The global virtual sensors market size stood at USD 214.4 Million in 2018 and is projected to reach USD 1,838.5 Million by 2026, exhibiting a CAGR of 31.6% during the forecast period.

A virtual sensor is a software or a piece of code that processes available information from physical sensors by interpreting multiple outputs and process parameters. They are capable of predicting results from multiple parameters such as temperature, pressure, humidity, and speed. Virtual sensors are experiencing rising demand as a cost-efficient and flexible alternative for physical sensors. Virtual sensing is a data-driven approach that offers an effective way of obtaining accurate readings without installing expensive hardware.

Increasing demand for the virtual sensor from the manufacturing industry and rising penetration of the Internet of Things (IoT) are significant factors impacting the virtual sensors market growth. Rising virtual sensors implementations among end-user industries such as automotive and transportation, manufacturing, electronics, and aerospace and defense will drive the virtual sensors market revenue in the forecast period. Moreover, growing application of virtual sensors for reducing the cost associated with physical sensors is expected to drive virtual sensors market growth during the forecast period.

Furthermore, growing adoption of virtual sensors for security and surveillance purposes in the military as well as a commercial sector will contribute to virtual sensors market demand. Besides this, increasing virtual sensors implementation in aerospace and automotive industries is expected to fuel the market. However, the risk associated with data security due to the implementation of IoT and cloud platforms is expected to hamper the market growth.

“Rising Adoption of IoT and Cloud Platform to Drive the Market”

The functional efficiency offered by virtual sensors is driving their uptake across various end-users. Increasing penetration of cloud platforms is expected to create numerous opportunities for the adoption of virtual sensors.

Leading manufacturers are implementing a cloud-based virtual sensing solution as a standard platform. Implementation of virtual sensors on a cloud platform helps businesses in reducing the cost associated with maintenance and improve data connectivity between the user and sensor-cloud server. In addition to this, such solutions enable effective transport monitoring, weather forecasting, military activities, and in the healthcare industry. The cloud platform allows end-users in cutting down the total cost of ownership and increasing data storage capabilities which, as a result, has impacted the virtual sensor market growth.

Rising penetration of IoT is expected to support the growth of this market and emerge as one of the leading virtual sensors market trends over the forecast period. Virtual sensors, along with IoT, have been adopted by industry verticals to implement asset management and life cycle service strategies.

“Growing Adoption of Predictive Maintenance to Expand the Market Size”

Virtual sensor-based predictive maintenance allows end-users to determine the conditions of instruments to evaluate when maintenance should be performed. Thus, it helps manufacturers in minimizing unexpected device downtime, lowers the maintenance cost, and extends the equipment life cycle. Environmental pollution regulations have further elevated demand for virtual sensors among industry verticals.

Virtual sensors can be integrated with different parts such as connectors, hoses and tubing, motors, actuators, and filters. Throughout constant monitoring, manufacturing industries can provide real-time insights into their machinery by continuously monitoring factors such as vibrations, temperature, ultrasound and electromagnetic.

Growing adoption of Condition-based Maintenance (CBM) and IoT-enabled predictive maintenance (PdM) is one of the key reasons behind the adoption of virtual sensors among industry verticals. In addition to this, increasing use of Industrial Internet of Things (IIoT) for design and manufacturing is expected to play an essential role in this market’s growth.