Environmental Sensor Market Report Scope & Overview:

The Environmental Sensors Market was valued at USD 1.36 billion in 2023 and is expected to reach USD 3.33 billion by 2032, growing at a CAGR of 10.53% over the forecast period 2024-2032.

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The Environmental Sensors Market is growing significantly due to rising awareness and demand for sustainable solutions. With increasing awareness about climate change, air pollution, and water pollution, environmental sensors have been extensively used for monitoring and regulating environmental conditions. Strict environmental regulations are being enforced by governments and regulatory bodies, increasing the demand for accurate and real-time monitoring of air quality, water quality, temperature, and other environmental parameters. This has led to an enthusiastic market for environmental sensors in smart cities, healthcare, and industrial applications where the accuracy of data is critical for safety and efficiency. Growth of environmental sensors in 2024 is seen along with 80% of Global Smart cities incorporating environmental sensors into urban infrastructure by 2024. Currently, there are more than 1,200 hospitals with sensors for real-time air quality monitoring in the healthcare sector with a projected annual increase of 12%. Meanwhile, 60% more of the companies in the U.S. and EU have increased funding for basic environmental sensors because of stringent regulations

Moreover, the increasing popularity of smart technologies and the Internet of Things (IoT) is a stimulus to further growth of the environmental sensors market. Connected sensors power smart homes, offices, and cities that dynamically optimize energy consumption and improve indoor air quality and other environmental conditions. Environmental sensors integrated within IoT systems facilitate the improved collection and analysis of data necessary for productive decision-making. Rapid innovations coupled with increasing awareness regarding sustainability are expected to drive the demand for environmental sensors for outdoor and indoor environments, which in turn is anticipated to accelerate the environmental sensors market growth across different verticals and regions during the forecast period. The number of connected IoT devices will grow to 18.8 billion in 2024, a 13% increase over 2023. Approximately 73.5% of U.S. households are expected to use smart home devices, increasing to 90.7% by 2029. AI-powered energy efficiency systems will also be deployed in more than 25% of commercial buildings in the U.S. Environmental sensors will continue to play an increasing role in smart home tech, with which connected devices for improving indoor air quality will amount to 35% of the smart home annual shipments in 2024.

Market Dynamics

Key Drivers: 

• Industrial Automation and Sustainability Drive Demand for Advanced Environmental Sensors in Multiple Sectors

Driving forces for stimulating demand for the Environmental Sensors Market include an increasing adoption of industrial automation and smart manufacturing processes. To monitor environmental parameters in real-time in multiple industries, advanced environmental sensors are being utilized. That is important to maximize production capabilities, ensure security and safety, and meet environmental compliance. In industrial environments, smart sensors play a key role in predictive maintenance, minimizing downtime, and enhancing operational effectiveness. Moreover, the shift of industries towards sustainable and green technologies is also pushing the demand for environmental sensors to monitor emissions and waste products thus, propelling the market. We anticipate that industrial automation, especially in manufacturing, automotive, and energy sectors, will drive the need for advanced environmental sensors that deliver accurate real-time data for enhancing operational efficiency and sustainability. By 2024, more than 50% of industrial plants will employ AI-powered sensors to achieve a 40% reduction in downtime and 20-30% savings in maintenance costs. Sustainable manufacturing came in at 7.5% growth with 60% of smart sensor applications in the form of predictive maintenance in the manufacturing, automotive, and energy sectors. 40% of industrial facilities around the world have incorporated environmental sensors for real-time data on emissions and waste. Moreover, the new plants that introduced smart sensors for energy consumption and waste reduction accounted for 15% of them.

• Renewable Energy Growth Drives Demand for Environmental Sensors to Optimize Performance and Sustainability

The rise of renewable energy is also an important factor stimulating the Environmental Sensors Market. As the world transitions to cleaner energy resources in the form of solar and wind power, so does the need to monitor the environmental factors impacting power generation. Data collection devices for environmental sensors help optimize the performance of renewable energy systems by providing data on weather patterns, temperature variations, and air quality. As a case in point, for solar energy, environmental sensors can monitor sunlight and cloud coverage to help identify optimal solar panel setups and usage. Just like any industry, wind turbines depend on their environmental sensors for accurate readings of wind speed, wind direction, and the other key environmental characteristics that drive energy production. Demand for environmental sensors is expected to increase further given the growing focus on renewable energy infrastructure and sustainability, which makes it an important enabler in the worldwide move towards greener energy alternatives. With the total global deployment of solar PV technology expected to surpass USD 500 billion in 2024, the need to monitor sunlight and cloud coverage with sensors has driven this trend. More than 85% of wind farms will have new environmental monitoring sensors to measure wind speed and wind direction, and more than 40% of wind turbines will adopt IoT-enabled sensors for predictive maintenance and operational performance. Along with this, it is estimated that environmental sensors will boost 18% in renewable energy systems enabling better operational efficiency and energy output.

Restrain:

• Challenges in Environmental Sensors Market Include Data Accuracy Calibration Issues and Lack of Standardization

Data accuracy & data reliability issues are one of the major challenges in the Environmental Sensors Market. Environmental sensors are often exposed to varied and uncontrolled environments and therefore constant and accurate readings are difficult to maintain. Extreme temperatures, high humidity conditions, etc. Environmental conditions can jeopardize the accuracy of the sensor reading which in turn corrupts the data and results. Calibrating their sensors and achieving long-term accuracy over large areas continues to be a major obstacle for manufacturers. Another important restraint includes the non-availability of standardization among environmental sensors. The need for different specifications of sensors in various industries, regions, and applications led to a fragmented market. This fragmentation creates high complexity for manufacturers to develop sensors that would work together across different platforms and systems since there are no universal standards in place. The lack of such interoperability could impede mass adoption, most notably in areas such as smart cities and IoT-enabled environments.

Segment Analysis

By Location

The outdoor environment sensors segment held the largest share of 43.2% in 2023 owing to the rising demand for real-time monitoring of environment-related parameters in open spaces. They are primarily used for air quality monitoring, weather forecasting, and pollution control in smart cities and industrial applications. As climate change concerns and pressure over urban pollution and the desire for environmental sustainability have increased, governments, municipalities, and organizations have been increasingly investing in outdoor sensor networks to monitor and address these issues. Demand for high-quality, near-real-time data for the formulation and regulation of environmental policies has been a significant factor driving the market.

Portable environmental sensors are expected to be the fastest-growing segment by CAGR from 2024-2032, owing to their versatility, mobility, and ease of using portable environmental sensors. These sensors enable users to track environmental conditions in hard-to-reach or remote areas where fixed sensors cannot be deployed. Applications include growth in fields like agriculture, health, and industrial safety that require point environment data acquisition. The Portable Sensors Market is anticipated to grow at a rapid pace, incited by the ability of the industries to adapt to the concept of personalized and dynamic monitoring solutions, advancements in sensor technology, and the rising trend of IoT devices. Portable sensors also prove to be significant in mobile applications where rapid and localized environmental assessments are necessary due to their great flexibility and convenience.

By Type

In 2023, temperature sensors held a dominant market share of 28.8% and are expected to witness the fastest CAGR during the forecast period of 2023-2032. This is because they are widely used for industrial processes, climate control systems, and environmental monitoring. In a broad array of industries manufacturing, healthcare, agriculture, and energy temperature is one of the most essential parameters for systematic functioning, safety, and product quality. Real-time monitoring and control of temperature is crucial to reduce risk, ensure compliance, and improve productivity therefore, temperature sensors are in high demand. Additionally, the increasing shift towards IoT and smart systems is also expected to push the temperature sensor market further up. With the increased adoption of automation and smart technologies across the sectors, the task of temperature monitoring now plays a significant role, both in terms of energy consumption as well as optimization of HVAC systems that can further enhance indoor environmental quality. The robustness of these components and growing precision, affordability, and simplicity of integration in thermometers significantly spur adoption over the forecast period, thus holding promising growth prospects in the coming years.

By Application

In 2023, Smart City applications accounted for 41.5% of the Environmental Sensors Market on a growth based on the surging investments in urban infrastructure intending to make cities smarter, sustainable, robust & convenient to live. With the rise of environmental challenges, including air pollution, waste management, and energy consumption burden growing cities,  environmental sensors are critical tools for urban monitoring and management. Air quality, temperature, noise level, and other data are collected through the sensors, allowing city officials to learn about the optimization of urban operations and functions, public health, and quality of life. The growing advancement for creating smart cities with various connected systems has led to this space being the market leader.

Smart Home Automation is estimated to expand with a rapid growth rate throughout 2024-2032, due to the enhancing adoption by homeowners for convenience, energy efficiency, and comfort-based technologies. Smart home automation allows environmental sensors to monitor indoor air quality, temperature,  humidity, energy usage, etc. As more and more consumer IoT devices with smart voice commands come along, customers have been looking for solutions to tailor their homes to their preferences. Adoption of such trends along with the rising awareness among consumers regarding sustainability is expected to propel the demand for environmental sensors rapidly in smart homes and it is estimated to be the fastest-growing application over the years.

By Vertical

In 2023, the Government sector dominated the Environmental Sensors Market and held a share of 24.5%. Increased demand for environmental monitoring due to regulatory compliance and public health and safety concerns associated with industrial plants, as well as expanding initiatives for sustainable development, have all contributed to the growth of the Government sector in terms of revenue generation. Around the world, governments are implementing smart city projects and environmental policies that depend on continuous data collection about air quality, water quality,  temperature, and other environmental metrics. Environmental sensors play a crucial role in these initiatives as they help cities and governments monitor pollution, track climate change, and regulate the environment. Moreover,  it will continue to strengthen the position of government investments in environmental monitoring systems, due to the pursuit of a decrease in carbon footprints and infrastructure upgrades.

The Healthcare sector is likely to grow with the highest CAGR throughout the forecast period from 2024-2032, due to the surging demand for accurate and real-time monitoring of environmental conditions in healthcare settings. Patient health, comfort, and recovery are largely affected by environmental factors like humidity, air quality, and temperature. Hospitals and clinics are using environmental sensors to guarantee decent patient conditions, contain infection, and make healthcare facilities more energy-efficient. In addition, increasing applications of portable environmental sensors for real-time personal health conditions monitoring due to growing demand for wearable devices and telemedicine is further contributing to the market growth. Thus, as the health care industry starts making plenty of efforts in delivering a strong focus on the patient care process and working on maintaining the health care facility, the role of environmental sensors in healthy environments will drive better health outcomes.

Regional Analysis

In 2023, North America held a 34.7% share of the Environmental Sensors Market, due to advanced environmental monitoring technologies, as well as strict government regulations and significant investments in smart city projects. Environmental sensors are increasingly being adopted in the U.S. and Canada for air quality monitoring, tracking industrial emissions, and assessing water quality. To take an example, in compliance monitoring of air and water pollution standards enforced by the U.S. Environmental Protection Agency (EPA) under the Clean Air and Clean Water Acts, environmental sensors are increasingly used. Likewise, the cities of Los Angeles and Chicago have designed a city-wide environmental-sensing solution that can collect connected data-stream of urban pollution data, energy consumption and public health indicators. Its commitment to sustainability and integration of IoT and smart technologies have made it a formidable market leader in the region.

Asia Pacific is anticipated to witness growth at the fastest CAGR during 2024-2032, on account of the rapid urbanization & industrialization, coupled with the initiatives undertaken by each government to tackle environmental issues. For example, environmental sensor networks are being implemented on a wide scale by some countries like China and India where severe air and water pollution is present. An example comes from China, which has placed sensors in air quality monitoring systems throughout urban and rural areas as part of its "Blue Sky Action Plan" to lower hazardous pollution levels. Likewise, India is adding the use of environmental sensors to its Smart Cities Mission to manage waste, track air quality and urban infrastructure. As well as which, Japan and South Korea are merging environment sensors into smart home & industrial automation systems for energy efficiency and sustainable practice. Climate sensor is one of the provinces with high development potential in terms of environment, which derive from projects launched by the regulatory policies, governmental actions and public awareness of environmental monitoring solutions.

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Key players

Some of the major players in the Environmental Sensors Market are:

• Sensirion AG (SGP40 Air Quality Sensor, SHT4x Humidity and Temperature Sensor)

• Honeywell International Inc. (HPM Series Particle Sensor, HIH Series Humidity Sensors)

• Siemens AG (QPA2000 Room Air Quality Sensor, QFM3160 Duct Humidity and Temperature Sensor)

• ams-OSRAM AG (CCS811 Gas Sensor, ENS210 Temperature and Humidity Sensor)

• Bosch Sensortec GmbH (BME680 Environmental Sensor, BME280 Humidity and Pressure Sensor)

• OMRON Corporation (D6F-PH MEMS Flow Sensor, B5W-LD Air Quality Sensor)

• Raritan Inc. (EMX Smart Rack Controller, DX2 Environmental Sensors)

• Texas Instruments Incorporated (HDC2080 Humidity and Temperature Sensor, LMT70 Temperature Sensor)

• Schneider Electric (SpaceLogic Sensor, SmartX Actuator Sensor)

• Amphenol Corporation (Telaire T6700 CO2 Sensor, SM-UART-04L Dust Sensor)

• Vaisala Oyj (HMP60 Humidity and Temperature Probe, GMP343 Carbon Dioxide Sensor)

• EnOcean GmbH (STM 550 Multi-Sensor, STM 330 Temperature Sensor)

• STMicroelectronics (HTS221 Humidity and Temperature Sensor, LPS22HB Barometric Pressure Sensor)

• Renesas Electronics Corporation (HS3001 Humidity and Temperature Sensor, ZMOD4410 Gas Sensor)

• TE Connectivity (HTU21D Humidity and Temperature Sensor, MS8607 PHT Combination Sensor)

• Laird Connectivity (Sentrius RS1xx Temperature and Humidity Sensor, BT510 Bluetooth Sensor)

• AlphaSense Inc. (OPC-N3 Particle Monitor, OX-B431 Oxygen Sensor)

• Figaro Engineering Inc. (TGS2600 Air Quality Sensor, TGS5042 Carbon Monoxide Sensor)

• Aeroqual Ltd. (Series 500 Portable Air Quality Monitor, SM50 Ozone Sensor)

• SGX Sensortech (MiCS-5524 CO Sensor, MiCS-6814 Gas Sensor)

Some of the Raw Material Suppliers for Environmental Sensors Companies:

• 3M Company

• Dow Inc.

• BASF SE

• DuPont de Nemours, Inc.

• Mitsubishi Chemical Holdings Corporation

• Sumitomo Chemical Co., Ltd.

• LG Chem Ltd.

• Toray Industries, Inc.

• Covestro AG

• SABIC (Saudi Basic Industries Corporation)

Recent Trends

• In October 2024, Sensirion launched the STS4L, its most cost-efficient temperature sensor, offering ±0.4°C accuracy, ultra-compact size (1.5 × 1.5 × 0.5 mm), and low power consumption, ideal for cost-sensitive applications.

• In August 2024, Honeywell and Cisco partnered to use AI and automation to reduce building energy consumption by optimizing HVAC systems based on real-time occupancy data. The solution could reduce energy use by up to 30% while improving occupant comfort.

• In August 2024, Siemens Smart Infrastructure launched the SICAM Enhanced Grid Sensor, offering real-time transparency for local grids and substations to optimize maintenance and integrate renewable energy.