The magnetic sensor market is expected to witness robust growth by 2027 driven by prominent product demand across diverse industry verticals.
A magnetic sensor refers to a sensor that can detect the magnitude of magnetism as well as geomagnetism produced by a magnet or current. As it does not include any electronic components, a magnetic sensor can operate beyond temperatures typically associated with solid-state devices.
Magnetic sensors that are built with certain materials can also work at cryogenic temperatures and endure temperature excursions higher than 400??F. These sensors are virtually impervious to shock and can function at levels surpassing 30,000 g. Subsequently, the ability of magnetic sensors to retain functionality at different temperatures has supported product adoption across varied applications.
Notably, these sensors can also detect moving ferrous objects. When a ferrous object approaches the sensor, it changes magnetic flux via the coil, which causes voltage generation at the coil terminals. Due to these properties, magnetic sensors have gained significance in the aerospace industry, which has been favorable for business growth.
Moreover, as these sensors can detect ferrous discontinuities through non-ferrous metals, they can also be hermetically sealed in non-ferrous housings to withstand complete immersion in oil and water and 100% humidity. Sensors encased in stainless steel can also operate in sand or salt spray or dust environments. Thus, magnetic sensors can be utilized in different environments, which has augmented product uptake in recent years.
The magnetic sensor market has been bifurcated based on technology, end-use, application, and region. On the basis of technology, the market has further been segregated into hall effect, giant magnetoresistance (GMR), anisotropic magneto-resistive (AMR), tunnel magnetoresistance (TMR), and others.
The magnetic sensor market from the giant magnetoresistance (GMR) sub-segment is estimated to grow at a CAGR of approximately 4% over the assessment timeframe. Rising adoption of GMR sensors in advanced automotive safety systems, such as electronic stability control and adaptive cruise control systems, is set to drive segmental growth through 2027.
In terms of application, the magnetic sensor market has been segmented into position sensing, speed sensing, navigation & electronic compass, detection/NDT, and others. The detection/NDT sub-segment is expected to gain a market share of over 10% by 2027, progressing at a stable CAGR through the review period. The prevalent trend of outsourcing NDT services from authorized Testing, Inspection and Certification (TIC) service providers is slated to support segmental expansion over the forthcoming years.
With respect to end-use, the market has been categorized into automotive, aerospace, industrial, consumer electronics, and others. In 2020, the aerospace sub-segment held a sizable revenue and is projected to expand at more than 5% CAGR over the analysis timeline. Rising adoption of magnetic sensors in drones and UAVs for rotational speed sensing of BLDC motors is likely to boost segmental demand in the coming years.
On the regional spectrum, the Latin America magnetic sensor market accounted for around 4% of the overall industry revenue in 2020 and is foreseen to grow at a notable pace over 2021-2027. Growing penetration of smart factories in LATAM is speculated to foster regional market growth in the future.