The market for automotive sensors is expected to grow to more than $92 billion by 2026 with lidar being the fastest growing sensor, according to new data from Juniper Research.
While lidar remains costly, revenue from these sensors will bring in $3 billion in revenue in 2026 as automakers begin to scale vehicles with automated technology and advanced driver assistance systems (ADAS).
But because of the cost of these sensors, lidar deployments will remain low. Instead, Juniper said vehicle automation and ADAS will likely use sensors from CMOS image sensors and cameras, which are more cost effective.
Of the sensors used in vehicles, those for internal combustion engines will experience a substantial decline from increased electrification of vehicles. Juniper expected a third of consumer vehicles shipped in 2026 to be electric.
As a result, different sensors will be needed to monitor engine conditions meaning a decline in demand for traditional oxygen and nitrogen oxides sensors, but this will change will take longer for commercial vehicles.
“Electrification will change the game for many sensor providers in the coming years,” said Miles Agbanrin, analyst at Juniper. “With less need for air monitoring in electric vehicles, sensor manufacturers need to develop new relationships with battery manufacturers and the elements that need monitoring for those systems or face severe losses in revenue.”
The full research can be found in Juniper’s Automotive Sensors Market: Technology Evolution, Trends & Forecasts 2021-2026 report.