Mountain View, CA--The market for image sensors will decline to $6.4 billion in 2009, a drop of 11% from 2008 and the first decline since market research firm Strategies Unlimited began tracking the market in 1997. According to that company's new research report--Image Sensors: Market Review and Forecast-2009--growth is expected to return in 2010, but the average growth rate will be in the single-digits in coming years, following more than a decade of 22% compound annual growth.
The report says that the current decline in the market is temporary and driven by the global economic cycle, but cycles will have a stronger effect going forward, now that the perfect convergence of forces leading to rapid growth in image sensor revenues for cameraphones is maturing. There will still be growth in unit sales in coming years for image sensors overall, but short-term fluctuations in demand, periods of oversupply and shortage, and severe price pressure will make it more challenging to stay competitive than before.
Also, notes the report, there is turmoil in Japan, which used to dominate world image sensor production, and still manufactures more than 90% of the world’s CCDs. These devices continue to dominate in digital still cameras and security cameras but Fujifilm stopped production of image sensors for its line of cameras in 2007 and Sony is thinking of stopping its production of CMOS arrays for cameraphones. Panasonic has already done so.
Meantime, Korean and Taiwanese suppliers are gaining market share, especially for cameraphones. Samsung grew 61% from 2006 to 2008, placing it among the top suppliers. Strategies Unlimited is also seeing increased competition from other Korean and Taiwanese companies, such as SETi, SiliconFile Technologies, and PixArt Imaging. Hynix reentered the image sensor business in the second half of 2008. These companies are focusing on the China handset market.
This report is the fifth in a series by Strategies Unlimited and it continues to be the most comprehensive and in-depth market report on the subject. It includes all image sensing applications in the visible spectrum, including scintillator-coated arrays for x-ray radiography. The study draws heavily on Strategies Unlimited’s extensive interviews with suppliers in Japan, Korea, the U.S., and Europe, combined with its deep expertise in this market.
For more information visit www.strategies-u.com
Posted by Steve Anderson