Sony Group has provided an update on its semiconductor business, particularly focusing on its position in the image sensor market. Despite failing to meet its ambitious target of capturing a 60% market share in image sensors by 2025, Sony anticipates building on record revenue and operating profit for fiscal year 2024, which spans from April 2024 to March 2025. The company sees growth potential across various image sensor applications.
Shinji Sashida, president and CEO of Sony Semiconductor Solutions—the unit responsible for CMOS image sensors (CIS)—noted that fiscal year 2024 is the first year of the company's fifth medium-term management plan. Demand for large sensors in mobile devices has driven record revenue and operating income in this segment, generating positive free cash flow for the first time since fiscal 2019. Sony's revenue increase has been supported by favorable exchange rates and an improved product mix, alongside higher sales volume.
Sony retained a 53% share of the image sensor market in 2024, the same as in 2023, with expectations to expand to 56% in 2025. Although market share growth is projected, it remains below the 60% target originally set for that year. Analysts point to poor customer sales and intensifying competition in China as significant challenges to reaching the 60% mark.
Sony's CIS business is divided into three main segments: the mobile device market, which is considered the primary growth driver; the camera and industrial/social infrastructure market, a source of steady profits; and strategic investment fields such as automotive sensors, analog components linked to laser technology, OLED microdisplays, and system solutions.
Historically reliant on mobile device sensors, Sony is shifting focus to broaden its portfolio. Sashida emphasized intentions to grow the automotive sensor segment and explore new non-CMOS image sensor technologies to diversify revenue streams. Sony aims to capture a 43% market share by value in automotive image sensors by fiscal 2026.
On the automotive front, Sashida observed that the electric vehicle market share continues to grow, particularly among Chinese original equipment manufacturers (OEMs). He underlined the importance of adapting to changing market conditions with agility.
Looking ahead, Sony anticipates that overall image sensor demand will continue to expand, notably fueled by growing needs in real-time video content creation. The company envisions technological advancements centered on integrating imaging and sensing functions to enhance image sensor value. Development priorities include improvements in image quality and added functionalities, which Sony regards as critical competitive differentiators.
In mobile cameras, Sony focuses on five key characteristics: sensitivity and noise control, low power consumption, high readout speed, high resolution, and wide dynamic range. To meet performance demands for real-time video, the company plans to pursue densification by scaling down process nodes for miniaturization and employing multi-layered stacking designs to boost functional integration.
Sony reaffirmed its commitment to leveraging its integration capabilities and expects to capitalize on trends favoring large sensors to sustain business growth through 2030.
Article translated by Jingyue Hsiao and edited by Jack Wu
