Artificial Intelligence (AI) Camera Market Size, Share & COVID-19 Impact Analysis, By Technology (Image/Face Recognition, Computer Vision, Emotion Recognition, DSLR Cameras, Network Cameras, Security Cameras, and Others), By End-user (BFSI, Healthcare, Automotive, Consumer Electronics, Retail, Government, Logistics & Transportation, Military and Defense, Commercial Spaces, Media and Entertainment, and Others (Residential and Oil & Gas)), and Regional Forecast, 2022-2029

The global artificial intelligence (AI) camera market size was valued at USD 7.52 billion in 2021. The market is projected to grow from USD 8.26 billion in 2022 to USD 20.91 billion by 2029, exhibiting a CAGR of 14.2%. Asia Pacific dominated the global market with a share of 56.25% in 2021.

The global COVID-19 pandemic has been unprecedented and staggering, with artificial intelligence camera experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a decline of 4.9% in 2020 as compared to 2019. 

Artificial intelligence camera is a software which is used in smartphones and cameras for scene and image recognition. An AI-based camera includes the cost of AI integrated with the AI platforms into the cameras and the services required for supporting AI platforms.

The demand for these highly advance cameras is increasing with the rising demand for technically advanced surveillance systems owing to concerns regarding public security and safety.

Furthermore, the surge in AI CCTV cameras at traffic signals with government agencies for detecting & recognizing license plates on moving and stationary vehicles aids the market growth. The rising penetration of AI-enabled cameras in connected devices and smartphones is driving market growth opportunities. According to Gartner Inc., there were around 20 billion internet-connected devices in 2020 and is expected to reach 41 billion by 2025. Cameras built-in with artificial intelligence, deep learning, and high-resolution cameras are built into connected smart devices.

These cameras are integrated with advanced digital technologies such as AI, IoT, and others that help to facilitate security of businesses and individuals. The camera industry heavily relies on consumers’ disposable income. An increase in consumer demand for the smartphone's AI-based camera features is driving the market growth.

COVID-19 IMPACT

Pandemic Led to the Decline in International Trade and Manufacturing Activities which Hindered Market Growth

The COVID-19 pandemic significantly affected the electronics and semiconductor industry. Businesses and manufacturing units in various countries, such as India, China, Italy, and Japan, were closed due to the increased number of COVID-19 cases. Furthermore, complete or partial lockdown in these countries disrupted the supply chain activities related to transportation and international trade, which imposed global challenges for the manufacturers. The overall production activities of the camera were adversely affected owing to the COVID-19 pandemic. The digital smart camera industry is facing a challenge with the COVID-19 pandemic. Global supply chain issues led to a rise in raw material and production costs of the cameras. Such an increase reflected in the key markets of the digital camera industry. The global market declined by 4.9% in 2020 compared to 2019. The global AI camera market growth in 2020 reached USD 6.94 billion compared to USD 6.62 billion in 2019. Although the revenue declined in 2020, the key players developed advanced technologies, deep learning, and artificial intelligence-based cameras. For instance,

• In October 2020, Axis Communications Inc. introduced advanced deep-learning and AI-based Mk III AXIS Q1615 network cameras. This camera has an AI accelerator and deep learning technology-based capabilities, which allow capturing image recognition functions.


• In May 2020, Sony Corporation launched an advanced model of intelligent vision sensors and AI-based cameras. This AI sensor uses a stack of configurations that consist of a pixel chip and a logic chip and is equipped with Sony’s original Digital Signal Processor (DSP) mounted on the logic chip. This enabled AI to process image sensors, the edge-most device, which serves as the entry point for image data.

• Post-COVID-19 pandemic has increased the demand for surveillance in public places with governments and private institutions' investments. Government and private societies expressed the use of cameras for public protection to avoid thefts. Also, the key players in the market are developing advanced technology based such as AI and deep learning cameras. In March 2022, Canon Inc. launched interchangeable lens AI-based digital cameras and mirrorless cameras. For better image-capturing quality, Canon Inc. developed the key imaging system feature in its EOS series of digital cameras.

LATEST TRENDS 

Growing Interest in Higher Quality Smartphone Surveillance Cameras to be a Driving Trend for Global Market

Smartphone manufacturers are embedding artificial intelligence and deep learning technologies in their products to provide high-resolution images. These AI-based smartphone cameras recognize objects with AI filters to produce higher-quality images. These cameras in smartphones also clarify low-resolution images by automatically predicting missing pixels. These cameras enable higher-quality and high resolution full-screen images. In addition to this,they are used for user authentication, emotion recognition, device management, and other purposes. With these features, demand for these cameras in smartphones drives the market growth.

AI technology in the camera adds several features such as video recording, face detection, image recognition, and others. These cameras offer technologically advanced compatibility with an enhanced 360-degree vision for the surveillance industries. Several leading smartphone manufacturers are developing advanced AI-based cameras in their new mobiles to meet the growing consumer demand. For instance,

• In October 2021, Spot AI launched an AI-Powered Camera System for changing videos. The company launched a video intelligence system with USD 22 million funding Series A from Redpoint Ventures and Bessemer Venture Partners.


• In May 2022, Tenda introduced advanced technologies AI-based with a Full HD 1080p Smart Security Camera with tilt and pan functions. It features a full duplex with two-way audio communications and a three-year warranty period.


• In October 2021, Xiaomi Inc., a China-based consumer electronics manufacturer, introduced Xiaomi Mi AI-based Smart Camera 2 PTZ in China that facilitates 360° panoramic views and remote access using a smartphone.


• In February 2021, Elementary Robotics, an AI-based startup, launched an AI-based camera system with a cloud-based function. The new camera system combines software, deep learning, and AI-based camera systems for manufacturers to deliver high-quality products to their customers.

ARTIFICIAL INTELLIGENCE CAMERA MARKET GROWTH FACTORS

Rising Adoption of Artificial Intelligence Cameras in Consumer Electronics to Drive Market Growth

Increasing adoption of artificial intelligence cameras in consumer electronics devices such as smartphones, tablets, computers, and laptops is driving the market growth. AI technology-based cameras in smartphones and tablets drive the growth of the market. Rising sale of smartphones with advanced technologies globally is witnessing global market growth. According to the World Economic Forum Organization, around 4.3 billion smartphones have been sold globally, whereas half are tablets.

Major factors contributing to the growth of this market are the rising adoption of AI-based surveillance systems among several enterprises and businesses and the integration of AI in smart devices. In addition, businesses, smart device manufacturers, and consumers around the globe are integrating AI technology into existing systems. The other factor that resulted in the growth of the market trend is the growing demand for monitoring and surveillance at commercial retail stores, consumer electronics, and the banking sector.

Globally, China has witnessed significant manufacturing companies for surveillance cameras, consumer electronics, and retail. China has contributed around 40% of AI-based camera production globally.

RESTRAINING FACTORS

Increasing Privacy Concerns and High Costs Associated with AI Camera to Hinder Market Growth

Several factors that hinder the artificial intelligence camera market growth include lack of availability of AI-based platforms and lack of knowledge of AI cameras. Other factors include the high cost of these cameras. Hence, every consumer cannot purchase these cameras owing to their high cost.

Also, rising privacy concerns about protecting video databases from hackers and theft are expected to hinder market adoption. The high risk of video data being misused in the public cloud in the camera recorders and growing data breaches restrict organizations from storing video footage. AI-based video surveillance cameras are more vulnerable to cyberattacks.

Also, these cameras have high manufacturing cost that hinders the market growth. Artificial intelligence cameras carry risk and several dimensions, including jobs, safety, and regulatory questions. However, lack of awareness of advanced products is a major barrier to the global market.

SEGMENTATION

By Technology Analysis 

DSLR Cameras Segment is Projected to Dominate the Global Market Growth owing to Penetration of AI-based Cameras

Based on technology, the market is divided into image/face recognition, computer vision, emotion recognition, DSLR cameras, network cameras, security cameras, and others (Wi-Fi camera).

The DSLR segment had the largest market share in 2021. This is primarily attributed to the rising demand for photography and the penetration of AI-based camera technology to capture images.

Image/face recognition segment is expected to grow with the highest CAGR during the forecast period. There is rising adoption and development of AI-based cameras with face and image recognition features. For instance,

• In March 2020, Hikvision, an innovative security cameras products and solutions company, launched access control and time attendance features based MinMoe Face Recognition Terminals. MinMoe Face Recognition Terminals are designed for small to medium-scale businesses such as retail shops and offices.


• In February 2021, Canon Inc. launched AI-based automatic cameras with the PowerShot PICK technology to analyze the scene and identify images. These cameras track faces using artificial intelligence that determines the ideal moment to capture images. PowerShot PICK has video processing, optical, and artificial intelligence technologies.

By End-user Analysis

Rising Adoption of Advanced Technology-based Consumer Electronics Drives the Market Growth

By end-user, the market is classified into BFSI, healthcare, automotive, consumer electronics, retail, government, logistics & transportation, military and defense, commercial spaces, media and entertainment, and others (residential and oil & gas).

Among these, the consumer electronics segment dominated the market share in 2021. This is primarily owing to a surge in demand for advanced technology-based smartphones and connected devices. For instance,

• In March 2022, Qualcomm Technologies Inc. launched IoT smart camera processor which supports face biometrics, intelligent security, and safety tools. Qualcomm showcased the AI-based smart camera processor at the International Security Conference and Exposition (ISC West). The camera has a vision intelligence technology portfolio for enterprises, cities, and public spaces.


• In November 2019, Xcentz, a consumer electronics manufacturer, launched the integration of artificial intelligence and Wi-Fi technology-based panoramic camera. The camera was designed to provide high-definition crystal-clear resolution with 24/7 home protection.

REGIONAL INSIGHTS 

By region, the market has been analyzed across five major regions, North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

Asia Pacific is expected to dominate the global market, owing to increasing investments in advanced technology-based electronic devices. According to the Semiconductor Association, China is the largest manufacturing hub producing around 36.0% of the global consumer electronics such as computers, cloud servers, smartphones, and telecom infrastructures. In addition, Asia Pacific comprises half of the world’s population after the U.S. Also, India is growing faster with the rapid adoption of smart AI cameras in connected devices with favorable government initiatives. In 2019, the Indian Government launched the National Electronics Policy, which aimed to achieve revenue of USD 400 billion by 2025. The policy aimed to target the production of smartphones worth USD 190 billion by 2025 from exports of around 600 million handsets with a valuation of USD 110 billion in 2019. In addition, India is witnessing a rise in demand for high-tech consumer electronics.

North America is expected to grow with a moderate CAGR during the forecast period. This is owing to the rise of electronic surveillance cameras to monitor public places and civil activists in this region, which drives market growth. Also, the U.S. government launched Foreign Intelligence Surveillance Act, which requires parameters for authorizing certain electronic surveillance activities. As per this act, using AI surveillance tools with government support surges the demand for AI cameras.

Europe is projected to increase at a moderate pace during the forecast period. Most European countries, such as France, the U.K., Germany, and the Nordics, import cameras from Asia Pacific countries. European countries have less raw material costs and require high human resources costs for manufacturing these cameras in this region. However, the demand for advanced technology-based cameras in this region is driving the trend for the adoption of social media users and smartphone penetration.

The Middle East & Africa region is projected to grow with moderate CAGR during the forecast period owing to the rising smartphone penetration and surge in the use of AI technology for surveillance. According to the GSMA Intelligence Report in 2020, smartphone penetration in this region is expected to reach more than 500 million users by 2025. Such rising smartphone adoption among consumers drives the demand for artificial intelligence camera-based devices.

South America is expected to grow with a moderate CAGR during the forecast period. This is primarily owing to the rising adoption of smartphones and surge in penetration of AI-technology-based devices.

KEY INDUSTRY PLAYERS

Rising Launching and Development of Advanced Technology-based Cameras to Aid Market Growth

Major players in the market, such as Bosch Security Systems Inc., Canon Inc., Samsung Electronics, Axis Communications AB, and Huawei technology, are focused on offering advanced digital technologies-based cameras. These market players are expanding their product portfolio, owing to the rising demand for AI-based cameras. Key players of the market are adopting several business strategies, such as partnerships, mergers, and collaborations, to expand their businesses around the globe. For instance,

• In September 2022, Hikvision launched its MinMoe Iris Recognition Terminal, providing a higher-level security solution for the access control market. Formed in an early stage of human development, the pattern of each iris is unique and remains remarkably stable over the rest of a person's life. The details of the iris are so rich and complex that it is virtually impossible to copy them. This makes it an ideal biometric character for authorized access control to identify and distinguish different people accurately.


• In October 2021, Sony Corporation launched a large deployment of AI-based cameras for manufacturing and retail automation. The camera was developed with inference models with image sensors.


• In July 2021, Panasonic Corporation launched an AI-enabled I-PRO S-Series advanced range of outdoor and indoor security cameras in the Middle East & Africa region. Increasing surveillance cameras allow for monitoring fast-changing environments across parks, shopping malls, and museums for airports and railway stations.

List of the Key Companies in Artificial Intelligence Camera Market:

• Axis Communications AB (Sweden)


• Bosch Security Systems Inc. (U.S.)


• Canon Inc. (Japan)


• Panasonic System Networks Co., Ltd. (Japan)


• FLIR Systems Inc. (U.S.)


• Hangzhou Hikvision Digital Technology Co., Ltd. (China)


• Honeywell Security Group (U.S.)


• Sony electronics Ltd. (Japan)


• Zhejiang Dahua Technology Co., Ltd. (China)


• Vivotek Inc. (Taiwan)

KEY INDUSTRY DEVELOPMENTS:

• August 2022 – Hikvision launched an AI-based web camera. This web camera has several features such as sharp autofocus, ultra-high resolution, and built-in microphones. The company designed an AI-based camera to enhance human portray imaging and to bring more natural looks to the frame. These features added convenience, versatility, pleasure, and reassurance for virtual online video scenarios.


• July 2022 - Hikvision launched advanced AI-based DeepinView bullet networking cameras with TandemVu AI technologies. Tandem Vu is an AI-based bullet camera that simultaneously monitors close-up and large scene details.


• March 2022 - Microsoft Corporation launched AI-powered Smart Camera for the Surface Hub 2 for businesses. Businesses can upgrade their AI-technologies capabilities. The new camera surface hub supports features such as automatic reframing, a wide field of views, and image recognition that improves meetings.


• June 2021 – Canon Inc., a China-based camera manufacturer, launched AI-based cameras with emotion recognition technology. It helps to detect emotions in the offices to ensure employees' happiness and stress.


• January 2021 – Axis Communications AB launched the AI-based Dome Camera AXIS P3255-LVE, which provides analytics and deep learning-based technology. These fixed dome cameras have innovative dual chipsets and offer granular object classification.


• September 2020 – Google LLC launched AI-based Google Meet Series camera hardware for video conferencing and meeting rooms. The company collaborated with Lenovo Corporation to build high-end AI-based cameras and microphones. Google LLC used AI smarts technology for building this hardware.

REPORT COVERAGE

The research report highlights leading regions across the world to offer a better understanding to the user. Furthermore, the report provides insights into the latest industry growth trends and analyzes technologies deployed rapidly globally. It further highlights some drivers and restraints, helping the reader gain in-depth knowledge about the report.

REPORT SCOPE & SEGMENTATION