Boston, MA - February 1, 2005 - As automakers add more safety and convenience-related functionality to their vehicles, Strategy Analytics expects the growing market for automotive camera imaging chips to reach almost 7 million units - or $40 million - by 2008, as described in its new report, "Automotive Camera Systems." A whole range of new and emerging features, such as camera-aided maneuvering, lane departure warning, autonomous cruise control and occupant detection will make use of camera technology.

There are already camera chips available to meet automotive requirements for temperature spec and dynamic range, however it is in image analysis software that the true system functionality is created. Thus, Strategy Analytics expects companies with significant software expertise to dominate this market. Early market leaders include Valeo Iteris, which supplies lane departure warning systems to Infiniti, and Aisin Seiki, which has developed the intelligent parking system used on the Toyota Prius.

The total market for automotive cameras is expected to grow at a compound average annual growth rate of over 100 percent from 2005 until 2010. "Although the growth rates look very impressive for automotive camera systems, it is important to put the market in context," states Ian Riches, Director Automotive Electronics Service. "In 2009, the market for image sensors in camera phones alone will likely be fifty times greater than the automotive market. However automotive requirements are more stringent than those for consumer electronics, and Strategy Analytics expects automotive-grade image sensors to become a profitable niche."

Established image chip vendors such as Melexis, Micron, Sharp and Toshiba are all developing automotive-specific products. In addition, smaller, more focused companies such as SMaL Camera Technologies are also targeting this attractive, growing market.