CMOS Sensors (Global Market)

Smartphones (Global Market)

• Smartphones (Global Market)

2022

7% market cut to $19bn 

In 2022, revenue from the supply of image sensors for cameras of various types amounted to approximately $19 billion, which is 7% less compared to 2021. Thus, sales declined for the first time in a decade. The corresponding data are provided in the Counterpoint Technology Market Research report, which was released on March 7, 2023.

The study examines CMOS Image Sensors (CIS) for various devices. These are, in particular, smartphones, tablets and laptops, cameras, surveillance cameras, car cameras, industrial solutions, etc.

Revenue from the supply of image sensors amounted to about $19 billion

Analysts say 2022 has proved very challenging for CIS product suppliers. Disruption of supply channels, component shortages, macroeconomic difficulties, as well as weak demand in the consumer segment led to lower than expected indicators.

The largest segment of CIS remains cameras for smartphones and mobile phones. Counterpoint notes that against the background of unfavorable market conditions, global supplies of cellular devices in 2022 fell by 12% compared to the previous year. The average number of cameras per device was reduced to 3.5 with less use of depth sensors and modules for macro photography. This led to a decrease in revenue from the supply of CIS products for cellular devices to $13.2 billion, which is 10% less compared to 2021. At the same time, the segment share fell below 70%. In 2023, analysts say, the smartphone sector will continue to decline due to the lack of growth momentum and an increase in the share of other segments, such as the automotive and industrial.

The second largest segment of CIS is the automotive sector. As automakers roll out ADAS (Advanced Driver Assistance System) features and autonomous driving technology, vehicles need more cameras to gather information about the environment and other traffic participants. In 2022, the penetration of autopilot of the second level (partial automation) and higher for passenger cars was 23%: this generated additional demand for image sensors for car cameras. As a result, the share of the automotive segment rose to 9% in 2022, surpassing the result of the previous year. In the future, in this segment, as Counterpoint notes, explosive growth will occur.

Segments of personal computers and tablets, as well as surveillance cameras in 2022 showed negative dynamics. After a surge in 2020 and 2021 caused by online learning and working from home during the COVID-19 pandemic, the PC and tablet market declined sharply in 2022 amid easing restrictions and restoring the usual way of life. The video surveillance market also grew in 2020-2021. thanks to increasing demand in areas such as smart cities and smart transport. But in 2022, the development of relevant projects slowed down.

The category of digital cameras recorded growth. This was facilitated by unsatisfied demand caused by travel restrictions during the COVID-19 pandemic and supply chain disruptions in 2021. Analysts record an increase in the average sale price (ASP) of such devices.

It is also noted that CMOS sensors are becoming more and more important in the industrial sector. They are widely used in enterprises for production control, logistics, quality monitoring and during other operations. In 2022, this segment showed steady growth due to the high demand for smart factories and industrial automation.^[1]

Global sales of smartphone cameras sank 6%

On January 16, 2023, Counterpoint Technology Market Research presented the results of a study of the global image sensor market for smartphone cameras. In 2022, the industry showed negative dynamics, which is explained by the fall in demand for cellular devices in the context of high inflation, a difficult macroeconomic situation and reduced purchasing power.

It is noted that in 2022, manufacturers less actively introduced multi-module cameras in smartphones. This was especially affected by the use of sensors with a small resolution for depth sensors and macroblocks. In addition, suppliers began to apply stock adjustment measures to get rid of excess sensors with a resolution of 8 million pixels or less.

Global shipments of image sensors for mobile devices in mid-2022 decreased by approximately 15-16% compared to 2021. Moreover, all major suppliers have experienced different degrees of decline. At the end of 2022 as a whole, the volume of the world market in monetary terms fell by 6%. Nevertheless, sales remained above $13 billion.

The industry leader is Sony with a share of approximately 54% in total revenue (plus 5% compared to 2021). The Japanese corporation won thanks to Apple, which uses Sony sensors in its iPhone devices. For example, the iPhone 14 Pro and iPhone 14 Pro Max are equipped with a brand new 48-megapixel IMX803 sensor, as well as 12-megapixel IMX713, IMX714 and IMX633 sensors. Shipments of sensors on Apple orders allowed Sony to increase revenue by more than $6 per sensor, which gave an increase of $300 million in the second half of 2022.

In second place in the ranking of leading suppliers of image sensors for smartphone cameras is Samsung with a share of 29% in total revenue (minus 1% compared to 2021). In 2022, the South Korean giant was able to significantly improve its product range, which made it possible, in particular, to sell about 200 million affordable 50-megapixel sensors. Moreover, Samsung still dominates the sensor segment with a resolution of 100 million pixels or more. The company also produces sensors with 200 million pixels - they will be used, among other things, in the flagship smartphones of the new generation Galaxy S23 Ultra.

Thus, Sony and Samsung accounted for 83% of total revenue in 2022. Another little less than 7% were brought by OmniVision solutions, approximately 5% each - by Galaxycore and SK Hynix image sensors. All other market players together received less than 1% of the total volume of the industry in monetary terms.

The market for sensors for smartphone cameras, as noted, in 2022 became more consolidated in terms of revenue. Moreover, this trend will continue in 2023. Samsung's new family of 200-megapixel sensors and Sony's 50-megapixel, large-area sensors like the advanced 1-inch IMX989 will compete in the premium device segment. Despite the decline in shipments and revenue in 2022, analysts believe that the image sensor market for smartphone cameras will quickly return to growth. This is due to the fact that it is the camera systems that are one of the key components of smartphones that are constantly being improved and updated. Moreover, we are talking not only about improving technical characteristics, but also about introducing new algorithms for processing data based on artificial intelligence. This allows you to implement additional functions, as well as improve the quality of photos and videos shot in a variety of conditions, in particular, in low light.^[2]

2020

Market growth by 10.3%, to $16.6 billion

The global market for CMOS image sensors reached $16.6 billion in 2020, an increase of 10.3% compared to a year ago. Such figures were released by Omdia analysts in August 2021.

According to their estimates, the five largest manufacturers of such sensors control 88.9% of the market, and Sony retains the first place. The share of the Japanese company in 2020 amounted to 48.6%, having decreased by 4.9 percentage points compared to 2019.

The second position in the ranking is occupied by South Korean Samsung Electronics, which at the end of 2020 accounted for 20.1% of sales of CMOS sensors, which are mainly used in digital cameras and cameras in smartphones. Samsung's share for the year increased by 2 percentage points.

Global CMOS Image Sensor Market Leaders

The top three also included the American company Omnivison with a share of 12.4% at the end of 2020. Compared to the previous indicator, the indicator increased by 1 percentage point.

The fourth place in the list of leading manufacturers of CMOS solutions in 2020 was taken by South Korean SK Hynix, which took 4% of the market, which is 1.6 percentage points more than a year earlier. The top 5 was closed by a company from the United States Semiconductor (3.8% in 2020 and 3.3% in 2019).

Thanks to the popularity of smartphones and the expansion of camera use, CMOS-type image sensors have been the fastest growing category in the semiconductor market for the past 10 years, according to analysts at IC Insights. From 2010 to 2019, the volume of sales of these semiconductor products in money increased fourfold and reached $18.4 billion. In 2020, the market also showed growth, but not as significant (only by 3%) as in previous years, when the rise was measured on average 16%.

When the coronavirus pandemic hit in the first half of 2020, COVID-19 businesses, schools, travel and most public events were closed around the world, leading to a sharp decline in sales of devices with CMOS sensors, including smartphones cars and embedded cameras, which are used in commercial and industrial systems. When the pandemic crisis worsened in the second half of 2020, Sony warned that the company's business was deteriorating mainly due to a decrease in smartphone supplies around the world. However, demand began to improve in the third quarter, and as a result, sales of Sony CMOS image sensors for the entire 2020 increased slightly by 0.3%, to almost $8.3 billion. As a result, 2020 turned out to be Sony's worst year in terms of market dynamics since the Japanese corporation began paying more attention to CMOS technology than CCD in 2006, researchers at IC Insights note.

The global market for CMOS image sensors reached $16.6 billion in 2020

In 2020, Sony discontinued several CMOS sensors for video surveillance systems, which was one of the reasons for the company's fall in this market.

At the end of 2021, IC Insights analysts predict the growth of the CMOS sensor market by 19% compared to 2020. In monetary terms, the market will rise to $22.8 billion. In the period up to 2025, an average annual growth of 12% is predicted. If this forecast comes true, the CMOS image sensor market will reach $33.6 billion in 2025. If we operate on indicators in physical terms, the volume of supplies will grow by an average of 14.9% per year - from 6.7 billion units in 2020 to 13.5 billion units in 2025.

The fastest growing segment named sensors for automotive systems. The average annual sales growth in this segment is estimated at 33.8%, and in monetary terms by 2025 the segment will grow to $5.1 billion.^[3]

CMOS Sensor Market Growth by 13%, to $15 Billion - Strategy Analytics

The global market for CMOS image sensors for smartphones in 2020 amounted to $15 billion, an increase of 13% compared to 2019. Such data are provided by the analytical company Strategy Analytics.

CMOS sensors make up most of the camera designs in the phone, so they are often referred to as cameras. The largest manufacturer of such products remained, Sony which accounted for about 46% of the market in 2020. Next was Samsung System LSI (29%), and took third place. OmniVision Technologies Thus, the leading three took about 85% of the market for image sensors for smartphones.

At the same time, as noted in the study, Samsung, OmniVision and SK Hynix continue to take some of the positions from Sony. American sanctions against Huawei also had a negative impact on the Japanese vendor's business, due to which Sony lost a large client. According to experts, the intensification of competition will increasingly threaten Sony's dominant position in the smartphone image sensor market.

The largest manufacturers of CMOS sensors in 2020

Strategy Analytics analyst Jeffrey Matthews noted that the pandemic has had little impact on the growth of image sensor sales. Suppliers faced high demand from smartphone brands, which actively equipped their models with higher-resolution sensors and increased the total number of these components in devices, he added.

The report also cites Strategy Analytics Vice President Stephen Entwistle, who says demand from smartphone manufacturers looking to expand the photo capabilities of their devices will continue to drive the growth of the image sensor market. However, the specialist warned that the lack of semiconductor power creates difficulties to meet the demand for these components.^[4]

Notes