The global infrared sensors market encompasses a largely oligopolistic model wherein the top players have captured a major chunk of the market share. The four companies at the top of the chart accounted for 85% of the total market share in 2015, which reflects the difficulty for other players to establish themselves and the inability of new players to sustain their presence. These top-notch players of the market include FLIR Systems, Excelitas Technologies, Murata Manufacturing, and Hamamatsu Photonics. These huge entities are channeling their resources towards innovation in order to make greater strides across the market, which is expected to stiffen the competition in the market. The remnant of the market share is largely held by market players such as Honeywell International Inc., Nippon Avionics, and Raytheon amongst others.
A recent report by TMR prognosticates the progress of the market over the period of 2016-2024, estimating that the market would witness an eminent CAGR of 12.80% over the forecast period. The market is expected to reach a value of US$692.8 mn by the end of 2024 taking a leap from US$238.8 mn in 2015. On the basis of end use, the oil and gas sector has reigned over all other categories in this segment and is expected to maintain the splendid performance over the forecast period.
North America is the regional leader for the market where infrared sensors are expected to experience heavy demand over the forecast period, thus, maintaining high stakes for the North American Market in future as well. The lead across North America could be attributed to the increased use of motion sensing and a variety of other defense applications. Europe’s market is also gaining momentum due to the buzz around usage of drones and unmanned aerial vehicles. Furthermore, the market in Asia Pacific has immense scope for growth due to the rampant growth of automation across several industries. The cluttering of smart phones, laptops, and other consumer electronics is also consolidating the market across Asia Pacific.
Security Concerns Accompanied by Low Retail Prices to Uptick Demand
Several residential and non-residential areas have become increasingly wary of secure premises. The various public welfare undertakings such as hospitals, offices, hotels, and schools are installing security systems, which has bolstered the market for infrared sensors. Moreover, automation has captured the essence of end-user industries such as electronics, defense, aerospace, healthcare, and semiconductors, which is further escalating the market for infrared sensors.
Another ray of optimism for the market for infrared sensors is the low retail prices of these products. Their simple, easy, and nimble designs make them free of any herculean costs, thus, making their market price attractively low. This is a strong proposition for the market which can bank on the low prices to gain a high rise in demand.
Lack of Trained Personnel Could Hamper Growth
Infrared Sensors need to be meticulously designed in order to retain accuracy and retentiveness. Ned This sometimes leads to an increased cost and requirement for a trained personnel. In the absence of proper knowledge, the sensors could be rendered redundant and ineffective, which lowers the trust of the people. This could be a possible drawback for the global infrared sensor market. However, the high demand for these sensors from various industrial longitudes will keep taxing out benefits from the market.