Automotive Camera Market

[366 Pages Report] The automotive camera market is projected to grow from USD 8.0 billion in 2023 to USD 13.9 billion by 2028, at a CAGR of 11.7% during the forecast period. The cameras are used as advanced safety devices for enhancing the visibility of the surrounding environment to improve vehicle safety. The growing demand for Advanced Driver Assist Systems (ADAS) in developed and developing nations is attributed to using automotive cameras in various applications such as park assist, cross-traffic alert, pedestrian detection systems, etc. According to MarketsandMarkets analysis, >85% of these cameras are equipped in passenger cars, and the segment is expected to dominate the global market during the review period.

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Market Dynamics

DRIVER: Growing popularity for the safety and convenient driving experience

The demand for safer and more convenient driving experiences is on the high rise; hence the automotive industry is witnessing a rapid evolution of safety features, which is anticipated to increase further in the coming years.

Nominal features such as seatbelts, cruise control, and antilock brakes were standard earlier. Following these features such as blind spot detection, forward collision warning, lane departure warning, and electronic stability control emerged. Over the last decade, advanced features such as ADAS, lane-keeping assist, self-park, rear-view video systems, automatic emergency braking, and adaptive cruise control emerged. Many of these features are optionally available, whereas some have been mandated by the regulating bodies worldwide. OEMs quickly adapted to this change and incorporated all the elements in their vehicles. Toyota (Japan) and Honda (Japan) have launched vehicles with features - blind spot detection, rear cross traffic, lane keep assist, forward collision warning, and automatic emergency braking as standard features. These features need multiple cameras for functions such as front, rear, and surround views. The cameras are also used in semi-autonomous and autonomous vehicles for more advanced functions such as pedestrian and road sign detection.  Cadillac (US), Tesla (US), Nissan (Japan), and Audi (Germany) are currently developing L3 driving systems for their upcoming models. The increasing demand for sophisticated cruise control and driving comfort features has also fueled the safety systems market.

The cameras have been built in compliance with the NCAP regulations and offer benefits over other sensor technologies like radar, LiDAR, or ultrasonic. An intelligent camera can identify markings on the road, traffic signs, traffic lights, etc., and recognize objects and provide data that facilitates their identification as vehicles or pedestrians. It can also detect their motion path and calculate their distances. This makes the smart camera a better and safer option, offering good visibility and features like automated emergency braking that provides the information necessary for automatic car steering.

RESTRAINT: Scarcity of supporting technologies in developing countries

ADAS vehicle technologies demand better connectivity, road designs and infrastructure, and advanced internet service such as 5G, which is yet to flourish in many developing countries, leading the OEMs to limit the ADAS offering to specific trims or packages.  For instance, due to the limited network connectivity on highways, vehicles are not connected to cloud data as V2V and V2X communications need adequate connectivity infrastructure, which is lacking in many countries. Thus these technologies may remain unusable for the drivers.

Further, in developing countries like China, India, Mexico, and Brazil, IT infrastructure development on highways is slow compared to developed economies. While including new technologies in daily life, there is always room for improvement; many regional bodies and automotive manufacturers still aim for technological development. Automotive cameras cannot create data communicated to other vehicles or with infrastructure, which can be a bottleneck. AI-based cameras for autonomous mobility are adept in object and sign recognition for applying emergency braking since the cameras can recognize pedestrians. However, communicating this corroborated information is still in its primitive stage, which, once implemented, can be pivotal in complementing other technologies that enhance road safety. Thus, the slower development of vehicular infrastructure in many developing economies may hinder the market growth of automotive cameras in the years to come.

OPPORTUNITY: Rise in demand for electric vehicles

In the North American region, the sales of electric vehicles have increased steadily despite the slowdown in the automotive sector. Among the automotive manufacturers, Tesla dominates the North American Electric Vehicle market, followed by BMW, Nissan, Volkswagen, and Hyundai have also launched Electric vehicles in this market.

China is the largest market for electric vehicles, and European countries are one of the major export destinations. Major automakers rely on battery manufacturers based in China. Countries across North America, Europe, and many Asian countries have adopted measures to reduce emissions during the coming decades and replace their vehicle fleet for lower emissions by varying numbers by 2050. This is expected to lead to significantly high demand for electric vehicles. Newly launched electric vehicles offer basic ADAS functions to ensure passenger safety. For instance, Tesla offers its autopilot as a standard feature in all its models, which comes with eight surround-view cameras that provide 360 degrees of visibility around the car. It is estimated that entirely autonomous vehicles would be fully electric and give the requisite impetus to electric vehicles, ADAS functions, and camera-based systems.

CHALLENGE: High cost of implementation of multi-camera systems.

Automotive multi-camera systems have witnessed several innovations and technological enhancements. The user experience, safety, and comfort are important aspects to be considered while designing the multi-camera system. The multi-camera system incorporates several cameras with multiple components that can demonstrate real-time images integrated with the interior display system. Thus, the multi-camera system comprises complex connections and increased wiring with electronic systems. The installation of multi-camera systems involves the additional installation of components resulting in an increased overall cost of vehicles. However, the price is not a matter of concern in the premium segment vehicles, but it substantially affects the economic and mid-priced segment vehicles. Manufacturers are inclined to offer effective and advanced safety features at a minimum price. Thus, the cost factor restricts major OEMs globally from equipping cars with technologically advanced safety features. This rises in the overall cost of vehicles due to the installation of advanced safety features may inhibit the growth of the multi-camera system market. Moreover, if cameras incorporated in the system get damaged, the consumer must replace the multi-camera system, which incurs a considerable cost. This poses a significant threat to the growth of the automotive camera market.

Automotive Camera Market Ecosystem.

The ecosystem of the automotive camera market starts with component manufacturers/technology providers. Major players offering these products and systems include Robert Bosch, Denso, Continental, Valeo, etc. The automotive OEMs are critical players who enter into agreements and tie-ups with component manufacturers and technology providers to install advanced driver assist and supporting systems into their respective vehicle models.

The passenger car dominates the automotive camera market demand

The increased demand for safety systems in emerging markets can be attributed to improving road safety standards, supporting legislation, and consumer awareness. Additionally, several countries in Europe, North America, and Asia Pacific have introduced regulations that mandate incorporating various types of ADAS in the passenger car segment. The standard of living is also improving in several countries, which results in increased demand for luxury vehicles. ADAS and park assist are installed widely in luxury vehicles as a standard package than in mid and lower-segment cars, which are offered as optional or unavailable in specific variants. Hence, provide opportunities for the growth of the automotive camera market in passenger car

The passenger car segment is the largest vehicle segment in the global automotive camera market, with rising adoption of active safety systems leveraging camera-based ADAS applications in mid prices range cars. Governments in developed and developing nations plan to mandate the ADAS system in passenger cars owing to improving road safety standards, supporting legislation, and consumer awareness. For instance, the EU has extended the scope of mandating the ADAS system as AEB, Intelligent speed assistance (ISA), Reversing Detection System (REV), and LDW systems in vehicles. It is also the largest market for ADAS owing to the growing demand for safer and more comfortable vehicles. Further, rising country-level GDP, growing disposable income, and improving living standards in major developing countries such as China, India, Thailand, and Brazil. This resulted in a growing demand for luxury vehicles, which usually have standard features of ADAs applications and parking assist applications starting from lower trim onwards. Increasing adoption of ADAS features in the mid and economy segment passenger cars is likely to boost the growth of this segment. All these factors provide immense opportunities for the market in passenger cars.

Battery Electric Vehicle (BEV) is the largest segment for automotive cameras.

Battery Electric Vehicles hold the largest market for automotive cameras during the forecast period. The rising inclination towards pure electric vehicles is evident from the rise in EV sales globally. OEMs have planned to launch their existing ICE models with electric propulsion. These models will be offered with these advanced & premium features to make them a better buying option for the end users than conventional vehicles. Leading automakers such as Nissan, Tesla, BMW, Mercedes-Benz, and Audi increasingly focus on green vehicles. These vehicles have driving comfort features, such as adaptive cruise control, auto park, lane departure warning systems, 360-degree parking cameras, and sensors to eliminate possible blind spots. Asian countries like China, India, Japan, and South Korea are increasingly offering some camera-based safety features in BEVs to attract more consumers. This would further boost the BEV automotive camera market over the forecast period.

Asia Pacific is the fastest-growing region for the automotive camera segment.

Asia Pacific is the fastest-growing market for automotive cameras. China, South Korea, and Japan are leading the market with a market share of ~96% in terms of market value in 2023. The leading market position of these countries is mainly due to the most considerable contribution of passenger and commercial vehicles in terms of production and sales. Also, foreign OEMs have expanded their production base in these countries and planned to launch their existing and new vehicle models enabled with advanced automotive camera-based features. It helps to differentiate their products and upsurges the adoption of ADAS technologies in mid-range cars. Increasing population, per capita earning, and shifting consumer preferences to install advanced ADAS technologies in the existing vehicles are likely to open new market avenues.

Further commercial vehicle segment is also expected to see significant growth in the automotive camera market owing to the rising need for improved safety features. These cameras can monitor driver behavior, vehicle performance, and cargo loading, so OEMs are adopting these safety components to improve efficiency. Hence, camera-based ADAS technologies are gaining popularity which is anticipated to increase the market concentration in these countries. Major regional OEMs such as Toyota Motors, Hyundai Motors, and Tata Motors are expected to promote the growth of automotive cameras in the region.

Key Market Players

The automotive camera market is consolidated. Continental AG (Germany), Robert Bosch (Germany), Valeo (France), Aptiv (Ireland), and Denso (Japan) are the key companies that are dominating the market. The market comprises several global market players that make it highly competitive. These players have adopted various strategies to expand their presence globally and increase their respective market share.

These companies adopted new product launches, partnerships, and joint ventures to gain traction in the automotive camera market.

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Scope of the Report

Along with the given market data, MarketsandMarkets offers customizations in accordance with the company’s specific needs.

The study segments the automotive camera market:

View Type

• Front View camera
• Rear view camera
• Surround view camera

By Vehicle Type

• Passenger cars
• Light Commercial Vehicle
• Heavy Commercial Vehicle

By EV Vehicle Type

• Battery Electric Vehicle
• Plug-in Electric Vehicle
• Fuel Cell Electric Vehicle

By Technology

• Digital
• Infrared
• Thermal

By ICE Applications

• Adaptive Cruise Control
• Adaptive Cruise Control+ Forward Collision Warning
• Adaptive Cruise Control+ Forward Collision Warning+ Traffic Sign recognition
• Blind Spot Detection
• Blind Spot Detection + Lane Keep Assist +Lane Departure Warning
• Adaptive Lighting System
• Intelligent Park Assist
• Driver Monitoring System
• Night Vision system
• Parking Assist

By EV Applications

• Adaptive Cruise Control
• Adaptive Cruise Control+ Forward Collision Warning
• Adaptive Cruise Control+ Forward Collision Warning+ Traffic Sign recognition
• Blind Spot Detection
• Blind Spot Detection + Lane Keep Assist +Lane Departure Warning
• Adaptive Lighting System
• Intelligent Park Assist
• Driver Monitoring System
• Night Vision system
• Parking Assist

By Level of Autonomy

• Level 1
• Level 2 and Level 3
• Level 4/5

By Region

• Asia Pacific
• North America
• Europe
• Rest of the World [RoW]

Recent Developments

• In Jan 2022, Bosch entered a wide-ranging alliance with the Volkswagen Group subsidiary Cariad to develop partially and highly automated driving within the SAE Levels 3 and 4. This collaboration will introduce automated driving functions across all vehicle classes.
• Continental AG has introduced a new generation of autonomous vehicle cameras, the MCF500. The camera platform is modular, scalable, and interconnected, and it offers solutions ranging from advanced driver assistance functions (e.g., NCAP 2020) to Highly Automated Driving (HAD). It has exceptional night vision, a high picture quality of up to eight megapixels, and a broad field of view of up to 125 degrees, allowing cross-traffic items (vehicles, bicycles, pedestrians, and so on) to be spotted sooner.
• In June 2022, Valeo and BMW signed a supply deal under which Valeo will develop and produce the ADAS domain controller capable of managing all data flows from ADAS sensors in BMW vehicles based on the Neue Klasse platform. All driving assistance functions will be hosted and processed by the Valeo ADAS domain controller, powered by Qualcomm Snapdragon SoC (system on a chip). The ADAS domain controller will host Valeo’s software platform for low-speed maneuvering and software assets from BMW and Qualcomm for driving automation.
• In Feb 2023, BMW and Valeo signed an agreement for strategic cooperation, focusing on the co-development of fully automated parking technologies up to Level 4. From automated maneuver assistance to Level 4 automated valet parking, all functions will be based on technology and sensors in the car. This cooperation aims to continue delivering world-class driving and parking experiences to customers.

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