Global Camera Module Market Is Estimated To Witness High Growth Owing To Emergence Of Advanced Digital Cameras And Rising Demand For Connected Devices And VR Applications
The global Camera Module Market is estimated to be valued at US$ 31.20 Bn in 2024, exhibiting a CAGR of 11.81% over the forecast period (2024-2031). Furthermore, growing popularity of smartphones with advanced camera features is propelling the demand.
Market Dynamics:
The global camera module market is driven by the emergence of advanced digital cameras and rising demand for connected devices and Virtual Reality applications. The proliferation of smartphones and other consumer electronics have fueled the integration of high-quality camera modules. Leading manufacturers are focusing on developing sophisticated camera modules with new features such as optical image stabilization, autofocus capabilities, and higher megapixels to offer enhanced imaging experiences. Additionally, the growing popularity of virtual reality and augmented reality technologies is also boosting the demand for camera modules with advanced capabilities. Consumer preference for premium camera smartphones is compelling mobile phone brands to invest in high-performance camera modules. The incorporation of multiple camera sensors including wide-angle, telephoto, and superzooms is also expected to support market growth over the forecast period.
Growing Demand for Smartphones with Improved Camera Features
One of the key drivers for the global camera module market is the growing demand for smartphones with improved camera features. Camera technology has come a long way over the past decade and smartphone manufacturers are continuously focusing on innovating and enhancing the camera capabilities of their devices. Users nowadays expect high megapixel count, optical zoom, wide angle lenses, and other advanced camera features in their smartphones. This rising demand is encouraging smartphone OEMs to partner with camera module manufacturers to embed superior camera modules in their devices. The growing popularity of applications like Instagram and TikTok that rely heavily on phone cameras is also fueling the need for better smartphone cameras. As a result, the camera module market is witnessing significant growth.
Increasing Adoption of Camera Modules in IoT Devices
Another major market driver is the increasing integration of camera modules in various Internet of Things (IoT) devices. With advancements in image processing and computer vision technologies, cameras are being used in numerous IoT applications like surveillance cameras, doorbell cameras, smart home devices, drones, robots, and others. The widespread deployment of these IoT solutions across industries like security, healthcare, logistics, agriculture, etc. is propelling the demand for specialized camera modules. Industry experts predict that the market for camera modules in IoT will experience exponential growth over the coming years as new use cases emerge. This sector promises to be a lucrative revenue stream for camera module manufacturers going forward.
High Manufacturing Costs
One of the key restraints faced by camera module manufacturers is the high manufacturing costs associated with producing high-quality camera modules. Camera modules contain many tiny and precisely engineered components like lenses, image sensors, and flexible printed circuits, among others. The manufacturing process for these components is complex involving high-precision placement, alignment, and assembly. This leads to elevated production costs. Additionally, the R&D expenses to consistently improve camera technology and miniaturize module sizes also put pressure on company finances. The high costs make it difficult for some smaller players to participate effectively in the market.
Intense Competition Among Players
The global camera module market is highly competitive due to the presence of numerous international and domestic players. The top companies continually invest heavily in developing innovative camera solutions to gain an edge. This intense level of competition poses a challenge for all market participants. The established players find it difficult to maintain profit margins due to pricing pressures, while new entrants face barriers to achieve economies of scale. Companies struggle to differentiate their products given the widespread availability of generic camera modules. The competitive intensity gives buyers significant bargaining power, lowering margins across the industry.
Growing Market for Automotive Camera Modules
One of the major opportunities for camera module manufacturers is the expanding automotive camera modules market. With the rise of technologies like advanced driver-assistance systems (ADAS), autonomous vehicles, 360-degree cameras, and parking assist features, the demand for sophisticated automotive cameras is witnessing strong growth. Carmakers are actively collaborating with camera solution providers to develop specialized automotive-grade camera modules that can withstand harsh road conditions. As self-driving vehicles become a commercial reality, there will be significant demand for reliable multi-camera setups able to accurately capture the in-vehicle and external environment. This presents lucrative prospects for camera module manufacturers to cater to the automotive industry.
Surging Popularity of Drones
Another key market opportunity lies in the burgeoning drones market. Drones are being adopted for various applications such as aerial photography, surveillance, inspection, delivery, and others. Drone manufacturers require high-performance camera modules capable of recording professional-grade aerial footage. At the same time, the modules should be light-weight and consume minimal power to extend flight times. Camera module vendors have an opening to tailor their offerings to suit the unique requirements of drones. The exponential growth forecasts for commercial and consumer drones in the coming decade promises sustained demand from this channel. Camera module producers would benefit from tapping into this rapidly expanding drones camera modules segment.
Link - https://www.coherentmarketinsights.com/market-insight/camera-module-market-4788
Key Developments:
- In November 2023, Samsung released an update for the Camera Assistant module within the Good Lock app, enhancing camera capabilities on devices running One UI 5.1 or higher. This update introduces two significant features: Upscale digital zoom, which captures a lower-resolution image due to zoom and then upscales it to the user's preferred resolution, and Distortion Correction, which automatically corrects bowing or bending lines caused by lens and perspective distortion. Additionally, users can now modify or disable certain settings through the Camera Assistant module that cannot be changed through the regular camera app.
- In June 2023, LG Innotek Co Ltd announced a substantial investment of approximately USD 1 billion in its Hai Phong production subsidiary in Vietnam to expand its camera module production capacity. This expansion aims to meet the growing demand for camera modules, particularly for Apple's iPhone. The new plant is expected to be completed in the second half of 2024 and begin mass production in 2025.
- In March 2023, Samsung Electro-Mechanics unveiled a 200-megapixel-class camera module with advanced image stabilization capabilities. This cutting-edge module features a 3.0-degree image stabilization angle, which is more than twice as effective as existing products with 1.5-degree stabilization. This technology is expected to set a new standard for image stabilization globally among smartphones with OIS features currently available.
- In November 2021, Google released the Pixel 6a, a smartphone that incorporates a camera module design inspired by the Pixel 6 series
- In September 2021, Apple Inc., a U.S.-based consumer electronics company, launched the iPhone 13, which boasts an advanced camera module system
- In July 2021, ams OSRAM, a global pioneer in optical technologies, expanded its NanEye portfolio by launching the NanEyeM camera module, specifically designed for medical endoscopy applications. This ultra-compact camera module provides high-resolution imaging that meets current industry standards, making it the smallest digital endoscopic camera module available globally.
Key Players:
ams AG, Cammsys Corp., Chicony Electronics Co. Ltd., Foxconn Technology Co. Ltd., Hon Hai Precision Inc. Co., Ltd. (Foxconn), LG Innotek Company Ltd., Lite-On Technology Corp., LuxVisions Innovation, OFILM Group Co., Ltd., OmniVision Technologies Inc., Partron Co. Ltd., Samsung Electro-Mechanics Co. Ltd., Sharp Corporation, Sony, and Sunny Optical Technology Group Co. Ltd.
