The market for image sensors continues to promise impressive growth, with new applications in cell phones, vehicles, wireless endoscopes, and fingerprint recognition just getting off the ground, according to a new market study released by Strategies Unlimited. CMOS sensors are gaining sales in both high and low end applications, for different reasons. But it will take longer than expected for CMOS sensors to uproot CCDs from cell phone designs, given the more expensive technology that must be used to match the size and quality of CCD imagers for that application. And, it will still take several years to reach significant volumes in some of the coveted applications.
The report, Image Sensor Market Review and Forecast--2003, projects that the imager market will exceed $2.6 billion in 2003, growing to over $4.0 billion in 2007. Relatively stable prices and growth in unit volumes across all applications is "a rising tide that raises all boats" for the time being, but the biggest changes in the industry are still ahead.
"We identified over 40 companies supplying sensors, with a lot of interesting new ideas, but down the road there will be only a few volume suppliers," says Tom Hausken, director of research at Strategies Unlimited. "Now we are seeing large companies partnering with or acquiring key talent to be ready when the volumes in CMOS sensors really kick in. A lot of things have to come together, but the winners will do very well out of this."
The manufacturers fall into four camps. Large Japanese electronics firms lead in CCDs (Sony, Matsushita, and Sharp). Large semiconductor suppliers and foundries (led by Agilent, TSMC, UMC, and STMicroelectronics) and fabless suppliers (led by Omnivision) are strong in CMOS. And established imaging companies, led by Fujifilm, Kodak, and Canon, are strong in a variety of niche or captive businesses. About 33% of the CMOS sensor production today is actually fabricated by outside foundries. The report profiles over 45 companies or foundries supplying image sensors of various types.
Strategies Unlimited specializes in market research and strategic consulting directed at optoelectronics, photovoltaic components and systems, optical networking, and compound semiconductors. The company, based in Mountain View, California, and its affiliate, KMI Research, are research units of PennWell Corporation, a global media and information company serving the energy and advanced technology markets since 1910. PennWell publishes over 45 periodicals including Vision Systems Design, Laser Focus World, and Solid State Technology.