Vision Positioning System Market Size, Share & Trends Analysis Report By Solution Type (Tracking Solution, Analytic Solution, Navigation Solution, Industrial Solution), By Component (Camera System, Sensors, Markers, Others), By Type (1D, 2D, 3D), By Location (Indoor, Outdoor), By Platform (Robotics, Unmanned Aerial Vehicles, Space Vehicles, Automated Guided Vehicles, Others), By End-User (Automotive, BFSI, Industrial, Healthcare, Commercial, Government Sector, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global vision positioning system market size was valued at USD 5.97 billion in 2023 and is projected to reach USD 14.26 billion by 2032, registering a CAGR of 11.5% during the forecast period (2024-2032). The expanding application of automated guided vehicles for various defense and commercial purposes, increased demand for automated solutions in industrial processes, and the use of vision indoor positioning systems in interior navigation are the primary drivers stimulating the growth of the vision positioning system market.

A Vision Positioning System (VPS) is a system that enables objects such as drones, robots, or self-driving cars to identify their position and orientation in real-time by processing visual input from their surroundings. This system often uses cameras or other optical sensors to record photos or video footage, which it then analyzes to determine the device's relative position and movement.

Vision Positioning system market share is predicted to grow at a CAGR of 11.51% because of the expanding application of automated guided vehicles for various defense and commercial purposes. Vision positioning systems are attached to Unmanned Aerial Vehicles (UAVs), Automated Guided Vehicles (AGVs), spacecraft, industrial robots, and other automated equipment. The increased demand for automated solutions in industrial processes and the use of vision indoor positioning systems in interior navigation are the primary market drivers driving the growth of the Vision positioning system market.

Market Dynamics

Global vision positioning system market drivers

Growing demand for autonomous vehicles and drones

The rise of self-driving vehicles, such as self-driving automobiles and delivery drones, has raised demand for VPS technology. These systems are critical for precise navigation and obstacle avoidance in several autonomous applications. The expanding number of autonomous vehicles, particularly in North America and Asia-Pacific, influences Vision Positioning Systemmarket trends. Self-driving automobiles are an example of an autonomous vehicle that heavily relies on VPS technology. Autonomous vehicles that use VPS for precise navigation, obstacle detection, and safe driving are being developed by companies such as Tesla, Waymo (Alphabet's self-driving car subsidiary), and traditional automakers.

VPS enables these vehicles to identify traffic signals and signs and avoid collisions with other vehicles and pedestrians. Amazon, UPS, and DHL are all actively investigating the use of drones for package delivery. VPS is essential for drones to navigate securely and precisely, particularly when delivering items in urban or isolated areas. These drones use VPS to land at delivery destinations and avoid impediments in flight precisely. VPS helps build safe and dependable autonomous transportation systems predicted to revolutionize logistics, transportation, and urban planning.

Global vision positioning system market restraints

Cost implementation

Autonomous vehicles require modern VPS technology, whether for personal use or ride-sharing businesses, to navigate and make real-time judgments. These systems frequently combine high-resolution cameras, LiDAR sensors, radar systems, and sophisticated onboard computers for data processing. It might be expensive to develop and integrate these components into a vehicle. According to a McKinsey analysis, the cost of autonomous vehicle sensors, such as cameras and LiDAR, can range from tens to hundreds of thousands per vehicle.

The high cost of sensors and the cost of creating and certifying autonomous driving software add significantly to the entire deployment cost. VPS technology is utilized in delivery drones used by firms, including Amazon, UPS, and FedEx, to assure accurate navigation, obstacle avoidance, and safe delivery. These drones necessitate advanced sensors and onboard computing capabilities, which raises the installation cost. Therefore, these factors may hamper the Vision Positioning System market growth.

Global vision positioning system market opportunity

Smart cities

Smart cities are metropolitan regions that use technology and data to improve residents' quality of life, increase infrastructure efficiency, and encourage sustainable living. VPS technology is critical to attaining smart city objectives by allowing precise and safe navigation for autonomous cars and drones within urban environments. Autonomous public transportation alternatives, such as self-driving buses and shuttles, are increasingly being investigated by smart cities. VPS technology is critical for these vehicles to traverse complex city streets, adhere to predetermined itineraries, and assure passenger safety.

According to an International Data Corporation (IDC) report, global spending on technologies supporting smart city efforts will reach USD 189.5 billion by 2023. This spending includes transportation, public safety, and urban planning investments, all of which can benefit from VPS technology. VPS technology provides precise navigation for autonomous vehicles and drones, increasing resident safety and lowering the likelihood of accidents in metropolitan locations. Furthermore, smart cities seek to cut traffic and pollutants. VPS technology contributes to these environmental goals by allowing more efficient transportation and traffic management.

Regional Analysis

The global vision positioning system market analysis is conducted in North America, Europe, Asia-Pacific, Middle East Africa, and Latin America.

North america dominates the global market

North America is anticipated to exhibit a highest CAGR over the forecast period. North America will continue to dominate this market due to multiple significant players, technical developments, and early acceptance of new technologies. Furthermore, applications such as unmanned aerial vehicles, autonomous cars, and industrial automation drive demand for vision positioning systems in North America. Many North American e-commerce behemoths, including Amazon and UPS, are investigating drone delivery services. VPS is required for these drones to deliver packages to clients' doors, navigate complex urban areas, and avoid obstacles. Manufacturing and logistics businesses in North America rely significantly on industrial robots and automated guided vehicles (AGVs).

Furthermore, VPS technology improves these robots' navigation and safety, enhancing efficiency in factories and warehouses. Several North American communities are implementing smart city programs that use VPS technology. VPS is used in traffic management systems, for example, to monitor traffic in real-time, optimize traffic flow, and reduce congestion in urban areas. The United States, in particular, contributes significantly to the North American VPS market. The United States is a hotbed for VPS innovation and deployment due to the presence of tech companies, research institutions, and a flourishing startup ecosystem. Automobile manufacturers such as Tesla, General Motors, and Ford are aggressively adopting VPS technology to improve driver-assistance systems and proceed toward full autonomy. North American investment in VPS startups and research institutions is strong, attracting venture capital money and alliances with big tech corporations.

Europe is the most significant global market shareholder growing at a fastest CAGR during the forecast period. The Vision positioning systemmarket insights show that the European market will experience steady growth. Due to established industrial sectors and a robust research and development infrastructure, the European Vision Positioning System market holds the second-largest market share. The European car sector has been a major driver of visual positioning system adoption, especially in new driver assistance systems and autonomous driving technologies. In addition, aircraft, manufacturing, and logistics projects contribute to the demand for vision positioning systems.

Furthermore, the German Vision Positioning System market had the biggest market share, while the U.K. Vision Positioning System market was the fastest-growing market in Europe. To minimize the continent's carbon footprint, the European Union (EU) has set high sustainability goals, pushing the use of VPS in agriculture, transportation, and environmental efforts. The European automobile industry contributes significantly to the VPS market, with companies including Volkswagen, Volvo, and Renault using VPS technology in their vehicles for safety and autonomous driving features.

The Asia-Pacific Vision Positioning System Market is expected to grow the fastest during the projected period. It is the result of rising industrialization, urbanization, and developing economies. Increased investment in automotive, aerospace, consumer electronics, and logistics drives demand for visual positioning systems. Furthermore, the region is seeing increased demand for UAVs and drones for various applications such as agriculture, surveillance, and mapping, fueling market expansion. Furthermore, China's Vision Positioning System market had the greatest market share, while India's Vision Positioning System market was the fastest expanding in the Asia-Pacific region.

A growing awareness of the benefits of VPS technology across industries characterizes the market in the Middle East and Africa. The area is emerging as a player in the global VPS industry because of its emphasis on infrastructure development, resource management, and technical innovation.

Segmental Analysis

The global vision positioning system market is segmented based on solution, component, type, location, platform, and end-user.

The Solution is further segmented into Tracking Solutions, Analytic Solutions, Navigation Solutions, and Industrial Solutions.

Industrial Solution is the major contributor to the market. VPS industrial solutions are intended for manufacturing, warehouses, and industrial automation. These systems increase productivity, automate operations, and improve safety by accurately positioning and controlling robots and equipment. Tracking solutions use VPS technology to monitor and track things or assets in real-time. These technologies are widely used in logistics, asset management, and transportation to precisely track the position and movement of cars, goods, or equipment.

The market is sub-segmented based on components: Camera Systems, Sensors, Markers, and Others.

Camera Systems influenced the market growth. A VPS's camera system consists of one or more cameras or optical sensors that capture visual data from the surrounding environment. These cameras are critical for capturing pictures or video frames for navigation and analysis. A VPS system's sensors include LiDAR (Light Detection and Ranging), ultrasonic sensors, inertial sensors (gyroscopes and accelerometers), and depth sensors. These sensors supplement visual data obtained by cameras by providing additional information for precise placement.

Based on the platform, the market is fragmented into Robotics, Unmanned Aerial Vehicles, Space Vehicles, and Automated Guided Vehicles.

Unmanned Aerial Vehicles are the biggest income generator. The UAV platform includes drones and unmanned aerial vehicles that use VPS for navigation, control, and safety. Drones can fly automatically, avoid obstacles, and fulfill missions precisely because of VPS technology. The robotics platform section includes the application of VPS technology in various robots, such as industrial robots, service robots, and collaborative robots (cobots). These robots use VPS for navigation, obstacle avoidance, and precise positioning.

The segment can be bifurcated by type into 1D, 2D, and 3D.

2D led the market growth.2D VPS systems capture visual data and deliver positioning information in two dimensions, often in plane coordinates. They provide data on both horizontal and vertical placement. 3D VPS systems can capture and interpret three-dimensional visual input, providing depth information and horizontal and vertical positioning. They construct a three-dimensional map of their surroundings.

Based on end-user, the market is fragmented into Automotive, BFSI, Industrial, Healthcare, Commercial, Government Sector, Others.

The commercial segment is the largest end-user. The commercial sector includes organizations and enterprises from various industries, except those in specialized categories such as automotive, BFSI, and healthcare. VPS technology has various commercial applications, including retail, hospitality, and entertainment. The automotive industry includes car manufacturers, suppliers, and users. VPS technology is largely employed in the automobile industry for autonomous vehicles, advanced driver-assistance systems (ADAS), and increasing vehicle navigation and safety.

Recent Developments

• August 2023- Cognex Corporation (NASDAQ: CGNX), a leader in industrial machine vision, announced that it has agreed to acquire Moritex Corporation (Moritex) in an all-cash transaction for 40 billion (approximately $275 million) from Trustar Capital, a private equity affiliate of CITIC Capital Holdings Limited.
• August 2023- Pratexo, an edge-to-cloud platform innovation, received funding from ABB.
• August 2023- OMRON introduced microswitches for Remote, Delicate Control Around the World