Electronic sensors and components play an important role in the optimum functioning of the modern vehicle. Faster, more responsive small electronic chips, accurate signal transfer, and preference of OEMs toward technical solutions are likely to positively impact the demand for electronic sensors and components during the forecast period. Displacement sensors acts as a bridge between the control system and components, which require reliable steady stream displacement and position sensors.
Utilization of displacement sensors is increasing in automotive applications, such as clutch, transmission, and brakes, in order to achieve maximum efficiency. Furthermore, high demand for safety and comfort while driving is projected to fuel the demand for displacement sensors during the forecast period. OEMs emphasize on accuracy, reliability, and space-saving designs along with technical support and cost-effectiveness, which in turn is projected to propel the automotive displacement sensor market at a rapid pace during the forecast period. However, wrong measurement by sensor, gap in data transmission, and system failure are likely to hamper the functioning of displacement sensors, which is expected to restrain the automotive displacement sensor market during the forecast period.
The automotive displacement sensor market can be segmented based on application, vehicle type, sales channel, and region. There are few applications of displacement sensor which are used in automotive industry which are utilized in turbo charger speed testing, engine coolant pump testing, transmission, clutch master cylinder, clutch slave cylinder, concentric slave cylinder, and dual concentric slave cylinder.
Rise in demand for comfortable and smooth gear shifting in transmission creating business opportunities for displacement sensor. Displacement sensors perform a majority of tasks that were originally performed by the driver in order to enhance the accuracy in manual, semi-automatic, and fully automatic transmission. Increased demand for fuel-efficient vehicles, smooth gear shifting, and comfortable ride for semi-automatic and automatic transmission is likely to drive the automotive displacement sensor market during the forecast period.
In terms of vehicle type, the automotive displacement sensor market can be divided into passenger vehicle and commercial vehicle. The passenger vehicle segment is anticipated to hold a major share of the automotive displacement sensor market. The passenger vehicle segment can be further segregated into hatchback, sedan, and utility vehicle. Rising demand for premium vehicles, owing to increase in purchase power of consumer, availability of compact SUVs at a competitive cost, is likely to propel the passenger vehicle segment. Increase in rate of adoption of latest technologies and presence major OEMs are anticipated to drive the automotive displacement sensor market during the forecast period.
In terms of sales channel, the automotive displacement sensor market can be categorized into aftermarket and OEM. Major OEMs are providing additional safety features in modern vehicles, which in turn is anticipated to propel the OEM segment of the automotive displacement sensor market during the forecast period.