The technological advantages that biosensors have over conventional technical sensors for odor detection and the role they play in the biological transformation have not yet been comprehensively analyzed. However, this is necessary for assessing their suitability for specific fields of application as well as their improvement and development goals. An overview of biological basics of olfactory systems is given and different odor sensor technologies are described and classified in this paper. Specific market potentials of biosensors for odor detection are identified by applying a tailored methodology that enables the derivation and systematic comparison of both the performance profiles of biosensors as well as the requirement profiles for various application fields. Therefore, the fulfillment of defined requirements is evaluated for biosensors by means of 16 selected technical criteria in order to determine a specific performance profile. Further, a selection of application fields, namely healthcare, food industry, agriculture, cosmetics, safety applications, environmental monitoring for odor detection sensors is derived to compare the importance of the criteria for each of the fields, leading to market-specific requirement profiles. The analysis reveals that the requirement criteria considered to be the most important ones across all application fields are high specificity, high selectivity, high repeat accuracy, high resolution, high accuracy, and high sensitivity. All these criteria, except for the repeat accuracy, can potentially be better met by biosensors than by technical sensors, according to the results obtained. Therefore, biosensor technology in general has a high application potential for all the areas of application under consideration. Health and safety applications especially are considered to have high potential for biosensors due to their correspondence between requirement and performance profiles. Special attention is paid to new areas of application that require multi-sensing capability. Application scenarios for multi-sensing biosensors are therefore derived. Moreover, the role of biosensors within the biological transformation is discussed.