Market Trends of Camera Module Industry
Mobile Segment to Hold a Notable Market Share
- The growing sales of smartphones across economies with slower technological developments and budgets have propelled the market for camera modules. According to Ericsson, at the end of 2022, 6.6 billion smartphone subscriptions were estimated, accounting for about 79% of all mobile phone subscriptions. This is expected to reach 7.8 billion in 2028, accounting for around 84% of all mobile subscriptions.
- Moreover, according to GSMA, smartphone subscribers in North America are anticipated to reach 328 million by 2025. Additionally, by 2025, the region may also witness an increase in mobile phone subscriber penetration rates (86%) and the Internet (80%). Furthermore, by 2025, Europe is estimated to register the highest internet penetration rate (82%) and smartphones (88%). All these factors contribute positively to the studied market's growth.
- The increasing demand to improve cameras' resolution across smartphones of all ranges has enabled several manufacturers to launch new sensors and camera modules. For instance, in January 2023, Samsung introduced its latest 200-megapixel (MP) image sensor, the ISOCELL HP2, with improved pixel technology and full-well capacity to improve mobile images in premium smartphones. The new sensor packs 200 million 0.6-micrometer pixels in a 1/1.3" optical format, a sensor size commonly used in 108MP main smartphone cameras, enabling consumers to experience even higher resolutions in the latest high-end smartphones without larger camera bumps in their devices.
- Moreover, currently, most smartphones use CMOS (Complementary Metal-Oxide Semiconductor) image sensors instead of CCD (Charge-Coupled Device). CMOS uses less power than CCD, which makes it highly suitable for mobile devices. Also, in November 2022, SmartSens Technology, a CMOS image sensor supplier, introduced SC520XS, a 0.7-micron pixel, 52-MP CMOS Image Sensor for high-end smartphone cameras.
- Further, smartphone vendors are developing advanced cameras in their mobile phones, which drives the camera module market. For instance, in July 2022, Xiaomi announced an extended camera sensor in its new Mi 12S Ultra flagship smartphone. It comes with a huge new feature: a 1-inch camera sensor, which is relatively giant for a smartphone.
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Asia-Pacific to Dominate the Market
- The widespread presence of electronics, semiconductor, and automobile manufacturing companies, as well as an increase in consumers' purchasing power of the population, is fueling the growth of the compact camera modules market in the Asia-Pacific. The region has witnessed a change in smartphone adoption and smart surveillance systems, thus propelling the deployment of compact camera modules to cater to a booming consumer electronics manufacturing sector.
- For instance, according to GSMA, smartphone subscription in the Asia-Pacific region is anticipated to reach 94% by 2030, compared to 76% in 2022. Furthermore, unique mobile subscribers are also anticipated to grow significantly, from 1.73 billion in 2022 to 2.11 billion in 2030. All these factors together create a favorable outlook for the growth of the studied market in the Asia Pacific region.
- The region's rapidly growing consumer electronics industry also helps create a positive growth scenario for the market as camera modules are increasingly being integrated into consumer electronic devices for different segments. China already has one of the largest consumer electrical industries in the world. Moreover, according to IBEF, the Indian appliances and consumer electronics industry reached USD 9.84 billion in 2021 and is estimated to more than double to reach USD 21.18 billion by 2025.
- Further, automation in the region is expected to augment the camera module market during the forecast period as automation and industrial robotic solutions uses camera module for various purposes. For instance, the Chinese government's programs, such as the Made in China 2025 plan, promote R&D in factory automation and technology investments. As most of the automation equipment is imported from other countries, the 'Made in China' initiative aims to expand the country's domestic production of automation equipment.
- The healthcare sector in the region has also shown a significant adoption of digitization. Hence, it is expected to drive the demand for the market studied as an ideal solution for next-generation single-use endoscopes. Healthcare has emerged as one of the largest sectors in India, according to IBEF. The healthcare market in the country is expected to reach USD 372 billion by 2022, driven by increasing income, better health awareness, lifestyle diseases, and growing access to insurance. Thus, the growing demand for medical devices also augments the demand for camera modules for use in many such devices.
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