The image sensors market is estimated to be valued at USD 28.54 Bn in 2024 and is expected to reach USD 45.01 Bn by 2031. It is expected to grow at a compound annual growth rate (CAGR) of 6.7% from 2024 to 2031. The image sensors market is expected to witness lucrative growth owing to rising demand of CMOS and CCD image sensors.

Market Driver - Rising Demand for Advanced 3D Imaging Technologies

The global economy is undergoing rapid digital transformation which is fueling new innovations across industries like consumer electronics, healthcare, industrial and automotive. Manufacturers are realizing technologies like 3D sensing, augmented reality and virtual reality to enhance user experience and bring operational efficiency.

Product manufacturers are incorporating 3D cameras in smartphones to enable computational photography features like bokeh effect, 3D facial recognition and scanning. Healthcare providers are also leveraging 3D cameras integrated with image sensors for medical applications like surgery simulations, radiology and remote diagnostics. Industrial manufacturers are adopting 3D sensors integrated with robots, AGVs and smart machines to enable automated quality inspection, predictive maintenances and remote asset monitoring.

Auto manufacturers are focusing on developing self-driving cars which requires sensing the surrounding environment through a multitude of cameras, radars and image sensors. Stringent safety regulations are pushing carmakers to integrate redundant sensor systems with high pixel-count image sensors for reliable perception. With continuing technological advancements, demand for more sophisticated 3D image sensors with new pixel designs, higher resolutions, and integrated processing is expected to rise sharply.

Market Driver - Increased Adoption of CMOS Sensors in Smartphones and Autonomous Vehicles

Latest trends indicate that CMOS image sensors are fast replacing CCD sensors in wide range of applications owing to advantages like low power consumption, ease of integration with chip circuits and video-capturing capability. Smartphone manufacturers are aggressively adopting CMOS image sensors in flagship devices to support advanced camera features and functionalities in thin and lightweight form factors.

Growing deployment of autonomous shuttles, robots, and drones for applications like cargo transportation, agriculture, surveillance and last-mile delivery is propelling the adoption of CMOS image sensors. Compared to other technologies, CMOS sensors offer superior low-light performance, wider viewing angles and reliability required for outdoor applications.

Regulatory mandates promoting adoption of driver-assist systems and autonomous vehicles will accelerate large-scale deployments of CMOS image sensors. Ongoing CMOS technology advances in areas of resolution, power efficiency, integration, and form factors will strengthen its dominance in the image sensors market in the coming years.

Market Challenge - High Cost Associated with 3D Packaging of Image Sensors

One of the key challenges currently faced by the image sensors market is the high cost associated with 3D packaging of image sensors. 3D packaging allows multiple image sensing chips to be stacked vertically on top of each other, enabling the creation of more compact camera modules with improved functionality. However, the manufacturing processes and technologies required for 3D packaging are highly complex and expensive.

Additionally, new assembly and testing equipment customized for 3D packaging must be set up, further raising production costs. While 3D packaging enables innovative product designs and features, the associated costs have prevented its widespread adoption. For many price-sensitive applications and markets, conventional 2D side-by-side packaging remains more cost-effective.

High 3D packaging costs are a barrier to the integration of advanced image sensors in consumer electronics and IoT devices on a mass scale. Overcoming this challenge through new packaging technologies and fabrication techniques can help boost future revenue growth potentials for image sensors market players.

Market Opportunity - Expanding Partnerships, such as Sony and Hexagon for Advanced Sensors

One of the key opportunities in the image sensors market is the expanding partnerships between major players for the development and supply of advanced sensors. Through collaborations, companies are able to combine their complementary strengths to push the boundaries of sensor technology.

For instance, Sony has partnered with Hexagon, a leading provider of metrology solutions, to develop next-generation image sensors for 3D sensing applications. By leveraging Sony's cutting-edge CMOS image sensor design capabilities and Hexagon's expertise in 3D metrology, the duo aims to deliver superior depth-sensing performance for applications like mobile AR/VR. Such partnerships allow both established firms and startups to leverage each other's resources for R&D.

They also help companies expand into new and sophisticated segments like 3D facial recognition, 3D mapping and others using advanced sensors. As computer vision sees increasing adoption, collaborative innovation is expected to bring powerful yet cost-effective solutions to market. These strategic partnerships present considerable opportunities for growth in the image sensors market in coming years.

Focus on technological innovations: Image sensors market leaders like Sony, Samsung and ON Semiconductor have gained significant market share by consistently innovating and introducing new image sensor technologies. For example, in 2020, Sony launched its latest IMX800 CMOS image sensor with 1.0 type stacked design, enabling 8K video capturing in smartphones.

Strategic partnerships and acquisitions: Players have partnered or acquired other companies to gain access to new technologies and expand their product portfolio. For example, in 2021, ON Semiconductor acquired Fairchild Semiconductor to enhance its power and image sensor offerings. Sony has strategic partnerships with major OEMs like Apple, Huawei, Xiaomi etc. to be their primary camera sensor supplier.

Focus on high-growth application segments: Players closely monitor fast evolving areas like autonomous vehicles, drones, IoT, medical imaging etc. and launch new products tailored to these segments. For instance, OmniVision launched high-megapixel image sensors for automotive surround view applications in 2020, catering to the surging demand from self-driving car market.

Insights, By Technology: The Dominance of CMOS Technology

In terms of technology, CMOS image sensors contributes 68.5% share of the image sensors market market owing to its advantages over CCD sensors and continual technological advancements. CMOS image sensors have seen widespread adoption in recent years due to benefits like lower manufacturing costs and greater flexibility in integrating additional circuitry like ADC converters directly onto the die. Manufacturers are able to build cameras directly into various end devices without needing additional components.

Semiconductor companies have invested heavily in developing newer process nodes for CMOS sensors that improve image quality metrics like resolution, low-light sensitivity, and dynamic range. The latest generations of CMOS sensors now match or surpass the image quality of conventional CCD designs while retaining benefits of CMOS technology. The continuous advancement of CMOS technology remains the primary factor driving the segment's share in the image sensors market.

Insights, By Application: Growth in Consumer Electronics Segment

The consumer electronics segment currently dominates the image sensors market with 30.2% revenue share in 2024, owing to proliferating demand for camera-enabled devices. Image sensors have become ubiquitous in consumer products like smartphones, tablets, drones, action cameras and other similar devices where integrated cameras are essential features. In particular, the tremendous popularity of smartphones worldwide with multi-camera designs requiring multiple image sensors per device has massively boosted segment revenues.

Cameras have evolved into an indispensable component of the consumer experience across a variety of electronics. Additionally, the implementation of advanced computer vision capabilities using multiple image sensors unlocks new use cases and applications. Leading OEMs continue to drive innovations that enhance camera and imaging capabilities in their devices to differentiate offerings. Both factors contribute significantly to the sustained high growth projected for this segment relative to other end-use industries in the foreseeable future.

• Adoption in Autonomous Vehicles: Image sensors are crucial for the development of autonomous driving technologies, providing real-time imaging for navigation and obstacle detection.
• Healthcare Imaging Advancements: Enhanced image sensors are improving the quality of medical imaging equipment, aiding in more accurate diagnoses.
• Shift to CMOS Technology: CMOS sensors have overtaken CCD sensors due to lower power consumption and integration capabilities.
• Regional Growth: The Asia-Pacific region holds a significant share in the image sensors market due to the presence of major manufacturers and high consumer electronics demand.

The major players operating in the image sensors market include Sony Group Corporation, Samsung Electronics Co. Ltd, OmniVision Technologies, Inc., STMicroelectronics NV, Canon Inc., ON Semiconductor Corporation, Panasonic Corporation, PixArt Imaging Inc., GalaxyCore Shanghai Limited Corporation, SK HYNIX INC., STMicroelectronics, Teledyne Technologies Incorporated, Nikon Corporation, and Toshiba Corporation.

• In December 2023, Samsung Electronics introduced two new ISOCELL Vizion sensors: the ISOCELL Vizion 63D, a time-of-flight (ToF) sensor, and the ISOCELL Vizion 931, a global shutter sensor. These sensors are designed for a range of applications, including robotics, extended reality (XR) devices, and industrial uses.
• In November 2023, Sony Semiconductor Solutions Corporation (SSS) announced the upcoming release of the IMX992 short-wavelength infrared (SWIR) image sensor for industrial equipment, featuring the industry's highest pixel count of 5.32 effective megapixels. This sensor utilizes SSS's proprietary Cu-Cu connection to achieve a pixel size of 3.45 μm, the smallest among SWIR image sensors.
• In September 2023, OMNIVISION introduced the OX08D10 8MP CMOS image sensor with advanced HDR technology for automotive ADAS applications. This sensor is designed for automotive Advanced Driver Assistance Systems (ADAS) applications, offering superior image quality under various lighting conditions.

• By Technology
  • CMOS Image Sensors
  • CCD Image Sensors
• By Application
  • Consumer Electronics
  • Automotive
  • Medical
  • Defense and Aerospace
  • Industrial
  • Security and Surveillance