This market research report was originally published at the Yole Group’s website. It is reprinted here with the permission of the Yole Group.
The camera module ecosystem is changing as the mobile and consumer markets slow down and the automotive market thrives…
OUTLINE
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A 4.8% CAGR between 2022 and 2028 is announced in Yole Intelligence‘s yearly analysis. The market should reach US$47 billion at the end of the period.
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Camera module player market shares: LG Innotek still leads the market with a 35% market share, with the same challengers as last year.
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The CIS industry is animated by a profusion of technological innovations that aim to continue improving sensor performance and integrability and unlock new sensing capabilities.
The CCM industry experienced growth until 2021, primarily driven by the demand for mobile phones, electric vehicles, tablets, and laptops. However, in 2022, the industry’s revenue plateaued at US$35.5 billion.
It is anticipated that the market will rebound in 2023, with a projected CAGR of 4.8% from 2022 to 2028, reaching a total market value of US$47 billion. This growth is slower than initially anticipated, mainly due to the long-term decline in smartphone shipments, which decreased by 14%, and adjustments in the shipments of automotive cameras.
“In 2022, mobile and consumer applications accounted for 96% of CCM shipments, with mobile devices contributing 5.1 billion units, while the automotive sector represented 3% with 218 million modules.”
Florian Domengie
Senior Technology and Market Analyst for Imaging, Yole Intelligence (part of the Yole Group)
The complexity of these camera modules is on the rise, which has an impact on the ASP . The mobile market is shifting toward higher resolutions and larger sensors. Despite the decrease in smartphone shipments, the camera module market is expected to continue growing, driven by high-end products and the introduction of new sensing technologies.
In parallel, the demand for automotive cameras is increasing, primarily due to safety regulations and the rising interest in automated vehicles.
Furthermore, industrial imaging is thriving, especially in applications related to logistics and automation.
In this context, Yole Intelligence has released its annual imaging report, Status of the Camera Module Industry 2023, which provides market data on key CCM metrics and dynamics and delivers an in-depth understanding of the CCM value chain, infrastructure, and players. This study also presents key technical insights and analyses regarding future technology trends and challenges. This report is part of the impressive collection of imaging products developed by Yole Group. From technology & market analyses to dedicated teardowns, Yole Group’s analysts investigate the imaging sector to highlight the technical disruptions and identify business opportunities.
CCM revenues decreased slightly in 2022 from US$35.6 billion to US$35.5 billion, with a soft landing after the largely inflated growth from the previous years. The general inflation worldwide in 2022 resulted in a significant slowdown in consumer product sales, such as smartphones (-10% YoY).
In this context, CCM manufacturers continued to experience varied fortunes, and previous revenue trends were exacerbated in 2022.
For example, LG Innotek continued its tremendous growth, with 24% YoY. The company could outperform its competitors, still supplying all rear triple-camera and sensing cameras to Apple and getting new opportunities in automotive.
Q Tech grew until 2021 due to increased high-resolution cameras in its product mix and being a supplier for Xiaomi, Oppo, and Vivo camera modules.
However, Sunny Optical and Ofilm show decreasing revenue, mainly due to the restrictions on Huawei. Foxconn (Sharp) and Semco have been relatively stable in revenue these past few years, the latter becoming more diversified in automotive.
For the CIS market, 2022 has been a transitional year with similar revenues to the year before and a slight decline in overall volumes. However, a significant transformation is underway in the market structure, as evident in the growth of the automotive segment and the increase in CIS average selling price.
Sony is again increasing its commanding position while Omnivision has retreated to close to its pre-COVID-19 market share. Samsung also reduced its footprint, apparently to the benefit of SK Hynix. STMicroelectronics has kept its share, while onsemi, which had been sliding for a few years, saw an exceptional 2022 boosted by the automotive and industrial markets. Galaxycore and Smartsens have retreated, apparently due to the disinflation of the low-end mobile and security camera markets. The geographic competition in the CIS landscape is marked by the economic conflict between the U.S. and China. This analysis is also detailed in the Status of the CMOS Image Sensors Industry report.
Even if there was an evolution in the market share rankings caused by the slowing growth of the mobile and consumer market and the thriving of automotive, the leaders are still there. However, there is only a small space for new entrants to gain a foothold.
Acronyms
- CAGR : Compound Annual Growth Rate
- CIS : CMOS Image Sensor
- CCM : Artificial Intelligence
- ASP : Average Selling Price
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