India Automotive Sensors Market Outlook to 2030

India Automotive Sensors Market Overview

• The India Automotive Sensors Market was valued at USD 1.7 billion in 2023. The primary drivers of this growth include the increasing adoption of advanced driver assistance systems (ADAS), stringent government regulations for vehicle safety and emissions, and the rising demand for electric vehicles (EVs). The integration of sensors in vehicles enhances performance, safety, and comfort, thereby driving market growth.
• The key players in the India automotive sensors market include Robert Bosch GmbH, Continental AG, Denso Corporation, Infineon Technologies AG, and Sensata Technologies. These companies have a strong foothold in the market due to their extensive product portfolios, continuous innovation, and strategic partnerships with automotive manufacturers.
• In 2023, Robert Bosch GmbH announced the launch of a new generation of MEMS sensors for automotive applications. This development is expected to enhance the precision and reliability of automotive systems, thereby increasing vehicle safety and performance. Boschs new sensors are designed to support the latest automotive trends, including autonomous driving and electrification.
• The state of Maharashtra dominates the market in 2023, primarily due to the presence of major automotive manufacturing hubs like Pune and Mumbai. The states robust infrastructure, skilled workforce, and favorable government policies have attracted significant investments from leading automotive manufacturers and sensor suppliers.

India Automotive Sensors Market Segmentation

The India AI Market is segmented into different factors like by product type, by application and by region.

By Product Type: The market is segmented by product type into Pressure Sensors, Temperature Sensors, Position Sensors, Speed Sensors, Others. In 2023, pressure sensors held a dominant market under the product type segmentation. This dominance is attributed to the increasing integration of pressure sensors in various automotive systems, such as tire pressure monitoring systems (TPMS) and fuel injection systems, which are critical for vehicle safety and efficiency.

By Application: The market is segmented by application into Powertrain, Safety & Control, Chassis, Body Electronics, Telematics. In 2023, the powertrain application segment held a dominant market share due to the growing demand for efficient and emission-compliant engines, which require advanced sensor technologies to monitor and control various engine parameters, enhancing overall vehicle performance and compliance with stringent emission norms.

By Region: The market is segmented by region by north, south, east and west. In 2023, the northern region was dominating the market that is driven by the concentration of automotive manufacturing units, industrial infrastructure, including well-developed transportation networks, logistics facilities, and proximity to major ports. This infrastructure supports efficient manufacturing and distribution operations, making it an attractive location for automotive and sensor manufacturers.

India Automotive Sensors Market Competitive Landscape

• Continental AG: In February 2023, Continental AG introduced a high-speed e-motor position sensor (e-RPS), designed to be compact and efficient. This sensor is suitable for various electric vehicle (EV) motors, highlighting Continental's commitment to supporting the growing EV market in India and globally.
• Infineon Technologies: In November 2022, Infineon Technologies AG introduced the XENSIV TLE4971 family as the newest addition to their current sensor series designed for automotive applications. These devices provide accurate magnetic current sensing by utilizing proprietary temperature and stress compensation techniques, eliminating the negative impacts of magnetic cores such as hysteresis or saturation effects.

India Automotive Sensors Market Analysis

India Automotive Sensors Market Growth Drivers

• Increase in Vehicle Electrification: The rising trend of vehicle electrification, including the shift towards electric and hybrid vehicles, is significantly driving the demand for automotive sensors. Electric vehicles require advanced sensors for battery management systems, motor control, and ensuring overall vehicle safety and performance
• Government Push for Advanced Driver Assistance Systems (ADAS): The Indian government's mandate for implementing ADAS in all new vehicles by 2024 has accelerated the adoption of sensors like LiDAR, radar, and ultrasonic sensors. According to a study by the National Highway Traffic Safety Administration (NHTSA) in the United States, vehicles equipped with forward-collision warning and autonomous emergency braking systems experienced 50% fewer rear-end crashes.
• Rise in Passenger Vehicle Sales: Passenger vehicle sales in India have experienced substantial growth, with 3.6 million units in 2023, according to the Federation of Automobile Dealers Associations (FADA). This increase is attributed to the growing middle-class population and improving economic conditions. The expanding passenger vehicle market necessitates the integration of various sensors to enhance safety, performance, and comfort, driving the automotive sensors market forward.

India Automotive Sensors Market Challenges

• High Cost of Advanced Sensor Technologies Advanced sensor technologies, such as LiDAR and radar, significantly increase the overall cost of vehicles. This poses a challenge for manufacturers in maintaining profitability while offering affordable prices, particularly in the budget-sensitive markets. The high cost of these technologies can limit their adoption in mid-range and economy vehicles, restricting market growth.
• Supply Chain Disruptions Global supply chain disruptions, such as semiconductor shortages, have severely impacted the production of automotive sensors. These disruptions lead to delays, increased costs, and reduced availability of essential components, affecting the entire automotive industry's ability to meet market demands efficiently. Such instability in the supply chain can hamper the growth of the automotive sensors market.

India Automotive Sensors Market Government Initiatives

• Production Linked Incentive (PLI) Scheme: The PLI scheme for the automotive sector, launched in 2021 with a financial outlay of INR 25,938 crore, aims to boost domestic manufacturing and attract investments. In December 2023, the Ministry of Heavy Industries extended the tenure of the scheme by one year, with incentives now applicable for five consecutive financial years starting from 2023-24. This initiative supports the production of high-value sensor technologies, encouraging manufacturers to develop innovative sensor solutions locally and reduce dependency on imports.
• Implementation of Greenfield Access-Controlled Corridors: The government has initiated the implementation of 21 greenfield access-controlled corridors, with approximately 3,336 km already completed. These corridors are designed to facilitate high-speed transportation, reduce travel time, and improve road safety. The development of these corridors will necessitate the integration of advanced sensor technologies for traffic management and vehicle monitoring, thereby driving the demand for automotive sensors.

India Automotive Sensors Market Future Outlook

The India automotive sensors market is anticipated to grow substantially by 2028. This growth is anticipated to be driven by the increasing penetration of autonomous vehicles, advancements in sensor technologies, and the expansion of the EV market. Additionally, government initiatives promoting smart transportation systems and safety regulations will further propel market growth.

Market Trends

• Rapid Growth in Electric Vehicle Segment: The electric vehicle (EV) segment is anticipated to expand rapidly due to increasing environmental concerns, government incentives, and advancements in battery technology. Over the next five years, the market will see a significant rise in the adoption of EVs, requiring sophisticated sensors for battery management, motor control, and safety features. The development of a robust charging infrastructure will further support this growth, enhancing the demand for related sensor technologies.
• Integration of IoT in Automotive Industry: The integration of Internet of Things (IoT) technology in the automotive industry is projected to increase, leading to smarter and more connected vehicles. IoT-enabled sensors will play a vital role in real-time data collection, vehicle-to-vehicle (V2V) communication, and predictive maintenance. This trend will enhance vehicle performance, safety, and efficiency, driving the demand for advanced automotive sensors.