"As the penetration rate of ADAS rises, the camera market will likely grow rapidly. According to IHS Automotive, the annual global shipment of vehicle camera system will likely reach 74mn units in 2021E (vs. c.15mn units in 2014). China’s camera lens producers are leading in the global market. According to Zhiyan.org, China’s vehicle camera industry logged output of c.8.62mn, 60% of which are exported. Under a conservative scenario, assuming an ADAS system uses four cameras (actually 1-10 cameras can be used in an ADAS system), China’s annual shipment of vehicle camera will likely reach 100mn units by 2020E, implying a market size of over Rmb12bn and CAGR of over 70%."
"Camera module: China’s camera lens producers are leading in the global market. Optical lens are widely used in cell phone, vehicle cameras, and cameras. As the growth of cell phone and other digital products decelerates, camera lens producers are increasingly focusing on vehicle cameras. China’s camera lens producers are leading in the global market. For example, Sunny Optical Technology boasts the largest global shipment of vehicle rear-view cameras, with a market share of c. 30% and in cooperation with major auto manufacturers such as BMW, Benz, and Audi. In our view, the vehicle camera business will likely boost earnings of leading domestic camera lens producers.
Shenzhen O-Film Tech is a traditional leading producer of camera modules, with a presence in the supply chain of intelligent vehicles. O-Film Tech not only has the highest shipment of camera modules, but also has a presence in dual-camera modules ahead of its competitors.
Sunny Optical has the largest global shipment in the vehicle camera lens market, with a market share of c.30%. In the market of front cameras for ADAS, which have a higher requirement for safety, Sunny Optical has a market share of over 50%."
