According to the report, the global position sensors market is likely to grow from USD 9.5 Billion in 2025 to USD 21.8 Billion in 2035 at a highest CAGR of 7.9% during the time period. Position sensors market is expanding at a fast pace due to increasing demand on accurate motion control, safety-critical usage and novel sensor technology. In March 2025, FORVIA HELLA announced their Universal Angular Sensor, and their CIPOS(r) modular rotary-angle technology, which can be used in construction machinery and carriage systems, has a high resolution despite operating in rough conditions.
In 2024, Infineon introduced its XENSIV TLE49SR angle sensor, which was designed to overcome the interference of the stray field in automotive height balancing and electric power steering systems to allow more reliable operation in demanding chassis applications. SIKO introduced at bauma 2025 the new NEO draw-wire encoders and ultra-compact absolute multiturn encoders with safety certification (e.g. PLd), aimed at mobile machines and autonomous construction equipment. These launches highlight the need among consumers to have smaller, stronger sensors particularly in EVs, robotics, autonomy and automation.
The increasing use of robotics and smart automation systems is a good market indicator in the position sensors market. The autonomous systems, collaborative systems, and robots applied in assembly lines demand accurate measurements of angle and displacement to ensure safe and effective performance. In February of 2025, Mitsubishi Electric announced that the industrial robots would be upgraded with high-precision sensors of their positions, allowing them to move more smoothly and have more control over the process in automotive manufacturing. It illustrates the way the industrial automation is driving the demand towards advanced sensor solutions in the direct manner.
Even with technological development a large number of position sensors are still susceptible to extreme temperatures, vibrations, or electromagnetic disturbances and therefore may not perform well in an aggressive environment. In January 2025, one of the German automotive suppliers complained that it could not roll out some magnetic position sensors in heavy-duty trucks because of reliability problems in high thermal stress. These drawbacks pose challenges to larger applications in rugged environments or raise replacement (or redesign) costs.
Position sensors are finding good opportunities with electric vehicles because they feature in battery management systems, throttle, and motor driving. In March 2025, Tesla stated that it would work more closely with suppliers to incorporate new compact rotary position sensors in steering and brake-by-wire systems, improving accuracy and safety. This EV boom has long term opportunities of sensor manufactures to gain a fast-growing market.
Prominent players operating in the global position sensors market are Allegro MicroSystems, Inc., Amphenol Corporation, ams-OSRAM AG, Analog Devices Inc., Balluff GmbH, Baumer, Bourns, Inc., Curtiss-Wright Corporation, Honeywell International Inc., Infineon Technologies AG, MTS Systems Corporation, Murata Manufacturing Co., Ltd., NXP Semiconductors N.V., Panasonic Corporation, Qualcomm Technologies, Inc., Renesas Electronics Corporation, Renishaw PLC, Sensata Technologies, Inc., SICK AG, STMicroelectronics N.V., TE Connectivity Ltd., Texas Instruments Incorporated, Vishay Intertechnology Inc, ZF Friedrichshafen AG (ZF Sensors), and Other Key Players.
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