Image Sensor Market

Market Overview

The global image sensor market size was valued at USD 25.4 billion in 2022. It is projected to reach USD 50.35 billion by 2031, growing at a CAGR of 7.9% during the forecast period (2023-2031). 

Image sensors are primarily used in a significant number of imaging devices and digital cameras to improve image quality. Imaging applications are highly utilized in various sectors, including media, automotive, industrial, consumer, and medical applications. Manufacturers around the globe are striving to enhance parameters such as performance, resolution, and pixel size for better image quality in varied circumstances. There are two types of image sensors, namely, Charged Couple Device (CCD) and Complementary Metal-Oxide-Semiconductor (CMOS). The manufacturing of CMOS sensors is estimated to be less expensive than CCD sensor manufacturing. CCD creates high-quality images with less noise; on the other hand, CMOS sensors are more susceptible to noise. Significant research and development activities and the high adoption rate of these devices by many sectors puts the image sensor market in the growth phase.

Market Dynamics

What are the Primary Factors Driving the Market?

Rising Adoption of ADAS System

As a result of embracing cutting-edge technologies like artificial intelligence, asset management, and machine vision, the modern automotive industry is expanding quickly. The popularity of advanced driver assistance systems, which have 360-degree surround cameras and other useful features like anti-lock brakes, electronic stability control, lane changing warning, electronic stability control, traction control, and adaptive cruise control, is growing. Machine vision technology in ADAS infrastructure makes extensive use of image sensors. The idea of automated or driverless cars has gotten a boost from ADAS technology. During the forecast period, these new ideas are anticipated to significantly boost image sensor adoption and fuel the market for image sensors.

Rising Demand for Better Cameras in Smartphones

The image sensor market has benefited from the increasing quality of smartphone cameras. Smartphone rear cameras are adopting high-resolution image sensors along with various camera types, including main camera, ultra-wide camera, monochrome camera, telephoto zoom camera, depth sensor or 3D ToF sensor, and macro camera. A surge in demand for image sensors has also been caused by the expanding use of smartphones globally and the rising popularity of smartphone photography.

What are the Main Factors that will Slow Down the Market?

Growing Adoption of LiDAR in the Automotive Industry

Systems need to be finely tuned in order to make decisions that are more accurate and quicker than those made by humans. LiDAR uses laser pulses to determine the change in distance, providing greater precision and accuracy than image sensor cameras. The growing use of LiDAR can affect the growth of the image sensor market.

What are the Future Opportunities for Market?

Increasing Technological Advancements

By increasing pixel density, reducing noise, and optimizing sensor platform size, image sensor innovations aim to improve image quality. When used in robotic surgical systems and surgery navigation and guidance systems, features like depth sensing will be of great value to image sensors. There are many opportunities for the development of image sensors thanks to the ecosystem players' numerous innovations. The leading manufacturers of image sensors, for instance, tracked about 23 product launches starting in January 2022. The adoption of CMOS image sensors is being favored, while CCD image sensor technology is being stifled by their small size, increased sensitivity, and effective use of power. Since it provides better image quality and lowers manufacturing costs, CMOS image sensor technology has grown in popularity. The size of the image sensor market is anticipated to increase primarily as a result of the evolving CMOS infrastructure and the appearance of cutting-edge imaging technologies.

Regional Analysis

The global image sensor market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.

Asia Pacific Dominates the Global Market

Asia Pacific region is the highest contributor to the market and is expected to grow at a CAGR of xx% during the forecast period. The image sensor market has grown at an accelerated rate in Asia Pacific due to the region's booming semiconductor industry and the emergence of key leaders. The expansion of the image sensors market in the Asia Pacific is also due to the presence of significant players like Sony Corporation and the availability of a sizable customer base. In addition, the market is expected to grow over the next few years as a result of the advancement of infrastructure in developing Asia Pacific nations, as well as the growing use of smart devices, smartphones, and digital services. Japan-based car manufacturers, including Nissan Motor Company Ltd. and Toyota Motor Corporation, are implementing Advanced Driver Assistance Systems (ADAS) that offer parking assistance, automatic headlight dimming, collision avoidance systems, and lane departure warning. Advanced Driver Assistance Systems utilize image sensors to capture images to assist drivers in an effort to reduce accidents while driving. Hence, the increased usage of image sensors in the automotive sector is propelling market growth in Asia-Pacific.

Europe is expected to witness dynamic growth in the image sensor market during the forecast period due to the increase in smartphone and camera module sales. This is anticipated to aid in the market's growth in the ensuing years. One of the key factors driving the overall expansion of the image sensor market is the expanding range of applications for intelligent image sensors in the industrial sector. The main drivers of the market growth for image sensors in Europe are the expanding state of programmable and fully integrated sensors, rising demand for image sensors, and rising technological development in image sensor technology.

North America is expected to witness significant growth in the image sensor market during the forecast period because of the region's increased technological advancement. The development of the image sensor market in North America is also aided by the region's expanding smartphone market and the electronics industry's ongoing expansion. The rate of innovative technology adoption boosted the acceptance of advanced imaging solutions in the area. Furthermore, the region's imaging sensor and product adoption are better in the automotive, consumer electronics, and healthcare sectors.

The LAMEA region is expected to witness moderate growth in the global image sensor market during the forecast period due to the region's increasing ADAS system adoption and safety regulations. Increasing adoption of image sensors for security and surveillance in Middle-Eastern countries will drive market growth in the region. In South America, image sensors are being used for amazon conservation and real-time monitoring.

Segmental Analysis

The global image sensor market is segmented by technology, processing type, and application.

Based on technology, the global market is bifurcated into CCD image sensors and CMOS image sensors.

The CMOS image sensor segment is the highest contributor to the market and is expected to grow at a CAGR of xx% during the forecast period. The advancement of CMOS image sensor technology has improved the performance of image sensors. As a result, CMOS technology is now more widely used in consumer electronics. Additionally, improved performance and reduced vending amounts help to expand the CMOS technology market.

The CCD image sensor segment is expected to witness a moderate CAGR. An integrated circuit that includes a number of connected or coupled capacitors is known as a charge-coupled device (CCD). Each capacitor has the ability to transmit its electric charge to a nearby capacitor under the control of an external circuit. Digital imaging makes extensive use of CCD sensors.

Based on the processing type, the global market is bifurcated into 2D image sensors and 3D image sensors.

The 2D image sensors segment is the highest contributor to the market and is expected to grow at a CAGR of xx% during the forecast period. 2D CMOS image sensors provide high performance in a variety of applications, such as medical and life sciences, machine vision and automation, logistics and robotics, and environmental, food, and recycling.

The 3D image segment is expected to grow at a significant rate. Emerging technologies like computer vision and machine vision suggest that 3D image sensors will dominate the image sensor market in the years to come. More accurate and trustworthy depth sensing is made possible by 3D image processing in a variety of applications. For instance, Infineon Technologies AG is creating 3D image sensors for applications like hand gesture recognition, body tracking, and 3D biometric identification.

Based on application, the global market is bifurcated into consumer electronics, healthcare, automotive, surveillance & security, and others.

The consumer electronics segment is the highest contributor to the market and is expected to grow at a CAGR of xx% during the forecast period. The wide implementation of these devices in smartphones and cameras results in the consumer electronics segment holding the lion's share of the market. Image sensors are also employed in information technology, entertainment devices, home appliances, and communication products. Image sensor technology offers a significant amount of benefits that electronics manufacturers can utilize in order to enhance the device designs, meet specific customer requirements, and differentiate between products in the marketplace.

The surveillance & security segment is expected to grow at a significant rate due to the increasing demand for security and surveillance image-sensing solutions. CCTV or surveillance modules with enhanced quality, high resolution, and three-dimensional sight must be implemented. Similarly, advanced imaging sensors and technologies have enhanced satellite photographs and radar images. Surveillance in defense is increasingly reliant on the proliferation of drones with high-resolution cameras. CCTV cameras, drones, and other imaging products have increased in popularity due to the growing demand for surveillance systems in the industrial and commercial sectors.

Recent Developments

• October 2022, Samsung Electronics launched a new image sensor with the smallest 0.56-micrometer pixels called 200MP ISOCELL HPX with 8K video recording capabilities at 30 frames per second and Tetra 2 pixel binning technology.
• April 2022, Toshiba Teli and TriEye partners to develop CMOS-based HD SWIR Camera for industrial applications.