Automotive Oxygen Sensor Market Size, Share & Growth [2031]

Report Description

The global automotive oxygen sensor market size was USD 5.42 Bn in 2022 and is likely to reach USD 10.08 Bn by 2031, expanding at a CAGR of 7.10% during 2023–2031. The market growth is attributed to the growing safety standards and the demand for the product across the world.

An automotive oxygen sensor is a device used to monitor the amount of ideal oxygen in the exhaust gas system from the internal combustion engine of a vehicle. The records of physical changes in the atmosphere are gathered in the automotive electronic control unit (ECU) and action is taken accordingly. The catalytic converter functions conveniently only when the air-fuel ratio is maintained. The electronic fuel injection system and emission control work better when oxygen sensors are used, especially in modern vehicles.

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Vehicles require reliable sensors, which trigger an alert to warn the drivers about the low quality of air when oxygen in the atmosphere lowers under a particular threshold. It is an important part of an automobile system that ensures the comfort, safety, and operation of the vehicle. Oxygen sensor enhances the performance & operations of the automobile and provides better accuracy, resolution, and good stability. The sensors increase the durability of the vehicles and keep track of harmful automobile emissions.

The report finds that the COVID-19 pandemic moderately impacted on the automotive oxygen sensor market. The market growth decreased, due to a sharp decline in demand from the automobile industry, owing to the lack of timely supply of product. Preventive measures imposed by governments across countries to curb the virus spread led to the prolonged shutdown of the manufacturing unit, which plummeted the market growth.

The significant growth was witnessed during the 2^nd wave of pandemic. The market growth slightly increased, owing to the rising adoption of advanced vehicles after the relief of the travel restrictions. The rising pollution led to raised environmental concerns among population, which boost the demand for oxygen sensor. The sales of oxygen sensors and advanced technologies are anticipated to grow, due to the increasing disposable income of consumers.

Automotive Oxygen Sensor Market Dynamics

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Key Drivers

Increasing urbanization has increased the need for environment-friendly provisions in the automobile industry. The strict government norms regarding carbon emissions of vehicles are expected to increase the demand for oxygen sensors. Growing inclination towards technology demands for vehicles with advanced features. Furthermore, rapid expansion of automobile industries is projected to propel the market in the coming years.

Existing Restraints

The increase in complexity of aftermarket maintenance along with the high cost, due to the presence of other electronic components may hinders the market growth. Climatic conditions and road systems for different locations are projected to affect the efficiency of the sensors.

Emerging Opportunities

Technological advancements in the automobile sector is expected to create immense growth opportunities in the market. Growing demand for luxurious vehicles equipped with innovative sensor system, microelectronics, and semiconductors are expected to fuel the market growth.

Scope of the Automotive Oxygen Sensor Market Report

The market report includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Automotive Oxygen Sensor Market Segment Insights

Material Segment Analysis

Based on material, the automotive oxygen sensor market is divided into zirconia sensor, wideband zirconia sensor, and titania sensor. The titania sensor segment is expected to expand at a significant growth rate during the projection period as this sensor responds faster and is durable in nature. It consists of ceramic titania (titanium oxide). The sensor does not require any sample of air from the atmosphere to operate efficiently.

The zirconia sensor segment is anticipated to grow at a rapid pace during the forecast period. It has two electrodes that provide output voltage and gives the necessary amount of oxygen to the exhaust as compared to the atmospheric air.

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Vehicle Segment Analysis

On the basis of vehicle, the market is segmented into passenger cars and commercial vehicles. The passenger cars segment is expected to register a robust growth rate during the forecast period, due to the rising sales of used cars. In 2020, countries such as US and India witnessed exceeding sales of used cars over new passenger cars. Rising adoption of luxury and sport cars are likely to boost the segment growth.

The commercial vehicles segment is projected to grow significantly, due to the high rate of rental service providers for long-route traveling in developing countries. Commercial vehicles are exposed to tough conditions including extreme terrains, rough roadways, and weather changes, where the oxygen concentration needs to be observed for safety and environmental purposes. This is expected to create a high demand for automotive oxygen sensors.

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Distribution Channel Segment Analysis

In terms of distribution channel, the market is bifurcated into online and offline. The offline segment is estimated to hold a key market share in the coming years as it enables dealing with the customers directly and customizing according to their preferences. It includes convenient stores, specialty stores, showrooms, and other retail outlets. It provides better customer service and assistance with vehicle accessories. Instant gratification and easy availability of products are likely to boost the segment growth.

The online segment is expected to expand at a significant pace in the coming years as it facilitates the availability of options for product selection, discounts, and ease of delivery. Wide distribution networks and more options of products and customization available on online platform drives the segment growth. Rapid development in the online distribution channel and the emergence of various e-commerce platforms are expected to accelerate the market.

Sales Channel Segment Analysis

Based on sales channel, the market is fragmented into original equipment manufacturer and aftermarket. The original equipment manufacturer (OEM) segment is projected to register a considerable CAGR during the forecast period, due to the rising demand for sensors in modern automobiles. The growth of the segment is further attributed to the growing need for mandated sensor-based features including vehicle location tracking, automatic vehicle speed control, and clearing surrounding view.

The aftermarket segment is anticipated to grow at a significant CAGR during the projection period, owing to the rising demand for durability and lifespan of vehicles. The average life of a car is around 12 years or 2,00,000 miles. Aftermarket enhance the durability of the vehicles while considering environmental safety and sustainability.

Regional Analysis

In terms of region, the global automotive oxygen sensor market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific accounted for a key share of the market in 2021, due to the growing automobile industry in the region. The market growth is led to effective sales & production, and government regulations regarding environmental safety, and pollution.

The market in North America is anticipated to expand at a rapid pace during the forecast period. This growth is attributed to the increasing sales of luxurious vehicles in the countries like US and Canada. The growing sales of passenger cars and the need for safety regulations in the region are expected to boost the market growth.

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