Key Market Dynamics - Growth Opportunities for Occupancy Sensor Market

The occupancy sensor market is projected to grow from USD 1.9 billion in 2020 to USD 3.6 billion by 2025 at a CAGR of 13.3%.

The key factors contributing to the growth of the occupancy sensor market include increasing demand for energy-efficient devices and favourable government policies regarding energy saving as well as the development of accurate and efficient sensors that can be configured and programmed for HVAC systems. Furthermore, the growing trend of green buildings across the world is among the significant factors that are likely to create growth opportunities for the market.

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Market Dynamics:

Driver: Encouraging government policies toward energy saving

Private, public, and government firms are active participants when it comes to energy saving and proper consumption of resources. With regard to this, government bodies of all major regions (North America, Europe, and APAC) have initiated many laws, policies, and programs related to the efficient use of energy and energy saving. In such energy-saving initiatives, most of the time occupancy sensor is also considered as one of the major energy-saving devices. For instance, in the European Green Light Programme (2012), the European Commission instructed the installation of energy-efficient lighting technologies, such as adding occupancy sensors, day lighting sensors or other controls in building facilities.

Restraint: False triggering of a switch by sensors

Since the last decade, false triggering of a switch in occupancy sensor is one of the major restraining factors for the growth of the studied market. Sensors are more susceptible to false triggering due to any movement in the space. They are sensitive to all types of motions; therefore, they also react to non-occupant movement. False triggering may occur due to sunlight, anyone passing through adjacent spaces in the sight of the sensor or any machinery that heat up objects. Sensors also do not work efficiently if the office is partitioned. A continuous on-off of sensors hampers the life of lighting systems and related components.

Opportunity: Expected incorporation of lighting controllers with in-built data connectivity technology

The lighting control market has seen significant growth in the past few years. The market includes a considerable number of products, including dimmers, occupancy sensors, timers, daylight sensors, and relays. These products are used either independently or in an integrated form. They can be integrated with home automation systems through wired and wireless technologies. To enable their automated operations, lighting controllers have to be externally integrated with communication protocols. However, lighting control manufacturers are now manufacturing products with in-built data connectivity. These controllers can be operated directly without external communication protocols and connectivity. This is expected to create considerable demand for such products, which would, in turn, create an opportunity for occupancy sensor manufacturers.

Challenge: Lack of awareness regarding benefits of occupancy sensors

In spite of widespread promotion, the development of occupancy sensors is lower than other lighting technologies such as motion sensors and vacancy sensors. It suffers from the difficulty of accurately predicting the occupancy of the occupant. The performance of an occupancy sensor is dependent on user occupancy, lighting control patterns, and sensor selection. Additionally, it is also considered to be expensive, and the awareness regarding cost-related benefits of occupancy sensors is low. This acts as a challenge for the occupancy sensor market as it affects the penetration rate in developing and underdeveloped economies.