Demand rises for image sensors

By James Carbone -- Purchasing, 4/16/2008 11:34:00 AM

The worldwide image sensor market will increase by 10% in 2008 to a record high of nearly $7.6 billion up, from about $6.9 billion last year, according researcher IC Insights. CMOS image sensor sales are forecast to rise 19% in 2008 to $4.4 billion after falling 12% in 2007, while charge-coupled devices (CCDs) are expected to decline 1% in 2008 to $3.2 billion compared to 0% growth in 2007.

This year’s image sensor recovery will provide a lift to overall optoelectronics sales, which are now forecast to grow 10% in 2008 to $17.5 billion after declining 2% in 2007, the researcher says. Image sensors account for about 43% of optoelectronics sales.

In 2007, combined sales of CCD and CMOS image sensors declined 7%, primarily due to inventory corrections in camera phones during the first half of the year and some weakness in industrial and office equipment applications, such as machine vision for manufacturing systems and optical scanners in copiers and computer peripherals. The 2007 drop was the image sensor market’s first annual decline since the 2001 semiconductor downturn.

Image sensor growth rates are easing back in camera phones and digital still cameras as those end-use applications mature and markets become saturated. In the next five years, double-digit image sensor growth will hinge on new and emerging applications, such as embedded cameras in portable computers, next-generation “hybrid” video/still-picture cameras, automotive-imaging safety systems, medical uses, toys and video games, and wireless video-security networks. All of these potentially high-growth applications will require CMOS technology, which can integrate pixels cells with image-processing functions on a single chip while supporting lower power consumption compared to CCDs.

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