Market Overview

The Sensor Fusion Market was valued at USD 3.92?billion in 2019 and is expected to reach a value of USD 11.26?billion by 2025?at a CAGR of 19.2%, during the forecast period (2020 - 2025). Fusion sensors have made it feasible to derive more accurate information from sensors, which were prone to errors, due to functioning in a noisy environment. Fusion sensors acquire information by the combination of various sensors on the board of a system, which function as standalone sensors. Sensor fusion enables the data analysis through the combination of different sensors to improve the system performance or application, and it is been adopted in diverse applications. The platform, sensor fusion is gaining high traction in the market, owing to its superior properties and advancements.

  • Earlier, the sensors were utilised to gather data for a single purpose. Currently, there are multiple sensors on-board wherein the designers can procure data from all the sensors and predict or assess the situation.
  • For instance, the combinational data from the compass, pressure, gyroscope, and accelerometer sensor can precisely predict the position of a device in 3-dimension. It is likely to boost the growth of the market over the forecast period.
  • In this era, most of the smartphones are equipped with multiple sensors to obtain accurate indoor positioning results. As a result, the rising number of smartphones across the world is expected to have a positive impact on market growth over the next six years.
  • Standardisation is one of the factors hindering the evolution of sensor fusion systems. Without global standards, the level of complexity of devices and ICs is expected to increase exponentially.

Scope of the Report

Sensor fusion is a technology that combines data from various other sensors to gain a more accurate picture of the sensor’s subject to improve the system performance or to improve the application. Sensor fusion is a subcategory of data fusion and is used for scientific research installations, in camera systems and image processing. In the military, sensor fusion is commonly used for intelligent processing of remote sensing imagery. Sensor fusion has an inherent redundancy which enables the system to provide information even in case of partial failure, thereby maintaining the reliability and robustness.

Key Market Trends

Consumer Electronics Segment Expected to Record Significant Growth

Sensor fusion is mostly used in smartphones and tablets to provide accurate data associated with activity monitoring and indoor navigation. Furthermore, the increasing penetration and utilization of smartphones across the world are expected to propel the growth of the market. In the consumer electronics industry, the demand for more precise results, along with smaller chips is rapidly increasing, owing to ascended profit margins and reduced transportation cost.

  • With the miniaturization and fabrication of multiple technologies onto a single disk in consumer devices, like smartphones, tablets, wearable’s, smart TVs, and gaming consoles, the need for sensor fusion is expected to grow to evaluate the sensor inputs into an actionable function, which can be then followed by the device. The rise in IoT also resulted in increased usage of fusion sensors in consumer electronic devices.
  • With the integration of 9-axis sensor support in APIs, app developers will be able to produce software with a compelling smartphone, and tablet functionality, such as immersive games and very responsive and accurate augmented reality applications for outdoor use.
  • For instance, In June 2018, Qualcomm launched a chip, specially manufactured for children’s smartwatch. It was powered by Snapdragon Wear 2500, which utilises sensor fusion technology to deliver detailed location tracking, as compared to GPS alone.

Asia Pacific Region Expected to Record Highest Growth

Asia Pacific region has witnessed the highest sales in electric vehicles (EVs). China majorly dominated this region, the first country to cross 1 million sales of the plugin and EVs combined, in a single year. Other countries did not contribute much to this cause. This region is ranked first in the world, in terms of vehicle sales. Considering the shift from the government, the companies, like Volkswagen, Renault, etc. have announced not to develop diesel engines further and have shifted their focus toward EVs.

  • The governments in this region have shown significant interest in developing the underlying infrastructure required for the development of EVs. Some countries have gone as far as to completely ban ICE cars from certain cities, which are worst affected by pollution. The governments have drafted strong policies to make a complete shift electric and have set a timeline to phase out ICE cars completely.
  • The manufacturing companies in the Asia-Pacific region are efficiently using digitization and end-to-end integration for their operations. Additionally, the companies are introducing digital products and services and connecting new technologies across their organizations at a much faster rate than their peers in the Americas and EMEA.
  • While Industry 4.0 is transforming manufacturing rapidly, only a small group of companies are in a position to gain real competitive advantages from this revolution.

Competitive Landscape

The sensor fusion market is a fragmented market. It is a highly competitive market with a number of players in the market and there is no dominant player present. However, with innovative and sustainable packaging, many of the companies are increasing their market presence by securing new contracts by tapping new markets.

  • For instance, STMicroelectronics has partnered with Virscient, for building automotive solutions using ST’s Telemaco3P secure telematics and connectivity processors.
  • Mobileye and STMicroelectronics have strategized to codevelop EyeQ 5 system on chip to be used from 2020 to function as central computer control performing sensor fusion for fully autonomous driving (FAD) vehicles.

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