Sony is advancing toward a 50% market share within a shifting ecosystem. In contrast, Samsung and SK Hynix have experienced revenue stagnation and a slight decrease.
Expanding CMOS image sensor technology and products for X-ray, UV, SWIR, polarisation, and multispectral imaging confirm the transition from imaging to sensing.
“The automotive image sensor market is poised for substantial growth, forecasted to increase from $2.3 billion in 2023 to $3.2 billion by 2029 with a 5.4% CAGR,” says Yole’s Florien Domengie, “this growth will be primarily driven by an increased camera implementation per car and the adoption of high-resolution sensors. Of particular interest, the growth in the image sensor market outpaced that of the semiconductor industry.”
In 2023, the market maintained stable shipment volumes compared to 2022, with a slight increase in revenues, indicating significant transformation, especially in the Automotive sector, marked by a rise in the ASP of CIS.
The economic conflict between the US and China has impacted market dynamics. Initially, US sanctions on Huawei primarily affected Sony, benefiting Chinese CIS companies like Omnivision and GalaxyCore.m
However, recent trends, such as market slowdowns, have driven Chinese suppliers to shift their focus toward higher-value markets, such as the automotive and industrial sectors, where investments in capacity and technology are aimed at capturing more market share.
In a report, Yole answers the questions: What are the main drivers of this constantly evolving market? How are innovations in CMOS image sensors transforming the ecosystem?
Amid the industry dynamics, Sony has continued to grow revenue through expanding its new sensor brand, LYTIA, and the Fab 5 expansion.
Conversely, Samsung and SK Hynix have seen their revenue stagnate and even decrease slightly and are reallocating production capacity to their memory business, particularly HBM , due to reduced demand for CIS products.
onsemi and SK Hynix, which experienced rapid growth in recent years, have seen their growth plateau.
STMicroelectronics is expanding its global shutter product line, aiming to diversify revenue sources beyond 3D sensing to include consumer tracking and automotive cameras.
GalaxyCore faces challenges due to its reliance on lower-end market applications, while SmartSens Technology, recovering from a downturn in the security market, is now developing products for the mobile and automotive sectors.
By 2024/2025, the Chinese smartphone market is expected to resume growth, with a focus on high-end models.
In this scenario, smartphone OEMs like Huawei and Honor are turning to local CIS suppliers to avoid geopolitical issues, benefiting Omnivision, SmartSens Technology, and GalaxyCore.
These companies are developing high-end CIS to compete with Sony and Samsung. Investments by foundry companies like Toppan and VisEra aim to support the domestic CIS ecosystem.
“The automotive segment is expected to grow steadily, with Sony and Samsung competing against onsemi and Omnivision. STMicroelectronics and Omnivision are vying in AR /VR tracking and driver monitoring systems, while high-end machine vision and defense markets may benefit from government funding,” says Yole’s Anas Chalak.
Investments in emerging technologies in 2021 and 2022 slowed down in 2023 due to the global economic downturn, affecting the start-up ecosystem’s design wins and orders.
However, new neuromorphic image sensors and metasurface products are anticipated from 2024 to 2025
