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The automotive camera market size is forecast to increase by USD 4.24 billion, at a CAGR of 10.03% between 2023 and 2028. The automotive industry is witnessing a significant priority shift towards enhancing safety features in response to increasing customer concerns and a high number of road accidents and road rage incidents. This trend is driving the steady growth of advanced-driver assistance systems (ADAS), which in turn, is creating a substantial demand for automotive camera modules. These cameras play a crucial role in various safety applications, such as lane departure warning, blind spot detection, and collision avoidance systems. As the adoption of ADAS technologies continues to expand, the automotive camera market is poised for robust growth, offering lucrative opportunities for market participants.
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The market is experiencing significant growth due to advancements in autonomous driving technology and imaging solutions. Automakers are increasingly integrating advanced driver assistance systems (ADAS) into autonomous vehicles and self-driving cars to enhance vehicle safety. These systems rely on onboard cameras and imaging systems to provide real-time images for critical functions like pedestrian detection, traffic sign recognition, and parking assistance. The focus on meeting safety standards and safety regulations is driving the adoption of technologies that address challenges such as adverse weather conditions, temperature fluctuations, and vibrations. Effective ADAS systems help mitigate carelessness and mistakes that lead to traffic accidents. Insurance companies are also influencing the market by evaluating the effectiveness of these systems in reducing risks. As automakers and imaging solutions providers innovate, the market benefits from enhanced safety and functionality, driving growth in the automotive sector and beyond.
Priority to automotive safety among customers is one of the key factors driving the global automotive camera market growth. Road transportation is one of the prominent modes of transportation in most countries. Since the last decade, the automotive industry has been actively working on improving road safety by preventing accidents and reducing injuries. Most safety measures are focused on drivers, as human errors are the prime cause of accidents. Several technical measures, especially active safety systems, work effectively in preventing accidents by warning drivers to take precautions before accidents occur. Most accidents occur due to human error caused by drowsiness, lack of concentration or driver distraction, and fatigue.
Factors such as changes in lifestyle and driving for long hours are leading to sleep disorders and increasing driver fatigue, stress, and drowsiness during driving. Hence, automobile safety is evolving as an important feature for end-users, which is leading them to install advanced safety systems in their vehicles. Continuous developments from automotive camera manufacturers to offer customized products have allowed customers to adopt automotive cameras in their personal vehicles, which is expected to drive the growth of the global automotive camera market during the forecast period.
Significant Market Trends
The increased use of wide-angle camera technology will fuel the global automotive camera market growth. Road accidents and traffic congestion have increased immensely in the past few years due to the increase in the number of passenger cars, trucks, and buses across all regions. The safety of both passenger cars and commercial vehicles is an ever-growing concern for governments and automobile manufacturers. This, in turn, has led to the introduction of several safety measures and initiatives by organizations to ensure the safety and security of passengers and pedestrians. The development of camera systems for the automotive market is rapidly gaining importance, primarily driven by the growing safety concerns for both passengers and vulnerable road users, such as pedestrians.
Moreover, the use of wide-angle lenses in automotive camera modules is gaining importance due to their wide field coverage and enhanced picture quality. Automotive OEMs are exploring safety solutions that detect the driver's blind spots on the road and hence, are using wide-angle technology to expand the coverage field of cameras. OEMs and camera module manufacturers are actively investing in improving the output from wide-angle cameras, which is expected to drive the growth of the global automotive camera market during the forecast period.
Major Market Challenge
The high replacement costs associated with camera modules are the major challenge to the global automotive camera market growth. Automotive cameras play a crucial role in eliminating blind spots. They are a critical safety feature in automobiles as they provide the driver with a more precise and safer driving experience. Earlier, camera systems were mostly offered as an optional feature in premium and luxury vehicle segments; however, now, these are increasingly being used even in entry-level vehicles in developed countries due to regulatory standards and convenience.
However, automotive camera modules have not been able to penetrate the entry-level and lower variants of mid-segment cars, especially in emerging economies, as they add to the price of the vehicle. However, camera manufacturers are trying to bring down the cost of manufacturing automotive camera systems, which will increase their adoption in lower variants of mid-trim and entry-segment vehicles. High-end camera systems include several features, such as large screen monitors, GPS navigation, multiple cameras, better image resolution, and night vision cameras. As a result, price-conscious consumers, especially in developing countries may be reluctant to install automotive cameras in their vehicles due to the high cost, which is expected to negatively affect the growth of the global automotive camera market during the forecast period.
The market forecasting 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 market growth analysis strategies.
Customer Landscape
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.
ASMPT Ltd.: The company offers automotive camera such as PCT optical camera.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The viewing and sensing camera segments is estimated to witness significant growth during the forecast period. Automotive cars are increasingly adopting cameras with viewing and sensor capability. These cameras ensure driver and passenger safety while assisting the driver in driving. For instance, cars with rear cameras have sensors, which assist the driver in parking the car. Tight parking spaces in urban localities are leading vehicle users to adopt passive systems, such as backup cameras, to assist them in parking their vehicles. Continuous reduction in the prices of sensors, cameras, and displays is also a crucial driver for the growing adoption of automotive cameras with viewing and sensing applications globally.
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The viewing and sensing camera segments accounted for USD 2.84 billion in 2018 and showed a gradual increase during the forecast period. The Front Collision Warning System (FCWS) is used with cameras and sensors to alert drivers of upcoming collisions and prevent accidents. Moreover, automotive cameras have the Lane Departure Warning System (LDWS), which allows the driver to stay in lane and ensure best driving practices. Hence, the advancement of automotive cameras in viewing and sensing applications is boosting the growth of the global automotive camera market. Hence adopting cameras for viewing and their sensor capability will positively drive the market in the forecast period.
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APAC is estimated to contribute 34% 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. North America leads the automotive market. Strict emission norms and increasing road safety, passenger safety, and vehicle security concerns have boosted the growth of the automotive camera market in North America. The region comprises technologically advanced nations and mature markets, such as the US, Canada, and Mexico, and this has resulted in the development of advanced automotive technologies. Such factors offer encouraging market growth prospects for automotive cameras.
Moreover, regulations such as Corporate Average Fuel Economy (CAFE) and the New Car Awareness Program (NCAP) are driving the market for active safety systems, which, in turn, will parallelly lead to the growth of the regional automotive camera market during the forecast period. As most OEMs strive to achieve top ratings, safety assist functions such as lane departure warning system (LDWS), surround-view systems, and ADAS are introduced in more vehicles. Along similar lines to the US, Canada also has been mandated to equip all new passenger cars, three-wheelers, small trucks, and vans with automotive cameras. All such factors are expected to drive the demand for automotive cameras in North America.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
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The market is experiencing rapid growth due to advancements in artificial intelligence (AI) and imaging systems integrated into ADAS systems. These innovations are transforming the automobile sales landscape by enhancing safety and convenience in SUVs, LCVs, and HCVs. The use of 360-degree cameras, including top-view cameras, bird’s-eye cameras, and surround view cameras, provides a comprehensive 360-degree view for drivers, improving driver monitoring systems and addressing blind spot areas. AI-based cameras and digital cameras are critical in implementing features such as adaptive cruise control, automatic emergency braking, and forward collision warning systems. Thermal and infrared imaging further enhance safety by enabling driver monitoring systems to function effectively under various conditions, including congested areas and adverse weather conditions. Despite challenges like semiconductor shortages, the digital segment of the market continues to thrive, driven by the need for park assist systems, lane keep assist, and road sign assistance. Car manufacturers are leveraging stereo cameras, monocular cameras, and thermal cameras to meet the growing demand for driver assistance and intelligent headlight control.
Market Scope |
|
Report Coverage |
Details |
Page number |
156 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 10.03% |
Market growth 2024-2028 |
USD 4.24 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
8.88 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
APAC at 34% |
Key countries |
US, China, Germany, Japan, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ASMPT Ltd., Continental AG, HELLA GmbH and Co. KGaA, Hitachi Ltd., Hyundai Motor Group, Kyocera Corp., Magna International Inc., Mcnex Co. Ltd., Mobileye Technologies Ltd., Murata Manufacturing Co. Ltd., OmniVision Technologies Inc., Panasonic Holdings Corp., Robert Bosch Stiftung GmbH, Samsung Electronics Co. Ltd., Sony Group Corp., Stellantis NV, Stonkam Co. Ltd., Teledyne Technologies Inc., Valeo SA, and Veoneer Inc. |
Market dynamics |
Parent market analysis, Market forecasting 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 report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Vehicle Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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