Camera modules reimagined: new drivers, new markets, new momentum

Yole Group released its annual report, Camera Module 2025. With smartphones resurging, automotive accelerating, and new use cases expanding fast, camera modules are no longer a single-engine industry. 

They are becoming a multi-pillar growth story driven by diversification, stable pricing, and continuous innovation. With this new edition, Camera Module 2025, Yole Group delivers an updated and detailed view of market dynamics, shipment forecasts, value-chain evolution, and technology shifts reshaping imaging across consumer, automotive, industrial, and medical applications.

Anas Chalak, Technology & Market Analyst, Imaging at Yole Group, said: We’re moving into a decade where mobile stays dominant, but automotive, XR, robotics, and medical imaging become real volume and value engines. That diversification is what will carry the industry beyond 8 billion modules by 2030."

Camera module market is entering a new phase
After two years of decline, the global compact camera module market returned to growth in 2024, driven primarily by a new impetus in smartphones and a gradual recovery in consumer demand, especially in China. Continued upgrades of main and periscope cameras are increasing imaging value in mobile devices, keeping smartphones the largest and most technologically dynamic segment.

In volume terms, mobile and other consumer applications accounted for about 96% of all units shipped in 2024, about 6.7 billion modules.

“Other consumer” categories, such as drones, wearables, and smart-home devices, were flat to slightly down, but XR headsets are emerging strongly, reinforcing the next consumer imaging wave. Productivity cameras (laptops and tablets) also returned to growth, while medical imaging benefited from sustained demand for minimally invasive diagnostics. Industrial applications softened temporarily in 2024 due to delayed capital investment in Europe and North America, but embedded vision remains a structural driver.

Automotive stands out as the fastest-growing growth engine. In 2024, more than 250 million camera modules were shipped for vehicles, supported by the rapid proliferation of ADAS and emerging in-cabin monitoring features. The average number of cameras per car continues to rise, driven by faster technology iteration and the growing adoption of higher-resolution modules, with China leading this acceleration.

Looking ahead, Yole Group’s analysts forecast CCM shipments to surpass 8.6 billion units by 2030, supported by steady mobile imaging needs, the continued scale-up of automotive cameras, and expanding opportunities in XR, robotics, endoscopy, and embedded industrial vision. The industry is entering a phase of moderate but resilient growth across multiple segments.

Technology, value chain, and supply-side transformation
Yole Group’s report identifies a clear strategic pivot across the CCM value chain from 2022 to 2025. Vertical integration has become the dominant response to industry concentration and technology complexity. Leaders such as LG Innotek, Samsung (including Semco), AAC Technologies, and Sunny Optical have aggressively expanded into adjacent domains, including actuators, optics, and lens assembly, to reinforce control over performance, costs, and supply security.

Jérôme Mouly, Sensing & Imaging Director at Yole Group, added: "Vertical integration is clearly becoming the strategic answer to industry concentration. Leaders are extending their reach into optics, actuators, and lens assembly to secure technical control and margins."

Emerging metasurface optics, recently commercialized in products such as Apple’s iPad and Xiaomi’s smartphone, highlight a new pathway for ultra-compact cameras, a topic Yole Group explores in a dedicated report, Optical Metasurfaces 2024.

Other major players, including Ofilm and Q Tech, are following a similar path through acquisitions and equity stakes, positioning themselves to compete more directly with established actuator suppliers such as Mitsumi, Alps, and TDK. As a result, the market is seeing accelerating consolidation around groups combining sensor, optics, and module expertise under one roof.

“Verticalization is reshaping the competitive map,” explains Anas Chalak from Yole Group. “To win the next cycle, suppliers need to control more of the imaging stack, from sensor to optics to module, while investing close to the fastest-growing markets, especially automotive.”

he camera module industry has entered a new growth chapter: smartphones remain the foundation, but automotive and emerging smart-vision applications are redefining the trajectory. Stable ASPs, continuous sensor innovation, and diversification into 3D and intelligent imaging functions will sustain momentum through the decade.

Key takeaways
* CCM shipments rebounded to 7 billion units in 2024, driven by a recovery in the smartphone market and renewed consumer momentum.
* Automotive camera shipments exceeded 250 million units, supported by the proliferation of ADAS and an increase in in-cabin monitoring.
* Supply chain verticalization accelerates: Yole Group announces about $8 billion invested in Vietnam, Mexico, and India to secure next-gen capacity.
* CIS ecosystem consolidates: Sony approaches 50% share, Chinese players expand rapidly, and U.S./E.U./Korean players lose ground.