Temperature Sensor Market is expected to reach US$ 9.66 billion by 2030

Increasing Number of Data Centers to Provide Opportunities for Temperature Sensor Market During 2022–2030

According to our latest market study on “Temperature Sensor Market Size and Forecast (2020–2030), Global and Regional Share, Trends, and Growth Opportunity Analysis — by Type, Connectivity and End User," the market was valued at US$ 6.01 billion in 2022 and is expected to reach US$ 9.66 billion by 2030; it is estimated to record a CAGR of 6.3% from 2023 to 2030. 

A growing number of data center construction activities worldwide is accelerating the market. For instance, in February 2023, the Government of Maharashtra signed a memorandum of understanding (MoU) with UK-based Ark Data Centers and Japan's Nippon Telegraph and Telephone (NTT) for the construction of two new data centers in Pune. The MoU with NTT covers an investment of US$ 2.5 billion for the development of data centers in Pune, Mumbai, Thane, and Nagpur. This project generated the demand for temperature sensors for monitoring temperature ranges in data centers. Further, below mentioned are a few of the largest data center projects of 2023:

Temperature Sensor Market Analysis— by Geography, 2022

Source: The Insight Partners Analysis

• In June 2023, Amazon.com, Inc. announced plans to invest US$ 7.8 billion by 2030 to expand its construction of a data center in Ohio. This data center aims to power with at least 95% renewable energy. The company is committed to reaching net-zero carbon emissions by 2040 and powering operations with 100% renewable energy by 2025.
• In May 2023, Prime Data Centers announced the expansion of the Phoenix market in Avondale, Arizona. Prime Phoenix is a 66.5-acre campus featuring five data centers having 210 megawatts of critical power and 1.3 million square feet of space. The project will result in a high-density, sustainable data center campus that is designed to support hyperscale services providers, large Internet brands, worldwide technology enterprises, and Fortune 500 businesses.
• In April 2023, Microsoft made a filing for its third data center in Mecklenburg County, Virginia. The company is planning to construct a six-building data center campus to increase the current capacity used for cloud-based computing.

Data centers are increasingly using temperature sensors to monitor key environments. A change in the data center’s temperature results in overheating and can cause downtime. The replacement of damaged equipment may incur huge expenses for the data center during downtime. For instance, according to the ASHRAE report of 2021, a data center requires a minimum of six temperature sensors per rack for monitoring the air inflow and exhaust temperatures. Similarly, high-density data centers most commonly use more than six temperature sensors per rack to measure more accurate temperature ranges, especially ambient temperature of 80°F. Thus, the growing number of data center construction activities has surged the demand for temperature sensors for measuring temperate ranges and overheating equipment, positively influencing the temperature sensor market growth.

Texas Instruments Inc., Siemens AG, TE Connectivity Ltd, Amphenol Corp, Analog Devices Inc., Emerson Electric Co., Microchip Technology Inc., Panasonic Holdings Corp, Honeywell International Inc., and NXP Semiconductors NV are among the key players profiled in the temperature sensor market report. Several other major players were studied and analyzed to get a holistic view of the market and its ecosystem. The report also provides detailed market insights, which help the key players strategize their growth.

The temperature sensor market report includes growth prospects owing to the current temperature sensor market trends and their foreseeable impact during the forecast period. The report also includes a temperature sensor market forecast by component, deployment, application, end user, and regions from 2022 to 2030.

The APAC temperature sensor market is segmented into Australia, China, Japan, India, South Korea, and the Rest of APAC. In terms of revenue, China dominated the APAC temperature sensor market share. The market is likely to surge as APAC is one of the fastest-growing regions in terms of semiconductor manufacturing. According to the Asia Pacific Foundation, China and Taiwan have significantly boosted investments in chip manufacturing, which is expected to benefit South Korea and Japan. rocesses such as deposition, photoresist, lithography, ionization, silicon wafer, and packaging play an important role in the development of any chip. Temperature sensors are used in these processes to measure and monitor the temperature, which further boosts the market growth. Also, the Taiwan Semiconductor Manufacturing Company announced its plans to set up its first factory in Japan, which aligned with the Japanese Prime Minister's agenda of prioritizing semiconductor manufacturing to expand domestic supply chains.

Meanwhile, the South Korean government incentivized competition across several companies to invest in its semiconductor industry by providing tax benefits. As a result, in 2021, companies in Korea planned to invest ~US$ 609 billion into their semiconductor industry. Temperature sensors are used widely in semiconductor manufacturing to maintain the optimal temperature at each stage of the process. Thus, the rising adoption of temperature sensors is anticipated to positively contribute to the growing temperature sensor market share in Asia Pacific.

The expansion of the data center industry is also driving the demand for temperature sensors in Asia Pacific. Various companies are launching new data centers in the region. For example, the flagship 20 MW greenfield data center, MAA10, was launched in January 2024 in Chennai, India, in a potential 100 MW campus. Additionally, Digital Connexion acquired another 2.15 acres of land in Mumbai, India, to expand its footprint with the planned construction of a 40 MW data center. Similarly, in December 2023, China started assembling the world's first underwater commercial data center off the coast of Sanya on Hainan Island. Also, Equinix announced that it is launching a new hyperscale data center site in Korea in Q1 2024. Temperature sensors are vital for maintaining a stable and controlled thermal environment, optimizing energy usage, preventing equipment failures, and ensuring overall reliability and efficiency in data centers. Thus, such an increasing number of data centers in the region will flourish the temperature sensor market growth in Asia Pacific.

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