According to a report from Yole Group, the camera module market is seeing a great deal of change, driven by diversification, stable pricing, and continuous innovation. “We’re moving into a decade where mobile stays dominant, but automotive, XR, robotics, and medical imaging become real volume and value engines,” said Anas Chalak, technology and market analyst for imaging at Yole Group. “That diversification is what will carry the industry beyond 8 billion modules by 2030.” This year saw compact camera module (CCM) shipments rebound to 7 billion units, propelled by a recovery in the smartphone market and renewed consumer momentum, particularly in China, the report said. Continuous upgrades of main and periscope cameras are increasing imaging value in mobile devices, which has maintained smartphones as one of the most technologically dynamic market segments, and by far the largest. 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, like drones, wearables, and smart-home devices, were flat or slightly down. Extended reality (XR) headsets, however, present an opportunity to propel the next consumer imaging wave. Productivity cameras (like those in 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 still stands as a structural driver. Courtesy of Yole Group. The fastest growing market sector is automotive. In 2024, more than 250 million camera modules were shipped for vehicles, meeting the demand generated by the rapid proliferation of advanced driver assistance systems 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 the charge. Yole expects CCM shipments to surpass 8.6 billion 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, the group contends. The report additionally identified 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. Companies 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. 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, Yole said. 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,” said Chalak. “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.”