Automotive Image Sensors Market by Application, Type, and Geography - Forecast and Analysis 2023-2027

Automotive Image Sensors Market Forecast 2023-2027

The  Automotive Image Sensors Market size is forecast to increase by USD 8.41 billion at a CAGR of 28.65% between 2022 and 2027. The market's expansion in the automotive sector is intricately tied to several pivotal factors. One significant driver is the continual growth observed in the camera-based Advanced Driver Assistance Systems (ADAS) market. These systems, leveraging cutting-edge technology, enhance vehicle safety and driver assistance, thereby fueling market demand. Additionally, regulatory standards have emerged, mandating high-quality image sensors to ensure optimal performance and reliability in automotive safety applications. Furthermore, stringent regulations are being implemented to promote the widespread adoption of advanced safety systems, aligning with global efforts to enhance road safety and mitigate accidents. Together, these factors underscore the critical role played by technological advancements and regulatory initiatives in shaping the trajectory of the automotive safety market.

What will be the Size of the During the Market Forecast Period?

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Increasing demand for advanced driver-assistance systems and autonomous vehicles. With a focus on enhancing driver safety and comfort, automakers are integrating high-quality image sensors such as LiDAR and CMOS technology into their vehicles. These sensors enable functionalities like blind-spot monitoring, pedestrian detection, and parking assistance, contributing to a safer and more convenient driving experience. Additionally, the rise of electric vehicles (EVs) and hybrid vehicles (HVs) has spurred the demand for energy-efficient sensors and real-time insights into battery health and charging status. Leading players like Robert Bosch GmbH are investing in research and development to meet regulatory requirements and drive innovation in the automotive industry.

Market Segmentation

This report extensively covers market segmentation by application (passenger cars and commercial cars), type (CCD and CMOS), and geography (North America, Europe, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.The market is witnessing remarkable growth driven by consumer demand for enhanced safety features and comfort in vehicles. Automakers are integrating advanced technologies like LiDAR and REAL3 automotive image sensors to enable functionalities such as blind-spot monitoring, parking assistance, and pedestrian detection. These sensors, powered by CMOS technology and CCD technology, cater to various vehicle segments including passenger vehicles, commercial vehicles, and electric vehicles (EVs). With a focus on product development and technological advancements, the market is witnessing innovations like Hyperlux automotive image sensors for improved driver safety and comfort. As EVs and HVs gain traction, the demand for energy-efficient sensors and real-time insights into battery health and charging status is on the rise. Leading players like Robert Bosch GmbH are at the forefront, investing in research and development to meet regulatory requirements and drive performance standards in the automotive industry.

By Application Insights

The market share growth by the passenger cars segment will be significant during the forecast period. The passenger car segment is witnessing an increase in demand leading to the growing demand for the integration of ADAS technologies in passenger cars. 

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The passenger cars segment was valued at USD 1.15 billion in 2017 and continued to grow until 2021. The growing adoption of passenger cars across the world will be a crucial driver for the segment's dominating position in the global market.  The growing focus of automotive OEMs toward reducing driver distraction by offering ADAS technologies is leading to increased adoption of image sensors in passenger cars. Currently, ADAS technologies find maximum penetration in luxury cars and a few mid-segment passenger cars. Vehicle makers are gradually adding new electronics-based support features within newer models of their vehicles to attract buyers. In addition, the rising awareness of safety is leading to the increased adoption of safety electronics through the incorporation of image sensors in passenger cars to incorporate driver support, ADAS, and autonomy features. 

Market Dynamics and Customer Landscape

The automotive industry is witnessing a surge in demand for vehicles, driven by advancements in technology and shifting consumer preferences. Electric Vehicles (EVs) and Hybrid Vehicles (HVs) are at the forefront of this revolution, aimed at reducing CO2 emissions and promoting sustainability. Key technologies such as LiDAR and compact sensors are revolutionizing vehicle authentication and safety features. Moreover, innovations in sensor technology, including cost-effective solutions like CMOS image sensors and MEMS accelerometers, are enabling efficiency gains and process optimization. These cutting-edge products offer enhanced capabilities, including temperature monitoring and in-car infotainment, while also incorporating connectivity features for a seamless driving experience. Despite challenges such as high price tags and the need for extensive testing, investments in sensor designs and materials continue to drive innovation in the automotive sector. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Driver

One of the key factors driving growth is the steady growth of the camera-based ADAS technology. Numerous camera-based ADAS technologies involve multi-camera setups, such as rear-view cameras, front-view cameras, and surround-view cameras, for quicker response to avoid traffic and prevent collisions. The main purpose of automotive cameras is to visualize the vehicle's surroundings and create a virtual map for proper navigation. The type of image sensors to be used for an ADAS depends on the application. Camera module manufacturers are continuously developing high-quality modules to satisfy the demand for autonomous tech. As a result, the global is witnessing demand for high-resolution image sensors. Thus, the steady growth of the camera-based ADAS is expected to drive the growth of the global during the forecast period.

Significant Trends

The growing popularity of stereo cameras for ADAS applications is the primary trend in the global growth. The ADAS landscape is constantly changing due to advancements in automotive as well as non-automotive electronics. These changes are further enhanced by improved algorithms. This is causing the automotive industry to shift from monocular cameras to stereo cameras, which earlier transited from radar-based to camera-based technologies. The adoption of stereo cameras is beneficial for the global market, as these cameras require two image sensors. AEBS is becoming a prime stereo camera application owing to its ability to provide a response in an event requiring less response time for the driver.

The advantage of stereo cameras in the AEBS market is a positive factor for the adoption of camera technology in ADAS, which further drives the global market. Basically, stereo cameras allow more precise obstacle detection (compared to monocular cameras) for AEBS to act effectively. However, the cost factor is hindering the adoption of stereo cameras by automotive OEMs and suppliers. This trend is likely to change with a decrease in prices by stereo camera suppliers (adopting economies of scale), and this will drive stereo camera adoption in other ADAS applications during the forecast period.

Major Challenge

The high replacement costs will be a major challenge for the during the forecast period. The essential components of automotive camera modules are used for spotting obstacles and also in the functioning of driver assistance and safety systems. The camera performs a critical function in the vehicle, as it provides a blur-free and crisp image of obstacles and nearby surroundings.

In the actual scenario, the replacement costs of automotive cameras are not high. Still, the total repair, which includes the removal or replacement of cameras and image sensors, is a time-consuming process and involves a high cost of labor owing to skills. Improper treatment of automotive cameras and image sensors may lead to severe accidents, which would lead to even more expensive operation of the entire automobile rebuilding. Such factors will hinder the market growth during the forecast period.

Customer Landscape

The market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Customer Landscape

Who are the Major Players?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Continental AG: The company offers through blind spot detection and Traffic Sign Assist and Speed Limit Assist.

The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market players, including:

• Canon Inc.
• DENSO Corp.
• Gentex Corp.
• Infineon Technologies AG
• NXP Semiconductors NV
• OmniVision Technologies Inc.
• ON Semiconductor Corp.
• PixArt Imaging Inc.
• PIXELPLUS Co. Ltd.
• Samsung Electronics Co. Ltd.
• Sharp Corp.
• SK hynix Co. Ltd.
• SmartSens technology
• Sony Group Corp.
• STMicroelectronics NV

Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.

Which are the Key Regions for the Market?

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North America is estimated to contribute 30% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Vehicle buyers in North American countries such as Canada, Mexico, and the US rely heavily on digital means of communication, such as smartphones, laptops, and other electronics. Hence, they prefer vehicles that support connectivity to these devices. Vehicle manufacturers have begun integrating digital platforms within the automotive cockpits to facilitate connectivity with handheld devices such as smartphones and laptops.

Vehicle-to-everything (V2X) and vehicle-to-vehicle communication (V2V) will help to improve the safety of vehicles. The camera technology has become standard in most of the latest luxury car variants launched in North America. This is mainly due to the strong demand for driver support and ADAS features in these vehicles and the need for OEMs to differentiate their offerings in the highly competitive automotive market of the region. This is expected to be a positive influence on the during the forecast period.  

Market Analyst Overview

The market is driven by the rising adoption of EVs (Electric Vehicles) and HVs (Hybrid Vehicles). These vehicles incorporate advanced technologies like LiDAR, enabling precise object detection and navigation. Key players like XENSIV are offering connected sensor kits and innovative solutions like the XENSIV TLE4971 sensor, enhancing vehicle safety and performance. Additionally, the integration of IoT sensor platforms and ISOCELL Auto 4AC further augments sensor capabilities. Features such as Adaptive Cruise Control, Lane-Keeping Assist, and Automatic Emergency Braking rely on image sensors for accurate real-time data. With increasing consumer demand and collaboration with automakers, the market for image sensors, including those for blind-spot monitoring, parking assistance, and pedestrian detection, is poised for significant expansion.

The vehicle demand and the integration of cutting-edge technologies like LiDAR. Innovations in Cost-effective sensors and Solid-state LiDAR solutions are reshaping the industry, enhancing Engine Management and Comfort Features. Substantial investment in Prototyping and advanced Sensor materials facilitates improved Sensor functionalities, particularly in LiDAR sensors enabling precise 3D mapping and Object Detection capabilities. Mass production initiatives are reducing Unit Costs while providing ample Aftermarket opportunities for systems like Blind Spot Monitoring, Lane Departure Warning, and Parking Sensors. Tier-1 companies and OEMs are leading the charge, catering to the increasing demand for AI and IoT technology-based sensor solutions for Control Applications, Fuel Efficiency, and Emission Control in autonomous cars and autopilot applications, covering everything from Vehicle Seats to Pedals.

Segment Overview

The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Application Outlook 
  • Passenger cars
  • Commercial cars

• Type Outlook 
  • CCD
  • CMOS

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Automotive Image Sensors Market Scope
Report Coverage	Details
Page number	170
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 28.65%
Market growth 2023-2027	USD 8.41 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	27.15
Regional analysis	North America, Europe, APAC, Middle East and Africa, and South America
Performing market contribution	North America at 30%
Key countries	US, China, France, Germany, and UK
Competitive landscape	Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks
Key companies profiled	Canon Inc., Continental AG, DENSO Corp., Gentex Corp., Infineon Technologies AG, NXP Semiconductors NV, OmniVision Technologies Inc., ON Semiconductor Corp., PixArt Imaging Inc., PIXELPLUS Co. Ltd., Samsung Electronics Co. Ltd., Sharp Corp., SK hynix Co. Ltd., SmartSens technology, Sony Group Corp., STMicroelectronics NV, Taiwan Semiconductor Manufacturing Co. Ltd., Teledyne Technologies Inc., Texas Instruments Inc., and Toshiba Corp.
Market dynamics	Parent market analysis,Market Forecasting,  Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period.
Customization purview	If our market growth analysis report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research and Growth Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2023 and 2027
• Precise estimation of the market  size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market trends and changes in consumer behaviour
• Growth of the market across North America, Europe, APAC, Middle East and Africa, and South America
• Thorough analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive analysis of factors that will challenge the growth of market vendors

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