The rising demand for semi-autonomous and autonomous driving, focus on advanced safety systems, increasing adoption of driving assistance features, and growing consumer disposable income fuel the global automotive camera market to grow at a CAGR of 10.4% till 2026.
According to the new market research report - Automotive Camera Market by application, view type, technology, Level of Autonomy, vehicle type/class, electric vehicle and region - Global Forecast to 2026 - published by MarketsandMarkets, the global automotive camera market is projected to reach $11.3 billion by 2026 from $6.8 billion in 2021.
Moreover, increasing adoption of ADAS & safety features, focus on vehicle safety, government safety regulations, and reduce accidents will play a pivotal role in adopting automotive cameras in the future.
Some of the players in this space include Continental, Robert Bosch, Valeo, Aptiv and Magna.
Park-assist
The park-assist segment is estimated to be the largest segment of the automotive camera market. The government mandates and increasing penetration of camera-based features are some of the major factors driving this segment. Currently, park assist features are most commonly used in vehicles. Most vehicles are equipped with a digital rearview camera that assists the driver while parking a vehicle. Moreover, the US and Canadian governments have mandated the rearview camera because of its safety benefits. Canada has made rearview camera systems mandatory in new cars since May 2018.
Passenger Cars
The passenger car segment makes a significant contribution to the automotive camera market. The increased demand for safety systems in emerging markets can improve road safety standards supporting legislation and consumer awareness. Additionally, several countries in Europe, North America, and the Asia Pacific have introduced regulations that mandate incorporating various types of ADAS in the passenger car segment, the report said.
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 vehicles, where they are offered as optional or not available in specific variants. Hence, provide opportunities for the growth of the automotive camera market in the passenger car, MarketsandMarkets said.
Asia Pacific
The Asia Pacific is expected to account for the largest market share by 2026, followed by Europe and North America. Increasing demand for a safe, efficient, and convenient driving experience, rising disposable income in emerging economies and stringent safety regulations across the globe are the drivers of the automotive camera market in the Asia Pacific. Low automobile market penetration and increased vehicle production in this region offer automobile manufacturers and Tier-1 suppliers attractive market opportunities. With an increase in the production of vehicles, the demand for driver-assist features is expected to increase. This, in turn, is expected to drive the market's growth in the region. Further, steady growth in the demand for semi-autonomous vehicles in the emerging markets of Asia Pacific has also created an opportunity for the development of the automotive camera market.
Courtesy: MarketsandMarkets. NB: Photo is representational; courtesy: Continental.