According to the new research report "Time-of-Flight (ToF) Sensor Market by Resolution, Application (Augmented Reality & Virtual Reality, LIDAR, Machine Vision, 3D Imaging & Scanning, and Robotics & Drone), Product Type, Vertical and Geography - Global Forecast to 2025", published by MarketsandMarkets, the Time-of-Flight (ToF) Sensor Market is expected to grow from USD 2.8 billion in 2020 to USD 6.9 billion by 2025, at a CAGR of 20.0%.
The growth of this market is mainly driven by the increasing demand for ToF sensors from the automotive industry and growing adoption of 3D cameras in smartphones and increasing use of such smartphones. The increasing adoption of 3D machine vision systems in industries such as aerospace & defense, consumer electronics, and healthcare and growing deployment of Industry 4.0 are expected to provide major opportunities for the growth of the ToF sensor market.
AR & VR application to witness highest CAGR during 2020–2025
The implementation of ToF sensors in 3D cameras will boost the ToF sensor market growth for AR and VR applications. Additionally, the use of AR heads-up displays (HUDs) in automobiles ensures comfortable and safe driving. AR-based HUDs allow drivers to see the virtual information projected on the display. AR-based HUDs enable ADAS to display visual warning alerts. The rising demand for AR HUDs and projectors is driving the growth of the ToF sensor market. Simiarly, VR systems are increasingly being used in entertainment, education, healthcare, and industrial applications, among many others. VR helps users to simulate complex tasks in a virtual space. The use of sensing technology in a VR devices makes it easier for users to have a realistic experience in a virtual space through sophisticated and accurate location/motion detection. For that, VR systems use ToF sensors for measuring the distance to an object.
Consumer electronics vertical expected to exhibit highest CAGR in ToF sensor market from 2020 to 2025
The ToF sensor market for the consumer electronics vertical is expected to grow at the highest CAGR from 2020 to 2025. Rising demand for 3D-enabled devices in consumer electronics and increasing users of smartphones are the key factors for the growth of the ToF sensor market for consumer electronics. Application areas of ToF sensors in consumer electronics include smartphones, wearables, tablet PCs, cameras, etc. Various ToF sensors such as image, position, and ultrasonic sensors are used in these consumer electronic devices. High reliability, low-power consumption, low cost, and easy integration are the drivers for the integration of 3D sensing technology in consumer electronics. The rising demand for these consumer electronic devices is surging the demand for ToF sensors, which, in turn, gives an impetus to further advancements in ToF technology.
TOF sensor in APAC during forecast period
The ToF sensor market in APAC is expected to grow at the highest CAGR during the forecast period owing to the rapid industrialization and high adoption of consumer electronics in developing countries such as China, India, and the Philippines in this region. The easy availability of low-cost labor has led to increased manufacturing of different electronic components and devices in this region, thereby leading to the emergence of APAC as a global manufacturing hub. This, in turn, has led to increased demand for ToF sensors for monitoring and inspection applications in the manufacturing industry of the region.
Key players in the time-of-flight (ToF) sensor market are Texas Instruments (US), STMicroelectronics NV (Switzerland), Infineon Technologies AG (Germany), Panasonic Corporation (Japan), Teledyne Technologies Incorporated (US), Keyence Corporation (Japan), pmd Technologies AG (Germany), Sharp Corporation (Japan), Sony Corporation (Japan), and Melexis NV (Belgium). These players are increasingly adopting growth strategies such as product launches and developments, partnerships, collaborations, agreements, and acquisitions to develop and introduce new technologies and products in the market.