Manufacturers, who are adopting Product-service System (PSS) business model, consider PSS as a system of products, services and Cyber-Physical features consisting sensor, software and ICT infrastructure. This new approach in Industrial PSS (IPSS) design makes collaborative design crucial to profit multidisciplinary facets point of views. This approach has also brought new challenges. Considering the above mentioned characteristics, IPSS design relies on communication and information exchange, more than before. Consequently, interdisciplinary design issues are increasingly becoming problematic. To deal with the collaboration challenges between design actors with different facets, ontologies are used to support the collaborative platform of IPSS design. There are plenty of accepted ontologies for each element of PSS yet, as this paper addresses, there is a need to context-based domain ontologies to support the design of whole integrated PSS. This paper discusses about the modular ontology to support the collaborative design of IPSS. In this paper the sensor domain ontology considering IPSS context is described as an industrial practice.