Market Trends of Asia Pacific Smartphone Camera Lens Industry
This section covers the major market trends shaping the APAC Smartphone Camera Lens Market according to our research experts:
Evolution of Multiple Camera Approaches and Introduction of Advanced Camera Technologies
- The cameras in smartphones are improving at a rapid pace and to a point where they might eventually negate the need for stand-alone digital cameras. The increasing demand for a slimmer device has created has caused designers to make use of the larger width and height of phones by adding additional cameras to their designs. Having multiple camera lenses has made an array of new features possible thus increasing the demand for camera lenses.
- The smartphone camera lens market is directly dependent on smartphone sales, as they are the primary applications for the product. Rapidly evolving technology such as image stabilization, faster processors for digital cameras, and a significant increase in storage devices capacity and speed has provided the essential push for the market to evolve.
- Optics remains one of the key direction for smartphone innovations. Upgrade trends for tele-zoom, night mode, ultra-wide-angle, and high image resolution features have set more demanding standards for camera stability, height thickness, and optical resolution.
- For instance, 40MP Huawei P20 Pro was a differentiator in 2018, whereas in 2019, 48MP and 64MP sensors became normal. Xiaomi Mi Note 10, the first 108MP smartphone, was launched in Indian Market in March 2020. Quad-CFA, quad-Bayer, or "pixel-binning" camera sensors is the underlying technology that has made it possible.
- Besides, the optical lens industry is better-placed relative to other component sub-sectors in light of the structural growth of the number of cameras in smartphones and significant entry barriers created by high technological capabilities and capital intensity. Taiwan's Largan Precision Co., Ltd. and China's Sunny Optical Technology (Group) Company Limited together had the majority of the global optical lens market share by 2019 by volume.
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China is Expected to Witness Significant Growth
- Among all the regions, China is witnessing a Spurr in demand for smartphones. Huawei, the Chinese tech giant, is reportedly stated to ship approximately 200 million units in 2020 alone. On the other hand, the various other brands like Oppo, Vivo, and Xiaomi are expected to ship a huge number of smartphones. Due to this, a single Chinese brand is expected to order anywhere between 400 to 500 million optical lenses in 2020.
- As a result, Owing to their capabilities, companies like Largan Precision, Sunny Optical Technology, Ofilm Tech, Q Technology, and Truly Opto-Electronics, to name a few, are expected to be sharing most of these lens orders by Chinese smartphone vendors in 2020.
- To leverage the competitive advantage on price, most players are shifting their operations to China, Taiwan, and Vietnam. The regional market is between players mainly delivering sub-5Mp resolution cameras for the computing and low-end mobile fronts and players producing above-5Mp for high-end rear mobile cameras.
- Most smartphone manufacturers in the region are also driving innovation in the market studied—for instance, Huawei Technologies Co. Ltd, in 2019, launched its smartphone P Smart Pro, with a pop-up selfie camera module. Another company, Vivo Communication Technology Co. Ltd, a Chinese technology company, in Q1, 2020, launched its smartphone Vivo S1 Pro, with a rear camera module in India.
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