Machine vision finds opportunities outside traditional industrial manufacturing fields while moving to volume manufacturing. Exclusive market segmentation and identification of nine key growth segments The machine vision market is complex, composed of myriad niche applications that are either industrial or non-industrial. To simplify the machine vision market’s structure and dynamics, we’ve created a novel market segmentation that cross-references technical and behavioral criteria. By cross-referencing technical and behavioral needs, nine homogeneous groups of key machine vision customers have been defined. From an industrial point-of-view, versatile detection, versatile inspection and compact 3D inspection will fuel most of the machine vision industrial market’s growth, driven by new low-end applications. From a non-industrial standpoint, all identified segments will sustain steady, high growth at a 15%+ CAGR; namely high-end IP surveillance, license plate recognition and automotive safety. This report includes a structuring segmentation to help facilitate machine vision market comprehension. It also highlights key growth areas and the available strategies to gain profitability or market share. By 2018, the industrial machine vision market will reach nearly $2B! Total industrial machine vision sales accounted for 1.2M cameras in 2012, a number expected to reach $2B in 2018, at an 8% CAGR. After moderate 1% growth in 2012 (a reflection of the economic downturn facing the global industry), an upturn is expected in the future, thanks to the automatization trend in Asian factories, new capital expenditures in the semiconductor industry and the emergence of new low-end applications. Growth in the low-end segments will be driven by strong price erosion stemming from the commoditization of machine vision subsystems. Machine vision players’ main challenge will be how to gain market share in the dynamic low-end market segments while maintaining sustainable profitability. Currently, adjacent non-industrial applications are expected to burgeon at a double-digit rate, driving future growth. This report includes market insights in the form of units & revenue for market segments in both industrial and non-industrial machine vision. Industrial machine vision market forecasts are realized for 2013-2018 and include industrial cameras, smart cameras and vision sensors. Fragmented shares will fuel market consolidation Machine vision applications’ complex diversity resulted in the emergence of a multitude of small machine vision camera manufacturers. Consequently, the machine vision market is very fragmented at the camera level. On the flip side, the machine vision image sensor market is quite concentrated due to the presence of strong technical know-how necessary for designing to a specific sensor. More information on that report at http://www.i-micronews.com/reports/Machine-vision-market-trends/19/381/

1. © 2013
Machine vision
Technology & Market Trends
-
Customer-oriented market driven by industrial capital expenditures
finding now major growth opportunities out of factory
Courtesy of e2v
Courtesy of IMEC Courtesy of Point Grey Research
Courtesy of ABB Courtesy of Basler

2. © 2013 • 2
Table of Contents
• Objectives & Scope of the report …………… 3
• Executive Summary …………………………… 9
1) Background & definitions ……………...….. 33
– Machine vision definitions
o PC-based systems
o Smart cameras
o Vision sensors
– Positioning and price breakdown
2) Machine vision market strategies …………. 51
– Market segmentation
– On-going strategical moves
3) Machine vision market analysis ………....... 66
– Market forecasts
o 2011 – 2018 forecasts by segment (in Units and in $M)
o Market size split by geographical location
– Market segment details (tech & economic analysis)
– Industrial segments
– Out-of-factory segments
4) Machine vision supply chain analysis…… 94
– Value chain description
o Main players positioning
o Machine vision cameras price breakdown
– Supply chain structure
– 2012 market shares in revenue ($M)
o At image sensor level
• Split by technology: CCD vs CMOS image sensors
• Split by type of product: line scan vs area sensors
– 2012 market shares in revenue ($M)
o At subsystem level
• Split by type of product:
Line scan vs area cameras
smart & compact subsystems (smart
cameras + visions sensors)
5) Application Focus ………………..……. 118
– Manufacturing applications
o Automotive manufacturing
o PCB manufacturing
o Semiconductor manufacturing
o Flat panel manufacturing
o Pharmaceutical industry
o Food & packaging industry
‒ Out-of-factory applications
o High-end IP surveillance
o Automotive driver assistance
o Licence Plate Recognition
6) Machine vision technological analysis… 151
– At image sensor level
o Shift from CCD to CMOS
o Pixel pitch shirinking trend
o Global shuttering: a must-have
o The challenge of IR & UV imaging
– At camera level
o The interface multiplication
o Multispectral & hyperspectral imaging
o Camera miniaturisation trend
o 3D imaging: a fast emerging market
• Laser triangulation
• Stereoscopy
• Time-of-flight
7) General Conclusion ………………………. 197

3. © 2013 • 3
Objectives of the Report
• This is the first report on machine vision technologies and markets from
Yole Développement.
• The objectives of this first report are the following:
1. To provide market data on key machine vision market metrics & dynamics:
• Machinevision subsystems unit shipments, revenue and by market segment.
• Market share with detailed breakdown by player.
• Application focus on key areas of growth for machine vision
2. To provide key technical insight about future technology trends & challenges:
• From an image sensor standpoint: design, front-end and back-end innovations.
– A special focus is included on the BSI (Backside illumination) technology that has been
reshaping the image sensor industry.
• From a camera standpoint
3. To provide in-depth understanding of the machine vision value chain,
infrastructure & players:
• Who are the industrial machine vision image sensor players (IDMs, foundries, design houses) and how
are they related?
• More generally, who are the key suppliers to watch and how will the machine vision market evolve?

4. © 2013 • 4
Scope of the Study
Industrial machine vision value chain overview
≈ 10 players ≈ 100 players
Hundreds of players
Thousands of players
≈ 15 players
Scope of the report

5. © 2013 • 5
CCD
technology
CMOS
technology
Line scan
systems
Area scan
systems
Scope of the Study
Machine vision image sensors
• 4 kinds of machine vision image sensors:
– CMOS versus CCD image sensors
– Area versus Line scan sensors

6. © 2013 • 6
Machine vision market segmentation
Why a segmentation?
• Machine vision is a fragmented market that encompasses a wide diversity
of applications and tasks.
• In that context it is impossible a group of match end-users needs by
clustering applications.
• The segmentation is a marketing tool that enables to understand both the
structure and the dynamics of a market by defining groups of customers
that have a unity of needs (e.g. need metal/plastic housing, high speed of
operation, high resolution…) and linked to a behaviour (e.g. sensitive to
initial cost or driven by cost-of-ownership, R&D center or production
line...).
• The segmentation is a useful tool for subsystem suppliers to build
appropriate offers.

7. © 2013 • 7
Machine vision market segmentation
Split industrial/non-industrial
Sharpness of detail / Total Field of View Coarse Medium Very small
Feature motion speed Low High Low High Low High
User’s need for
customization /
complexity of set-
up
High
Factory
based
S1:
Versatile industrial
detection
S2:
Versatile industrial
inspection
S3:
Versatile industrial
metrology & precise
inspection
Medium
S4:
Autonomous
industrial inspection
Low
S5: Function-specific
compact industrial
detection
S6:
Compact
on-line 3D
inspection
Medium
Outside
factory
S7:
High-end IP
Surveillance
S9: Licence
Plate
Recognition
Low
S10:
Automotive
driver
assistance
Technical criteria
Comportementalcriteria
Industrial
Machine Vision
- Detailed analysis
Non-factory based
Machine vision
- Market overview only

8. © 2013 • 8
Machine vision market segmentation
Segments description

9. © 2013 • 9
Market overview & strategies analysis

10. © 2013 • 10
$ 0 B
$ 1 B
$ 1 B
$ 2 B
$ 2 B
$ 3 B
2011 2012 2013 2014 2015 2016 2017 2018
Revenue($B)
Machine Vision - Revenue Forecast by segment (in $M)
Compact on-line 3D vision
Compact function-specific
detection
Autonomous inspection
Versatile metrology
Versatile inspection
Versatile detection
Industrial machine vision revenue($M)
Forecast by segment
Yole Developpement
© May 2013
CAGR: 8%
• Overall industrial machine vision market represented $1.2 B in 2012, including $793M in cameras sales
and $453M of smart & compact subsystems sales. An average growth of 8% is expected in the 2013/2018
period, fueled by 3D compact subsystems and low-end cameras sales.
• Industrial machine vision market was strongly affected by the 2012 economic downturn, nevertheless it
managed to grow 1% up from 2011 thanks to dynamic sales in low-end markets (versatile inspection and
detection) and in 3D compact subsystems. High-end machine vision cameras and smart cameras sales
were the most affected products, down 4% from 2011.

11. © 2013 • 11
Industrial Machine vision area cameras
2012 revenue - Market Shares estimates
Sony
11%
Toshiba teli
$ 69 M
10%
Allied Vision Technology
$ 60 M
9%
JAI
$ 52 M
7%Basler
$ 49 M
7%
Baumer Optronics
$ 37 M
5%
Point Grey Research
$ 36 M
5%
IDS imaging
$ 33 M
5%
Keyence
$ 26 M
4%
teledyne dalsa
$ 21 M
3%
Hitachi
$ 20 M
3%
Lumenera
$ 19 M
3%
ADIMEC
$ 16 M
2%
Matrox
$ 15 M
2%
Vieworks
$ 14 M
2%
Others
21%
Machine vision area cameras revenue
- 2012 Market Shares estimates -
TOT
~ $694M
Yole Developpement © May 2013

12. © 2013 • 12
Machine vision products overview

13. © 2013 • 13
Industrial area machine vision supply chain

14. © 2013 • 14
Focus on applications

15. © 2013 • 15
Technological analysis

16. © 2013 • 16
About the Author of this Report
• Paul Danini:
– Paul is in charge of the imaging technologies studies at Yole
Développement. After a short experience at e2v, he
previously worked in IP strategy and management at
Avenium Consulting. He holds a master of engineering in
instrumental physics & medical imaging, complemented by a
master degree in Technology and Innovation Management
from Grenoble EM Business School.
Contact: danini@yole.fr