The compact camera module (CCM) market is forecast to double in the next five years, reaching $51 billion by 2020, driven by mobile phone and automotive sectors, according to a new report from Yole Développement.
The report, Camera Module Industry, finds the mobile phone segment will grow from 72 percent to 74 percent of revenues thanks to improvements in specifications and average selling price. This will translate into higher quality photos and innovative products and more efficient camera modules.
However, Yole analysts are surprised by CCM price increases. “This trend is a real surprise. Indeed, at Yole, we follow the electronic components market for the mobile phones industry for a long time and we know the strategic importance of price in this sector,” said Pierre Cambou, activity leader at Yole, in a statement.
Market penetration of auto focus (AF) and optical image stabilization (OIS) applications indicate the importance of these features in mobile phones and the future of these technologies in other sensing applications, said Yole. AF and OIS applications are expected to reach $5.5 billion in 2020, growing at a 21 percent compound annual growth (CAGR) from 2015 to 2020.
“There is a different market trajectory for the lens and sensor markets, which are now maturing at approximately 14 percent CAGR with the emergence of giant billion-dollar companies,” said Yole’s analysts.
Analysts expect the CCM and auto-focus manufacturing markets, which are still very fragmented and growing at roughly 20 percent CAGR, to consolidate over the next five years.
Although current revenues for the CCM market is primarily driven by the adoption of high-resolution rear- and front-facing cameras, new applications, particularly in the automotive segment are starting to play an important role, according to Yole analysts. The report finds that automotive cameras have transitioned from an add-on feature to standard equipment, driven by regulations in the U.S. and the European Union.
“Automotive has a long way to go: technologies are just good enough to enter the current market as they reach consumer expectation”, stated Cambou. “The technology will quickly evolve and serve the autonomous vehicle trend.”
Automotive module revenue is forecast to reach $7.9 billion by 2020, up from $1.2 billion in 2014, growing at a CAGR of 36 percent. “This exceptional growth has mainly benefited the CCM industry’s second-tier players, but the response of market leaders will be worth watching. As the camera module application moves from imaging to sensing, the automotive Advanced Driver Assistance System (ADAS) application is the perfect barometer of what’s to come for the entire camera module industry,” according to the report.
The report also looks at the computing sector, pegged at stable growth. However, Yole analysts believe there could be a growth spike with the addition of new sensing technologies such as 3D, depth, motion, and IR, along with new applications in video interaction.