Artificial Intelligence (AI) Sensor Market Size, Share, and Trends 2024 to 2034

Artificial Intelligence (AI) Sensor Market Size to Worth USD 178.03 Bn by 2034

The global artificial intelligence (AI) sensor market size was USD 3.32 billion in 2023, calculated at USD 4.77 billion in 2024 and is expected to reach around USD 178.03 billion by 2034. The market is expanding at a solid CAGR of 43.62% over the forecast period 2024 to 2034. The North America artificial intelligence (AI) sensor market size reached USD 41% billion in 2023. The surge in government investment in Artificial Intelligence (AI) research and development is anticipated to accelerate the market’s growth.

The global sensor market size is calculated at USD 9.47 billion in 2024, reaching USD 508.64 billion by 2032.

Artificial Intelligence (AI) Sensor Market Key Takeaways

• North America dominated the artificial intelligence (AI) sensor market with the largest revenue share of 43% in 2023.
• Asia Pacific is expected to grow at a solid CAGR of 52.86% during the forecast period.
• By technology, the machine learning segment has held a major revenue share of 33% in 2023.
• By technology, the context-aware computing segment is expected to grow significantly during the forecast period.
• By sensor type, the optical segment has contributed more than 22% of revenue share in 2023.
• By sensor type, the ultrasonic segment has contributed more than 46.24% during the forecast period.
• By application, the consumer electronics segment held a significant share of the market in 2023.

U.S. Artificial Intelligence (AI) Sensor Market Size and Growth 2024 to 2034

The U.S. artificial intelligence (AI) sensor market size was exhibited at USD 560 million in 2023 and is projected to be worth around USD 30,660 million by 2034, poised to grow at a CAGR of 43.89% from 2024 to 2034.

North America held the dominant share of the Artificial Intelligence (AI) sensor market in 2023. The region is observed to witness notable growth during the forecast period. The growth of the North American region is driven by the increasing consumer inclination toward AI-enabled home appliances, rising technological developments in autonomous cars, and the rising need for automation and the integration of AI in smart devices. The region has a stronghold in technological infrastructure, the presence of key market players, rising deployment of industrial automation, and supportive government regulations that escalate the adoption and development of Artificial Intelligence (AI) Sensor technologies.

Additionally, North America has a strong ecosystem of industries such as automotive, manufacturing, healthcare, and defense that rely on AI. These sectors make significant investments in AI-driven applications which spurs the demand for Artificial Intelligence (AI) Sensors. The United States presents a significant opportunity for the market’s growth. The country is a hub for leading tech giants and start-ups focusing on AI and sensor technologies, bolstering the demand for Artificial Intelligence (AI) Sensors. The United States also presence of reported research institutions and universities that actively contribute to Artificial Intelligence (AI) Sensor technology advancements. Such factors are responsible for the considerable growth of the Artificial Intelligence (AI) Sensor market in the region.

• Patients with Parkinson's disease may have easier access to care in April 2024 thanks to affordable wearable sensors. In a recent study, researchers from the University of Illinois Urbana-Champaign and their clinical partners discovered that the accuracy of the data obtained from such sensors is enhanced by new machine-learning techniques and a baseline of data from healthy older persons.
• Los Alamos National Laboratory is investigating the use of artificial intelligence (AI) in June 2024 to find and identify abandoned gas and oil wells that release methane, which warms the planet. Artificial intelligence is now available for field deployable sensors, such as drones, thanks to a breakthrough in the use of natural language models.
• The pioneer in analytics, SAS, said in May 2023 that it will invest USD 1 billion over the following three years to further develop sophisticated analytics products aimed at meeting the particular requirements of particular industries. SAS will keep helping businesses use AI, machine learning, and advanced analytics to combat fraud, manage risk, provide better services to consumers and citizens, and much more with this investment.

Asia Pacific is observed to expand rapidly during the forecast period. Whereas with the overall growth, the region is observed to hold the dominating share in the predicted timeframe. Factors such as robust growth in manufacturing capabilities, growing demand for ai-driven applications, surge in investments in R&D activities, increasing demand for consumer electronics, increasing adoption of industry 4.0, rapid expansion of the automotive industry, growing demand for IoT Devices, increasing advancement in healthcare infrastructure, rising focus on environmental monitoring, and favorable government initiatives and regulations have contributed to the overall growth of the market.

Developing countries such as Japan, China, and India have been adopting early adopters of AI technologies and integrating them into several industries. China is aggressively investing in Artificial Intelligence (AI) Sensor technology which drives innovation across various areas including voice recognition, facial recognition, autonomous systems, and others.  The region’s has also witnessed unprecedented growth of the economy owing to rapid industrialization & urbanization, a large population base, and rising disposable incomes, which is expected to accelerate the demand for Artificial Intelligence (AI) Sensors. In addition, the rising acceptance of Artificial Intelligence (AI) Sensors in smart cities, healthcare, robotics, and smart manufacturing is expected to boost the growth of the market in the region.

• A 5G smart healthcare network incorporating MEC and AI, constructed by China Unicom and Huawei, has expanded medical care reach and efficiency across the tropical province of Hainan. The partners installed telemedicine technology in 2693 village clinics, 340 township health facilities, and every city and county hospital. The network enables diagnosis and consultations with remote AI assistance. Patients now spend an average of two fifths less time waiting, and medical treatment is now 30% more efficient.
• Himax Technologies made an undisclosed investment in Obsidian Sensors, a developer of thermal image sensor technology, in June 2024. Himax is a Taiwan-based supplier and fabless manufacturer of different semiconductor products, including display drivers. The businesses will work together to create an advanced thermal vision solution that combines Obsidian's thermal imaging technology, autonomy, and security systems with Himax's “WiseEye” AI processing capabilities.

Market Overview

Sensors are devices that detect and measure physical properties and any environmental changes and then convert this information into a format for the machines to understand. These devices serve as the eyes, tongue, nose, and ears, of AI systems, facilitating them to collect data accurately and make informed decisions. Artificial Intelligence (AI) is widely used for processing and analyzing data from sensors, such as thermal cameras, temperature sensors, photocells, ultrasonic sensors, motion sensors, LiDAR, radar, vision cameras, and motion sensors.

Merging AI with sensors is an innovative and powerful way to understand and influence the surroundings. Sensors gather data about the physical world and Artificial Intelligence (AI) analyzes and utilizes this useful data to generate predictions, insights, and take prompt action. Artificial intelligence (AI) sensors can perform several complex tasks including self-adaptation, self-validation, and self-identification under various conditions. Artificial intelligence sensors are used in a wide range of applications such as industrial automation robotics, autonomous vehicles, smart homes, healthcare, and others.

Artificial Intelligence (AI) Sensor Market Growth Factors

• The rise in agriculture activities is expected to propel the market demand for Artificial Intelligence (AI) Sensors. Artificial Intelligence (AI) Sensors assist farmers in making data-driven decisions by precisely monitoring soil conditions, irrigation needs, crop conditions, and others.
• The increasing demand for advanced sensing capabilities across various areas ranging from healthcare to automotive industries, and from smart homes to industrial automation. It is expected to contribute to the expansion of the market in the coming years.
• The escalating demand for wearables with Artificial Intelligence (AI) Sensors is positively influencing the Artificial Intelligence (AI) Sensor market’s growth during the forecast period.
• The rapid urbanization and digitization are significantly boosting the development of smart infrastructure. Edge computing is used widely in smart infrastructure.
• The rising adoption of the Internet of Things (IoT) in emerging nations has revolutionized several sectors. IoT plays a vital role in the IoT ecosystem and is projected to create lucrative growth opportunities for the Artificial Intelligence (AI) Sensor market during the forecast period.

Artificial Intelligence (AI) Sensor Market Scope

Market Dynamics

Driver

Rising demand for industrial automation

The increasing demand for industrial automation is expected to boost the expansion of the Artificial Intelligence (AI) Sensor market in the coming years. Artificial Intelligence (AI) Sensor enables the development of intelligent robots that are capable of performing complex tasks autonomously. During manufacturing operations and industrial production, Artificial Intelligence (AI) Sensors are used to automate processes, improve efficiency, decrease downtime, and reduce errors. Artificial Intelligence (AI) Sensors are widely used to monitor the position of components on an assembly line, identify defects in items, and control the movement of robotic arms. In industrial automation, Artificial Intelligence (AI) Sensors are extensively used to control manufacturing processes and can monitor important parameters including pressure, temperature, humidity, and others. Thereby driving the market’s growth.

The industrial sector also benefits from artificial intelligence (AI) sensors, particularly in predictive maintenance and smart manufacturing. Companies like Siemens and General Electric use Artificial Intelligence (AI) Sensors to monitor machinery conditions in real time. These sensors can predict equipment failures before they occur, reducing downtime and maintenance costs. This application not only enhances operational efficiency but also extends the lifespan of industrial equipment.

• In February 2024, Amazon announced its plan to invest in start-ups that combine AI with robotics. The Amazon industrial innovation fund has made 12 investments in total, including in Mantis Robotics, which is developing a robotic arm that uses sensors to work alongside humans.

Restraint

High installation and maintenance costs

The high installation and maintenance costs are anticipated to hamper the Artificial Intelligence (AI) sensor market’s growth. The deployment of Artificial Intelligence (AI) sensors requires significant investment as advanced technology and infrastructure are required. Additionally, the maintenance costs of these sensors generally incur additional costs over time. Several lower and middle-income countries lack technology infrastructure which is likely to limit the expansion of the global Artificial Intelligence (AI) sensor market.

Opportunity

Rapid expansion of the automobile sector

The rising demand for connected cars is projected to offer lucrative opportunities to the market during the forecast period. Artificial Intelligence (AI) improves the performance of vision-based sensing systems. The rapid advancement in artificial intelligence (AI) and the Internet of Things (IoT) have significantly increased the adoption of autonomous vehicles and connected cars globally which enhances safety and reduces the risk of accidents caused by unpredictable and reckless driving. The future of the automobile industry is heavily dependent on Artificial Intelligence (AI) Sensors. The autonomous vehicle uses a wide range of Artificial Intelligence (AI) Sensors such as lidar, ultrasound sensors, radar, and vision cameras.

The sensor system in the vehicle alerts drivers regarding accidents, traffic lights, poor road conditions, traffic jams, and others. Artificial Intelligence (AI) Sensors enable the car to drive itself and make the right decisions at the right time. Self-driving vehicles use Artificial Intelligence (AI) Sensors to detect surroundings and navigate roads without human assistance and respond to them by taking necessary and appropriate actions. Therefore, considering these factors, the deployment of Artificial Intelligence (AI) Sensors in autonomous and connected cars drives the growth of the Artificial Intelligence (AI) Sensor market.

• In June 2023, An AI-based startup Minus Zero, which is based in the Indian city of Bengaluru, unveiled the first self-driving car in the country, "zPod".

Technology Insights

The machine learning segment held the largest segment of the Artificial Intelligence (AI) Sensor market in 2023, which is expected to sustain its position throughout the forecast period. Machine learning is capable of performing tasks without being explicitly programmed instead of depending on patterns and inferences. Machine learning algorithms play a crucial role in analyzing sensor data. Machine learning can make real-time predictive analytics that enables users to reduce risks and monitor controls effectively.  Machine learning can handle large and complex datasets, along with the robust advancements in hardware and software, that have led to its widespread adoption.

The context-aware computing segment is expected to grow significantly during the forecast period. The substantial growth of the segment is attributed to the rapid technological advancements in sensors that are capable of capturing in-depth environmental data. These sensors can gather information including temperature, location, light, sound, and motion, which is important for context-aware computing systems.

Sensor Type Insights

The optical segment accounted for the dominating share of the Artificial Intelligence (AI) Sensor market in 2023 and is expected to sustain the position during the forecast period owing to the increasing demand for visual data processing and analysis bolstering the growth rate. Optical sensors play an integral role in capturing and analyzing visual data due to the rising adoption of AI technologies and the rapid development of applications relying on computer vision. The market has witnessed the increasing adoption of optical sensors in a wide range of applications across various fields such as autonomous cars, industrial automation, consumer electronics, robotics, healthcare, and others.

The ultrasonic segment is observed to grow at a notable rate in the global Artificial Intelligence (AI) Sensor market over the forecast period. This growth of the ultrasonic sensors segment is driven by the rising adoption of robotics, automation, and autonomous systems in several sectors including logistics, healthcare, agricultural, manufacturing, and automotive industries. Moreover, the rising sales of autonomous automobiles are expected to support the growth of the ultrasonic sensors segment. In the automotive sector, ultrasonic sensors offer a variety of applications such as safety alarms, parking assistance, collision avoidance, automatic braking systems, object detection, and others.  Such factors accelerate the growth of the segment.

Application Insights

The consumer electronics segment held the largest share of the Artificial Intelligence (AI) Sensor market during the forecast period owing to the increasing demand for consumer wearable devices, smart home appliances, and other smart portable devices. The integration of Artificial Intelligence (AI) Sensors into consumer electronic devices is gaining significant popularity including smartwatches, smart home appliances, smart speakers, and smartphones. Consumer electronics require Artificial Intelligence (AI) Sensors to support various attractive features such as voice control, gesture control, facial recognition, and gesture control. Such features improve user experiences and have boosted the demand for Artificial Intelligence (AI) Sensors. Thus, the wide application of AI in consumer electronics is fuelling the growth of the segment.

The smart home automation segment held a significant share of the Artificial Intelligence (AI) Sensor market in 2023. Consumers increasingly seek automated solutions for home management, enhancing convenience and energy efficiency. Smart home automation offers advanced security options, such as AI-powered surveillance cameras and smart locks, which are highly valued by consumers. Artificial Intelligence (AI) Sensors help in monitoring and optimizing energy usage, leading to cost savings and environmental benefits, driving their adoption in smart homes.

The healthcare segment is expected to grow notably. Artificial Intelligence (AI) Sensors are reshaping the healthcare sector by enabling real-time patient monitoring, offering treatment options, early disease detection, and advancing diagnostics centers. Wearable smart devices such as the Apple Watch and Fitbit incorporate Artificial Intelligence (AI) Sensors that help to track several important signs including oxygen levels, heart rate, sleep patterns, and others. These smart devices use Artificial Intelligence (AI) to accurately analyze the collected data and provide users with crucial health insights to promote preventive care.

AI-powered sensors embedded in diagnostic equipment, wearable devices, and medical implants enable continuous monitoring of important signs, early detection of disease, and improved healthcare interventions. The use of Artificial Intelligence (AI) Sensor technology in healthcare has significantly increased in medical facilities and it supports the treatment, drug development, diagnosis, and monitoring of patients’ health regularly as well as contributes to personalized medicines that further drive the segment growth.

• In April 2024, AI expert Teja Reddy Gatla launched an AI-powered heart rate sensor. A device for heart variability and stress analysis using artificial intelligence. The device’s sensors gather physiological data for AI-driven analysis, offering precise insights into stress analysis and emotional responses.

Artificial Intelligence (AI) Sensor Market Companies

• ACI Worldwide
• Baidu, Inc.
• BAE Systems
• LexisNexis Risk Solutions
• Oracle Corporation
• Teledyne Technologies Incorporated
• Robert Bosch GmbH
• Sensata Technologies, Inc.
• Sensirion AG
• Goertek
• Hokuriku Electric
• MEMSIC Semiconductor
• Movella
• Silicon Sensing Systems Limited
• Sony Corporation
• SAS Institute

Recent Developments

• In November 2023, Researchers working on the €7.93 ($8.49) million EU-funded ASTRAL project have developed an AI-powered sensor. The EU-funded ASTRAL project has developed an AI-powered sensor that adapts to any water type (eg fresh, brackish, or saltwater) to assess for quality, supporting the growth and health of livestock on aquaculture farms.
• In March 2024, Sensor Tower, a leading provider of data on the digital economy, announced that it acquired market intelligence platform data.ai for an undisclosed amount. This acquisition will allow Sensor Tower to further broaden and create an industry-standard solution in marketing intelligence.
• In March 2023, Teledyne announced its Sapera Vision Software Edition 2023-03 is now available. Teledyne DALSA’s Sapera Vision Software provides field-proven image acquisition, control, image processing and artificial intelligence functions to design, develop, and deploy high-performance machine vision applications. The new upgrades include enhancements to its AI training graphical tool Astrocyte1.40 and its image processing and AI libraries tool Sapera Processing 9.40.
• In June 2024, NVIDIA announced NVIDIA Omniverse Cloud Sensor RTX, a set of microservices that enable physically accurate sensor simulation to accelerate the development of fully autonomous machines of every kind.
• In May 2024, Alat, a newly formed entity owned by Saudi Arabia’s Public Investment Fund (PIF), announced the launch of two new business units – electrification and (artificial intelligence) AI infrastructure to strengthen the global electricity grid technology and meet the growing demand for advanced AI infrastructure. AI Infrastructure unit will manufacture AI tech capabilities including network and communications equipment, servers, networking equipment, data center storage, and Industry 4.0 computing.

Segments Covered in the Report

By Technology

• NLP
• Machine Learning
• Computer Vision
• Context-aware Computing

By Sensor Type

• Pressure
• Temperature
• Optical
• Position
• Ultrasonic
• Motion
• Navigation
• Others 

By Application

• Automotive
• Consumer Electronic
• Manufacturing
• Aerospace & Defense
• Robotics
• Smart Home Automation
• Healthcare
• Others

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East & Africa