The position sensor market was valued at USD 3.89 Billion in 2015 and is expected to grow at a CAGR of 6.1% between 2016 and 2022. The growth of this market is propelled due to rapidly growing use of linear and rotary position sensors in the automotive industry. Also, the automotive technology has been undergoing rapid development since the last few years. Moreover, from the vehicles seats to pedals to gear shifters as well as different applications in the engines, position sensors have a vital role to play in ensuring safety and proper working, thus acting as a major driver for the market.

Linear position sensors are leading the position sensor market. The large market share in terms of value of linear position sensors can be attributed to the fact that the linear position sensors are widely used by many end users from various industries such as manufacturing, automotive, healthcare, and others to efficiently and accurately measure the linear movement or displacement of a target. Each type under linear position sensors such as encoders, linear variable differential transformers (LVDTs), potentiometers, and others, working on respective technologies, offers different features which fulfill the requirements and necessity of the various end users. Major companies such as ams AG (Austria), Honeywell International Inc. (U.S.), Renishaw Plc (U.K.), and MTS System Corporation (U.S.) among others offer high-quality and a wide range of linear position sensors.

The market for non-contact technology is expected to grow at a high CAGR during the forecast period. Non-contact technologies are gaining rapid popularity among end users as these technologies overcome the disadvantages of traditional contact technology. It enables a longer sensor life since the wear and tear associated with mechanical contact is eliminated. On the other hand, the position sensors with digital output provide benefits to end users such as high reliability as well as resistance from electric interference which enhances the resolution of the sensor. In addition, digital position sensors also overcome the drawbacks of the analog sensors, thus are expected to grow at the highest rate during the forecast period.

Position Sensor Market

Europe accounted for the largest share of the position sensor market in 2015, while the Asia-Pacific market is expected to grow at a high growth rate during the forecast period. The high growth of the Asia-Pacific region is propelled by the rapid development of industrial automation and growing investments in the manufacturing industry is increasing the use of machine tools and robotics which are two main applications of position sensors.

One of the key restraining factors for companies operating in this industry is to increase their manufacturing capabilities, provide improved quality products, and at the same time, reduce the overall cost of production. OEMs expect the sensor manufacturers to provide the best possible technology at a lower cost. This increases the pricing pressure on the position sensor manufacturer and slims down on profits. In the position sensor market, Honeywell International Inc. (U.S.) is a major player which is well-known as a manufacturing company with diversified technology, serving customers worldwide. The company’s market-leading position is driven by manufacturing value-adding products at competitive prices. The company’s smart position sensors are one of its kinds in the market. They have also invested significantly in R&D activities to maintain its market position and competitive advantage.