Embedded camera apps replace digital cameras

Total digital still camera (DSC) shipments have grown from 22 million units in 2001 to peak at 143 million units in 2011. This is now in decline, prompting many suppliers to reduce the number of models being sold to consumers and to focus more efforts on higher-priced digital single-lens reflex (D-SLR) cameras. Sales of D-SLR models are still growing, but not as fast as the overall market is declining.

Worldwide DSC shipments are expected to fall by a CAGR of -10% between 2012 and 2017 compared to an annual average growth rate of just 1% in the 2007-2012 period and nearly 31% per year in the 2002-2007 timeframe.

The decline in stand-alone DSC shipments has caused many IC suppliers to change strategy and seek out other expanding markets: phones continue to be a major growth application for digital cameras and imaging. However, IC Insights predicts high growth rates for several other embedded applications, including automotive, tablets & PCs, security & surveillance, and medical/scientific/industrial, which will open high-volume market opportunities for image sensor suppliers and IC makers in the near future.

IC sales for stand-alone digital cameras are projected to decline at an annual average rate of -10.5% until 2017. However, IC revenues for automotive camera systems are expected to surge by a CAGR of 113.3%, ICs for tablet and PC cameras are forecast to rise by a CAGR of 20.2%, and phone camera integrated circuits are expected to rise by an annual rate of 9.0%.

The migration of camera technology into a greater range of applications should benefit semiconductor suppliers, with the total IC market for all digital camera systems expected to reach $29.2bn in 2017. This is up $6.2bn from 2012, representing a CAGR of 4.9%. When stand-alone cameras are excluded from these totals, IC sales for embedded cameras and imaging systems are forecast to grow by a CAGR of 11.9%, reaching $23.9bn in 2017.