Digital Image Processing Market Size, Share & Trends Analysis Report By Component (Software, Services), By Application (Visual Product Search, Object Recognition), By End-use Industry, By Region, And Segment Forecasts, 2023 - 2030

Digital Image Processing Market Trends

The global digital image processing market size was estimated at USD 5.16 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 19.7% from 2023 to 2030. The market has witnessed significant growth and shift in recent years, driven by increasing demand for high-quality visual content, advancements in image recognition technologies, and the proliferation of digital devices. The market encompasses a broad range of applications, including medical imaging, automotive safety, satellite imagery, and entertainment. Furthermore, the rising attention to image quality and the integration of advanced color shade processing techniques stand out as significant drivers propelling the expansion of the global market.

One of the primary factors contributing to the growth of the market is the widespread adoption of digital cameras and smartphones equipped with high-resolution sensors. These devices have made it easier for individuals and businesses to capture images and videos, creating a vast pool of visual data that requires processing for various purposes. Moreover, the e-commerce sector heavily relies on image processing for processes like image search, product recommendation, and quality assurance. As the e-commerce industry continues to expand, the demand for digital image processing is also expected to rise, driven by the significance of enhancing user experiences and streamlining operational efficiency.

Medical imaging is one of the key drivers of the digital image processing industry. The adoption of cutting-edge technologies like magnetic resonance imaging (MRI), computed tomography (CT), and digital radiography has revolutionized the diagnosis and treatment of various medical conditions. Digital image processing helps healthcare professionals enhance and manipulate medical images for precise visualization and analysis, leading to more accurate diagnoses and improved patient outcomes.

Furthermore, in the automotive industry, digital image processing plays an important role in the development of autonomous vehicles and advanced driver assistance systems (ADAS). These technologies heavily depend on sensors and cameras to detect objects, sense the environment, and make real-time decisions, improving road safety and enhancing the driving experience. As the automotive industry continues to evolve, the digital image processing industry is expected to witness sustained growth throughout the forecast period.

Component Insights

The software segment led the market in 2022, accounting for 65.0% of the global revenue share. This can be attributed to the increasing demand for image-processing software solutions across various industries, advancements in software technology, and the flexibility and adaptability of software-based solutions to address a wide range of image-processing needs.

Additionally, the software segment has witnessed significant growth due to the integration of artificial intelligence and machine learning algorithms, which have further enhanced the capabilities of image-processing software, making it a preferred choice for businesses and organizations seeking efficient and customizable solutions for their image-processing requirements. In March 2023, WiMi Hologram Cloud Inc. a China-based augmented reality solution provider announced the launch of holographic-enabled digital image processing software comprising channel attention mechanism and visual saliency.

The service segment is predicted to foresee significant growth in the forecast years owing to the complexity and diversity of image-processing tasks. Consulting services are in demand due to increased requirements for expert guidance and strategic advice. Many organizations prefer to outsource these tasks to expert service providers who can deliver constant results and adapt to evolving requirements. Furthermore, services often offer a cost-effective approach, as they eliminate the necessity for in-house development and maintenance of image processing solutions.

End-use Industry Insights

The retail & e-commerce segment led the market in 2022, accounting for over 27.0% share of the global revenue. The rapid growth of the retail and e-commerce industry, fueled by the increasing trend of online shopping, has significantly propelled the need for digital image processing. Image processing technologies are critical for applications such as recommendation systems, product image enhancement, virtual try-ons, and visual search, which enhance the online shopping experience and propel consumer engagement. Moreover, the retail and e-commerce sector depends heavily on image processing to automate product tagging, optimize inventory management, and facilitate visual merchandising.

The automobile & transportation segment is predicted to foresee significant growth in the forecast years owing to the growing integration of digital image processing technologies in advanced driver assistance systems (ADAS) and autonomous vehicles, which have become vital for improving road safety and vehicle automation. Additionally, the transportation sector heavily depends on image processing for applications like vehicle monitoring, traffic management, and logistics optimization, which further strengthened the segment's growth.

Application Insights

The object recognition segment led the market in 2022, accounting for over 28.0% of the global revenue share. This high share is attributed to the increasing demand for object recognition technology across various industries and applications. Object recognition, powered by artificial intelligence (AI) and deep learning, has become an essential component in fields such as autonomous vehicles, security and surveillance, retail, and industrial automation, among others.

For instance, in retail, it can be used to manage inventory, monitor shelves, and analyze customer behavior. In manufacturing, object recognition can be used to improve quality control, detect defects, and automate assembly operations. In automotive, object recognition is important for advanced driver-assistance systems (ADAS) and self-driving vehicles. In healthcare, object recognition assists with medical image analysis to detect and diagnose diseases. In security, object recognition is used to identify and track individuals and objects in surveillance systems.

The other application segment is predicted to foresee significant growth during the forecast years. This segment includes pattern recognition, remote sensing, video processing, and machine or robotic vision. Pattern recognition application has wide applications in computer vision, speech recognition, and natural language processing (NLP) technology. It has end-use applications in numerous industries, including healthcare for medical image analysis, financial services for fraud detection, quality control in manufacturing, and others.

Regional Insights

North America dominated the market in 2022, accounting for over 39.0% share of the global revenue owing to the presence of numerous prominent technology companies and research institutions specializing in image processing and related technologies in the region. Furthermore, the regional market benefits from a strong economy, substantial investments in R&D, and innovations, which contribute to its strong foothold in the market. Additionally, the region's diverse range of industries, from healthcare and automotive to entertainment and aerospace, rely extensively on digital image processing solutions, further fueling the market's growth in the region.

Asia Pacific is anticipated to register the fastest CAGR over the forecast period. Asia Pacific is one of the fastest-growing markets for digital image processing owing to the growing adoption of digital technologies, the growth of the healthcare and automotive industries, and the increasing need for surveillance and security services in the region. Moreover, government initiatives and investments in smart cities, healthcare modernization, and infrastructure development are creating opportunities for image-processing technologies, further propelling the region's growth in the market.

Key Companies & Market Share Insights

Prominent firms have used product launches and developments, expansions, mergers & acquisitions, contracts, collaborations, etc. as their primary business strategy to increase their market share. Companies have used various techniques to enhance market penetration and boost their position in the competitive industry. For instance, in April 2023, TripleBlind rolled out three new healthcare-focused products designed to offer a secure means of accessing sensitive data, enabling healthcare professionals to obtain in-depth insights while upholding privacy and compliance standards. The suite comprises a privacy builder, privacy fortress, and privacy network, and each of these solutions is tailored to assist organizations in preparing a personalized data-driven solution that aligns with their specific requirements.

Digital Image Processing Market Report Scope

Global Digital Image Processing Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global digital image processing market report based on component, application, end-use industry, and region.

• Component Outlook (Revenue, USD Billion, 2017 - 2030)

  • Software

  • Services

• Application Outlook (Revenue, USD Billion, 2017 - 2030)

  • Visual Product Search

  • Object Recognition

  • Vision Analytics

  • Others

• End-use Industry Outlook (Revenue, USD Billion, 2017 - 2030)

  • Healthcare

  • Automobile & Transportation

  • BFSI

  • Retail & E-commerce

  • Others

• Regional Outlook (Revenue, USD Billion, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

    • Australia

  • Latin America

    • Brazil

    • Mexico

  • MEA

    • Kingdom of Saudi Arabia

    • UAE

    • South Africa