The image sensors market is expected to grow at a compound annual growth rate of 7.76% over the forecast period to reach a market size of US$22.497 billion in 2026, from US$13.333 billion in 2019.

Introduction

An image sensor is a sensor, installed in devices, that translates the light waves into signals and conveys information about the image when detected. It is used across diverse industries, prominently in consumer electronics, healthcare, automotive, defence, transportation, etc.  Cameras, camera phones, medical imaging equipment, autonomous vehicles, etc. are some devices that deploy image sensors. There are two types of image sensors: Charge-Coupled Devices (CCD) and Complementary Metal-oxide Semiconductors (CMOS). CMOS sensors are usually deployed in cheaper consumer electronics as they usually consume less power. The high-end quality cameras find CCD sensors more suitable to serve their needs. 

Market Trend

The growing disposable income and the changing lifestyle patterns in developing regions and developed economies are fueling the demand for high-end electronic products. With the ever-increasing demand for electronic products like cameras, smartphones, etc. the market for image sensors is projected to drive in the coming years. Besides that, the heavy reliance of gaming and technology industries on audiovisuals is expected to positively drive the image sensors market in the upcoming years.

Additionally, image sensors constitute an important part of the healthcare and defence industries. Technological advancements in surveillance, security, and defence along with the projected increase in healthcare investment and its increasing use for diagnosis, ophthalmology, radiography, etc. are leveraging the capabilities of image sensors which is expected to make this market even more profitable for investment.

Besides the various opportunities, the image sensor market does suffer from various restraints including quality issues during harsh conditions. Also, factors like the shortage of semiconductors and variability in the price can pose some hurdles to the growth of this market.

Growth Factors

• Driving demand for electronics like smartphones and cameras:

The rising disposable income and the changing lifestyle of people have positively affected the demand for high-end electronics over the past years. The growing technology is enabling people to switch from keypad phones to smartphones with cameras as the sensors in them support the camera features and provide high resolution-based image quality. The quality of the camera and image sensing proportionally affects the demand for such electronic products and of which manufacturers are putting efforts

to develop image sensors with enhanced functionalities to provide better resolution in megapixels. With the rising investment in digital infrastructure and increasing opportunities in 5g technology, this market stands at an opportunistic platform.

For instance, recently NHK reported that it has developed a 240fps 33MP broadcast camera for 4x slow-motion video which will help to capture more frames per second so that fast-moving subjects can be portrayed smoothly. Besides that, Canon has developed a new image sensor that can see in almost-total darkness which is expected to pave a way for highly advanced cameras.

Rising adoption in the automotive and automation segment:

Automotive Sector is demanding more use of sensors to supplement the augmenting features of artificial intelligence, virtual reality to power the Advanced Driver Assistance System, and Driver Monitoring Systems (DMS) which is expected to provide a boost to new opportunities to the image sensors market. Image sensors for the automotive segment are used to deliver high dynamic range (HDR) and LED flicker mitigation (LFM) at high levels and are generally based on automotive specifications. The increasing investment and growth opportunities in emerging fields like Autonomous cars have become a trend. Autonomous cars are evolving out of the automotive sector, which would augment the growth of image sensors during the forecast period. In 2021, Samsung unveiled a new automotive image sensor, ISOCELL Auto 4AC, for rearview cameras and surround-view monitors of vehicles.

 Recently, MIPI Alliance, which is an international organization that develops interface specifications for mobile and mobile-influenced industries, announced an update to its MIPI Camera Serial Interface 2 to enable advanced machine-vision applications not just in mobiles and tablets but also in medical devices, drones, industrial systems, and automobiles as well.  

• Asia-Pacific to register significant market growth:

Geographically, the image sensor market is segmented into North America, South America, Europe, Asia-Pacific, and the Middle East & Africa. Of these Asia-Pacific is expected to witness significant growth in the sector due to the increasing adoption of smartphones in the developing economies of India, and China. Also, Asia-Pacific is investing heavy amounts in autonomous vehicles which might reward it with trillions of dollars and at the same time, boost the demand for image sensors. The emergence of smart cities in the region holds the potential to drive the image sensor market by increasing the demand for associated electronics like monitoring, surveillance, etc. Besides that, the presence of market players like Sony Corporation, Samsung Electronics, Canon Inc., Toshiba Corporation, etc. in the region can play a significant role in the performance of Asia-Pacific in the image sensor market.

Restraints

• Shortage and Variability in Price:

Image sensors are semiconductor chips and its global shortage, especially after the covid pandemic has created some hurdles for this market. Due to this shortage, the image sensors have witnessed some serious variability in their prices (for instance, Samsung Electronics rose the price of CMOS image sensor chips by 40% in 2021). Many researchers and news platforms report that the shortage will continue to exist in 2022 as well which can pose a major restraint to this market in the projected period.

Impact of COVID-19 Pandemic Image Sensors Market:

The outburst of the covid pandemic around the globe severely hampered the image sensors market. Since the demand for electronic products like cameras and smartphones fell significantly during the covid pandemic, the image sensors market took a severe hit. Along with that, the lockdown, curfew, temporary shutdown of industries, and labour shortage served as some major restraints for this market during the corona pandemic.

Image Sensors Market Scope:

Segmentation:

• By Technology
  • Complementary Metal-Oxide-Semiconductor (CMOS)
  • Contact Image Sensor (CIS)
  • Charge-Coupled Device (CCD)
  • Hybrid Image Sensor
• By Processing Type
  • 2D image sensor
  • 3D image sensor
• By Spectrum
  • Visible Spectrum
  • Non-Visible Spectrum
• By Array Type
  • Area Image Sensor
  • Linear Image Sensor
• By End-User Industry
  • Healthcare
  • Consumer Electronics
  • Automotive
  • Military and Defense
  • Transportation
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • México
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • U.K.
    • Germany
    • France
    • Others
  • Middle East and Africa
    •  UAE
    • South Africa
    • Israel
    • Saudi Arabia
    • Others
  • Asia-Pacific
    • China
    • Japan
    • India
    • Taiwan
    • South Korea
    • Others