The light sensor market is estimated to be valued at USD 4.67 Bn in 2024 and is expected to reach USD 10.24 Bn by 2031. It is estimated to grow at a compound annual growth rate (CAGR) of 11.9% from 2024 to 2031. With rapid advancements in consumer electronics and automation in various industries, the light sensor market is witnessing significant growth.

Market Driver - Integration of Artificial Intelligence and Machine Learning Technologies in Light Sensors

The light sensor market is increasingly being driven by the integration of artificial intelligence and machine learning capabilities within these sensors. With on-device processing and machine learning algorithms, light sensors can analyze light patterns and behaviors over time. This new generation of "smart" light sensors is able to discern contextual information and user activities based on variations in detected light.

Manufacturers are integrating powerful machine learning accelerators and neural network processors directly into light sensor modules. This allows the sensors to train custom AI models without relying on remote cloud connectivity. Tasks like object recognition, gesture detection and ambient environment characterization can now be performed locally by light sensors.

Several applications are driving the adoption of intelligent light sensors. With ongoing advancements in on-device AI, light sensors will soon match the intelligence of standalone smart cameras at a fraction of the size and cost. This makes them an appealing option for a wide variety of applications that require context-aware lighting control and vision capabilities.

Market Driver - Ongoing Miniaturization of Sensors and Increasing Demand for Smart Electronics

Technological progress continues to drive the miniaturization of electronic components, including light sensors. Light sensor manufacturers are leveraging these technologies to decrease sensor sizes while increasing their intelligence. This ongoing miniaturization enables new and expanded use cases while reducing costs.

Miniature ambient light sensors also power power-saving options across consumer electronics, allowing displays and components to activate only when needed. Wearables and augmented reality devices rely on tiny light sensors due to strict size constraints. Miniaturized UV sensors enable features like exposure warnings in sunscreen applications.

The integration of sensors directly onto chips and printed circuit boards, rather than as separate modules, further reduces the footprint needed. This "system-on-chip" approach allows diverse sensing capabilities, edge processing and wireless connectivity to be included within minimal board area.

This in turn drives expanded use within compact form factors like hearables, smart pills, and molecular-scale medical implants. The demand for smarter devices encompassing various sensing abilities will sustain long-term growth prospects for minimized light sensors tailored for new embedded applications.

Market Challenge - Bezel-less screens in smartphones reducing the need for traditional ambient light sensors

One of the major challenges currently faced by the light sensor market is the reduction in the need for traditional ambient light sensors due to the increasing trend of bezel-less screens in smartphones. Smartphone manufacturers are striving to maximize the screen-to-body ratio by reducing the bezels surrounding the display. Hence, the space available for traditional external light sensors located near the top edge of the device is decreasing significantly.

Several OEMs have even started embedding the light sensors underneath the display itself. While this allows for an edge-to-edge screen design without bezels, it makes the sensors susceptible to interference from the surrounding display pixels. This can reduce the sensors' accuracy in detecting ambient light levels.

As bezel-less designs become more mainstream, the demand for discrete external light sensors may take a hit. Companies operating in this segment need to pivot their strategic focus towards designing alternative light sensing solutions suitable for under-display integration to address this challenge.

Market Opportunity - Increased Use of Light Sensors in Vehicles, Particularly for Proximity Detection and Safety Systems

One of the key opportunities for the light sensor market is expected to come from the automotive industry, especially as automakers continue to focus on enhancing vehicle safety features. An increased use of light sensors is envisioned for advanced driver assistance systems (ADAS) that rely on proximity detection and obstacle avoidance functionality.

For instance, light sensors can effectively enable ‘sensory’ capabilities for autonomous emergency braking systems whereby the vehicle can detect any obstruction in its path even in low-light conditions and bring itself to a halt to prevent accidents.

Proximity detection using light sensors is also important for blind spot monitoring on vehicles. With more sophisticated safety and self-driving features becoming standard on new vehicles, the demand for light sensors from automotive OEMs and their suppliers is likely to spike significantly over the coming years. This growing scope of applications in the automotive sector presents a major tailwind for the overall expansion of the light sensor market.

Strategy 1: Focus on product innovation

One of the biggest players, ams AG, focused on developing innovative light sensor solutions to meet the growing demand from various industries like consumer electronics, automotive etc. In 2020, it launched AS7341, a hybrid ambient light and proximity sensor with infrared modulation for stable proximity detection even in bright ambient light conditions.

Strategy 2: Strategic partnerships and acquisitions

ROHM Semiconductor enhanced its product portfolio and expertise in the automotive space through the acquisition of LAPIS Semiconductor in 2018. This strengthened its presence in automotive lighting control solutions. In 2019, it partnered with DENSODENKO to develop next-gen LED light bulbs and lighting control ICs, addressing the growing IoT lighting market.

Strategy 3: Investing in R&D

Vishay Intertechnology invested over 5% of its annual revenues in R&D to continuously innovate and launch new solutions.

Strategy 4: Focus on high-growth application areas

ON Semiconductor focuses on automotive lighting applications like Advanced Driver-Assistance Systems which is a fast-growing segment.

Insights, By Function: Ambient Light Sensing Witness High Adoption with Rise of Smart Homes and Connected Devices

In terms of function, ambient light sensing contributes 35.5% share of the light sensor market in 2024. This is owning to the growing integration of ambient light sensors in smart home appliances and IoT devices. As more consumers adopt connected devices for lighting control, temperature regulation, security surveillance and other functions, the demand for ambient light sensing is increasing tremendously.

Smart home appliances like refrigerators, washing machines and air conditioners are now being equipped with ambient light sensors to automatically adjust their displays based on the surrounding light conditions. Consumer electronic giants are also integrating ambient light sensors as standard features in smart TVs and laptops to offer eye-friendly viewing experiences.

Furthermore, the growth of IoT and home automation solutions is propelling the use of ambient light sensors in products like smart bulbs, smart plugs and wireless switches. Various smart city initiatives focusing on energy efficiency and public safety through intelligent street lighting are further boosting the ambient light sensor market.

Insights, By Application: Growth of Infotainment Systems in Vehicles

In terms of application, consumer electronics contributes 36.5% share of the light sensor market in 2024. This is primarily due to the rising adoption of light sensors in infotainment and navigation systems of automobiles. Modern vehicles now come equipped with advanced connectivity and multimedia features enabled by sophisticated displays, touchscreens and human-machine interfaces (HMIs).

Light sensors play a vital role in automatically adjusting the display brightness based on changing ambient light conditions to facilitate safer and more convenient driver experience. They are also used in proximity detection, gesture recognition and IR detection applications within vehicle infotainment units.

With automakers focusing more on enhancements like enhanced caller ID, 3D maps, voice recognition and in-car payments, the integration of various light sensors in automotive electronic control units (ECUs) and instrument clusters is growing rapidly.

Insights, By End Use: Advancements in Image Sensor Technology

In terms of end use, digital applications contribute the highest share of the light sensor market mainly attributed to technological advancements in CMOS and CCD image sensors. Compared to traditional analog light sensors, digital light sensors provide higher resolution, sensitivity and accuracy backed by sophisticated onboard ADC circuits and digital signal processors. Digital outputs also make it easier for light sensing solutions to be integrated into various microcontroller designs.

Advances like backside illumination and multi-pixel photon counting are also enhancing the low-light capabilities of digital light sensors. Their use across consumer electronics such as smartphones, drones and virtual reality headsets is further accentuated by capabilities like proximity detection using visible light communication.

Rising demand for digital imagery across various industries like automotive, industrial, healthcare and commercial is propelling the digital light sensor market.

• Asia Pacific Region Share in Light Sensor Market in 2023: Over 36%, driven by large-scale use of consumer electronics and regulations in countries like India and China.
• Digital Segment Share: Dominated in 2023, contributing more than 60% to the light sensor market.

The major players operating in the light sensor market include ams-OSRAM AG, Analog Devices, Inc., Broadcom Inc., ELAN Microelectronics Corp., Everlight Electronics Co., Ltd., Rohm Co. Ltd., Samsung Electronics Co., Ltd., Sharp Corporation, Sitronix Technology Corporation, STMicroelectronics, and Vishay Intertechnology, Inc.

• In March 2024, SICK, a global sensor manufacturer, launched the W10 photoelectric proximity sensor. This new sensor is designed for use in automation technology, offering enhanced functionality for industrial applications, such as material handling, packaging, and assembly processes.
• In May 2023, DANLERS, CALUMINO, and INGY launched an innovative intelligent lighting control sensor incorporating AI and thermal sensor technology.
• In November 2022, ams-OSRAM AG introduced the AS7331 UV-A/B/C sensor. This sensor is designed for applications such as UV curing, phototherapy, and environmental monitoring. It features a three-channel configuration, which allows it to detect ultraviolet (UV) light across the UV-A, UV-B, and UV-C ranges.

• By Function
  • Ambient Light Sensing
  • Proximity Detection
  • RGB Color Sensing
  • Gesture Recognition
  • IR Detection
• By Application
  • Consumer Electronics
  • Automotive
  • Industrial
  • Healthcare
  • Others
• By End Use
  • Digital
  • Analog