From Challenger to Leader: China Consolidates Its Presence in Thermal Imaging

This market research report was originally published at the Yole Group’s website. It is reprinted here with the permission of the Yole Group.

China shifts its focus to thermal imaging technologies, securing 50% of worldwide shipments in 2023.

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• The thermal camera market is expected to grow to US$9.1 billion in 2029, with an estimated 5.8% CAGR between 2023 and 2029.

• While Chinese players are focusing on volume-driven segments, longstanding players appear to be prioritizing higher-margin market segments.

• Technology side: the race for smaller pixels continues.

In 2023, the thermal imaging market saw continued growth, fueled by traditional commercial uses. This growth mirrors the trends observed before the COVID-19 pandemic. Notably, prices have shrunk considerably at the microbolometer level, increasing the market size. Chinese market leaders have narrowed the performance gap with established players, boasting high production capacities and competitive pricing.

“While growth in the industrial market remains robust, it’s counterbalanced by lower prices resulting from a higher proportion of lower-tier systems. Demand and product mix is shifting from high-end handheld cameras towards lower-end fixed-mount ones.”
Axel Clouet, Ph.D.
Technology and Market Analyst, Imaging, Yole Group

The PVS sector is a crucial driver in consumer market expansion, particularly in the European market. Enhanced system performance coupled with decreasing prices is fostering broader adoption.

The defense & aerospace market is benefiting from geopolitical tensions and recent conflicts, resulting in positive momentum. Additionally, the automotive market is poised for growth due to upcoming stringent regulations in the U.S. concerning AEB systems, potentially enforced by 2028. The decision on these regulations, expected in the first half of 2024, holds significance for widespread adoption.

In this context, Yole Group releases its market & technology report Thermal Imaging and Sensing 2024. In this report, the company provides a complete analysis of the thermal imaging and sensing markets, applications, and technologies. With this new study, Yole Group offers a detailed view of the ecosystem regarding developments and funding and a broad overview of the technology trends. This edition also provides an update on the significant trends and challenges in the market as well as the evolution of the dominant business models. It will help in understanding the competitive environment with an overview of key players and the evolution of the thermal imaging and sensing vendor market share per segment.

In 2023, Chinese companies like InfiRay and Hikmicro maintained their upward trajectory, driven by strategies prioritizing volume, leading to their increasing dominance in both the industrial and consumer sectors. The Chinese thermal imaging ecosystem reached a significant milestone, accounting for 50% of global thermal imager shipments.

“In the face of this heightened competition in industrial applications, western counterparts have retained their stronghold in government-centric sectors, such as security, firefighting, defense. They are expected to concentrate on high-margin offerings.”
Clyde Midelet, Ph.D.
Technology and Market Analyst, MEMS and Sensing, Yole Group