Interaction Sensor Market Forecast 2023 - 2030

By Sales Channel :

Based on the sales channel, the market is bifurcated into direct sales and distributor sales. The distributor sales segment accounted for the largest revenue share in the year 2022. The distributor sales channel of interaction sensors consists of offline and online modes. In the online mode, the interaction sensors can be bought from e-commerce websites such as eBay, Alibaba, and others. The offline mode involves the distribution of interaction sensors through retail stores, specialist stores, and others. Moreover, purchasing from a distributor also benefits the consumer in selecting the best product available in the market.

For instance, Neonode Inc. is among few of the interaction sensors manufacturers that offers its interaction sensor modules for purchase through Digi-Key Electronics, its authorized online distributor. Therefore, the increasing availability of interaction sensors in online distributor sales channel is among the primary factor driving the growth of the market.

The direct sales segment is anticipated to register fastest CAGR growth during the forecast period. In direct sales channel, products are sold directly to customers through various physical outlets including company outlets, and others. Additionally, the direct sales channel also consists of an online mode, in which the manufacturers sell the products through their own company websites. Further, purchasing interaction sensors from direct sales channel provides several benefits including higher product quality, competitive pricing, faster response time, and higher return on investments, which are vital factors increasing the purchase of interaction sensors from direct sales channel.

For instance, KEMET Corporation is among few of the interaction sensors manufacturers that offer a range of interaction sensors for direct purchase through company website. Therefore, the increasing availability of interaction sensors in direct sales channels, attributing to its aforementioned benefits, is a key factor projected to drive the market growth during the forecast period.

By End-User :

Based on the end-user, the market is segregated into automotive, consumer electronics, gaming, healthcare, and others. The consumer electronics segment accounted for the largest revenue share of 37.7% in the year 2022. Factors including advancements in consumer electronics including artificial intelligence (AI) and internet of things (IoT), penetration of smartphones, tablets, and other consumer devices, and rising popularity of smart wearable devices are driving the growth of the consumer electronics segment.

For instance, according to GSM Association, smartphone adoption in Germany is projected to reach 84% by 2025, depicting an increase from 80% in 2021. Additionally, according to the Brazilian Electrical and Electronics Industry Association (ABINEE), the electrical and electronics industry in Brazil was valued at USD 42.2 billion in 2022, witnessing a growth of nearly 8% in comparison to USD 39.2 billion in 2021. Therefore, the growth of consumer electronics sector is driving the adoption of interaction sensors for application in smartphones, smartwatches, tablets, and other related devices, in turn proliferating the growth of the market.

Automotive segment is expected to witness fastest CAGR growth during the forecast period. The growth of automotive segment is attributed to several factors including rising investments in expansion of automotive manufacturing facilities, increasing automobile production of automobiles, and advancements in autonomous driving systems.

For instance, according to the China Association of Automobile Manufacturers, the total production of passenger cars in China reached up to 14.8 million units in January-August 2022, depicting a YoY growth of 14.7%. Interaction sensor is primarily used in the automotive industry, particularly for applications including automobile advanced driver assistance system and infotainment system among others. Thus, rising automotive production is projected to drive the adoption of interaction sensors, in turn fostering market growth during the forecast period.

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By Region :

The regional segment includes North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

North America accounted for the largest revenue share of USD 8.52 Billion in 2022 and is expected to reach USD 37.29 Billion by 2030, registering a CAGR of 20.6% during the forecast period. In addition, in the region, the U.S. accounted for the maximum revenue share of 64.8% in the same year. The adoption of interaction sensors in the North American region is mostly driven by its utilization in automotive, consumer electronics, gaming, and other sectors. Moreover, the rising automobile production and increasing utilization of interaction sensors in automobile infotainment system and ADAS for driver assistance are among the significant factors driving the market growth in the region.

For instance, according to the OICA (International Organization of Motor Vehicle Manufacturers), automobile production in North America reached 14,798,146 units in 2022, witnessing a growth of around 10% from 13,467,065 units in 2021. Hence, the growing automotive industry is propelling the deployment of interaction sensors, in turn fostering market growth in the North American region. Additionally, increasing investments in gaming and healthcare sectors are anticipated to promote lucrative growth aspects for the market in North America during the forecast period.

Asia-Pacific is expected to register fastest CAGR growth of 20.8% during the forecast period. The growing pace of industrialization and development is creating lucrative growth aspects for the market in the region. Moreover, factors including the growth of multiple industries such as consumer electronics, automotive, and others are fostering the market growth for interaction sensors in the Asia-Pacific region.

For instance, according to the India Brand Equity Foundation, the consumer electronics sector in India was valued at USD 9.84 billion in 2021, and it is projected to grow at a considerable rate to reach USD 21.18 billion by 2025. Hence, the growing consumer electronics sector is anticipated to drive the utilization of interaction sensors for deployment in smartphones, smartwatches, tablets, and others, thereby, proliferating the market growth in the Asia-Pacific region during the forecast period.