Market Trends of Consumer Electronics Optoelectronics Industry
Image Sensors are Expected to Hold Major Market Share
- The rising sales of consumer electronics, such as televisions, laptops, computers, and home appliances, significantly drive the demand for image sensors. According to the Consumer Technology Association, from 2012 to 2021, the United States witnessed a consistent rise in retail revenue within the consumer electronics market. Projections indicate that by 2024, the retail sales for consumer electronics in the United States are set to hit a staggering USD 512 billion. In 2023, OLED TVs were anticipated to rake in USD 2.3 billion in revenue, while portable gaming consoles were poised to bring in USD 1.5 billion.
- Moreover, the rising 5G smartphone penetration worldwide creates immense market opportunities for optoelectronics vendors. For instance, according to Ericsson, the number of smartphone mobile network subscriptions worldwide reached almost 7 billion in 2023, and it is forecasted to exceed 7.7 billion by 2028. China, India, and the United States have the highest number of smartphone mobile network subscriptions.
- Further, with the advancement of technology, image sensors are becoming much smaller, affordable, and more power-efficient. Key vendors are witnessing a significant increase in the sales of cameras and smartphones, which are expected to create significant demand for image sensors. For instance, Canon Inc., one of the leading vendors in the camera market, registered revenue growth in 2023, an increase of 3.7% from 2022. The 2023 revenue reported JPY 4.18 billion (USD 28.335 billion). The company’s net profit increased by 8.4% in 2023 compared to 2022.
- Key market vendors are focusing on product launches and new product innovations to fulfill consumer demand. For instance, in February 2024, Sony launched the First Global Shutter Image Sensor in the Alpha 9 III Camera. The camera features advanced video capabilities, such as 4K 120p recording without cropping and a Sony Cinetone feature for enhanced image quality.
- In March 2024, Sony launched a new CMOS image sensor fab in Thailand for the imaging and sensing business. The new fab, “Building 4,” will be used for the assembly of image sensors for automotive applications and the mass production of laser diodes. Such factors are projected to foster market growth.
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China is Expected to Witness a High Market Growth Rate
- China is expected to hold a major market share in the consumer electronics optoelectronics market. The rising 5G penetration across the major countries of the region drives the demand for 5G smartphones, laptops, and tablets. For instance, China, in collaboration with its government, has made substantial progress in expanding its 5G network nationwide.
- The country's major telecom operators—China Mobile, China Unicom, and China Telecom—have led the construction of robust 5G infrastructure in urban centers and key regions. This initiative has enabled millions of users to access high-speed, reliable internet services across China. The deployment of base stations has now reached a critical stage.
- With the rising proliferation of 5G smartphones, many players are introducing image sensors targeted for 5G smartphones, which is contributing positively to the market. In March 2024, Huawei, China's leading telecommunications equipment firm, unveiled its latest 5G smartphone in April 2024. The P70 series, heralded as Huawei's next flagship, was slated for an early debut next month. Following a pattern akin to Samsung Electronics, which rolled out its Galaxy S series in the first half and the Z series later, Huawei introduced its P series in the year's first half and planned to introduce the Mate series in the latter half. The upcoming P70 series will feature the Kirin 9000S chip, a component also found in the Mate 60 series. Notably, the Mate 60 series, which made its debut in August 2023, showcased a 5G chip crafted using Huawei's proprietary 7-nanometer (nm) process, catching global attention.
- Further, the household appliance sector in China has evolved into a multi-billion dollar industry. By April 2024, the retail sales value for household appliances and consumer electronics in China exceeded CNY 64 billion (USD 8.85 billion). Such growth in the Chinese household appliances sector is primarily driven by rising individual incomes and increasing urbanization, which is expected to drive the demand for optoelectronics in the country.
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