Market Trends of Image Signal Processor and Vision Processor Industry
This section covers the major market trends shaping the Image Signal Processor & Vision Processor Market according to our research experts:
Consumer Electronics to Hold Dominant Share of the Market
- The increasing deployment of ISPs and VPUs in VR products, smartphones, drones, etc., boost the image signal processor and vision processor market for consumer electronics. The increasing demand to bring superior products with upgraded consumer experience and excellent functionalities drive OEMs' adoption of ISPs and VPUs.
- Constant innovations in consumer electronics products, inducing advanced features and functionalities, coupled with increasing product launches by market players, add to the rising demand for these processors. For instance, in March this year, STMicroelectronics launched a new line of high-resolution Time-of-Flight (ToF) sensors for smartphones and similar devices. The VD55H1 is the first member of the 3D family, a sensor that maps three-dimensional objects by determining the separation between more than half a million points.
- Fast processors, connectivity, superior camera quality, and applications make smartphones the most thriving consumer electronic devices in terms of their adoption. Unlike current phones, future smartphones will leverage innovations such as high-speed connectivity, machine-learning chips, AI capabilities, and more powerful processing power.
- VPUs, which use dedicated AI chipsets, enhance the user experience by inducing the AI computing capacity in the devices. Growing demand for premium smartphones due to advanced characteristics, such as higher security, faster computing, low latency, and less dependence on connectivity, is expected to encourage the adoption of dedicated AI chips.
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APAC to Register Highest CAGR During Forecast Period
- In subsequent years, the Asia-Pacific image signal processor and vision processor market is expected to face profitable development possibilities. This region's demand is attributed to the presence of multiple start-ups of AI processors, which are likely to give the VPU businesses with significant development possibilities soon. Besides, the region is home to primary producers of drones and intelligent camera suppliers that integrate VPUs into their goods.
- The image signal processor and vision processor market is driven principally by the expanding adoption of machine vision systems and a different range of vertical industries, including consumer electronics and automotive. Also, it is assumed that the arrival of AI and machine learning technologies required to program the systems will help market growth.
- The market demand is increasing in the Asia-Pacific due to increasing production capacities of the electronic industry in countries such as China and Japan, among others. For example, the total production value of the electronics industry in Japan reached close to JPY 11 trillion in 2021. The sector encompasses consumer electronic equipment, industrial electronic equipment, and electronic components and devices.
- Furthermore, Japan's growing merger, acquisition, expansion, and collaboration activities also assist the market's growth. For example, TSMC planned to open its first factory in Japan in October last year in collaboration with Sony. Sony is the world's largest manufacturer of image sensors used in cell phone cameras and other applications. The total investment is estimated to be around 800 billion USD.
- Several robots with vision capabilities are progressively being introduced across the automotive and manufacturing businesses for multiple purposes, including quality control, product inspection, assisting in the various production stages, and security and monitoring, among others. Besides, the growing advancement in cars, in particular autonomous vehicles, are supposed to impact the industry positively.
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