The global compact camera module market is expected to grow at a compound annual growth rate of 12.35% to reach a market size worth US$64.021 billion by 2027. This market was valued at US$28.326 billion in 2020. The camera module enables mobile devices such as smartphones, automobiles, and smart home appliances to capture photos and record videos. It is responsible for high resolution, low power, slimming, miniaturization, and high stiffness. A typical camera module is integrated with image sensors, aperture, lens, IR filter, and various other components. These devices have been widely used as video input devices in security systems, video conferencing, and real-time monitoring. The rapidly advancing technology and innovations in the internet industry and photographic imaging device technology further changed the market landscape of camera module systems. Consequently, coupled with the rapid camera adoption, the price of the camera module technology dropped down, further expanding its reach into the market. In the present-day world, cameras are widely being used in various consumer electronics like mobile phones, personal computers, and many others, boosting the advancements in photographic imaging technology further.
Analysts anticipate that growing demand for consumer electronics are bound to propel the compact camera module market
Increasing penetration of smartphones, laptops, digital cameras, and other similar products is driving the market's demand. Just a few years ago, bulky and heavy digital camera recorders were still a significant investment. Yet, today, the development of small-sized modules has revolutionized the market. Smartphones typically have multiple cameras, and game consoles are preparing to integrate video, digital stills, and 3-D interaction into the overall gaming experience. Furthermore, changing consumer trends and growing demand for better camera specifications in smartphones motivate the new technological advancements in the compact camera module market. The fierce competition among the manufacturers to offer enhanced camera functions, including better zooming, optimized picture quality, and lens technology, all while maintaining the final design sleek with space optimization, is further adding impetus to market growth. Amid the fiercely competitive landscape, manufacturers are constantly in pursuit of providing better offerings to enhance their brand presence in the market. For instance, Motorola is expected to release a smartphone that includes Samsung's new 200MP ISOCELL HP1 camera sensor. The brand intends to release this 200MP camera phone in 2022. Similarly, Xiaomi has also revealed its intention to release a device with a 200MP rear camera in 2022. Likewise, in May 2022, Xiaomi, a Chinese smartphone manufacturer, announced a collaboration with Leica, a German camera manufacturer. According to the brand, the first smartphone from the duo's collaborative efforts will be released in July of 2022. The former announced a long-term collaboration with the latter to develop camera technological advances for its upcoming smartphones. The partnership is expected to enhance the imaging strategies of the duo. The Hasselblad's, a leading color science technology provider, and Oneplus' partnership in 2021 are yet another example. With this partnership, the latter aims to have the former's camera module system integrated to provide much more aesthetic and natural-looking photos. Similar developments are expected to further fuel the market growth in the upcoming years.
Image sensors are expected to hold a dominant market share owing to the evolving trends
By component, the global compact camera module market landscape is segmented into the lens, actuators, image sensors, adhesives, and others. The image sensor is expected to hold the dominant share in the market. An image sensor, also known as an image, is a sensor that detects and transmits the information used to create an image. Several manufacturers are gearing up in the strategic developments and launch of innovative image sensor technologies. CMOS Image sensors, in particular, have been gaining traction owing to their appealing attributes such as inexpensive and easy design-build. In March 2021, for instance, Sony Corporation announced the launch of its large format 56.73 mm diagonal CMOS image sensor into the market, targeting the industrial camera equipment market. This new sensor features an increased pixel count of 127.68 megapixels, and motion distortion-free imaging enables a wide viewing angle as well as high-resolution imaging in the latest product. It is integrated with signal processing capabilities optimized for industrial equipment CMOS image sensors, meeting a wide range of requirements. As of late, the demand for digital transformation in various industrial equipment fields is increasing. This has augmented the adoption of cameras for a wide range of applications, fuelling demand for CMOS image sensors with improved imaging performance. The advancements and adoption of drone technologies, for instance, have further augmented the market. Drone technology holds the potential and is capable of improving the efficiency of various industries while maintaining the highest levels of safety and reliability. The launch of 'Airpeak' aircraft by Sony in January 2021 as part of its drone project in the field of AI robotics is a prime example of this. The company established the Airpeak brand in order to pursue drone technology, with an aim to unveil a new market targeting the professional photography and video production industry. Consequently, the evolving trends in the market are expected to expand the horizons of the image sensors market, enabling pattern recognition via Artificial Intelligence and enhancing back-illumination sensors like never before.
COVID-19 had a significant impact on the compact camera module. The rise in active cases mandated lockdown and social distancing measures led to the closure of the production facilities, decreasing productivity. Furthermore, the international travel restrictions, including a halt in airline and port closures, affected the imports and exports of several countries. This created a gap in the supply and demand chain, further slowing down the market growth. At the same time, the end-user industries of the compact camera module market, including consumer electronics, communication devices, automotive, and security & surveillance markets, also faced similar issues and witnessed slow growth, reducing the demand for the compact came modules. For instance, according to the Camera and Imaging Products Association, the overall digital still camera shipments decreased by 41.6 percent and 29.4 percent by volume and value, respectively, between January and December 2020.