North America Speed Sensor Market size exceeded USD 2.5 billion in 2020 and is expected to witness 4.5% CAGR from 2021 to 2027. The market growth is driven by the rising adoption of advanced safety systems such as automated braking system, cruise control, electronic stability control, etc., to manage road safety.
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Speed sensors measure and control the acceleration and wheel rotation speed, thereby increasing their demand in various autonomous safety systems. Active wheel speed sensors are also witnessing high adoption in brake control systems to detect the rotational speed of vehicles through the non-contacting measurement technology. Several companies are engaged in developing innovative speed sensors to address the rising safety demand in the automotive sector.
The variable reluctance segment will observe around 2.5% growth rate during the forecast period, led by the rising integration of speed sensors in jet engines for turbine speed measurement application. Variable reluctance sensors offer several benefits such as high durability, low cost, and robust speed sensing in high temperature environments. It is majorly used as a proximity speed sensor for engine control unit and transmission control unit in automotive applications.
The U.S. speed sensor market is set to expand at a CAGR of 5% through 2027. This growth can be attributed to rising federal government investments in the development of armed drones to enhance its military and defense forces.
For instance, in May 2021, the Department of Defense (DOD) received a budget allocation of USD 7.5 billion from the U.S. government. This funding is used for R&D on combat drones, Unmanned Aerial Vehicles (UAV), and unmanned surveillance systems. Speed sensors are installed in UAVs and drones to ensure that propellers and brushless DC motors rotate uniformly while maintaining control over flying speed.
Key players involved in the market include Honeywell International Inc, Infineon Technologies AG, NXP Semiconductors, and CTS Corporation, among others. These companies are focusing on new product developments and innovative solutions to gain a competitive edge in the market.