Image Sensor Market

An image sensor is an electronic device that converts an optical image into an electronic signal. The image sensor is a critical component in digital cameras, smartphones, and other devices that capture images. The image sensor is responsible for capturing light and converting it into a digital signal that can be processed by the device's software.

There are two main types of image sensors: CCD (charge-coupled device) and CMOS (complementary metal-oxide-semiconductor). CCD sensors are typically found in high-end digital cameras and provide high-quality images with low noise levels. CMOS sensors, on the other hand, are commonly found in smartphones and other consumer electronics devices due to their lower power consumption and smaller size.

Image sensors work by using an array of tiny light-sensitive pixels, each of which captures a small part of the image. The pixels convert the light they receive into an electrical charge, which is then read by the sensor and converted into a digital signal. The image sensor then sends this signal to the device's processor, which processes the data and creates an image.

One of the most important factors to consider when choosing an image sensor is its resolution. The resolution of an image sensor is determined by the number of pixels it contains. The higher the resolution, the more detail the image will have. However, higher resolution sensors also tend to have higher noise levels, which can lead to lower image quality.

Another important factor to consider when choosing an image sensor is its sensitivity to light. Image sensors with high sensitivity are better able to capture images in low light conditions. This is particularly important for indoor or low-light photography.

In addition to their use in digital cameras and smartphones, image sensors are also used in a variety of other applications. For example, they are used in security cameras to monitor buildings and public spaces, in medical devices to capture images of internal organs, and in automotive applications to assist with navigation and collision avoidance.

Dynamics of Image Sensor Market

Drivers in Image Sensor Market

Increasing Demand for Multiple Cameras in Mobile Devices

The image sensor market has experienced significant growth due to the rising demand for smartphones with multiple cameras. Smartphones now feature high-resolution image sensors in their rear cameras, along with various types of cameras such as standard/main, telephoto or periscope zoom, ultra-wide, monochrome, depth or 3D ToF, and macro cameras. The global adoption of smartphones, coupled with the growing popularity of smartphone photography, has fueled the demand for image sensors. Advancements in image processing techniques and imaging technologies continue to drive the development of image sensors. These sensors function as electronic devices that convert photons into electronic signals, enabling the capture of digital images. Initially, image sensors were primarily used in camera modules and related imaging devices. However, with the ongoing technological trends in industrial automation, advanced driver assistance systems (ADAS) in the automotive sector, and machine vision in robotics, image sensors are now widely deployed in these areas, further contributing to the revenue growth of the image sensor market in the forecast period.

Restraints in Image Sensor Market

Growing Preference for LiDAR Solutions by Automobile Manufacturers

Automobile manufacturers are increasingly favoring LiDAR (Light Detection and Ranging) solutions over image sensor cameras. LiDAR systems utilize millions of laser pulses to accurately measure changes in distance, offering higher precision and accuracy compared to image sensor cameras. However, LiDAR systems also have some drawbacks, such as high power consumption, performance limitations in challenging weather conditions, heavyweight design, and higher costs. Despite these disadvantages, the easy availability of LiDAR solutions for use in autonomous vehicles has become a restraint for the growth of the image sensor market. Automobile companies continue to prioritize LiDAR systems over image sensor camera systems due to their superior capabilities.

Opportunities in Image Sensor Market

Advancements in Image Sensors

Innovation in image sensors is currently focused on enhancing image quality through increased pixel density, reduced noise, and optimized sensor platform size. This technology is also gaining significant value from features such as depth sensing, which is employed in robotic surgery systems and surgical navigation and guidance systems. With multiple ecosystem players investing in innovation, there are ample opportunities for growth in the image sensor market. For example, the top image sensor players launched around 38 products from 2023 onwards. The automotive sector is rapidly adopting emerging technologies such as machine vision, artificial intelligence, and related innovative technologies, creating more opportunities for the use of image sensors. Advanced driver assistant systems that have a 360-degree surround camera are gaining popularity due to their beneficial features such as anti-lock brakes, lane departure warning, electronic stability control, traction control, and adaptive cruise control. This technology shows a major utilization of image sensors for its machine vision technology. As a result, the emerging concepts of driverless cars or automated vehicles are expected to drive the demand for image sensors during the forecast period.

Challenges in Image Sensor Market

Reduced Time-to-Market for Smartphones

The majority of digital cameras with image sensors marketed in the consumer market are highly competitive due to the constantly shortened time-to-market for new and improved versions. The shortening product lifecycles means that product lines must be constantly improved, making it challenging for manufacturers to reduce development time. The company that is first to market the new or improved version gains a significant competitive advantage. The adoption of CMOS imaging sensors has augmented the image sensor market revenue, as CMOS image sensor technology offers improved image quality and reduces the manufacturing cost. However, it poses a challenge for CCD image sensor technology. For instance, Sony Corporation developed Back Side Illuminated (BSI) CMOS sensors in 2018, which has been widely adopted due to its high-resolution image quality. Nonetheless, developing CMOS infrastructure and the emergence of advanced imaging technologies is expected to increase the image sensor market size.

Ecosystem of Image Sensor Market

During the forecast period, the area image sensors segment is expected to dominate the image sensor market. This growth is attributed to the widespread use of area image sensors in various applications such as smartphones, tablets, automobile cameras, and surveillance cameras. Additionally, area image sensors are preferred in situations where the full image needs to be captured at once or when coordinating the movement of the item with the sensors is difficult. The market study covers CCD and CMOS image sensors based on technology. In the past, CCD image sensors had a strong foothold in the global image sensors market. However, CMOS image sensors have now taken over due to their low power consumption, small size, faster frame rate, ease of integration, and lower manufacturing cost. The development of CMOS image sensor technology has improved their performance and increased their use in consumer electronics, further propelling the market for CMOS technology.

In terms of resolution, the more than 16 MP segment is expected to hold the largest share of the image sensor market during the forecast period. The surge in demand for multi-camera phones with high resolution has boosted the growth of this segment. The increasing popularity of smartphone photography has also contributed to the rise of high-resolution image sensors in smartphones. The image sensor market is segmented into 2D and 3D sensors based on processing type, with 2D technology being widely used at present. However, emerging technologies such as machine vision and computer vision indicate that 3D image sensors will capture significant market share in the coming years. The incorporation of 3D image sensors in smartphones, AR applications, and 3D computational photography is offering new opportunities for the image sensor market to grow. Companies such as Infineon Technologies AG and Omni Vision Technologies Inc. are developing 3D image sensors for various applications such as 3D scanning, biometric identification, body tracking, hand gesture, and automotive imaging.

During the forecast period, the consumer electronics segment has emerged as the largest in terms of size within the image sensor market. This growth is primarily driven by the increasing demand for consumer electronics devices and continuous technological advancements in the industry. Key manufacturers such as Sony Group, Samsung Electronics Co., Ltd., OMNIVISION, ON Semiconductor Corporation, Panasonic Corporation, PixArt Imaging Inc., and Himax Technologies, Inc. play a crucial role in providing image sensors for consumer electronics. These companies are actively expanding their product portfolios to cater to the growing demand for image sensors in consumer electronics. The image sensor market encompasses various applications including consumer electronics, automotive, healthcare, surveillance & security, and others. Many industries, ranging from healthcare to automotive and defense, are adopting image sensors for a wide range of applications as they embrace disruptive technologies.

The consumer applications of image sensors have experienced rapid development, thanks to the increased sales of smartphones over the past few decades. These sensors are used in high-resolution digital cameras, low-noise DSLR cameras, point-and-shoot cameras, tablet PC cameras, and smartphones equipped with dual cameras. Furthermore, the commercialization of stacked image sensors for Advanced Driver Assistance Systems (ADAS) technology is expected to drive growth in the automotive sector. Emerging technologies like ADAS, driverless cars, and automated vehicle systems heavily rely on camera and visualization technology, which involve the deployment of image sensors and imaging technologies. These factors contribute to the expansion of the image sensor market during the forecast period. Leading market players such as Sony Corporation, ON Semiconductor, and OmniVision are actively involved in the development of technology for consumer electronics and automotive imaging products. Therefore, consumer electronics and automotive applications are anticipated to generate substantial revenue in the imaging sensor market in the coming years.

The market for image sensors is rapidly growing, especially in consumer electronics, where there is high demand for devices such as smartphones, digital cameras, and AR/VR systems. Automation processes are also spreading from manufacturing to the automotive industry, where image sensors are widely used. The application of image sensors is expanding across diverse industries, including healthcare and automotive, creating significant opportunities for growth in the image sensor market.

The security and surveillance segment is a major driver of the image sensor market due to the need for advanced CCTV and surveillance modules with high resolution and three-dimensional vision. Advanced imaging sensors and technologies have also enhanced satellite photographs and radar images. The increasing adoption of drones with high camera vision is becoming a crucial factor for defense surveillance. Furthermore, government policies and regulations focused on residential security and surveillance are also boosting the image sensor market landscape.

The healthcare industry is also expected to supplement the growth of the image sensor market with emerging optical scanning technologies, diagnostic technologies, and optical therapy. Additionally, the adoption of image sensors is surging in industrial automation and factory monitoring processes, further increasing the overall image sensor market size.

Regional Insights

The European Image Sensor market has expanded rapidly due to the increasing demand for advanced imaging technology in various end-user industries, such as consumer electronics, automotive, and security. With the advancement of technology, image sensors have become smaller, more efficient, and cost-effective, making them widely used in various applications. The increasing demand for premium imaging technology in smartphones and other devices in the consumer electronics industry has driven growth in the European Image Sensor market. In the European automotive industry, image sensors are also widely used in various driver assistance systems like lane departure warning and automated emergency braking systems. Moreover, the security industry is also a growing user of image sensors.

Meanwhile, during the forecast period, Asia Pacific has held the largest share of the overall image sensor market, with the highest expected CAGR growth. The market growth in Asia Pacific is driven by companies located in China, Japan, South Korea, and other countries in the region, which have developed image sensors that meet the growing demand for consumer electronics, automotive, security & surveillance applications, and more.

The growth of the image sensor market in Asia Pacific can be attributed to the presence of major smartphone manufacturers and the increasing population, coupled with rising penetration of smartphones in the region. Furthermore, the governments of several countries in the region are taking initiatives to ensure vehicle safety, thereby creating demand for image sensors in the automotive sector.

Dominating Companies in Image Sensor Market

• SONY GROUP
• SAMSUNG ELECTRONICS CO., LTD.
• OMNIVISION
• STMICROELECTRONICS N.V.
• GALAXYCORE SHANGHAI LIMITED CORPORATION
• ON SEMICONDUCTOR CORPORATION
• PANASONIC HOLDINGS CORPORATION
• CANON INC.
• SK HYNIX INC.
• PIXART IMAGING INC.
• HAMAMATSU PHOTONICS K.K.
• PIXELPLUS CO., LTD
• AMS AG
• HIMAX TECHNOLOGIES, INC
• TELEDYNE TECHNOLOGIES INCORPORATED
• SHARP CORPORATION
• GPIXEL INC.
• NUVOTON TECHNOLOGY CORPORATION
• DIODES INCORPORATED
• GIGAJOT TECHNOLOGY INC.
• ISDI
• ANDANTA GMBH
• PHOTONFOCUS AG
• NEW IMAGING TECHNOLOGIES
• RUIXIN MICROELECTRONICS CO., LTD
• Infineon Technologies AG
• PMD Technologies AG

Recent Developments in Image Sensor Market

• Sony's Acquisition of Eviyos: In September 2020, Sony Corporation announced its acquisition of the Austrian company Eviyos, which specializes in the development of micro-LED-based light sources. This strategic acquisition aims to enhance Sony's image sensor technology by incorporating Eviyos' micro-LED expertise.
• Tower Semiconductor's Acquisition of Maxim Integrated's San Antonio Facility: In February 2020, Tower Semiconductor, a global specialty foundry, completed the acquisition of Maxim Integrated's San Antonio facility in Texas, USA. This acquisition allowed Tower Semiconductor to expand its image sensor business by gaining access to advanced manufacturing capabilities.
• OmniVision's Acquisition by Will Semiconductor: In July 2019, Will Semiconductor, a Chinese semiconductor company, completed the acquisition of OmniVision Technologies, a leading developer of advanced digital imaging solutions. This acquisition aimed to strengthen Will Semiconductor's image sensor product portfolio and expand its presence in the global market.
• Sony and Microsoft's Strategic Partnership: In May 2019, Sony Corporation and Microsoft announced a strategic partnership to collaborate on cloud-based gaming and AI solutions. As part of this partnership, the companies agreed to explore potential joint development of future cloud solutions in image sensor technology for intelligent image processing.
• Samsung's Acquisition of Corephotonics: In January 2019, Samsung Electronics acquired Corephotonics, an Israeli company specializing in dual-camera technologies and computational photography. This acquisition aimed to enhance Samsung's image sensor capabilities and improve the camera performance of its smartphones.
• Sony's Acquisition of Toshiba's Image Sensor Business: In 2020, Sony Corporation acquired Toshiba's image sensor business for approximately $165 million. This acquisition allowed Sony to strengthen its position as a leading provider of image sensor technology and expand its product portfolio.
• ON Semiconductor's Acquisition of SensL Technologies: In 2018, ON Semiconductor, a semiconductor solutions provider, completed the acquisition of SensL Technologies, an Irish company specializing in silicon photomultipliers and related technologies. This acquisition aimed to enhance ON Semiconductor's capabilities in low-light imaging applications.
• Panasonic's Partnership with TowerJazz: In 2018, Panasonic Corporation announced a partnership with TowerJazz, a specialty foundry, to collaborate on the development of next-generation sensor technologies. The partnership aimed to leverage TowerJazz's manufacturing expertise to enhance Panasonic's image sensor offerings.
• Samsung's Partnership with Fujifilm: In 2017, Samsung Electronics entered into a partnership with Fujifilm, a renowned imaging technology company, to collaborate on the development of new image sensor technologies. The partnership aimed to leverage Fujifilm's expertise in color filter array technology to enhance the performance of Samsung's image sensors.
• OmniVision's Acquisition of Gpixel: In 2017, OmniVision Technologies completed the acquisition of Gpixel, a Belgian company specializing in high-performance CMOS image sensors. This acquisition aimed to strengthen OmniVision's product portfolio and expand its presence in the global image sensor market.

In conclusion, image sensors are a critical component in modern digital devices. They allow us to capture high-quality images and videos, and they are used in a wide range of applications beyond just photography. When choosing an image sensor, it is important to consider factors such as resolution and sensitivity to ensure that you get the best possible image quality for your needs.