According to a new market report from Transparency Market Research, the Internet of Things (IoT) sensors market was valued at $4.90 billion in 2014 and is expected to reach $34.75 billion by 2023, growing at a CAGR of 24.5 percent.

In terms of type, in 2014, temperature sensors acquired the dominant share of the global IoT sensors market. Temperature sensors are used across a diverse range of applications such as health and fitness wearable devices, smart homes, and weather observation. Thus, the rising demand for temperature sensors across a myriad of end-users is fueling the growth of this market.

IoT sensors are also extensively used across several areas in the automotive industry to enhance safety, reliability, and accuracy. The automotive industry has recognized the importance of connected cars by pairing up with other cars, smartphones, and other smart devices. A swarm of sensors are used in vehicle internals such as GPS sensors, air pressure sensors, vehicle speed sensor, steering angle sensors, and fire detection sensors among others.

The increasing demand for smart consumer electronics, which range from electricity measuring devices to remote sensing devices, smart technology is increasingly becoming part of most consumer electronic devices. Based on application, consumer electronics held the largest share accounting for 22.6 percent of the market in 2014.

Consumer electronics such as smart TVs and smart home appliances are increasingly adopting IoT technology and getting connected. In entertainment electronics, the use of IoT sensors allows users to set up flexible media usage. Moreover, the rising demand for affordable consumer electronics that can be enhanced using IoT technology is augmenting the growth of the consumer electronics segment of the market in developing countries such as the Middle East and Africa and India. This, in turn, will offer lucrative growth opportunities to the global IoT sensors market in the coming years.

North America and Europe represented the largest markets for IoT sensors in 2014, jointly holding more than 60 percent of the global market. Asia Pacific is anticipated to emerge as the fastest growing region in the IoT sensors market due to the increasing use of IoT sensors in smart consumer products and in modern healthcare settings. Governments in emerging nations such as India, China, and South Korea are collaborating with private entities for expanding their cloud services by means of IoT and data center developments, thereby fueling the growth of the Asia Pacific IoT sensors market.

Some of the major players in the IoT sensors market are Infineon Technologies (Germany), STMicroelectronics N.V. (Switzerland), IBM (U.S.), Robert Bosch GmbH (Germany), Honeywell International Inc. (U.S.), Ericsson (Sweden), InvenSense Inc. (U.S.), Libelium (Spain), ARM Holdings Plc. (U.K.) and Digi International Inc. (U.S.) among others.

Monalee Das is a senior web analyst at Transparency Market Research.