SMART CAMERA MARKET ANALYSIS

Market Challenges And Opportunities

Market Dynamics- Drivers

1. High growth of electronics and semiconductor industry is expected to drive growth of the global smart camera market during the forecast period

The electronics and semiconductor industry across the globe is growing at a significant rate, owing to constant adoption of automation, networking, mobility, and smart project initiatives. According to the India Brand Equity Foundation (IBEF), the Indian semiconductor design market was valued at US$ 14.5 billion in 2015 and is expected to reach US$ 52.6 billion by 2020, exhibiting a CAGR of 29.4%. According to the same source, the Indian appliance and consumer electronics market was valued at US$ 10.93 billion in 2019 and is expected to reach US$ 21.18 billion by 2025. Thus, high growth of the semiconductor and electronics industry is expected to drive growth of the market during the forecast period.

2. Rising concerns regarding food safety and quality are expected to boost the global smart camera market growth over the forecast period

Across the globe, food quality and safety regulations have become very strict. The food & beverage industry is bound to follow these regulations in order to maintain safety and quality of food products. For instance, MAF FRANCE, a French multinational designer and manufacturer of bagging, palletization and packing systems for fresh vegetables and fruit, has adopted GLOBAL SCAN, a sophisticated, fully automatic vision system, which allows packers to grade fruit accurately, as per the market requirement. Hence, these factors are expected to boost the market growth in the near future.

3. Increasing investments in research and development activities are expected to propel the global smart camera market growth during the forecast period

Key players in the market are focused on research and development activities, in order to innovate novel products. These players are constantly adding new features and technologies in their products, which in turn, is expected to drive the global smart camera market growth over the forecast period. For instance, in March 2015, Nikon Corporation introduced a DSLR camera ‘D7200’, which is equipped with the latest autofocusing system.

Market Dynamics- Restraints

1. High costs related to single-chip smart camera is expected to hinder the global smart camera market growth over the forecast period

Single chip smart camera is one of the lucrative concepts in smart camera systems. However, these camera systems are extremely expensive due to high manufacturing costs. Single chip smart cameras are also called as System on Chip smart cameras, in which all the component segments are integrated on a single chip. Being an innovative concept, single chip smart cameras are expensive, which is one of the major factors restraining their market growth. Thus, these factors are expected to hinder the market growth in the near future.

2. Low availability of software applications is expected to hamper the global smart camera market growth over the forecast period

 Smart cameras are targeted at the consumer segment have relatively limited software applications as compared to industrial smart cameras. Availability of a limited number of software applications is resulting in limited functions. Limited applications also restrict the use of smart cameras in different verticals. Many industrial smart camera players are focused on developing their own software for smart cameras though the consumer segment is still lagging in terms of software application development. Hence, these factors are expected to hamper the market growth in the near future.

3. Lack of standardization is expected to restrain growth of the global smart camera market during the forecast period

Lack of standardization such as interchangeability of lenses from brand to brand, which is the major restricting factor in the global smart camera market. Companies provide smart camera component segments in varying forms, which results in component segment incompatibility between brands.

Market Opportunities

1. Rising preference for smart homes can present major growth opportunities

Consumers across the globe, especially in Western Europe are preferring smart homes as a result of policy enforcement by governments in this region. Man consumers are adopting smart appliances including smart cameras. Market players can capitalize on the untapped potential by offering novel products in the high potential regions.

2. Growing adoption of intelligent transport system can pose major growth opportunities

Many countries across the globe, especially metropolitans in Asia Pacific are adopting smart camera-enabled intelligent transport systems. This is done to provide sophisticated transport services. For instance, in 2014, ComfortDelGro Corporation, a Singapore-based cab operator, announced trials for a new in-vehicle smart camera that is capable of alerting cabbies about potentially dangerous road situations.

3. Implementation of smart city initiative by a number of governments is expected to offer lucrative growth opportunities

Governments over various countries, especially Asia Pacific countries are investing significantly on smart city projects. For instance, in June 2015, the Government of India launched ‘100 Smart Cities Mission’, under which the government approved an investment of US$ 114 billion.