The global environmental sensor market size is estimated to grow from USD 1.4 billion in 2021to USD 2.7 billion by 2027, at a CAGR of 10.3%. The market declined in 2020, mainly due to the impact of COVID-19. The industrial supply chain was disrupted in 2020 due to the lockdown imposed by various governments and labor shortages in these industries due to travel restrictions, which would affect the environmental sensor market. Though the market was impacted in 2020, it is expected to fully recover by 2021. Increasing health related concerns due to environmental pollution and growing adoption of environmental sensors in consumer electronics and residential verticals is the primary factor driving the market growth.

Likewise, theuse of environmental sensors in various applications and verticals due to stringent environmental regulations imposed by various governments to reduce air pollution and ongoing technological advancements in environmental sensors is expected to propel the demand for the said market during the forecast period.

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There have been a number of incidents in the past that warns about the health and safety issues related to the emission of poisonous gases in the environment. In India, The Environmental Protect Act 1986, which was formed in the wake of the Bhopal Gas Tragedy of 1984, has increased the adoption of environmental monitoring system in the country. Continuous developments across  the world have increased various types of pollutions, such as air, water, land, light, and sound. Of these, air pollution has been proven to be the most hazardous to human health and the most difficult to control. Hence, it must be monitored and controlled at every possible source.

Air quality sensors in environmental sensor market for type is expected to grow at a higher CAGR during the forecast period. The growth in use of air quality monitoring systems is mainly attributed to rising awareness about indoor and outdoor air pollution levels and taking considerable measures for their control and minimization. Increasing awareness about air pollution among the residential and commercial applications has resulted in the rising adoption of portable air quality monitors and air quality filters. Furthermore, rising installation of weather monitoring stations across various countries is also driving the need the market for air quality sensors. 

The environmental sensor market for the portable type of environmental sensors  is expected to grow at the highest CAGR. Portable sensors are mainly used in devices such as portable monitors, wrist bands, fitness bands, smartphones, and tablets. Due to the increasing use of portable sensors in a few fast-growing applications, it is expected that the market for these sensors would grow at the highest CAGR. Increasing awareness about air pollution and rising environmental concerns at indoor as well as outdoor applications has resulted in the rising adoption of portable air quality monitors and air quality filters

The market in Asia Pacific is expected to registerthe highest CAGR during 2021–2027. Rising environmental pollution and health related concerns which has increased the adoption of environmental sensors is one of the major driving factors for the market growth. The market has high growth potential owing to increase in safety and security concerns among countries, especially India and China. APAC is the largest end user of HVAC equipment. Growing construction activities and the rising need for infrastructural developments in different regions due to increasing population and urbanization drive the HVAC market, which, in turn, creates demand for environmental sensors in APAC. Furthermore, government agencies are taking stringent steps to reduce environmental pollutants by implementing new regulations to reduce overall pollution levels in China and India which is contributing to the growth of the said market.