The global market for automotive sensors will grow by 6.4 percent each year over the next five years, a new report has found.

According to BCC Research, the sector, valued at US$37.8 billion 2024, will reach US$51.6 billion dollars by 2029. The growth will be driven by advancements in safety technologies, electric vehicles and autonomous driving systems.

Automotive sensors have become increasingly critical in modern vehicle architecture, serving as the backbone for systems such as autonomous emergency braking, adaptive cruise control, lane-keeping assistance and battery management. 

“The increasing demand for safety, comfort, and fuel efficiency has significantly boosted the adoption of automotive sensors across the globe,” the report states.

The integration of emerging technologies, including 5G connectivity and vehicle-to-everything communications, is expected to further drive demand. According to BCC, these technologies “enhance the functionality of sensors by enabling real-time data communication between vehicles, infrastructure, and other road users, thereby improving traffic efficiency and safety.”

Electric vehicles, in particular, are fueling demand for sophisticated sensor systems. Battery temperature and voltage monitoring, regenerative braking systems, and electric powertrains all require accurate, real-time sensor input to operate effectively. As automakers continue to scale up EV production, the report predicts sensor demand will follow suit.

While the market includes mature economies such as the United States, Canada, Germany and Japan, growth is also being driven by emerging players in Asia-Pacific. BCC Research notes that “countries like China and India are investing heavily in automotive innovation and infrastructure development,” creating fertile ground for sensor adoption.