Report Overview

Rising buyers’ focus on and their awareness about vehicle safety, a shift in consumer preference toward alternative fuel vehicles, ongoing sensor technology developments, and the increasing use of connected cars along with a high adoption of electric cars are expected to propel the expansion of Saudi Arabia Automotive Sensors Market at a steady growth rate during forecast period 2022 and 2028.

Saudi Arabia Automotive Sensors Market - Industry Trends & Forecast Report, 2028

Saudi Arabia automotive sensors market size is projected to grow at a CAGR of 8.5% during the forecast period between 2022 and 2028. Major growth factors for Saudi Arabia automotive sensors market include an increasing focus on vehicle safety, growing consumer preference towards alternative fuel cars and an increase in the number of road accidents. An increasing focus on sensor technology and a high disposable income resulting in the high adoption of private vehicles are expected to propel the growth of Saudi Arabia automotive sensors market. Stringent safety regulations by Saudi Guidelines, Metrology, and Quality Organization (SASO) for new vehicles coupled with automobile manufacturers increasing focus on designing electronic components, safety sensors, and smart braking systems are also expected to further fuel the growth of Saudi Arabia automotive sensors market during the period in analysis.

Saudi Arabia Automotive Sensors Market

Growth Drivers

Increasing adoption of electric cars and focus on passenger and vehicle safety

High adoption of electric and hybrid vehicles, higher pressure sensor application in the automotive industry, and considerable growth in customized automotive electronic devices are primary reasons driving the expansion of Saudi Arabia automotive sensors market. The surging demand for electric vehicles, stringent government environment regulations for reducing harmful gas emissions, and growing consumer awareness regarding vehicle safety and security are expected to further boost the growth of Saudi Arabia automotive sensors market. Modern vehicle restraint systems employ side airbag pressure sensors to meet consumer car safety criteria. The pressure sensor is installed into the side doors of the car and transmits digital crash signals to the central airbag unit. By effectively managing spark advancement in gasoline and diesel engines, the air pressure sensor increases engine efficiency. As a result of the increasing adoption of pressure sensors in engines and car safety systems, Saudi Arabia automotive sensors market is forecast to grow during the period in analysis.

Restraints

High initial costs

As the sensors are produced in small quantities, the cost of sensors used in Advanced Driver Assistance Systems (ADAS) is expensive. Recent sensors also have a limited signal bandwidth and measuring range, making it impossible to differentiate between system noise and signals, such as road impediments. Tracking moving objects is even more difficult in less-than-ideal conditions, such as blizzards or rain. These issues are anticipated to limit the growth of Saudi Arabia sensors market.

Impact of COVID–19 on Saudi Arabia Automotive Sensors Market

The COVID-19 pandemic had a detrimental effect on the automotive sensors market. The suspension of production and end-use sector operations had a negative impact on the automotive sensors market. The pandemic adversely affected the industry's overall growth. COVID-19 pandemic in 2020 and early 2021 resulted in the imposition of severe lockdown regulations across countries, causing difficulties in automotive sensor import and export activities. Thereby, hampering the growth of Saudi Arabia automotive sensors market. However, the country's sales volume of passenger automobiles and hybrid electric vehicles increased after the pandemic due to the loosening of COVID-19 related limitations in the country. Therefore, Saudi Arabia automotive sensors market is expected to recover all the losses that occur during the forecast period and will expand at a significant growth rate.

Saudi Arabia Automotive Sensors Market

Segmental Coverage

Saudi Arabia Automotive Sensors Market - By Sensor Type

Based on sensor type, Saudi Arabia automotive sensors market is segregated into Temperature Sensor, Pressure Sensor, Oxygen Sensor, Position Sensor, Motion Sensor, Torque Sensor, and Optical Sensor segment. The position sensor segment is expected to hold the highest share in the market due to surging demand for luxury automobiles and increasing requirement for improved driver convenience. The necessity to assure the efficient functioning and safety of all automotive parts is driving up demand for position sensors. Continuous automotive sector advancements and the launch of upgraded position sensors could drive up the demand for position sensors in Saudi Arabia. Followed by it, the temperature sensors segment is expected to be the second most dominated segment, because temperature sensors aid in measuring transmission fluid temperature, exhaust gas temperature, engine oil temperature, fuel temperature, and coolant water.

Saudi Arabia Automotive Sensors Market - By Vehicle Type

Based on vehicle type, Saudi Arabia automotive sensors market is bifurcated into Commercial and Non-Commercial Vehicles segments. The commercial vehicles segment is expected to dominate the market due to Saudi Arabia's financial state and the booming transportation and logistics industries. Owing to a rising number of internet users and the prevalence of smart devices, the popularity of the e-commerce industry, which demands an effective supply chain, could the boost demand for commercial vehicles during the projection period. As commercial vehicle sales expand, so does the demand for smart automotive sensors to provide a pleasant and secure ride.

Saudi Arabia Automotive Sensors Market - By Application

Based on application, Saudi Arabia Automotive sensors market is segregated into ADAS, Chassis, and Power Train. The power train segment is expected to hold the highest share in the market due to surging demand for position speed, pressure, and gas, which are essential for ensuring a safe and comfortable ride for passengers. The application of sensors in powertrain systems is boosted by the implementation of stringent pollution standards by leading authorities.

Competitive Landscape

Saudi Arabia Automotive sensors market is fiercely competitive. Prominent players in the market include Sensata Technologies, Denso Corporation, Texas Instruments Incorporated, Robert Bosch GmbH, Continental AG, Delphi Technology, General Electric Company, Analog Devices, Inc., Maxim Integrated, and Infineon Technologies AG. To further enhance their market share, these players are primarily focused on the development of innovative and efficient products, new product releases, mergers and acquisitions, collaborations, partnerships, and joint ventures.

Recent Developments

• In July 2022 – The Saudi Arabian government announced its plans to invest USD 80 billion in Neom City to increase consumption for driverless vehicles for daily transportation. The government is expected to contribute to vehicle-to-vehicle (V2V) and vehicle-to-city (V2C) connectivity as part of its ongoing efforts to promote the advanced telecommunications industry, and Neom City is planned to support the most sophisticated infrastructure.

• In May 2022 – Lucid Group, a US-based electric vehicle manufacturer, announced the development of its first overseas factory in Saudi Arabia. The facility will primarily serve the local market and have a capacity of 155,000 automobiles per year.

• In May 2022 – Saudi Arabia's Ministry of Industry and Mineral Resources declared the kingdom’s intention to produce more than 300,000 cars per year by 2030.

Scope of the Report

By Sensor Type

• Temperature Sensor

• Pressure Sensor

• Oxygen Sensor

• Position Sensor

• Motion Sensor

• Torque Sensor

• Optical Sensor

By Vehicle Type

• Commercial Vehicles

• Non- Commercial Vehicles

By Application

• ADAS

• Chassis

• Power Train