Tesla's robotaxi service has soft-launched with limited fanfare, though the autonomous vehicle sector continues drawing global investor interest. Industry analysts are tracking related opportunities in automotive camera systems, a market proving more challenging than initially anticipated.
Optics industry executives describe automotive cameras as offering poor profitability despite strong growth prospects, with margins pressured by extensive development costs and regulatory hurdles. Companies have invested years developing the technology with mixed returns.
The sector faces lengthy R&D cycles and substantial tooling investments. Partnerships with automakers frequently collapse due to shifting strategies or budget constraints, including deals with major US electric vehicle manufacturers.
Automotive cameras are split between interior and exterior applications. Interior systems show steadier demand growth, driven by tightening driver monitoring requirements across Europe and the US
Both categories require rigorous safety, vibration and temperature testing standards. Components must withstand extreme weather conditions, demanding significant upfront investment in validation processes.
Certification requirements, including ISO 26262 compliance, extend development timelines and costs before manufacturers can enter trial production phases. Multiple calibration rounds with automaker engineering teams add further delays.
Cost pressure from Chinese competitors has prompted some optics firms to pivot toward alternative growth markets beyond automotive applications. Taiwan's optics sector views the automotive opportunity as visible but largely inaccessible, with companies pursuing individualized market entry strategies.
JMO has secured US automaker partnerships focusing on interior cameras, establishing Thai manufacturing capacity to serve customer requirements. Kinko Optical won orders from automotive parts supplier Magna, diversifying beyond single-client exposure.
Asia Optical, Ability Enterprise and Calin are developing automotive camera technologies. Taiwanese suppliers leverage technical expertise and quality standards that have earned trust from European, American and Japanese manufacturers.
Chinese electric vehicle brands are expanding globally, though geopolitical tensions and pricing competition limit Taiwanese companies' interest in partnerships.
Most optics companies report that automotive cameras represent minimal current revenue shares. Volume growth depends on client product launch schedules and market adoption rates.
Article edited by Joseph Tsai
