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Global Mechanicals Intelligence
Global Mechanicals Intelligence
Optical Lens
MARKET DYNAMICS
According to a report published by Fortune Market Insights, the global optical lens market was valued at USD 18.09 billion in 2023. The market is projected to grow from USD 19.49 billion in 2024 to USD 40.27 billion by 2032, exhibiting a CAGR of 9.5% during the forecast period。
The automotive ADAS (Advanced Intelligent Driving Assistance System) camera market is evolving, with the current mainstream specification being 2M pixels. Driven by technological innovation and market demand, higher-resolution segments such as 5M and 8M pixels are emerging, increasing demand for high-resolution lenses.
AAC Optics has won the ‘2024 Most Influential Enterprise Award in the Camera Industry' and is recognized as one of the top three suppliers of mobile phone lenses worldwide."
Largan's consolidated revenue in 2024 is projected to reach NT$59.458 billion (approximately 13.247 billion yuan), reflecting a year-on-year increase of 21.73%. From the perspective of revenue proportion in December, its products fall into the following categories.
- 20% to 30% of products have over 20 million pixels.
- 60% to 70% of products have over 10 million pixels.
- 0% to 10% of products have over 800 pixels.
- 10% to 20% of products fall into other categories.
PROCESS OVERVIEW
Lens Design & Manufacturing: Optical engineers use specialized software to design the lens system for optimal image quality. Lenses are then manufactured from glass or plastic using grinding/polishing or precise molding techniques.
Component Preparation: Lens holders and barrels are made to align the lenses precisely. The image sensor converts light to digital signals, and the printed circuit board (PCB), which provides electrical connections, is also prepared.
Module Assembly: Lenses are carefully stacked and aligned within the barrel. The image sensor is precisely mounted and connected to the PCB, often using automated equipment.
Testing & Calibration: The assembled module is rigorously tested for optical performance and image quality. Calibration may be performed to correct for any imperfections or variations.
Final Assembly & Packaging: The camera module is integrated into the final device. Finally, the finished module is packaged for shipping and handling, protecting it from damage.
RECENT DEVELOPMENTS
|
Date |
Optical Lens Manufacturer |
End User (Company 2) |
Development Type |
Description |
Deal Value |
|
Jan-25 |
ZEISS (Germany) |
- |
Product Development & Launch |
ZEISS expands its range of trail cameras and sets new standards in image quality and surveillance technology with the new ZEISS Secacam 3. With optimized image processing, improved motion detection, faster transmission and intuitive operation, the camera offers indispensable insights into nature. |
- |
|
Dec-24 |
Tamron Co., Ltd. (Japan) |
- |
Product Development & Launch |
Tamron Co., Ltd. announces the launch of TAMRON’s first CANON RF mount lens, 11-20mm F/2.8 Di III-A1 RXD (Model B060), an ultra-wide-angle zoom lens for APS-C mirrorless cameras |
- |
|
Oct-24 |
Xiaomi (China) |
- |
Product Development & Launch |
For the first time, the new model Find X8 serial adopts the world's most innovative inverted periscope camera module with a 1/2" outsole and 3x optical zoom. The volume of outsole of periscope telephoto reduced by 33% |
- |
|
Oct-24 |
SIGMA Corporation (US) |
- |
Product Development & Launch |
SIGMA Corporation announced the SIGMA 28-105mm F2.8 DG DN | Art zoom lens for full-frame mirrorless camera systems. It spans many popular focal lengths in a single fast aperture zoom. |
- |
|
Oct-24 |
Tamron Co., Ltd. (Japan) |
- |
Product Development & Launch |
Tamron Co., Ltd. announced the launch of the 90mm F/2.8 Di III MACRO VXD (Model F072), a mid-telephoto 1:1 macro lens, compatible with Sony E-mount and Nikon Z mount full-frame mirrorless cameras |
- |
|
Jul-24 |
EssilorLuxottica (France) |
Espansione Group (Italy) |
Acquisition |
EssilorLuxottica announces that it has entered into an agreement for the acquisition of Espansione Group, an Italy-based company specialized in the design and manufacturing of non-invasive medical devices, protected by international patents, for the diagnosis and treatment of dry-eye, ocular surface and retinal diseases. |
- |
|
Jul-24 |
ZEISS (Germany) |
- |
Business Expansion |
Zeiss is setting up one of its biggest lens factories in Bengaluru. The company is investing Rs 2,500 crore to set up the new plant, which will have five times more production than what its existing facility. |
₹ 25 Billion ($ 0.3 Billion) |
|
Jul-24 |
EssilorLuxottica (France) |
Supreme (a VF Corporation Brand (US)) |
Acquisition |
The Franco-Italian brand is planning to pay $1.5 billion (€1.37 billion) for US "iconic brand" Supreme from owner VF Corporation. |
$1.5 billion |
|
Jun-24 |
Nikon (Japan) |
- |
Expansion |
Nikon is investing $160M in a new lens factory for high-end lenses. In the long term, Nikon plans to strengthen its business fundamentals under its current Medium-Term Management Plan and will invest approximately 100 billion yen by 2030 to develop production facilities that support all of Nikon’s businesses. |
$ 160 Million |
|
Jun-24 |
Canon Inc. (Japan) |
- |
Business Development |
Canon announced its outlined plans for strengthening its core business segments of imaging, printing, and surveillance, along with growing presence in the Semiconductor, Flat Panel Display business and the medical industry. Reaffirming the brand's commitment to India, these announcements were made during Canon's strategy meet in Mumbai |
- |
|
Jun-24 |
Canon Inc. (Japan) |
- |
Product Development |
Canon announced the release of CN7×17 KAS T/R1 and CN7×17 KAS T/P1 as new products in the EF/RF Cinema Lens series lineup named “CINE-SERVO Lens”1 in early October 2024. |
- |
|
Apr-24 |
Canon Inc. (Japan) |
- |
Product Development & Launch |
Canon U.S.A., Inc., announced the CJ27ex7.3B, Canon’s first 2/3” portable lens with a class leading[i] 27x optical zoom, expands and strengthens the company’s extensive broadcast lens lineup. |
- |
Source: Press releases & company websites
DEMAND/SUPPLY OVERVIEW
DEMAND COMMENTARY
Mobile Phone Market: The mobile phone market has recovered since Q1'24. The mobile phone lens market in 2025 is expected to continue growing, driven by advancements in smartphone technology and increasing consumer demand for high-quality camera capabilities.
VR Optical Modules: Global VR optical module shipments will decrease by 19% to 9.4 million units in 2024. However, the market is projected to recover in 2025, reaching 13.6 million units, driven by introducing more affordable products like the Meta Quest 3S.
Automotive Camera Market: The automotive camera market continues to grow rapidly, driven by the increasing adoption of intelligent driving systems. The average number of cameras installed in new cars has reached 10.1 units, nearly doubling compared to two or three years ago. The Asia-Pacific region holds about 52% of the market share, followed by Europe and North America with 22% and 19%, respectively. The rear/surround view lens segment is the largest, accounting for over 65% of the market.
Generally, the market is expected to grow continuously due to the increasing adoption of advanced technologies and the rising demand for high-quality imaging solutions.
SUPPLY ANALYSIS
Overall, suppliers have surplus capacity, supply is stable, and the standard lead time of ~16 weeks remains unchanged (raw material ~12 weeks + ~4 weeks processing).
Global geopolitical challenges and market uncertainties are prompting optical lens suppliers to diversify their supply chains. Some producers have been setting up plants outside China, with Mexico and Vietnam as their first options.
According to an article published by ChaoDian Think Tank:
- The top 10 mobile phone lens suppliers are Sunny (118.75M), Largan (110.11M), AAC Optics (60M), GSEO (38M), Huaxin (36M), SPY (20.27M), Ofilm (16.2M), DULE (15M), LCE (11M), ZET (9.9M) ranked by shipments in September 2024.
- The top 10 global car camera module suppliers are Sunny (2.1M), BYD (1.45M), Desay SV (0.66M), Qtech (0.63M), Ofilm (0.51M), LCE (0.5M), Longhorn (0.49M), Hikauto (0.26M), Zongmu (0.21M), and TTE (0.11M), ranked by shipments in October 2024.
- The top 10 security & surveillance lens suppliers are YTOT (13.7M), Sunny (7M), YIXUAN Tech (1M), Xiamen Leading (0.44M), Focteck (0.4M), Union (0.39M), RICOM (0.38M), Novel (0.31M), Phenix (0.19M), ZMAX (0.15M), ranked by shipments in September 2024.
PRICING SITUATION
MOBILE PHONES
The mobile phone sector has evolved beyond the phase of aggressively competing for market share. Following recent industry adjustments, companies are now focusing on enhancing product value and improving operating profits. This shift reflects a more sustainable approach to growth and profitability.
AUTOMOTIVE CAMERA MODULES AND LENSES
Terminal car companies have introduced significant fluctuations in the supply chain, resulting in a 3-5% decrease in the average unit price of onboard camera modules and lenses over the past two years. This price drop has pressured many manufacturers to accept orders at a loss to remain competitive in the market.
LENS PRICES
Lens prices have remained stable due to constraints of centralized supply and market demand. Opportunities for cost reduction are limited, except in cases of high-volume production. This stability is crucial for maintaining consistent quality and supply in the optical lens market.
COST REDUCTION OPPORTUNITIES
While there are limited opportunities for cost reduction in lens production, some strategies can help manufacturers manage costs more effectively:
- Streamlining Production Processes: Standardizing workflows and eliminating inefficiencies can reduce production costs.
- Investing in Automation and Technology: Implementing robotics and advanced machinery can enhance production efficiency and reduce labor costs.
- Optimizing Supply Chain Management: Diversifying suppliers and improving inventory management can minimize waste and storage costs.
These strategies can help manufacturers navigate the challenges of maintaining competitive pricing while ensuring high-quality production standards.
KEY TAKEAWAYS
- The recovering mobile phone market has significantly boosted the optical sector.
- Mobile phone and automotive market development is still the core driving force of the optical lens industry.
- Global geopolitical challenges and market uncertainties are prompting optical lens suppliers to diversify their supply chains.
- Asia Pacific is anticipated to dominate the Worldwide market for Optical Lenses in the coming years.
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