
Deployment Outlook
Based on deployment, the market is bifurcated into on-premises and cloud-based. The on-premises segment procured 45% revenue share in the market in 2023. On-premises IoT sensor deployments involve installing and managing sensors within a company's local infrastructure, giving businesses greater control over data, security, and operational processes.
Power Source Outlook
On the basis of power source, the market is divided into battery-powered sensors, energy-harvesting sensors, and plugged-in sensors. The energy-harvesting sensors segment witnessed 27% revenue share in the market in 2023. Energy-harvesting sensors utilize ambient energy sources, such as solar, thermal, or kinetic energy, to power their operation, reducing the reliance on batteries and minimizing maintenance costs.
End Use Outlook
By end-use, the market is segmented into healthcare, automotive, manufacturing & industrial, energy & utilities, consumer electronics, retail, transportation & logistics, and others. The healthcare segment recorded 22% revenue share in the market in 2023. It is becoming more common for healthcare providers to provide more personalized and efficient care by incorporating IoT sensors into smart medical equipment, remote patient monitoring, and peripheral devices.
Regional Outlook
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Asia Pacific segment witnessed 30% revenue share in the market in 2023. The region is becoming a center for IoT innovation at a rapid pace, fueled by the growing urbanization, smart city initiatives, and expanding manufacturing sector.
Recent Strategies Deployed in the Market
May-2024: Infineon Technologies AG released OPTIGA Authenticate NBT, high-performance NFC I2C bridge tag designed for single-tap authentication and secure IoT device configuration. Certified as a Type 4 Tag by the NFC Forum, it supports both symmetric and asymmetric cryptography, offering fast, secure data exchange and versatility for various applications.
Feb-2024: NXP Semiconductors N.V. announced a partnership with SECO, a semiconductor company, to optimize SECO's Clea AIaaS Platform for industrial and IoT applications. Under the partnership, Clea would integrate with NXP's MCX and i.MX portfolios, supported by NXP's eIQ machine learning environment. This partnership would simplify AI deployment and accelerate product development for edge devices.
Jan-2024: NXP Semiconductors N.V. signed an agreement with Honeywell, an Americna technology company, to enhance building energy efficiency through smart automation. By integrating NXP's neural network-enabled processors with Honeywell's building management systems, the two companies would improve energy consumption and sustainability using AI, machine learning, and real-time data analytics.
Dec-2023: STMicroelectronics introduced a compact global-shutter image sensor, VD55G1, ideal for AR/VR, robotics, and smart-home devices. Measuring 2.7mm x 2.2mm with 800x700 resolution, it offers low power consumption, high image clarity, and innovative features like native background removal and autonomous 'always-on' mode, enhancing smart computer vision applications.
Nov-2023: Infineon Technologies AG took over GaN Systems, a Taiwanese semiconductor company. The acquisition enhances Infineon's position in power components for automotive, motor control, and green industrial applications.
List of Key Companies Profiled
STMicroelectronics N.V.
NXP Semiconductors N.V.
Honeywell International, Inc.
Siemens AG
Robert Bosch GmbH
Infineon Technologies AG
ABB Group
Analog Devices, Inc.
Texas Instruments, Inc.
TE Connectivity Ltd.
Global Next-Generation IoT Sensors Market Report Segmentation
By Power Source
Battery-Powered Sensors
Energy-Harvesting Sensors
Plugged-In Sensors
By Connectivity
Wi-Fi
Bluetooth
ZigBee
LPWAN
5G & Other
By Sensor Type
Temperature Sensors
Pressure Sensors
Motion Sensors
Proximity Sensors
Image Sensors
Other Sensor Type
By Deployment Type
Cloud-Based
On-Premises
By Technology
MEMS (Micro-Electro-Mechanical Systems)
CMOS (Complementary Metal-Oxide-Semiconductor)
NEMS (Nano-Electro-Mechanical Systems)
RFID (Radio Frequency Identification)
Other Technology
By End-Use
Healthcare
Automotive
Manufacturing & Industrial
Energy & Utilities
Consumer Electronics
Transportation & Logistics
Retail & Other
By Geography
North America
US
Canada
Mexico
Rest of North America
Europe
Germany
UK
France
Russia
Spain
Italy
Rest of Europe
Asia Pacific
China
Japan
India
South Korea
Singapore
Malaysia
Rest of Asia Pacific
LAMEA
Brazil
Argentina
UAE
Saudi Arabia
South Africa
Nigeria
Rest of LAMEA
Table of Contents
Chapter 1. Market Scope & Methodology
1.1 Market Definition
1.2 Objectives
1.3 Market Scope
1.4 Segmentation
1.4.1 Global Next-Generation IoT Sensors Market, by Power Source
1.4.2 Global Next-Generation IoT Sensors Market, by Connectivity
1.4.3 Global Next-Generation IoT Sensors Market, by Sensor Type
1.4.4 Global Next-Generation IoT Sensors Market, by Deployment Type
1.4.5 Global Next-Generation IoT Sensors Market, by Technology
1.4.6 Global Next-Generation IoT Sensors Market, by End-Use
1.4.7 Global Next-Generation IoT Sensors Market, by Geography
1.5 Methodology for the research
Chapter 2. Market at a Glance
2.1 Key Highlights
Chapter 3. Market Overview
3.1 Introduction
3.1.1 Overview
3.1.1.1 Market Composition and Scenario
3.2 Key Factors Impacting the Market
3.2.1 Market Drivers
3.2.2 Market Restraints
3.2.3 Market Opportunities
3.2.4 Market Challenges
Chapter 4. Competition Analysis - Global
4.1 KBV Cardinal Matrix
4.2 Recent Industry Wide Strategic Developments
4.2.1 Partnerships, Collaborations and Agreements
4.2.2 Product Launches and Product Expansions
4.2.3 Acquisition and Mergers
4.3 Market Share Analysis, 2023
4.4 Top Winning Strategies
4.4.1 Key Leading Strategies: Percentage Distribution (2020-2024)
4.4.2 Key Strategic Move: (Partnerships, Collaborations & Agreements: 2020, Nov - 2024, Feb) Leading Players
4.5 Porter Five Forces Analysis
Chapter 5. Global Next-Generation IoT Sensors Market by Power Source
5.1 Global Battery-Powered Sensors Market by Region
5.2 Global Energy-Harvesting Sensors Market by Region
5.3 Global Plugged-In Sensors Market by Region
Chapter 6. Global Next-Generation IoT Sensors Market by Connectivity
6.1 Global Wi-Fi Market by Region
6.2 Global Bluetooth Market by Region
6.3 Global ZigBee Market by Region
6.4 Global LPWAN Market by Region
6.5 Global 5G & Other Market by Region
Chapter 7. Global Next-Generation IoT Sensors Market by Sensor Type
7.1 Global Temperature Sensors Market by Region
7.2 Global Pressure Sensors Market by Region
7.3 Global Motion Sensors Market by Region
7.4 Global Proximity Sensors Market by Region
7.5 Global Image Sensors Market by Region
7.6 Global Other Sensor Type Market by Region
Chapter 8. Global Next-Generation IoT Sensors Market by Deployment Type
8.1 Global Cloud-Based Market by Region
8.2 Global On-Premises Market by Region
Chapter 9. Global Next-Generation IoT Sensors Market by Technology
9.1 Global MEMS (Micro-Electro-Mechanical Systems) Market by Region
9.2 Global CMOS (Complementary Metal-Oxide-Semiconductor) Market by Region
9.3 Global NEMS (Nano-Electro-Mechanical Systems) Market by Region
9.4 Global RFID (Radio Frequency Identification) Market by Region
9.5 Global Other Technology Market by Region
Chapter 10. Global Next-Generation IoT Sensors Market by End-Use
10.1 Global Healthcare Market by Region
10.2 Global Automotive Market by Region
10.3 Global Manufacturing & Industrial Market by Region
10.4 Global Energy & Utilities Market by Region
10.5 Global Consumer Electronics Market by Region
10.6 Global Transportation & Logistics Market by Region
10.7 Global Retail & Other Market by Region
Chapter 11. Global Next-Generation IoT Sensors Market by Region
11.1 North America Next-Generation IoT Sensors Market
11.1.1 North America Next-Generation IoT Sensors Market by Power Source
11.1.1.1 North America Battery-Powered Sensors Market by Country
11.1.1.2 North America Energy-Harvesting Sensors Market by Country
11.1.1.3 North America Plugged-In Sensors Market by Country
11.1.2 North America Next-Generation IoT Sensors Market by Connectivity
11.1.2.1 North America Wi-Fi Market by Region
11.1.2.2 North America Bluetooth Market by Region
11.1.2.3 North America ZigBee Market by Region
11.1.2.4 North America LPWAN Market by Region
11.1.2.5 North America 5G & Other Market by Region
11.1.3 North America Next-Generation IoT Sensors Market by Sensor Type
11.1.3.1 North America Temperature Sensors Market by Country
11.1.3.2 North America Pressure Sensors Market by Country
11.1.3.3 North America Motion Sensors Market by Country
11.1.3.4 North America Proximity Sensors Market by Country
11.1.3.5 North America Image Sensors Market by Country
11.1.3.6 North America Other Sensor Type Market by Country
11.1.4 North America Next-Generation IoT Sensors Market by Deployment Type
11.1.4.1 North America Cloud-Based Market by Country
11.1.4.2 North America On-Premises Market by Country
11.1.5 North America Next-Generation IoT Sensors Market by Technology
11.1.5.1 North America MEMS (Micro-Electro-Mechanical Systems) Market by Country
11.1.5.2 North America CMOS (Complementary Metal-Oxide-Semiconductor) Market by Country
11.1.5.3 North America NEMS (Nano-Electro-Mechanical Systems) Market by Country
11.1.5.4 North America RFID (Radio Frequency Identification) Market by Country
11.1.5.5 North America Other Technology Market by Country
11.1.6 North America Next-Generation IoT Sensors Market by End-Use
11.1.6.1 North America Healthcare Market by Country
11.1.6.2 North America Automotive Market by Country
11.1.6.3 North America Manufacturing & Industrial Market by Country
11.1.6.4 North America Energy & Utilities Market by Country
11.1.6.5 North America Consumer Electronics Market by Country
11.1.6.6 North America Transportation & Logistics Market by Country
11.1.6.7 North America Retail & Other Market by Country
11.1.7 North America Next-Generation IoT Sensors Market by Country
11.1.7.1 US Next-Generation IoT Sensors Market
11.1.7.1.1 US Next-Generation IoT Sensors Market by Power Source
11.1.7.1.2 US Next-Generation IoT Sensors Market by Connectivity
11.1.7.1.3 US Next-Generation IoT Sensors Market by Sensor Type
11.1.7.1.4 US Next-Generation IoT Sensors Market by Deployment Type
11.1.7.1.5 US Next-Generation IoT Sensors Market by Technology
11.1.7.1.6 US Next-Generation IoT Sensors Market by End-Use