The global virtual sensor market accounted for US$ 419 Mn in 2020 and is expected to reach US$ 3,389 Mn by 2028 with a considerable CAGR of 30.3% during the forecast period of 2021 to 2028.
A virtual sensor is used to analyze the properties of a product or the process conditions using mathematical models that use readings from an additional physical sensor to measure the probable condition or property. A virtual sensor employs mathematical models to estimate processing conditions or product properties. These models assist businesses in estimating desired values by utilizing data gathered from various physical sensors. A virtual sensor network is made up of a group of sensors, with the nodes assigned specific high-speed tasks that play a significant role in the virtual sensors market. Over the forecast period, the growing demand for virtualization architecture in wireless sensor networks is expected to open up lucrative market opportunities.
The growing adoption of predictive maintenance, as well as the potential reduction in time and cost when compared to physical sensors, are driving the market growth.
The growing adoption of IoT cloud platforms is assisting the market's growth.
Data security risks associated with the use of IoT and cloud platforms are limiting the market growth.
Lack of skilled workforce and technical knowledge hampers the market growth.
Promising prospects for virtual sensor technology in the automotive and aerospace industries provide a good opportunity for market growth during the forecast period.
|Market||Virtual Sensor Market|
|Market Size 2020||US$ 419 Mn|
|Market Forecast 2028||US$ 3,389 Mn|
|CAGR||30.3% During 2021 - 2028|
|Analysis Period||2017 - 2028|
|Forecast Data||2021 - 2028|
|Segments Covered||By Component, By Deployment Type, By End-User and By Geography
|Regional Scope||North America, Europe, Asia Pacific, Latin America, and Middle East & Africa|
|Key Companies Profiled||Cisco System, Inc., EXPUTEC, General Electric, Siemens, Schneider Electric, Honeywell International Inc., Algorithmica technologies, Elliptic Laboratories, TACTILE MOBILITY, IntelliDynamics, Aspen Technology Inc., LMI Technologies, and others.|
||Market Trends, Drivers, Restraints, Competitive Analysis, Player Profiling, Regulation Analysis|
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Virtual Sensor Market Dynamics
One of the key aspects driving the demand for the virtual sensor market is the global deployment of IoT and cloud platforms. The increased need for predictive maintenance and the potential savings in time & cost in comparison to physical sensors, as well as the reputation of virtual sensors because of the functional effectiveness they provide in the real world, are driving market growth. The rise in the implementation of such types of sensors is owing to its potential advantages to various industries. This includes efficiency, low cost, predictive maintenance, and faster output, as well as the ability to estimate adverse climatic conditions until the entire problem of data storage is addressed and solutions are tailored and customized for each institution, organization, and application. Virtual sensing solutions are in high demand, especially in the telecoms, aviation, technology, automotive, and media and advertising industries. Furthermore, organizations are implementing virtual sensors to improve overall effectiveness, flexibility, and expandability in their operations. However, virtual sensors are also known to reduce operational costs while increasing operational efficiency.
Market By Component
Based on the Component, the solutions segment is expected to have the largest virtual sensors market share over the forecast period. This is owing to the introduction of Industry 4.0 and the growing demand for cloud-based solutions in manufacturing operations. Such solutions are expected to improve robot assistance operations by monitoring and reducing errors. Furthermore, due to the rising adoption of industrial automation, virtual sensing solutions are in high demand from industry verticals. Manufacturers can use virtual sensor solutions to estimate the quality of products as well as process conditions.
Market By Deployment Type
Virtual sensor network advancements and applications have become a growing concept in a wide range of industrial as well as commercial fields. Because it enables enterprises to implement highly secure, personalized, and complex virtual sensor solutions software, the on-premises deployment segment is expected to hold the largest market share in this market. The primary benefits of on-premises deployment are high efficiency in data sharing between networks, improved sensor management capacity, and low cost and high accuracy for data collection between networks.
Market By End-User
Nowadays, virtual sensors technology is used in a variety of end-use applications, such as smart cities, smart transportation, as well as the manufacturing industry. Their increasing number raises the bar for robust and intelligent solutions that provide relevant data while utilizing as few resources as possible. However, manufacturing and utilities are expected to gain significant traction as a result of the high demand for real-time analysis and monitoring, and tracking systems within operations. Furthermore, IoT in conjunction with Industry 4.0 has resulted in the establishment and advancement of smart manufacturing that is completely automated and equipped with wireless connectivity. As a result, industry 4.0 and IoT will continue to support the growth of the manufacturing segment over the forecast period.
Virtual Sensor Market Regional Overview
Middle East & Africa
Due to the increased use of internet of things cloud models as part of the virtual deployment, North America maintains a dominant position in the global market. The North America region, which includes developed nations such as the United States and Canada, is considered the most advanced in terms of digital technology adoption. The region's increasing growth is mainly due to the presence of key market players, as well as an increasing preference for software as a solution (SaaS). Furthermore, the virtual sensor market is expanding in the region as a result of technological advancements and a willingness among businesses to adopt innovative technologies.
Some of the key players in global virtual sensor market are Cisco System, Inc., EXPUTEC, General Electric, Siemens, Schneider Electric, Honeywell International Inc., Algorithmica technologies, Elliptic Laboratories, TACTILE MOBILITY, IntelliDynamics, Aspen Technology Inc., LMI Technologies, and others.
The estimated value of global virtual sensor market in 2020 was accounted to be US$ 419 Mn and market projected to reach US$ 3,389 by 2028
The projected CAGR of virtual sensor during the analysis period of 2021 to 2028 is 30.3%.
The prominent players of the global virtual sensor market involve General Electric, Cisco System, Inc., Siemens, Schneider Electric, Honeywell International Inc., Algorithmica technologies, Elliptic Laboratories, EXPUTEC, TACTILE MOBILITY, IntelliDynamics, Aspen Technology Inc., LMI Technologies, and others.
North America held the dominating share for virtual sensor during the analysis period of 2021 to 2028
Asia Pacific region exhibited fastest growing CAGR for virtual sensor during the analysis period of 2021 to 2028
The growing adoptions of predictive maintenance, as well as the potential reduction in time and cost when compared to physical sensors, are the prominent factors that fuel the growth of global virtual sensor market
Based on deployment type, on-premises segment held the maximum share for Virtual Sensor market in 2020