Integrated Sensing and Communication (ISAC) Market

 

Integrated Sensing and Communication (ISAC) Market Overview

The global market for Integrated Sensing and Communication (ISAC) technologies is advancing rapidly, sitting at the intersection of sensing (radar, lidar, optical, ultrasonic, etc.) and communication (wireless, cellular, C-V2X, mmWave) systems. According to one forecast, the market size was valued at **USD 3.54 billion in 2024** and is expected to grow to roughly **USD 12.5 billion by 2035**, implying a compound annual growth rate (CAGR) of about **12.1%** from 2025 to 2035. :contentReference[oaicite:0]{index=0} Another report suggests the market was valued at **USD 15.5 billion in 2023**, with a forecast of around **USD 35.2 billion by 2031**, giving a CAGR of ~11.4% over 2024-2031. :contentReference[oaicite:1]{index=1} While the exact estimates differ depending on scope and definition, there is strong consensus that the ISAC market will grow in the high‐single to low‐double-digit CAGR range over the next 5–10 years.

Key factors driving growth include the convergence of sensing and communication technologies—traditionally separate systems are increasingly combined to deliver enhanced situational awareness, real-time data exchange and efficient resource use. For instance, the rollout of 5G and eventual 6G networks provides the bandwidth and low-latency infrastructure that enables sensors and communication modules to operate together. :contentReference[oaicite:2]{index=2} Urbanisation, the rise of smart cities, connected/automated vehicles, industrial automation and IoT proliferation all require systems that sense and communicate simultaneously. The ISAC paradigm enables devices or systems to both detect or sense and communicate information over the same hardware or platform—offering efficiency, cost savings and improved performance.

Industry advancements influencing the sector include miniaturisation of sensors, integration of radar/lidar/optical sensing with wireless transceivers, edge computing for in-situ processing, AI/ML integration for real-time decision‐making, and convergence of communication standards (e.g., cellular + sensing). Trends shaping the market include growing demand for autonomous vehicles and advanced driver assistance systems (ADAS), intelligent infrastructure (traffic management, smart homes/buildings), industrial automation (smart manufacturing, robotics), and defence/surveillance applications. There is also increasing regulatory and investment focus on spectrum sharing, sensor-communication integration and sustainability of systems. The overarching trajectory is that ISAC technologies will shift from niche deployments to mainstream infrastructure and device architectures in the coming years.

Integrated Sensing and Communication (ISAC) Market Segmentation

By Technology / Integration Level

This segmentation differentiates ISAC based on how sensing and communication functions are integrated. Sub-segments include **Fully Integrated ISAC** (sensing + communication modules on a single platform), **Partially Integrated ISAC** (sensing and communication in tightly coupled but discrete modules), **Sensing-Led with Communication Add-on**, and **Communication-Led with Sensing Add-on**. In the fully integrated mode, a single module may perform radar sensing, wireless transmission, edge processing and uplink communications. This tends to command higher value and serves high-performance use-cases (e.g., autonomous vehicles, smart infrastructure). Partially integrated systems provide some integration but maintain modularity and may reduce development risk. Sensing-led or communication-led variants are narrower and serve cost-sensitive or incremental upgrade markets (e.g., retrofits, legacy systems). Fully integrated solutions contribute disproportionately to value growth because they enable new architectures, higher system performance and reduced BOM (bill of materials) over time. As enterprises and infrastructure owners seek more compact, efficient, intelligent systems, the migration toward higher integration pushes the ISAC market forward and increases average selling price and opportunity per deployment.

By Application / End-Use Domain

Another segmentation axis is by application or use-case. Sub-segments include **Automotive & Connected Vehicles**, **Smart Cities & Infrastructure**, **Industrial Automation & Robotics**, and **Defense & Public Safety / Surveillance**. In automotive, ISAC assists in vehicle-to-everything (V2X) communications, radar-enabled sensing and cooperative autonomy; this drives both sensing and communication modules in one platform. Smart city applications include intelligent transportation systems, smart buildings, traffic management and energy-monitoring systems—here the integration of sensing (e.g., environmental sensors, cameras, lidar) and communication (5G, IoT networks) is essential for real-time responsiveness. Industrial automation covers manufacturing, logistics, robotics and factory automation where sensing (motion, proximity, condition) and communication (industrial wireless, Ethernet / 5G) converge. Defense and public safety include surveillance, unmanned systems, radar/communication hybrid platforms and connected sensor networks. Each domain contributes to market growth: automotive and smart-city segments often drive higher volumes; industrial and defense segments often provide higher value per unit. Diversification across applications helps broaden market addressability and smooths cyclicality tied to any single domain.

By Component / Solution Offering

This segmentation considers the solution stack: **Hardware Components (sensors, transceivers, actuators, modules)**, **Software & Platform Services (analytics, edge processing, data management)**, **Connectivity & Network Infrastructure (5G/6G modules, C-V2X, mmWave, IoT networks)**, and **Integration & Deployment Services (system integration, managed services, lifecycle support)**. Hardware components are the foundational elements and represent measurable volume growth as devices proliferate. Software/platform services add value via analytics, edge AI, sensor-fusion and make solutions more intelligent—thus commanding higher margins. Connectivity/network infrastructure is critical to ISAC because sensing alone is insufficient without real-time communication; the rollout of 5G/Private LTE, WiFi6/6E and beyond underpins adoption. Integration & deployment services are increasingly important as system complexity rises: combining sensors, communication modules, edge cloud, analytics and connectivity demands high-level system design and operational management. Growth in these offerings drives revenue not just through hardware but via recurring service streams, platform licensing and ecosystem partnerships, thus enhancing overall market value capture.

By Region / Geography

Geographic segmentation divides the market into **North America**, **Europe**, **Asia-Pacific (APAC)** and **Rest of World (Latin America, Middle East & Africa)**. North America tends to lead in adoption of advanced technologies (5G, autonomous vehicles, smart cities) and therefore holds a large share of ISAC market value and innovation. Europe follows, supported by regulatory frameworks, smart-city investment and industrial automation. Asia-Pacific is widely projected to be the fastest-growing region due to rapid urbanisation, high infrastructure investment, EV/connected vehicle adoption and government initiatives in countries like China, India, Japan and South Korea. The Rest of World offers emerging opportunities though at earlier stages and often with lower ASPs (average selling prices). Regional segmentation matters because it influences vendor strategy, localisation of supply-chains, regulatory compliance (e.g., spectrum allocation), partnerships and investment priorities. Growth patterns will vary: mature regions may shift toward value and services, while emerging regions may drive volume growth and infrastructure deployment.<\/p>

Emerging Technologies, Product Innovations, and Collaborative Ventures

The ISAC market is undergoing notable technological transformation and ecosystem collaboration, pushing product innovation and market expansion. A key emerging technology is **radar/wireless convergence**, where radar sensors (e.g., mmWave or FMCW) are combined with RF communication channels to both sense environment and communicate data over the same or co-packaged hardware. This dual-use approach improves spectrum efficiency and hardware utilisation—important in 5G/6G, autonomous vehicles and smart infrastructure.

Another area of innovation is **edge intelligence and real-time analytics** embedded within ISAC modules. Solutions now include sensor-fusion (radar + lidar + camera + wireless), on-chip AI/ML accelerators, and communication stacks (5G/6G, C-V2X) that support latency-sensitive applications like automated driving, industrial vision and smart city surveillance. For instance, product platforms are being developed that integrate radar sensing, wireless comms and edge compute in one package—reducing latency, power consumption and system footprint.

Collaborative ventures are critical to the ISAC ecosystem. Companies across sectors—automotive OEMs, telecom operators, infrastructure equipment manufacturers, sensor houses and semiconductor vendors—are forming partnerships, joint ventures and consortiums to accelerate ISAC deployment. For example, a telecom provider working with a radar-sensor manufacturer and an automotive OEM may jointly develop a V2X + sensing suite for connected vehicles or smart roadway infrastructure. Smart-city municipalities partner with infrastructure integrators and network providers to deploy ISAC-enabled traffic corridors. Standardisation organisations and research consortia also play a key role: they help align protocols, reference architectures and spectrum policies to enable broader adoption of ISAC systems. Together, these collaborations facilitate go-to-market scale, shared investment risk and ecosystem interoperability—ultimately unlocking commercialisation of ISAC solutions across use-cases and geographies.

Innovations are also seen in miniaturisation (sensing + communication modules shrinking in size, cost and power), modular design (plug-and-play sensor-communication platforms), and hybrid deployment models (on-vehicle, roadside, building); this flexibility accelerates adoption across both consumer/industrial and infrastructure segments. As the hardware matures and ecosystems align, ISAC is poised to move from pilot/demonstration phases to large-scale commercial roll-outs in sectors such as automotive, smart cities, industry and defence.

Integrated Sensing and Communication (ISAC) Market Key Players

The ISAC market ecosystem consists of semiconductor vendors, sensor manufacturers, communication chipset companies, OEMs, infrastructure equipment providers and system integrators. Key players identified in recent market research include Huawei, ZTE, Qualcomm, Intel, Samsung, Ericsson, Nokia, Analog Devices, Texas Instruments and others. :contentReference[oaicite:3]{index=3}

Qualcomm Incorporated

Huawei Technologies Co., Ltd.

Ericsson and Nokia

Intel Corporation

Analog Devices, Inc. and Texas Instruments Incorporated

Samsung Electronics Co., Ltd.

Market Challenges and Potential Solutions

Despite its promising outlook, the ISAC market faces several obstacles that could impede growth or slow adoption.

Supply-chain and component scarcity**Potential solution:** Diversify sourcing, localise manufacturing, adopt multi-source strategies, standardise modules to benefit from scale and engage in consortium purchasing to mitigate shortages.

Pricing pressure and cost-sensitive adoption**Potential solution:** Employ modular design to scale value tiers, adopt hybrid architectures (sensor + comms) that reuse existing systems, leverage volume manufacturing to reduce cost, and demonstrate clear ROI via pilot deployments to justify investment.

Regulatory, spectrum and standards complexity**Potential solution:** Engage actively with standards bodies, adopt open architectures, support multi-protocol/spectrum compatibility, create interoperable solutions and collaborate with governments/regulators to align frameworks and provide certification pathways.

Integration and system complexity**Potential solution:** Develop reference architectures and platforms, provide system integrator services, use modular plug-in design, perform incremental roll-out (retrofits) and provide strong integration and support services to customers.

Market maturity and scale-up risk**Potential solution:** Focus initial deployments in high-value domains (automotive ADAS, defence, infrastructure), build case-studies, quantify benefits (safety, efficiency, maintenance savings), then scale to cost-sensitive applications. Recurring service models and data monetisation (analytics, edge platforms) should be developed alongside hardware to create sustainable revenue streams.

Integrated Sensing and Communication (ISAC) Market Future Outlook

Looking ahead, the ISAC market is expected to continue its robust growth trajectory, albeit with shifting dynamics. Based on current estimates, key scenarios point to a market size between **USD 30-35 billion** by the early 2030s (per some sources) and up to **USD 12-13 billion** by 2035 in more conservative estimates. :contentReference[oaicite:4]{index=4} The rate of expansion will depend on how quickly integrated sensing-communication systems move from pilots to large-scale adoption across automotive, infrastructure, industrial and defence domains.

The primary factors driving future growth include:

• Automotive / Connected-Autonomous Vehicles:** As vehicles progress toward higher levels of autonomy (L2, L3 and beyond), sensing (radar/lidar/camera) and communication (V2X/5G) will need to be tightly integrated—creating strong demand for ISAC platforms.
• Smart Cities & Infrastructure Roll-Out:** Urbanisation, traffic congestion, public safety and mobility challenges are propelling infrastructure upgrades (smart roads, sensors, C-V2X) where ISAC systems offer high value.
• Industrial Automation & IoT Expansion:** Industry 4.0, robotics, smart manufacturing and predictive maintenance require sensors + communications + edge processing—ideal for ISAC solutions.
• 5G/6G & Wireless Evolution:** As 5G matures and 6G research progresses, networks will increasingly support sensing features (e.g., joint communication and radar), enabling ISAC architectures.
• Recurring Service and Analytics Models:** As ISAC systems are deployed, data analytics, edge software, platform subscriptions and managed services will become more important—shifting revenue models beyond hardware.

Regionally, while North America and Europe will continue to lead in innovation and value per unit, Asia-Pacific is forecast to deliver the highest growth in volume, driven by infrastructure and automotive investment in China, India, Southeast Asia and Japan. Emerging geographies (Latin America, Middle East & Africa) will incrementally adopt ISAC as cost-effective solutions become available.

In summary, the ISAC market is poised to evolve from a niche, high-end technology domain into a foundational platform for next-generation connectivity, sensing and smart systems. Vendors that can deliver differentiated, cost-effective hardware, embed advanced software/services and align with ecosystem partnerships will capture disproportionate value. As integration, standardisation and scale improve, ISAC will become a critical enabler across mobility, infrastructure, industry and public-safety domains.

Frequently Asked Questions (FAQs)

1. What is meant by Integrated Sensing and Communication (ISAC)?

ISAC refers to technology platforms that combine sensing (e.g., radar, lidar, optical, ultrasonic or other sensors) and communication (wireless, cellular, mmWave, V2X) in one integrated system or architecture. The aim is to allow devices or systems to both sense the environment and communicate data in a seamless, efficient, real-time manner.

2. How large is the global ISAC market today and how fast is it expected to grow?

Depending on definition and scope, the global ISAC market is estimated at anywhere from USD 3.5 billion (2024) to USD 15.5 billion (2023). Forecasts suggest growth to USD 12-13 billion by 2035 (CAGR ~12%) in one scenario, and up to USD 35-40 billion by the early 2030s (CAGR ~11-13%) in another. :contentReference[oaicite:5]{index=5}

3. Which application areas will drive the ISAC market most strongly?

The fastest-growing applications are expected to include automotive (connected/autonomous vehicles), smart cities/infrastructure (traffic management, smart buildings), industrial automation/IoT, and defence/public safety (sensor-communications convergence). Each domain demands integrated sensing and communication capabilities and thus fuels ISAC adoption.

4. Who are the major players in the ISAC market and what do they offer?

Key players include Qualcomm, Huawei, Ericsson, Nokia, Intel, Analog Devices, Texas Instruments, Samsung and others. They offer sensor modules, communication chips, integrated platforms, edge-compute architectures and services. They are engaged in strategic initiatives such as partnerships, ecosystem development, standardisation efforts and pilot deployments.

5. What are the main challenges facing ISAC adoption and how are they addressed?

Challenges include component/supply chain constraints for sensors and communication modules, cost and pricing pressure especially in infrastructure/industrial segments, regulatory/spectrum issues, integration complexity (sensing + comms + edge compute), and scaling from pilot to commercial deployments. Solutions include diversification of sourcing, modular design, open architectures, ecosystem partnerships, business-case proof-points (ROI), and phased deployment strategies.