The global environmental sensor market size is estimated to grow from USD 1.4 billion in 2021 to USD 2.7 billion by 2027, at a CAGR of 10.3%.

The industrial supply chain was disrupted in 2020 as a result of various governments' lockdowns and workforce shortages in these industries as a result of travel restrictions, which would have an impact on the environmental sensor industry.
Despite the fact that the market was affected in 2020, it is predicted to fully recover by 2021. The key driver driving market expansion is rising health-related concerns due to environmental pollution, as well as increasing adoption of environmental sensors in consumer electronics and residential sectors.

Likewise, the use of environmental sensors in various applications and verticals due to stringent environmental regulations imposed by various governments to reduce air pollution and ongoing technological advancements in environmental sensors is expected to propel the demand for the said market during the forecast period.

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There have been several events in the past that have raised concerns about the health and safety risks associated with the release of hazardous gases into the atmosphere. The Environmental Protection Act of 1986, enacted in the aftermath of the Bhopal Gas Disaster of 1984, has expanded the use of environmental monitoring systems in India. Various types of pollution, including as air, water, land, light, and sound, have increased as a result of global advances. Air pollution is the most dangerous to human health and the most difficult to control of the three. As a result, it must be watched and regulated from all angles.

Air quality sensors in environmental sensor market for type is expected to grow at a higher CAGR during the forecast period. The growth in use of air quality monitoring systems is mainly attributed to rising awareness about indoor and outdoor air pollution levels and taking considerable measures for their control and minimization. Increasing awareness about air pollution among the residential and commercial applications has resulted in the rising adoption of portable air quality monitors and air quality filters. Furthermore, rising installation of weather monitoring stations across various countries is also driving the need the market for air quality sensors.

The environmental sensor market for the portable type of environmental sensors is expected to grow at the highest CAGR. Portable sensors are mainly used in devices such as portable monitors, wrist bands, fitness bands, smartphones, and tablets. Due to the increasing use of portable sensors in a few fast-growing applications, it is expected that the market for these sensors would grow at the highest CAGR. Increasing awareness about air pollution and rising environmental concerns at indoor as well as outdoor applications has resulted in the rising adoption of portable air quality monitors and air quality filters

During the period 2021–2027, the Asia Pacific market is predicted to grow at the fastest rate. One of the primary driving reasons for market growth is rising environmental pollution and health-related concerns, which has raised the usage of environmental sensors. Due to an increase in safety and security concerns across countries, particularly India and China, the industry has a significant growth potential. The greatest end user of HVAC equipment is APAC. Growing building activities and the need for infrastructural developments in various regions as a result of increased population and urbanisation drive the HVAC industry, which in turn drives demand for environmental sensors in APAC.