The automotive camera market worldwide size was valued at USD 8.0 billion in 2023 and is expected to reach 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.
Automotive Camera Market Growth 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.
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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.
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 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.
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.
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