According to IC Insights' latest report, global sales of CMOS image sensors are expected to decline for the first time in 13 years due to declining smartphone sales, slow growth in mobile phone cameras and a weakening global economy.
IC Insights points out that for most of the past 20 years, strong growth in CMOS image sensors (CIS) has propelled this product category to the top of the optoelectronics market, accounting for 40% of the category in terms of volume total revenue. By 2022, the CIS market will experience its first decline in 13 years, with sales expected to decline 7% to $18.6 billion and global unit shipments to decline 11% to 6.1 billion.
After two years of modest sales growth in 2020 (+4%) and 2021 (+5%), a decline in CIS is expected in 2022. The decline in sales in 2022 reflects overall weakness in consumer smartphones and laptops following a surge in demand during the pandemic. Third-quarter forecasts point to a modest recovery in CIS next year, with market revenue rising 4% to $19.3 billion, before rising 13% to a new high of $21.7 billion in 2024.
In addition to weak demand for mobile phones and laptops, CIS has been negatively impacted by high inflation and soaring energy costs due to conflicts in Russia and Ukraine.