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08 Jul 2025
Analyst company expecting sharper uptick in module shipments as distributed camera architectures 'reshape' the ADAS market.
The market for camera modules used in automotive applications is set to grow from around $6 billion in 2024 to nearly $9 billion by the end of the decade.
That’s one of the main conclusions from a new market report just published by the Paris-based analyst company Yole Group, which predicts a compound annual growth rate of 6.6 per cent for the sector.
With more sensors being deployed and auto makers increasingly adopting multi-camera architectures, the Yole team also expects to see 400 million sensor units to be deployed annually by the end of the decade.
Centralized architecture
Smart front cameras for advanced driver assistance system (ADAS) applications remain the highest-value segment, they say, while satellite cameras and driver monitoring systems (DMS) relying on a centralized architecture are beginning to proliferate - with "in-cabin" camera applications set to treble in value over the forecast period.
Driven by regulatory developments, the mix of products being deployed by auto makers is said to be moving towards high-resolution 8 megapixel sensors, with strong research efforts towards improving high dynamic range and reduced pixel sizes.
Newer technologies such as near-infrared, short-wave infrared (SWIR), and thermal cameras are increasingly being integrated into other sensors such as radar units, says the report.
Yole also points to strong current demand for thermally stable, wide-angle optics, while in-cabin DMS will use RGB-IR sensors, and 3D time-of-flight and global shutter options are expected to emerge for smart airbags and biometric monitoring.
Report author Anas Chalak added: “Today’s growth is not just about more cameras, but about smarter integration, better sensing performance, and strategic deployment aligned with vehicle intelligence.”
Multi-camera systems
The findings are included in Yole’s “Automotive Imaging 2025” publication, with its analyst team noting that as regulations tighten and architectures evolve, the automotive imaging market is transitioning to multi-camera systems with higher resolution and tailored functionality.
“The move toward distributed camera architecture is reshaping the ADAS market,” they add. “The traditional single front smart camera gives way to multiple side, rear, and viewing cameras, enabled by zonal computing and sensor fusion.”
At present the 360-degree surround-view camera is said to be the primary contributor in terms of volume shipments, with parking assistance and “L2+” automation now becoming standard features.
“Meanwhile, DMS is emerging as a regulatory and design imperative in Europe and beyond, with RGB-IR and global shutter sensors increasing system value,” adds Yole.
“In addition to the sensor, which is the main semiconductor component in a camera, we also track lens set trends, which are currently shifting toward hybrid solutions to reduce costs and improve performance.
“Newer camera functions such as e-mirrors and exterior access cameras are emerging in premium EV platforms.”
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