Sensors are integral to the Internet of Things (IoT). They measure, track, and transmit data from machines, monitoring changes in pressure, motion, temperature, light and sound. Sensors allow companies to run predictive maintenance on machinery, stopping operational shutdowns before they occur.
As more industries tap into the potential of the IoT, the global market for sensors continues to climb. BCC Research predicts the market to reach heights of $249.6 billion by 2026, with growth at a compound annual growth rate (CAGR) of 9.8% from 2021-2026.
The significance of sensors is only increasing. Today, we’re exploring what the future holds for IoT sensors, examining the top trends gripping the industry.
The IoT is defined as a network of physical objects embedded with technology, which allows the internal states or the external environment to be communicated to another machine. Covering hardware, embedded software, communications services and information services, the IoT will grow rapidly, far exceeding the growth of other connected devices. With sensors laying at the heart of the IoT, growth for IoT sensors will be significant. BCC Research estimates sensors for the IoT will grow from $10.9 billion in 2021 to reach $36.6 billion by 2026, at a CAGR of 27.4% during the forecast period of 2021-2026.
A key application for IoT sensors will be connecting cities. The IoT is helping cities run more efficiently while also enhancing security and safety. Parking, lighting, traffic, buses and waste management can become optimized in connected cities, conserving energy by optimizing usage and power. Retail is another leading application for the IoT. It yields an easily quantified return on investment by helping retailers understand what factors influence shoppers to purchase. Other markets include manufacturing to maximize efficiencies and transportation to enhance customers’ experience and safety.
Sensors are the backbone and the key enablers of IoT applications. As the interface to the physical world, sensors are the key “things” in the Internet of Things.