North America Automotive Camera Market Outlook, 2029

In North America, the automotive camera market is experiencing significant growth due to several key factors. Prioritizing automotive safety among consumers, coupled with a high incidence of road accidents and road rage, creates a substantial demand for camera modules. The market has experienced growth, driven by consumer demand for enhanced safety features and regulatory initiatives promoting the integration of advanced driver assistance systems (ADAS) in vehicles. Consumers in North America are increasingly aware of the importance of safety features in vehicles. Information about crash test ratings, safety technologies, and advancements in ADAS has become more accessible, influencing purchasing decisions.

Regulatory bodies in North America, such as the National Highway Traffic Safety Administration (NHTSA), have implemented safety standards and initiatives that encourage the adoption of advanced safety technologies. Compliance with these standards has become a priority for market players such as Robert Bosch GmbH. Furthermore, insurance companies such as McKinsey and Company are investing in automotive cameras to increase the interest in automotive safety among customers, which is likely to drive market expansion during the forecast period. OmniVIsion Technologies Inc, headquartered in the United States, develops digital imaging solutions.

The company designs advanced digital imaging products and technologies for use in webcams, netbooks, mobile phones, automotive, surveillance and security cameras, medical imaging systems, and entertainment. Moreover, OmniVisionTechnologies Inc caters to clients across the world. Magna International Inc, a Canada-based car parts manufacturer, is one of the largest automotive components’ suppliers in the country. With several camera production facilities, the company provides camera components to its neighboring major car markets, including the United States and Mexico, as well. Furthermore, Canada is also increasing its production footprint, especially across the automotive industry.

Hence, these factors are set to propel the automotive camera market growth in North America during the forecast period. In 2019, OmniVision Technologies, Inc., has launched its 1.3MP OX01E10 SoC for automotive rearview cameras, the OX01E10 integrates a 3-micron image sensor and an advanced image signal processor (ISP), for low-light performance, an ultra-low-power, and reduced cost.

According to the research report, "North America Automotive Camera Market Outlook, 2029" the North America automotive camera market is anticipated to add to more than USD 1.70 billion by 2024-29. An increase in electric vehicle demand across North America and mainly in the United States is supporting the growth of ADAS and ultimately the demand for automotive cameras in the region. The high sales numbers of Tesla and other major companies are well supported by EV tax credits. Various market participants are planning to launch their new electric vehicles in the coming years, thus, the ADAS and camera manufacturers are gearing up to catch this rapidly growing market.

Automakers are launching new electric vehicles with more and more ADAS features and automotive camera manufacturers are also launching new camera technology for staying ahead in the market. Increasing demand for luxury cars in the United States, Canada followed by the demand and increase in installation of safety and driver assistance systems in the light of the regulatory standards of CAFÉ, and FMVSS would drive the automotive camera market in the region significantly. Automotive cameras are vulnerable to damage and are not an all-weather sensor yet.

However, with the increase in the adoption of automotive cameras, manufacturers are focusing on the optimization of the vehicle sensor architecture in order to achieve significant adoption in the market. ADAS technology has become one of the automotive electronics in the recent past. Growing awareness towards road and traffic safety from both government and the car owner is driving the demand of ADAS and ultimately the automotive camera system. Leading automotive OEMs and camera manufacturers are launching various new camera technologies to stay competitive in the market.

Market Drivers

• Advanced Driver Assistance Systems (ADAS) Adoption:.ADAS adoption is a significant driver in the automotive industry, providing safety features like lane departure warnings, automatic emergency braking, and adaptive cruise control. These systems rely heavily on automotive cameras to monitor the vehicle's surroundings and assist drivers in real-time. The increasing emphasis on vehicle safety, driven by both consumer demand and regulatory requirements, has led to widespread integration of ADAS in new vehicles. This trend is particularly strong in regions with strict safety regulations, such as North America and Europe, where advanced safety ratings like Euro NCAP and NHTSA's 5-Star Safety Ratings play a crucial role in vehicle design and marketing.
• Technological Innovation:Technological innovation in the automotive camera market involves the integration of advanced features such as artificial intelligence (AI), machine learning, and image recognition. These technologies enhance the capabilities of cameras, enabling them to detect and classify objects, recognize traffic signs, and even predict potential hazards. Innovations in sensor technology, such as higher resolution and wider field of view, also contribute to more accurate and reliable systems. North America leads in this area due to its robust research and development environment, with significant investments in autonomous driving technologies that rely heavily on sophisticated camera systems.

Market Challenges

• High Cost of Advanced Technologies:The high cost of advanced automotive camera technologies, including AI-enabled systems and high-resolution sensors, poses a challenge, particularly in cost-sensitive markets. Integrating these sophisticated systems into vehicles increases manufacturing costs, which can be passed on to consumers, making vehicles more expensive. This is especially problematic in mid-range and economy segments, where price competitiveness is crucial. The challenge is exacerbated by the need for automakers to balance the cost of these technologies with other vehicle features, while also adhering to increasingly stringent safety regulations.
• Data Privacy Concerns:As automotive cameras become more sophisticated, they collect vast amounts of data related to the vehicle's environment and the driver's behavior. This data, essential for functions like ADAS and autonomous driving, raises significant privacy concerns. Consumers and regulators are increasingly worried about how this data is stored, shared, and protected, particularly in light of potential cyber threats. In regions like North America and Europe, stringent data protection laws, such as GDPR, require manufacturers to implement robust data security measures. Failure to address these concerns can lead to consumer distrust and regulatory penalties, posing a barrier to the widespread adoption of these technologies.

Market Trends

• Shift Toward Autonomous Vehicles:The shift towards autonomous vehicles is a major trend driving the automotive camera market. Autonomous vehicles require advanced, multi-camera systems capable of providing 360-degree coverage to ensure safe navigation and decision-making in real-time. As the industry progresses from Level 2 (partial automation) to Level 4 and 5 (full automation), the demand for sophisticated camera systems is growing. This trend is particularly pronounced in regions like North America, where significant investments are being made in autonomous driving technologies. These developments are pushing manufacturers to innovate and produce more advanced camera systems to meet the rigorous demands of autonomous driving.
• Growing Aftermarket Segment:The growing aftermarket segment in the automotive camera market is driven by consumers' desire to upgrade their vehicles with modern safety and convenience features without purchasing a new car. This includes the installation of backup cameras, dashcams, and advanced ADAS systems in older vehicles. The aftermarket segment is particularly strong in regions where vehicle ownership is long-term, and consumers are looking to enhance their vehicle's safety and functionality. The trend is also fueled by increasing awareness of the benefits of automotive cameras, leading to higher demand for retrofitting options. As a result, the aftermarket provides significant opportunities for manufacturers to tap into a broader customer base.

The primary reason Rear View is leading in the Automotive Camera Market in North America is their early and sustained focus on safety and regulatory compliance.

Rear View was quick to capitalize on the National Highway Traffic Safety Administration's (NHTSA) mandate that all new vehicles must have rear visibility technology by May 2018. By concentrating on this regulatory requirement, Rear View developed cutting-edge backup cameras and comprehensive vision systems that not only meet but often exceed the mandated safety standards. This proactive approach allowed them to secure partnerships with major automakers seeking to comply with the new regulations, thereby expanding their market share.

Furthermore, Rear View's commitment to continuous innovation, such as integrating advanced features like dynamic guidelines, low-light capabilities, and wide-angle views, has solidified their position as a market leader. Their ability to provide cost-effective, high-quality solutions tailored to the diverse needs of North American consumers has further strengthened their dominance in the region.

The main reason Passenger Car is leading in the Automotive Camera Market in North America is the increasing consumer demand for advanced safety and convenience features.

With heightened awareness of vehicle safety, consumers are progressively seeking cars equipped with advanced driver-assistance systems (ADAS), such as backup cameras, lane departure warning systems, and surround-view cameras. Passenger cars, being the most common vehicle type, have seen a significant rise in the integration of these camera-based technologies. Automakers have been responsive to this trend, with many models now coming standard with various cameras and sensors to enhance safety and driving experience. Additionally, the stringent safety regulations imposed by the NHTSA, such as the rearview camera mandate, have further accelerated the adoption of cameras in passenger cars.

The competitive nature of the passenger car market also drives innovation, as manufacturers continually strive to offer the latest and most advanced features to attract buyers. This combination of consumer demand, regulatory compliance, and market competition has positioned passenger cars at the forefront of the automotive camera market in North America.

The main reason Digital is leading in the Automotive Camera Market in North America is the superior image quality and advanced functionalities offered by digital cameras.

Unlike traditional analog cameras, digital cameras provide higher resolution and better clarity, which are crucial for enhancing safety features and driver assistance systems. Digital cameras enable more accurate object detection, improved low-light performance, and wider dynamic range, making them ideal for applications such as backup cameras, surround-view systems, and advanced driver-assistance systems (ADAS). Additionally, digital cameras can seamlessly integrate with modern vehicle electronics and communication protocols, facilitating real-time data processing and advanced analytics. This integration capability allows for more sophisticated safety features like lane departure warning, collision avoidance, and adaptive cruise control.

Furthermore, the ongoing development of autonomous driving technologies relies heavily on the precision and reliability of digital cameras. As automakers and consumers increasingly prioritize safety and advanced technological features, the demand for digital cameras in the automotive market continues to grow, solidifying their leading position in North America.

The main reason ADAS (Advanced Driver-Assistance Systems) features like Lane Assistance, Collision Avoidance, and Blind Spot Detection are leading in the Automotive Camera Market in North America is the growing emphasis on vehicle safety and the push towards autonomous driving.

Consumers and regulatory bodies alike are increasingly prioritizing safety features that can prevent accidents and enhance the driving experience. ADAS technologies rely heavily on cameras to provide real-time visual data, enabling functions such as lane departure warnings, automatic emergency braking, and blind spot monitoring. These systems significantly improve road safety by alerting drivers to potential hazards and even taking corrective actions when necessary.

Moreover, the advancement towards semi-autonomous and fully autonomous vehicles has accelerated the adoption of ADAS features, as they are foundational technologies for self-driving capabilities. Automakers are investing heavily in these systems to meet consumer demand and comply with evolving safety regulations. The combination of enhanced safety, regulatory compliance, and the technological progression towards autonomous driving has positioned ADAS at the forefront of the automotive camera market in North America.

The main reason OEM (Original Equipment Manufacturer) is leading in the Automotive Camera Market in North America is the seamless integration and reliability of OEM camera systems.

OEM cameras are designed and tested specifically for the vehicle models they are equipped in, ensuring optimal performance and compatibility with the vehicle's electrical and safety systems. This integration provides a distinct advantage in terms of quality, functionality, and aesthetics, as OEM cameras are often more discreetly installed and aligned with the vehicle's design. Additionally, OEMs have the resources and capabilities to invest in extensive research and development, allowing them to offer advanced camera technologies that meet the latest safety regulations and consumer demands.

Automakers also prioritize OEM components to maintain consistency in quality and to streamline the manufacturing process. Furthermore, OEM cameras are typically covered under the vehicle's warranty, providing an added layer of assurance for consumers. The combination of superior integration, advanced technology, regulatory compliance, and warranty coverage has established OEMs as the leading providers in the automotive camera market in North America.

The main reason the USA is leading in the Automotive Camera Market in North America is the strong presence of major automakers, technological advancements, and stringent safety regulations.

The USA is home to prominent automotive manufacturers, including both domestic and international brands, which drives significant demand for advanced automotive cameras. Additionally, the country is at the forefront of technological innovation, with Silicon Valley and other tech hubs contributing to the development of cutting-edge camera technologies and software for vehicles. Stringent safety regulations imposed by the National Highway Traffic Safety Administration (NHTSA), such as the mandatory rearview camera rule, have further accelerated the adoption of automotive cameras.

Moreover, the USA has a large and diverse consumer market that increasingly demands advanced safety features and driver-assistance systems, which rely heavily on camera technology. The combination of a robust automotive industry, technological prowess, regulatory environment, and consumer demand has positioned the USA as the leader in the automotive camera market within North America.

• In 2020, BMW has launched plug-in hybrid 330e and 330e xDrive. Its ADAS has standard features such as active guard, frontal collision warning, city collision mitigation, and lane departure warning.

Considered in this report

• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report

• Automotive Camera market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By View Type

• Rear View
• Front View
• Side View
• Surround View

By Vehicle Type

• Passenger Car
• Light Commercial Vehicle
• Electric Vehicles (EVs)
• Heavy Commercial Vehicle

By Technology

• Digital
• Infrared
• Thermal

By Application Type

• ADAS (Lane Assistance, Collision Avoidance, Blind Spot Detection)
• Park Assist System
• Others (Driver Monitoring Systems)

By Sales Channel

• OEMs
• Aftermarket

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases.

After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Automotive Camera industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.


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