Optical Position Sensor Market - Size, Share, Industry Trends, and Forecasts (2023 - 2030)

By Type :

Based on the type, the market is bifurcated into one dimensional optical position sensors, two dimensional optical position sensors, and multi-axial optical position sensors. The two dimensional optical position sensors segment accounted for the largest revenue share of 45.6% in the year 2022. Two dimensional optical position sensors utilize photodiode surface resistance for measuring the two-dimensional position of an object. The working principle of two dimensional optical position sensors is established on the phototransistor effect and sensing changes in reflected light intensity when an object moves between two settings.

Moreover, two dimensional optical position sensors offer several benefits including high position resolution, lower dark current, high-speed response, easy bias application, improved position detection, lower fabrication cost, and others. The above benefits of two dimensional optical position sensors are increasing its application in automotive, aerospace & defense, and healthcare sectors among others.

According to the European Medical Technology Industry, the medical device sector in the U.S. and Europe accounted for 43.5% and 27.3% of the total share of the global medical device sector in 2021. It further states that the medical device sector in Germany accounted for 25.8% of the total share of the European medical device industry in 2021, followed by France with 14.3%, UK with 10.4%, Italy with 9.0%, and Netherlands with 6.4% among others. Thus, the rising production of medical devices is among the key factors driving the adoption of two dimensional optical position sensors for sensing the angular position and capturing the velocity and acceleration during medical imaging applications, in turn contributing to the growth of the market.

The one dimensional optical position sensors segment is anticipated to register fastest CAGR growth during the forecast period. One-dimensional optical position sensors include a long, narrow photosensitive area and are capable of detecting positions in a longitudinal direction. Moreover, one-dimensional optical position sensors offer various benefits including high reliability, excellent position detection resolution, high inter-electrode resistance, and others. The above benefits of one-dimensional optical position sensors make it ideal for utilization in electronics, automotive, and other industries.

For instance, 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. One-dimensional optical position sensors are often employed in electronics industry for applications including optical proximity switches, auto-focus camera systems, distance measurement, and other related applications. Therefore, rising production from electronics sector is anticipated 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, aerospace & defense, healthcare, and others. The aerospace & defense segment accounted for the largest revenue share in the year 2022. Factors including the growing commercial flight activities, rising aircraft production, and increasing investments in air defense systems are driving the growth of the aerospace & defense sector.

For instance, in December 2022, Dassault Aviation, a French manufacturer of business jets and military aircraft, launched a Rafale fighter aircraft for its application in the French military procurement agency called the Directorate General of Armaments. Therefore, the growth of aerospace & defense sector is driving the adoption of optical position sensors for measuring the aircraft location along with sensing the displacement of multiple aircraft components, 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%. Optical position sensor is primarily used in the automotive industry for applications including LIDAR and ADAS applications among others. Thus, the rising automotive production is projected to drive the adoption of optical position sensors, in turn driving the growth of the market during the forecast period.

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 1,189.00 Million in 2022 and is expected to reach USD 2,605.53 Million by 2030, registering a CAGR of 10.5% during the forecast period. In addition, in the region, the U.S. accounted for the maximum revenue share of 59.4% in the same year. The adoption of optical position sensors in the North American region is primarily driven by its usage in automotive, aerospace & defense, healthcare, and other sectors. Additionally, North America has been a prime hub for companies related to autonomous vehicle manufacturing. The increasing application of optical position sensors in automobile LIDAR and advanced driver assistance system is among the significant factors driving the market growth in the region. For instance, according to the OICA (International Organization of Motor Vehicle Manufacturers), the 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. The above factors are fostering the growth of the optical position sensor market in the North American region. Additionally, rising investments in medical imaging and electric vehicles are anticipated to provide lucrative growth aspects for the market in North America during the forecast period.

Asia-Pacific is expected to register fastest CAGR growth of 10.7% 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 optical position 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 optical position sensors for applications including optical proximity switches, auto-focus camera systems, and others, thereby, proliferating the market growth in the Asia-Pacific region during the forecast period.