Automotive Torque Sensor Market Size, Growth, Global Trends, Forecast 2034

Automotive Torque Sensor Industry Perspective:

The global automotive torque sensor market size was worth around USD 3.2 billion in 2024 and is predicted to grow to around USD 6.0 billion by 2034 with a compound annual growth rate (CAGR) of roughly 6.5% between 2025 and 2034.       

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Key Insights

• As per the analysis shared by our research analyst, the global automotive torque sensor market is estimated to grow annually at a CAGR of around 6.5% over the forecast period (2025-2034).
• In terms of revenue, the global automotive torque sensor market size was valued at around USD 3.2 billion in 2024 and is projected to reach USD 6.0 billion by 2034.
• The increasing demand for safety is expected to drive the automotive torque sensor market over the forecast period.
• Based on the type, the rotary torque sensors segment is expected to capture the largest market share over the projected period.
• Based on the vehicle type, the passenger vehicles segment holds the major market share.
• Based on the technology, the Surface Acoustic Wave (SAW) segment holds the largest market share over the projected period.
• Based on region, North America is expected to dominate the market during the forecast period.

Automotive Torque Sensor Market: Overview

An automotive torque sensor is equipment that indicates how much twisting force (torque) a rotating shaft, like an engine or driveshaft, has. It changes it into an exact electrical signal. People use these sensors for various purposes, such as calibrating transmissions, testing parts like clutches and gearboxes, and gathering data for real-time performance control, especially in electric cars. The automotive torque sensors market is growing due to the global shift towards EVs, the utilization of modern steering systems (EPS), and the increasing preference for safety. The growing utilization of wireless technologies, smaller sensors, and more electric vehicles (EVs) will help this business grow over time.

Automotive Torque Sensor Market Dynamics

Growth Drivers

Why rising demand for electric and hybrid vehicles drives the market growth?

The automotive torque sensor market is growing because more people are interested in electric and hybrid cars. These cars need accurate torque measurements to work quickly, safely, and efficiently across many systems. Torque sensors in electric and hybrid vehicles measure and control the torque that electric motors and drivetrains create. They provide real-time information on how best to distribute power between electric and internal combustion systems. This is very important for maintaining performance, improving the car's response, and reducing energy loss, all of which help the battery last longer and drive farther. Torque sensors also help control the mechanisms that regenerate braking, which saves energy overall.

For instance, according to the figure provided by the International Energy Agency, EV sales exceeded 17 million globally in 2024, which is 25% higher than in previous years.

Restraints

Why does the high cost of advanced torque sensor hinder market growth?

The high price of advanced torque sensors hinders the expansion of the automotive torque sensor industry. It is difficult for cost-conscious car makers to adopt them, and mass-market applications struggle to flourish. Exotic torque sensors, especially non-contact, optical, and magnetostrictive varieties, need high-precision parts, extensive calibration, and rare-earth magnets (like neodymium) and other unusual materials. All of these factors cause production costs to increase significantly. To ensure the parts are reliable and accurate in harsh automotive conditions, extra costs are incurred for precise assembly and testing methods. Because of this, these sensors often cost hundreds to thousands of dollars per, making them not a good choice for cheap or mid-range vehicle platforms.

Also, torque sensors usually need to be customized for specific uses, vehicle platforms, or drive systems. To meet high standards for safety and performance in cars, the customization process requires extensive research and development, specialized engineering design, and long validation cycles. These projects increase costs and time to market, which makes it hard for producers to keep prices low.

Opportunities

How does the growing innovative product launch offer a potential opportunity for the industry growth?

The rising innovative product launch offers a potential opportunity to the Automotive Torque Sensor market during the forecast period. For instance, in May 2024, NSK Ltd. has developed a sound magnetostrictive torque sensor (3rd generation sensor) for automobiles that can predict failures, enhance ride comfort, increase driving mileage, and improve performance by saving weight and space. It also shortens the development time. The new product will be on display at the Automotive Engineering Exposition 2024 Yokohama, which will take place at Pacifico Yokohama from May 22 to 24, 2024. NSK also wants to provide a joint presentation about the product during the 2024 JSAE Annual Congress (Spring), which will be held at the same place.

Challenges

How does the rising competition from alternatives pose a major challenge to market expansion?

The automotive torque sensor industry is struggling to grow because more competitors are offering similar technologies with the same performance, lower costs, or better integration with new car systems. To address the issues with standard torque sensors, automotive suppliers are developing new sensor technologies, including multi-axis force sensors, rotary encoders, MEMS-based sensors, and virtual sensing models that utilize advanced software. These alternatives often offer similar measurement accuracy for many automotive applications, such as steering, braking, and drivetrain control, while reducing physical complexity and cost.

Also, MEMS and virtual sensors, for example, are cheaper to produce and easier to integrate into modern automotive designs, especially those that use electronic control and connectivity protocols. As car companies try to keep prices down and lower the risk in their supply chains, integrated sensor packages with different detecting tasks become more tempting. This makes individual torque sensors less appealing for some models.

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Automotive Torque Sensor Market: Report Scope

Automotive Torque Sensor Market: Segmentation

The global automotive torque sensor industry is segmented based on type, vehicle type, technology and region.

Based on the type, the global automotive torque sensor market is bifurcated into rotary torque sensors and reaction torque sensors. The rotary torque sensors segment is expected to capture the largest market share over the projected period. To make the switch to electric and hybrid cars, electric motors, transmissions, and steering systems need to manage torque accurately. This has led to the use of rotational torque sensors to make sure that the cars are efficient, last longer, and work reliably. Also, developments like smaller designs, longer life, and wireless data transfer make rotational sensors better for use in modern vehicle platforms, robotics, and industrial automation.

Based on the vehicle type, the global automotive torque sensor industry is bifurcated into passenger vehicles and commercial vehicles. The passenger vehicles segment holds the major market share. Torque vectoring, lane-keeping assistance, and stability control are standard technologies in passenger cars that require very accurate torque sensors to function effectively. This trend is getting stronger because people want more self-driving cars. Also, stricter pollution requirements and safety measures mandated by the government are pushing car companies to maximize the efficiency of their engines and powertrains. These functions mainly depend on torque-sensing technology.

Based on the technology, the global automotive torque sensor market is bifurcated into strain gauge, Surface Acoustic Wave (SAW), optical and magnetoelastic. The Surface Acoustic Wave (SAW) segment holds the largest market share over the projected period. SAW torque sensors function without direct mechanical contact, which decreases wear and maintenance, making them suitable for car makers seeking long-lasting and low-maintenance sensor options. Furthermore, these sensors have high resolution and low hysteresis, which is required for precise torque control in electric powertrains, steering systems, and regenerative braking—all of which are critical components in electric and hybrid vehicles.

Regional Analysis

Why does North America dominate the market over the projected period?

North America region is expected to dominate the automotive torque sensor market. The growth in the region is driven by strong automotive and industrial manufacturing base. Major automotive OEMs and tier-1 suppliers are based in North America, especially the United States. They make more than 15 million cars and trucks a year. The enormous number of torque sensors made keeps demand for them high in both passenger and commercial vehicles. The region also has substantial research and development (R&D) capabilities and advanced manufacturing technologies. This makes it possible to add cutting-edge torque sensors to more advanced vehicle systems, such as electric power steering, electric drivetrains, and advanced driver assistance systems.

Also, the growing interest in electric and hybrid cars in North America is increasing the demand for accurate torque sensors. These sensors are essential for managing batteries, improving engine efficiency, and safety systems like electronic stability control. Strict rules about emissions and safety make people want to adopt even more sustainable practices.

Automotive Torque Sensor Market: Competitive Analysis

The global automotive torque sensor market is dominated by players like:

• A&D Company Limited
• Honeywell International Inc.
• Bosch Automotive Service Solutions Inc.
• TE Connectivity Ltd.
• Kistler Group
• Infineon Technologies AG
• Futek Advanced Sensor Technology Inc.
• Vishay Intertechnology Inc.
• Kavlico Corporation
• Allegro MicroSystems LLC
• NSK Ltd.
• S. Himmelstein and Company
• Methode Sensor Technologies
• MinebeaMitsumi Inc.
• ATESTEO GmbH & Co. KG

The global automotive torque sensor market is segmented as follows:

By Type

• Rotary Torque Sensors
• Reaction Torque Sensors

By Vehicle Type

• Passenger Vehicles
• Commercial Vehicles

By Technology

• Strain Gauge
• Surface Acoustic Wave (SAW)
• Optical
• Magnetoelastic

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa