2023 Imaging Outlook

October 23, 2023

The camera module industry is all about technical innovations

The camera module industry is in an innovation journey: stacked CMOS image sensors, large optical format, metalenses, SMA actuators, liquid lenses, and more. Ahead of the slow-down of growth in consumer and automotive applications, the suppliers of camera modules, lenses, image sensors, and OIS are pushing new technologies.

Despite a decline in 2022 of $35.5B, and lower longer-term expectations for smartphone shipments of about 10% and a slowdown in the increase of the average number of cameras per smartphone, the CCM market should resume growth in 2023, with a progressively slowing year-over-year growth rate from 2024. We expect a 4.8% CAGR over the 2022-2028 period, reaching $47B in 2028.

Higher-end products and new sensing opportunities will sustain the mobile CIS market in the coming years. In parallel, automotive cameras are experiencing large growth, enabled by in-cabin, viewing, and ADAS applications. Safety regulations and increasing demand for car automation encourage car OEMs to integrate more imaging technologies. In fact, automotive is now one of the segments with the biggest growth potential for CIS, and more generally for imaging solutions providers. Meanwhile, factory automation is the main driver for the growth of industrial imaging, requiring high-end industrial cameras. Logistics automation with matrix code readers is still the high-volume industrial application.

On the supply chain side, CCM manufacturers and CIS giants are dominating the revenue rankings: the leaders include LG Innotek, Sony, Sunny Optical, Samsung, and Foxconn. In the race to build and strengthen an alternative supply chain, major investments have been announced in CCM production capacity in Vietnam factories since 2022, with more than $6B investment during that time. Finally, even if there was evolution in the market share rankings caused by the slowing growth of the mobile & consumer market and the thriving of automotive, the leaders are still present and there is scant space for new entrants to gain a foothold.

At Yole Group, we lead the charge in imaging analysis as well as camera modules, and our team of experts is committed to harnessing the full potential of this transformative technology. We deliver a state-of-the-art understanding of what imaging and CCM bring and what is at stake regarding technology and the supply chain, from CIS and actuators to lenses and camera module assembly.