The global virtual sensors market is projected to achieve a total value of USD 4.7 billion by the year 2030, growing at a compound annual growth rate (CAGR) of 27.9% between 2025 and 2030, according to the latest report published by Grand View Research, Inc. The increasing application of virtual sensors in areas such as human activity recognition and the healthcare industry is one of the primary factors contributing to the market’s expansion. Additionally, the growing integration of cloud platforms with Internet of Things (IoT) applications is significantly propelling market growth, offering new ways for businesses to analyze, monitor, and optimize operations.A virtual sensor is a software-based component designed to fulfill specific tasks, offering insights through meta-analysis of environmental conditions. These sensors can vary from basic to highly sophisticated circuits, capable of adapting and modifying their functions to generate desired outcomes. Unlike physical sensors, virtual sensors do not exist as tangible devices. Instead, they operate on two main types of input: data from physical sensors and commands or inputs from users. Despite being intangible, their capabilities surpass traditional physical sensors, as they can function both independently and in coordination with other systems, often regardless of the presence of physical hardware.
Emerging trends in the virtual sensors market include a surge in product launches and partnership agreements aimed at technological advancement. For instance, GE (General Electric) has introduced virtual sensors tailored for Predix, a cloud-based industrial platform designed to optimize facility operations. Furthermore, Siemens AG is actively developing digital twin technology, which plays a key role in its virtual sensing strategy. The company’s Simcenter solution integrates system simulation with 3D computer-aided engineering (CAE) to forecast performance metrics early in and throughout the lifecycle of a product.
Within the market, the solutions segment is forecasted to capture the largest share during the prediction period. This dominance is largely driven by the onset of Industry 4.0, which emphasizes automation and data exchange in manufacturing, alongside the increasing need for cloud-based solutions in production facilities. These virtual sensor solutions are expected to enhance robotic guidance systems, contributing to accident prevention and increased operational efficiency.
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Virtual Sensors Market Segments Highlights:
The services segment is expected to grow at a higher CAGR throughout the forecast period. This rise is linked to an increasing number of training and consulting services, which aim to provide in-depth understanding and convey the benefits of implementing virtual sensor technology.
The cloud deployment segment is projected to experience the fastest growth rate during the forecast timeframe, as businesses seek solutions that offer scalability, flexibility, and cost-effectiveness in managing and analyzing sensor data.