The growing adoption of smartphones has also pushed up demand for imaging sensors. As a result, image sensor maker OmniVision Technologies (OVTI, Financial) seen strong growth in the business. OmniVision's performance has been helped by robust demand for its PureCel image-sensor family that is gaining traction in mobile phones and automotive. Looking ahead, as the adoption of 4G and budget smartphones increases, particularly in China and India, OmniVision will see an increase in its market. Meanwhile, the increasing usage of cameras in the automotive industry will also act as a catalyst for OmniVision.
Two important end-markets to drive growth
According to an iSuppli report, "The number of 4G phones shipped to China is expected to soar from 4.6 million units in 2013 to 72.6 million this year, 144 million in 2015, 220 million in 2016, and 300 million in 2017." In addition, according to the U.S. National Highway Traffic Safety Administration, there will be a need for "rear view cameras to be installed in all new vehicles under 10,000 lb (4,536 kg) in the US from May 2018."
Now, both these are big market opportunities, and to tap them, OmniVision is rolling out new products equipped with the latest technology. For example, it is aggressively working to bring advanced and improved features for its future PureCel products. The company is currently busy developing a broad range of sensors for application-specific integrated circuits that will feature image processing functions. As such, it is now merging its sensors with image processing and other peripheral functions. This move should enable the company to facilitate an integrated imaging system.
Now, the integration of image processing functions with the integrated circuit will allow OmniVision to reduce the size of its chips. This will help the company attract more customers as the technology will occupy less space.
Also, there is opportunity in security and automotive products. OmniVision expects the automotive market to remain a key growth driver. As a result, it has developed an Advanced Driver Assistance System, or ADAS. ADAS has multiple integrated cameras that assist drivers in land departure monitors, pedestrian and obstacle detection, and mirror replacement. The company expects ADAS to drive its growth in the long run since this system is already gaining traction at automotive OEMs.
Product innovation will help it serve a broader market
In addition, OmniVision recently launched its 13-megapixel, 8-megapixel, 5-megapixel, and 2-megapixel PureCel sensors. These sensors are equipped with advanced level semiconductor process notes that provide high-quality image quality, light sensitivity, and enhanced power efficiency. Moreover, by rolling out these camera sensors, OmniVision has built up a wide portfolio. As a result, the company can now cater to both premium and budget manufacturers, and this should ideally increase its addressable market.
Apart from innovation and building up its product portfolio, OmniVision is also engaged in supply chain diversification. It is focusing on optimizing its supply chain along with the development of its PureCel family. This diversification of its supply chain should assist the company in addressing different market segments with diverse cost and performance requirements.
Conclusion
OmniVision is doing the right thing by investing in its product portfolio and supply chain. These investments will enable the company to benefit from growing end markets such as mobile devices and automotive.
