Pattern analysis! Analysis of the current situation and competition in the intelligent sensor industry/market

Summary: As a bridge between objects and networks, intelligent sensors are at the core of the entire architecture of the Internet of Things and 

have broad prospects in various fields. In recent years, China has vigorously supported intelligent sensor technology and industry, and has 

successively launched special policies to support intelligent sensors, promoting the rapid development of the domestic intelligent sensor 

industry. Data shows that in 2023, the size of China's smart sensor market has grown from 78.39 billion yuan in 2019 to 142.96 billion yuan, 

with a compound annual growth rate of 16.21%.

Keywords: intelligent sensor industry chain; Market size of intelligent sensors; The development trend of intelligent sensors

1、 Industry Overview

According to the national standard GB/T 33905.3-2017, intelligent sensors refer to sensors that have bidirectional communication means 

with external systems, used to send measurement and status information, receive and process external commands. In short, intelligent 

sensors are system level products that integrate sensing units, communication chips, microprocessors, drivers, software algorithms, etc. 

They have functions such as information collection, processing, exchange, and storage, and are characterized by high accuracy, resolution, 

reliability, adaptability, and cost-effectiveness.

There are many classification methods for intelligent sensors, which can be classified according to the detection object, working principle, 

measurement method, action form, output signal, and other ways. Among them, intelligent sensors can be roughly classified into three 

categories based on the effects used to convert external input signals into electrical signals: physical quantity intelligent sensors, chemical 

quantity intelligent sensors, and biological intelligent sensors.

Intelligent sensor classification

In recent years, emerging industries such as the Internet of Things and mobile Internet have developed rapidly. As the basic core components 

of the perception layer of the new generation of information technology industry such as the Internet of Things, artificial intelligence and 

industrial Internet, intelligent sensors are in a rapid development stage. Entering the 14th Five Year Plan period, the country has introduced 

a series of policies to support the development of intelligent sensors, with a focus on accelerating breakthroughs and iterative applications 

in basic theories, algorithms, equipment materials, and other research and development. Under the guidance of central policy planning, 

local governments in China have also successively introduced corresponding policies, focusing on supporting regional intelligent sensor 

enterprises to innovate and break through, and promoting industry development and upgrading. For example, on April 25, 2024, the 

Shenzhen Bureau of Industry and Information Technology issued the "Implementation Rules for the Special Support Plan for the Intelligent 

Sensor Industry of the Shenzhen Bureau of Industry and Information Technology", which proposed four directions for special support for 

the intelligent sensor industry, namely one-time engineering cost subsidy projects, national funding supporting projects, standard system 

certification subsidy projects, and joint research and development award projects for application enterprises and R&D enterprises. The 

policy support system for the development of the intelligent sensor industry in the city has been further refined, and the policy support 

has been further strengthened.

The Evolution of Policies in China's Intelligent Sensor Industry

2、 Analysis of upstream and downstream of the industrial chain

The upstream of the intelligent sensor industry chain mainly includes the supply of raw materials and production equipment. Among them, 

the raw materials are mainly electronic materials such as chips, circuits, power supplies, microcontrollers, sensitive components, as well as 

hardware and coating materials. In electronic raw materials, chips, as the core control components of smart sensors, have a certain impact 

on the production and manufacturing of sensors. In order to ensure product quality stability and improvement, enterprises in the sensor 

industry have a certain purchasing demand for high-end chips; Except for chips, the market competition for other electronic raw materials i

s fierce, with sufficient supply and stable quality of raw materials. The cost of hardware and coating materials has a relatively small impact 

on the sensor manufacturing process, and the market supply is sufficient.

The midstream of the industrial chain consists of various intelligent sensor processing, manufacturing, packaging, and testing companies,

 which are key links that directly affect the application scope and product quality of intelligent sensors. The downstream of the industrial 

chain refers to the application areas of intelligent sensors, including consumer electronics, industrial control, automotive electronics, 

medical electronics, etc. With the continuous advancement of industries such as industry, automotive, healthcare, and the Internet of 

Things, the demand for smart sensors will be further stimulated.

Intelligent Sensor Industry Chain Map

1. Upstream of the industrial chain

According to statistics, by 2023, the EDA market size in China has increased to around 12.3 billion yuan. There is a wide demand for EDA 

applications in China. However, it is worth noting that the EDA industry has high barriers in terms of technology, talent reserves, user 

collaboration, and capital scale. After more than 30 years of industry development, foreign manufacturers have formed strong technological 

and market accumulation; However, the development of domestic EDA enterprises in China started relatively late, with insufficient 

technological reserves and low market share. Therefore, the domestic EDA market still heavily relies on international giants such as 

Cadence, Synopsys, Siemens EDA, etc., resulting in a high overall market concentration. In recent years, with the increasing international 

restrictions on the development of China's chip industry, the attention of the country and the market to the domestic EDA industry has 

continued to increase, and the coordination between upstream and downstream has significantly strengthened. Domestic EDA enterprises 

have gradually emerged under various favorable influences such as industrial policies, industrial environment, investment support, industry 

demand, and talent return. The local EDA industry has developed rapidly, providing a good software foundation for the development and 

upgrading of the intelligent sensor industry.

Changes in the Scale of China's EDA Market from 2017 to 2023

Semiconductor materials and semiconductor equipment are located in the upstream supply chain of the intelligent sensor industry and 

are the core foundation of semiconductor manufacturing processes. In recent years, driven by strong demand for semiconductor products, 

the global demand for semiconductor materials and semiconductor equipment applications has significantly increased, and markets in 

various fields have begun to accelerate their development. Especially with the increasing policy support for the development of China's 

semiconductor industry, the R&D investment of domestic semiconductor enterprises is increasing, the localization process of the industry 

is further accelerating, and the construction of the industrial ecological chain is becoming more and more perfect, providing a solid 

material and equipment foundation for the development of China's intelligent sensor industry. Data shows that the size of China's 

semiconductor equipment market has grown from 96.84 billion yuan in 2019 to 313.6 billion yuan in 2023, with a compound annual 

growth rate of 22.63%.

Changes in the scale of China's semiconductor equipment market from 2019 to 2023

Related report: "Market Monitoring and Development Trends Analysis Report on China's Intelligent Sensor Industry" released by Zhiyan 

Consulting

2. Downstream of the industrial chain

From the perspective of application fields, currently intelligent sensor products in China are mainly used in automotive electronics, 

industrial manufacturing, network communication, consumer electronics, and medical fields, accounting for 24.2%, 21.1%, 21%, 14.7%, 

and 7.2% respectively. Among them, the automotive electronics market has the highest demand for the application of intelligent sensors, 

and with the development of new automotive markets such as new energy vehicles, the types of demand for intelligent sensors in the 

automotive electronics field are still expanding.

Proportion of downstream applications of intelligent sensors in China

According to data from the China Association of Automobile Manufacturers, the annual production of new energy vehicles in China will 

reach 9.587 million units in 2023, a year-on-year increase of 35.83% and a compound annual growth rate of 51.77% compared to 2015; 

The annual sales of new energy vehicles in China reached 9.495 million units, a year-on-year increase of 37.87%, and a compound annual 

growth rate of 52.12% compared to 2015. The large-scale development of the domestic new energy vehicle industry has become a trend. 

Under this development trend, the demand for intelligent sensor products in China's market will continue to grow in the future, increasingly 

driving the expansion of the domestic intelligent sensor market.

Production and sales of new energy vehicles in China from 2015 to 2023

3、 Analysis of the Current Status of Industrial Development

Since the 1950s, sensor technology has gone through three generations of development, from structural sensors to solid sensors, and then 

to the stage of intelligent sensor development. Currently, it has fully penetrated various industries such as automobiles, industrial automation, 

medical environmental protection, and consumption, and the global intelligent sensor market has grown rapidly. According to statistics, 

the global smart sensor market has grown to 48.93 billion US dollars in 2023, a compound annual growth rate of 11.19% compared to 2019.

Changes in the Global Smart Sensor Market Size from 2019 to 2023

As a bridge between objects and networks, intelligent sensors occupy a central position in the entire architecture of the Internet of Things 

and have broad prospects in various fields. In recent years, China has vigorously supported intelligent sensor technology and industry, 

and has successively launched special policies to support intelligent sensors, promoting the rapid development of the domestic intelligent 

sensor industry. Data shows that in 2023, the size of China's smart sensor market has grown from 78.39 billion yuan in 2019 to 142.96 

billion yuan, with a compound annual growth rate of 16.21%.

Changes in the scale of China's smart sensor market from 2019 to 2023

The product categories of smart sensors mainly include MEMS sensors, CIS image sensors, radar sensors, RF sensors, fingerprint sensors, 

etc. From the perspective of market product applications, the main sources of revenue in China's smart sensor market currently come from 

the MEMS sensor and CIS sensor markets, with market shares of 29.7% and 26.5% respectively, accounting for more than half of the total 

market share. In addition, it is worth noting that China's sensor industry has prominent characteristics of "scattered, small, low, weak, and 

chip shortage". About 60% of sensitive components and sensors in the market still rely on imports, and there are significant shortcomings 

in the research and manufacturing capabilities of mid to high end sensors. In this context, although China's smart sensors have made 

significant progress in recent years, the industry's localization rate can easily exceed 30%, and the market is highly dependent on foreign 

imports.

Market share of major product categories of intelligent sensors in China

4、 Industry Development Trends

1. Intelligent sensor technology is becoming increasingly high-precision, miniaturized, and integrated

With the continuous advancement of microelectronics technology, the application scenarios of intelligent sensors in the market are becoming 

increasingly complex and need to meet the needs of portable device applications. Therefore, based on the acceleration of sensor technology 

combined with artificial intelligence algorithms and data processing technology, and the increasing intelligence and automation upgrades, 

future intelligent sensor products will accelerate their upgrading and evolution towards high precision, high reliability, miniaturization, and 

integration.

2. Accelerated expansion of industrial scale

With the rapid development of fields such as the Internet of Things and intelligent manufacturing, the market demand for intelligent sensors 

as key components for information acquisition will continue to grow. Especially in the fields of automotive electronics, industrial manufacturing, 

consumer electronics, etc., the application and market share of sensors are growing rapidly. It is expected that in the next few years, the scale 

of China's intelligent sensor market will maintain a high-speed growth trend, with an average annual compound growth rate at a high level. 

At the same time, with the recovery of the global economy and the development of emerging markets, the export market for smart sensors 

will also usher in a broader development space.

3. The demand for downstream applications of intelligent sensors continues to expand

With the advancement of intelligent upgrading in various industries, in addition to traditional application areas such as industrial automation 

and automotive electronics, intelligent sensors have also shown broad application prospects in fields such as healthcare, environmental 

protection, and consumption. For example, in the medical field, intelligent sensors can be used to monitor patients' vital signs and achieve

 precision medicine; In the field of environmental protection, sensors can be used for environmental monitoring, pollution control, and 

other aspects; In the consumer field, with the popularity of smart homes, smart wearables and other devices, the application of smart sensors 

will also become more widespread. The continuous expansion of these application fields will bring more development opportunities to the 

intelligent sensor industry.

The above data and information can refer to the "Market Monitoring and Development Trends Analysis Report on China's Intelligent Sensor 

Industry" published by Zhiyan Consulting (www.chyxx. com). Zhiyan Consulting is a leading industry consulting agency in China, providing 

one-stop industry consulting services such as in-depth industry research reports, business plans, feasibility study reports, and customized 

services. You can follow the official account of [Smart Research Consulting] to keep abreast of more industry trends every day.