Vehicle Cameras Market Expected to Reach US$ 1.26 B. by 2020: Transparency Market Research

With road safety often compromised due to inclement weather, erratic driver behavior, drunk driving etc. that can result in sizable compensation handed out by courts after lawyers, defendants and prosecutors show proof, especially in rule-of-law nations, coupled with rapid development of various types of vehicle safety systems onboard, as well as increasing popularity of vehicle digital video recorders, demand for vehicle cameras has been increasing speedily in recent years. Simply because video data often offers the last word in improved road safety and critical evidence in litigation involving accidents.

According to a new market report published by Transparency Market Research, the vehicle camera market was valued at US$ 595.3 million in 2013 and is expected to reach US$ 1.26 billion by 2020, expanding at a compound annual growth rate (CAGR) of 11.3 percent from 2014 to 2020.

Europe was the largest regional contributor to global vehicle cameras market in 2013. Asia Pacific is expected to be the fastest growing market for vehicle cameras during the forecast period with a CAGR of 12 percent from 2014 to 2020. The growth of vehicle cameras market in the region is largely due to rapidly growing demand for these cameras from countries such as Taiwan, Australia, South Korea and China. Japan is among the earliest adopters of vehicle cameras, which is attributable to high awareness of the advantages of installing these cameras in vehicles.

Vehicle cameras provide high quality real-time video recording and are equipped with different features such as global positioning system (GPS), loop recording and G-sensors. Moreover, these cameras are available in a wide range of price options. This is expected to be significant factor for the adoption of vehicle cameras during the forecast period, Transparency Market Research says. Furthermore, different national governments have included vehicle camera installation as their automotive safety plans. Thus, the demand for vehicle cameras is expected to soar significantly during the implementation of these safety programs across different countries worldwide. The vehicle cameras market is also supported by the discounts on auto insurance offered by insurance companies. Video footages recorded from these cameras are helpful for insurance companies to curb the filing of false claims. Thus, some insurance companies offer discounts on insurance for the vehicles that are equipped with vehicle cameras.

Market Segments

The market for vehicle cameras is segmented on the basis of price of camera, end-use applications and geographic regions. On the basis of price, the vehicle cameras market is segmented into affordable, mid-range and high-end vehicle cameras. Currently, mid-range vehicle cameras account for the largest share, in terms of revenue, of the global vehicle cameras market. In 2013, mid-range vehicle cameras accounted for a share of 41 percent of the total vehicle cameras market. The high penetration of the mid-range vehicle cameras is due to various superior features available in these cameras at low prices as compared to the high-end vehicle cameras.

Furthermore, the vehicle cameras market is segmented on the basis of end-user applications into government and defense vehicles, private vehicles, transportation vehicles and others. The other vehicles segment comprises healthcare vehicles, vehicles used for fire fighting and sports vehicles. In 2013, private vehicles accounted for the largest share of 35.2 percent, in terms of revenue, of the global vehicle cameras market. This is due to the high penetration of these cameras in countries such as Russia, Japan, the U.K. and Taiwan. Moreover, private vehicles is expected remain the largest segment due to growing adoption of vehicle cameras in countries such as the U.S. and Australia.

Europe led the global vehicle cameras market in 2013 with the share of 44.0 percent of the global market. This was mainly due to high adoption of vehicle cameras in countries such as Russia, the U.K. and France in the region.