Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Surface vision and inspection systems help in waste reduction, minimizes production cost, and increases the production efficiency. These systems provide instant quantitative feedback such as types of defects and quantity. Surface vision and inspection systems are being used in several workplaces throughout manufacturing processes. Machineries at various workshops are increasingly integrating with cameras and computer systems to improve the performance of manufacturing processes. By integrating such vision and inspection systems, problems in the process are identified at the root. The use of surface vision and inspection systems reduces waste, production time, and manufacturing costs for manufacturers.
The global Surface Vision and Inspection Market was accounted for US$ 2,307.3 Mn in terms of value in 2019 and is expected to grow at CAGR of 8.9% for the period (2020-2027).
Market Dynamics- Drivers
- Increasing need to reduce production cost is expected to drive growth of the global surface vision and inspection market during the forecast period
Manufacturers from various industries are facing numerous challenges such as increasing wastes, growing labor wages, and rising market competition. Manufacturers are required to improve their business performance, in order to remain competitive in the market. Therefore, these manufacturers are seeking for cost reduction solutions, in order to achieve higher yields for smaller inputs. Surface vision and inspection systems help manufacturers find defects in their products before they are dispatched to customers. These systems reduce inventory cost, minimize distribution of unacceptable products, and increase production without investing in additional resources. Therefore, these factors are expected to drive growth of the global surface vision and inspection market during the forecast period.
- Growing demand for quality products is expected to propel the global surface vision and inspection market growth over the forecast period
Quality management systems (QMS) have become an integral part of manufacturing processes in numerous industries. Steel, automobile, semiconductor, and several other manufacturers are implementing QMS solutions to maintain consistency in design and development. Surface vision and inspection is one of the important components of modern QMS that enables manufacturers to meet global quality standards and customer satisfaction at reduced costs. According to the Institute of Medicine (IOM), more than 25% of adverse drug events occur due to name confusion and about 33% of medication errors are attributed to labeling and packaging mistakes globally. Therefore, these factors are expected to propel the global surface vision and inspection market growth over the forecast period.
Asia Pacific held dominant position in the global Surface Vision and Inspection market in 2019, accounting for 35.1% share in terms of value, followed by Europe and Asia Pacific.
Surface Vision and Inspection Market Report Coverage
||Market Size in 2019:
||USD 2,307.3 Mn
|Historical Data for:
||2016 to 2019
||2020 to 2027
|Forecast Period 2020 to 2027 CAGR:
||2027 Value Projection:
||USD 4,563.8 Mn
- North America: U.S., Canada
- Latin America: Brazil, Argentina, Mexico, Rest of Latin America
- Europe: Germany, U.K., Spain, France, Italy, Russia, Rest of Europe
- Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, Rest of Asia Pacific
- Middle East and Africa: South Africa, North Africa, Central Africa
- By System Type: (Computer Systems and Camera Systems)
- By Components: (Camera, Lighting, Optics, Software and hardware and Frame Grabber)
- By Application: (Automotive, Electrical/Electronics, Semiconductor, Medical Devices, Food Pharmaceutical, Metal, Rubber and Plastics, Printing, Wood and Paper and Other Industrial Applications)
Matrox Imaging, Adept Technology, Inc., Toshiba Teli Corporation, Cognex Corporation, Sharp Corporation, Edmund Optics Inc., Perceptron Inc., ISRA VISION AG, Panasonic Corporation, Microscan Systems, Inc., and Omron Corporation.
- Increasing need to reduce production cost
- Growing demand for quality products
|Restraints & Challenges:
Figure 1: Global Surface Vision and Inspection Market Share (%) in terms of Value, By Region, 2019
Global Surface Vision and Inspection Market - Impact of Coronavirus (Covid-19) Pandemic
Several governments across the globe such as Italy, Spain and India have imposed nationwide lockdown to restrict the spread of COVID-19 disease. For instance, Government of India have imposed lockdown from 25 March to 1 June until the further notice .Due to the Lockdown, there is a shortage of the workers at the manufacturing facilities. Due to the less manpower, the manufacturing facilities are struggling to move the products. In addition to this, due to the shortage of transportation facilities such as Trains and Heavy-duty Vehicles, manufactures are unable to ship their cargoes. The Surface vision and Inspection equipment are majorly used in the manufacturing industry. Owing to the above mentioned factors, the COVID-19 pandemic is expected to restrain the cable conduit systems market growth in upcoming years.
Market Dynamics- Restraints
- Lack of skilled workers is expected to hamper the global surface vision and inspection market growth over the forecast period
High technologies are facing the dearth of skilled workers. According to Coherent Market Insights’ analysis, there will be around 12-15% supply shortage of skilled workers by 2020 in manufacturing industries. Emerging economies from Asia and Africa are expected to face challenges associated with a lack of skilled workers with China expected to witness over 50% of the shortage of high skilled labor in manufacturing industries in the near future. Surface vision systems are advanced systems that are required to be handled carefully. Skilled labor is required, in order to handle such complex systems. The cost of training workers to handle complex equipment such as vision systems is quite high. Thus, these factors are expected to hamper the market growth in the near future.
- Lack of standardization is expected to restrain growth the global surface vision and inspection market during the forecast period
Standardization plays a key role in any industry so as to meet user requirements. The surface vision and inspection industry comprise a large number of components and end-use solution providers. These vendors provide a vast range of products and solutions for different manufacturing requirements across several industries. These end users are facing installation and integrity challenges due to the lack of product standards and cooperation between manufacturers and end users. Machine vision systems require a consistent and robust performance to overcome variations or changes in their operating surroundings. For instance, surface vision system must adjust various ambient light conditions in the industrial unit environments. Hence, these factors are expected to restrain growth of the global surface vision inspection market during the forecast period.
- Development of compact size smart systems can present lucrative growth opportunities
Technology development in machine vision technology such as smart cameras, vision-guided robots, and embedded machine vision systems have increased the scope of machine vision. The conventional vision systems were dependent on frame grabbers, PC systems, and software components. They were large in size due to which they required considerable space. Furthermore, these systems were expensive and incurred high maintenance costs. However, smart vision systems are accurate, affordable, and are smaller in size as compared to conventional systems. Companies such as Cognex, Matrox Imaging, Microscan, and National Instruments offer smart camera systems.
- Research and development activities among market players can provide major business opportunities
Key players in the market are focused on research and development activities, in order to gain a competitive edge in the market. For instance, in January 2013, Adept Technology Inc. launched a new vision-based robotic parts feeding solution Adept FlexiBowl, which is an alternate source for all Adept robots. In February 2013, the company released an industrial operator panel named VisionView 900 used for In-Sight vision systems and Ethernet-ready DataMan barcode readers.
Figure 2: Global Surface Vision and Inspection Market Value (US$ Mn), 2017 - 2027
The global Surface Vision and Inspection market was valued at US$ 2,307.3 Mn in 2019 and is forecast to reach a value of US$ 4,563.8 Mn by 2027 at a CAGR of 8.9% between 2020 and 2027.
- Process demand and high demand for enhance quality of products
Process optimization and growing demand for improved quality of products are expected to drive the market for surface vision and inspection systems in the next five years. Steady growth in the budgets of manufacturers is also expected to occur through the estimated period. Improving financial position and growing need for manufacturing capacity unitization are considered to be primary factors for this budget increase. Buyers of surface vision and inspection systems and components, such as semiconductor, automobile, electronics, and electrical, pharmaceutical, packaging, and food products manufacturers will likely see positive growth in their budgets. However, financing remains a major issue for several other buyers in the industry.
- Declining prices of surface vision and inspection systems
Prices of surface vision and inspection systems have declined significantly in the last few years. This trend is expected to continue in the future with increasing standardization in the technologies that power these systems. Continuous advancement in camera technology is also expected to bring down the prices of surface vision and inspection systems. The prices of these systems have rapidly declined to US$ 5,000 – US$ 20,000 from US$ 40,000 – US$ 60,000 in the recent past. This is owing to advancements in camera linking technology.
Value Chain Analysis
Sensors/integrated circuit (IC) suppliers: Sensor suppliers provide image sensors to surface vision and inspection systems and component manufacturers. Charged coupled device (CCD), complementary metal oxide semiconductor (CMOS), and digital signal processing (DSP) are some major types of sensors used in surface vision and inspection systems. IC suppliers provide chips and related products used in surface vision and inspection systems. ICs and sensors are used for image sampling and processing in surface vision and inspection systems. These suppliers provide their products and services to component manufacturers or to vertical solution providers. Some major component suppliers and vertical solution providers produce these sensors and ICs in-house for improved economies of scale.
Major players involved in the global surface vision and inspection market are Matrox Imaging, Adept Technology, Inc., Toshiba Teli Corporation, Cognex Corporation, Sharp Corporation, Edmund Optics Inc., Perceptron Inc., ISRA VISION AG, Panasonic Corporation, Microscan Systems, Inc., and Omron Corporation.
- Major companies are focused on mergers and acquisitions, in order to enhance the market presence. For instance, in October 2019, Cognex Corporation acquired SUALAB, a provider of deep learning machine vision solutions for US$ 168.5 million.
- Key market players are involved in agreements and contracts, in order to enhance the market presence. For instance, in February 2020, ISRA VISION AG entered into a business combination agreement (BCA) with Atlas Copco to create a new division for ISRA VISION within the business area industrial technique.