Will Teledyne-Flir deal trigger more acquisitions?

When Teledyne acquired Flir earlier this year, many industry players were surprised. Buying Flir – the market leader in thermal imaging cameras – plugs Teledyne’s infrared thermal detector gap at a time when Yole Développement predicts this market to grow from $4.5bn in 2019 to $7.5bn in 2025 (Source: Thermal Imagers and Detectors report, Yole Développement 2020).

Flir also brings machine vision cameras to Teledyne’s portfolio, making the US industrial conglomerate a massive player in the machine vision market. Now holding 16 per cent of the industrial camera segment, Teledyne becomes the joint second largest market player, alongside Cognex, leaving Keyence, Japan as number one with a 19 per cent share.

But what does the future hold for Teledyne with Flir? On thermal imaging cameras, Covid-19 gave Flir a boost in 2020, with the demand for devices to screen for elevated skin temperature increasing from $1.2bn to $3.16bn in the last year. Growth in this segment will slow as the world deals with coronavirus, but rising demand for applications such as driving monitoring and night vision systems, will ensure the thermal imaging market remains buoyant.

However, a key threat looms. Thanks to Covid-19 and a demand for cheap surveillance systems, Chinese thermal imaging manufacturers, including GuideIR and Hikvision, made huge progress in 2020, chipping away at Flir’s market share. The jury is out on whether this is the start of a growing trend or a one-time success story – US trade restrictions may thwart progress – but Teledyne will have to keep a close eye on competition from China… Full article

About the authors

Dimitrios Damianos - Yole Développement

Dimitrios Damianos, PhD, is a Custom Project Business Developer and Technology & Market Analyst at Yole Développement (Yole).
Fully dedicated to photonics & sensing activities, Dimitrios supports the development of strategic projects, following Yole’s leading customers within the semiconductor industry. In parallel, he plays a key role in the expansion of Yole’s market & technical knowledge, maintaining long term relationships with key accounts and ensuring their expectations are met.
As a Technology & Market Analyst in imaging and sensing, he oversees the day-to-day production of valuable technology & market reports and custom consulting projects.
Dimitrios also regularly presents and delivers keynotes at international conferences and exhibitions. In addition, he has authored and co-authored several technical & market reports as well as scientific papers in international peer-reviewed journals.
Dimitrios holds a BSc in Physics and MSc in Photonics, both from the University of Patras (GR), as well as a PhD. in optics & microelectronics from the University of Grenoble-Alpes (FR).

Eric Mounier - Yole Développement

With more than 25+ years’ experience within the semiconductor industry, Eric Mounier PhD. is Director of Market Research at Yole Développement (Yole). Eric provides daily in-depth insights into current and future semiconductor trends, markets and innovative technologies (such as Quantum computing, Si photonics, new sensing technologies, new type of sensors …). Based on relevant methodological expertise and a strong technological background, he works closely with all the teams at Yole to point out disruptive technologies and analyze and present business opportunities through technology & market reports and custom consulting projects. With numerous internal workshops on technologies, methodologies, best practices and more, Yole’s Fellow Analyst ensures the training of Yole’s Technology & Market Analysts.
In this position, Eric Mounier has spoken in numerous international conferences, presenting his vision of the semiconductor industry and latest technical innovations. He has also authored or co-authored more than 100 papers as well as more than 120 Yole’s technology & market reports.
Previously, Eric held R&D and Marketing positions at CEA Leti (France).
Eric Mounier has a PhD. in Semiconductor Engineering and a degree in Optoelectronics from the National Polytechnic Institute of Grenoble (France).

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