Optical Sensing Market Could Boom 25% Annually Though 2020

04 December 2015—Market analyst firm BCC Research (Wellesley, Mass., USA) forecasts that the worldwide market for optical sensors is set to reach a compound annual growth rate (CAGR) of 25.2 percent in 2020, from US$315.9 million in 2015 to US$971.8 million in 2020. Information released this week from a new market research report, Optical Sensing: Technologies and Global Markets, reveals that aerospace and defense are the largest market segments by end-user, while chemical sensing is the fastest growing segment, with an expected CAGR of 26.3 percent through 2020 in certain regions.
 
Optical sensors are used in the defense, utilities, construction, chemical, and oil and gas industries to measure temperature, flow, pressure, rotation, acceleration and strain, among other parameters. Demand for optical sensors is driven in particular by the increasing number of applications in military, automotive and industrial segments, as well as the increasing number of upcoming business utilities.
 
Other key market drivers of optical sensors are gradual advances like miniaturization and improved communication capabilities, enabling their integration into numerous devices and machines without affecting electrical or electromagnetic functionality. Also driving the market are advancements in Internet connectivity, growth in IT investment, and telecom improvements in developing regions like India, China and Southeast Asia.
 
According to Sinha G. Gaurav, research analyst at BCC Research, chemical sensors alone are expected to reach US$195.2 million by 2020, a CAGR of 25.3 percent over five years. This growth in chemical applications is due to continued production of light vehicles, which use universal exhaust gas oxygen sensors to monitor fuel efficiency and vehicle performance.
 
North America is the largest market segment in chemical sensing, with a market share of US$22.7 million in 2014, expected to grow at a CAGR of 25 percent to reach US$75 million by 2020. The fastest growth in chemical sensors is in the Asia-Pacific region, with a forecast CAGR of 25.6 percent from 2015 to 2020.