Automotive Camera Market Research Report and Outlook by 2028

The automotive camera sector is projected to expand from US$ 6,911.10 million in 2021 to US$ 30,140.14 million by 2028, reflecting a compound annual growth rate (CAGR) of 24.3% from 2022 to 2028.

The European Commission is in the process of establishing regulatory frameworks aimed at improving the safety of motor vehicles, which includes protecting both occupants and vulnerable road users. In November 2019, the Regulation (EU) 2019/2144 was enacted by the European Parliament and Council, mandating new safety features such as warnings for driver drowsiness and distraction, intelligent speed assistance, reversing safety through cameras or sensors, and a data recorder (often referred to as a 'black box') for vehicles including cars, vans, trucks, and buses. These features were set to become compulsory starting in 2022. Consequently, the combination of government regulations and significant investments in automotive camera technology aimed at enhancing safety and convenience is anticipated to propel market growth.

In addition, leading players in the automotive sector are making substantial investments in the development of advanced safety features for vehicles. These innovations encompass sophisticated software services and systems-on-a-chip (SoCs) that facilitate autonomous driving capabilities. Advanced sensors, including cameras and radar, gather data that is processed and relayed to the vehicle's powertrain, enabling functionalities such as emergency braking. As the demand for enhanced driving comfort and safety escalates, Tier I companies are increasingly adopting advanced driver assistance systems (ADAS) technology. Furthermore, there is a notable rise in the demand for both light commercial vehicles (LCVs) and heavy commercial vehicles (HCVs), which is expected to further stimulate growth in the automotive camera market.

For instance, in 2021, ROHM achieved ISO26262 certification from TUV Rheinland, a German certification authority, and introduced the "ComfySIL" brand to enhance safety and comfort for automotive users. The ComfySIL series of integrated circuits (ICs) and functional safety solutions comply with ISO 26262 standards, which is increasingly important due to the growing number of onboard cameras and advancements in ADAS technology. Initiatives by companies like ROHM significantly contribute to the value and growth of the automotive camera market.

Prominent automotive camera manufacturers are actively adopting cutting-edge technologies to meet the changing demands of the market. For example, StradVision, a leading AI-based vision processing technology firm for autonomous vehicles and automotive ADAS, unveiled new features of its camera perception software, "SVNet," in May 2021. This deep learning-based software supports ADAS functionalities such as highway driving assistance and automated valet parking, which is expected to enhance the automotive camera market's growth.

Moreover, in June 2022, Foresight Autonomous Holdings Ltd. partnered with Hitachi Astemo Americas, Inc. to improve distance measurement and object detection as part of a proof of concept project.

The growth of the automotive camera market is further fueled by the rising adoption of advanced camera systems, including the rearview camera developed by STMicroelectronics for automotive applications. This camera features state-of-the-art HDR image sensors VG6640 and a versatile image signal processor (ISP) that delivers flicker-free HD image quality, making it suitable for a variety of applications. Additionally, the company's offerings for driver monitoring systems (DMS) provide enhanced flexibility for high-end computer vision applications.

Effects of the COVID-19 Pandemic on the Asia Pacific Automotive Camera Market
The COVID-19 pandemic significantly impacted the automotive camera market in key APAC regions, particularly India and China. Government-imposed restrictions and a slowdown in industrial activities disrupted the supply chains of various raw materials and products. Prior to the pandemic, the automotive industry was experiencing a surge in the adoption of ADAS across multiple vehicle types, which was expected to drive the automotive camera market's growth. However, the pandemic severely affected market dynamics in the first half of 2020, resulting in manufacturing shutdowns, supply chain interruptions, and diminished consumer confidence.

As lockdown measures were eased in 2021, production facilities began to reopen, aiding recovery from the adverse effects of the pandemic. The electric vehicle (EV) sector continued to progress, offering the automotive industry new opportunities for recovery. In July 2021, Magna International Inc. and Veoneer announced a merger agreement aimed at enhancing Magna's ADAS capabilities and feature offerings. Consequently, the automotive camera market is now experiencing growth due to increased sales and investments in the post-pandemic landscape.

The automotive camera market is segmented based on application, type, vehicle category, and geography. The application segment includes park assist and ADAS, while the type segment consists of mono cameras, surround-view cameras, and rear cameras. The vehicle type segment is divided into passenger cars and commercial vehicles. Geographically, the market is categorized into five major regions: North America, Europe, Asia Pacific (APAC), Middle East & Africa (MEA), and South America.

The global automotive camera market ecosystem includes various stakeholders, such as raw material suppliers, automotive camera manufacturers, original equipment manufacturers (OEMs), and end users. Among these, raw material suppliers play a vital role in the market. Key players in the raw material supply chain include Dynaflex Corporation, Ohara Corporation, AGC Inc., SCHOTT, Canon Inc., Universe Kogaku (America) Inc., and Sunex Inc. In July 2021, Renesas Electronics Corporation introduced its Automotive HD Link (AHL) technology, enabling car manufacturers to deliver high-definition video using cost-effective cables and connectors that currently support standard-definition video. Such initiatives from raw material suppliers are expected to boost the production of automotive cameras and, in turn, drive the growth of the automotive camera market.

The size of the automotive camera market has been determined through a thorough research methodology that incorporates both primary and secondary sources. The research process began with extensive secondary research utilizing internal and external sources to gather qualitative and quantitative data about the market. This approach aimed to provide a comprehensive overview and forecast of all market segments. Additionally, primary interviews were conducted with industry experts, including VPs, business development managers, market intelligence managers, national sales managers, and external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the automotive camera market. These interviews validated the collected data and offered further analytical insights into the market.

Key players in the automotive camera market include Aptiv, Autoliv Inc., Continental AG, FLIR Systems, Inc., Gentex Corporation, Magna International Inc., Mobileye, Robert Bosch GmbH, STONKAM CO., LTD, and Valeo.