The global environmental sensor market is estimated to grow from USD 1.5 billion in 2021 to USD 2.7 billion by 2027, at a CAGR of 10.3%.

Stringent environmental regulations to reduce air pollution is one of the major drivers for the environmental sensor market. The technological advancements in IOT and cloud-based services and growing adoption of environmental sensors in products such as consumer devices, HVAC, and air purifiers are driving the growth of market. Moreover, growing adoption of environmental sensors in consumer electronics and government and public utility verticals will drive the demand for this technology in the near future.

The environmental sensor companies such as Bosch Sensortec (Germany), Sensirion (Switzerland), ams AG (Austria), Honeywell International (US), Siemens (Germany), Omron (Japan), Raritan (US), Texas Instruments (US), Schneider Electric (France), Amphenol (US).

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Driver: Increase in air quality monitoring system act as major driver for the market

Initially, air monitoring was done manually by noting down the reading recorded by different analog systems. Automatic or Continuous Ambient Air Quality Monitoring Stations (CAAQMS) can monitor pollutants using different analyzers; thereby reducing the chances of manual error, generate data at regular time intervals, and efficiently transmit the data. The generated data are disseminated online through a digital display board to the public. These systems are now used in cities. Some countries use mathematical interpolation of the readings to estimate concentrations in surrounding areas. Indian cities are gradually improving their monitoring capacity and several metro cities, including state capitals, have begun to set up CAAQMS.Thus, due to the rise in air quality monitoring stations, it would upsurge the use of environmental sensors.

Opportunity: Devlopemnt of nanotechnology based environmental monitoring product is growing opportunity in the market

Historically, environmental sensors were used to detect gases, monitor humidity, and barometric pressure. Nowadays, due to the increasing need for sensor information, there is a growing demand for nanotechnology-based environmental monitoring products. By combining traditional environmental sensors with integrated sensors that are used in various consumer applications such as building automation and HVAC, designers can develop smart systems that enable machines to interact with each other and the world around them and can provide actionable environment data. Information from various types of sensors is combined to measure the environmental parameters surrounding these devices. For example, sensor-on-chip plays a significant role in wearables, wherein several sensors are combined to measure various environmental parameters on a single device.

Challenge: Stringent performance requirements of advanced sensor applications

Specifications of environmental sensors change with applications and technology being used. For instance, consumer electronics applications have stringent requirements regarding the size and power consumption of environmental sensors. In such cases, integrating several types of sensors with consumer applications, such as smartphones, becomes very difficult. Also, with the change in the industry or vertical, the specification of the sensor varies accordingly. For instance, gas sensing parameters in the automotive industry differ from those in the oil & gas industry; therefore, the performance requirements of gas sensors become critical in advanced applications.