Automated Optical Inspection System Market - Forecast(2024 - 2030)

Report Code: ESR 48878 Report Format: PDF + Excel

Automated Optical Inspection System Market Overview

The global automated optical inspection system market size is forecast to reach US$2.2 billion by 2027, growing at a CAGR of 18.6 % from 2022 to 2027. Automated optical inspection (AOI) systems are utilized for visual assessment on a printed circuit board (PCB) which checks the product for both the catastrophic failure and the quality deformities. Automated Optical Inspection measurement generally uses a machine vision camera to scan the device autonomously, using sources such as infra-red, ultra violet or fluorescent lighting. It makes sure each board is capable of the high performance required in complex electrical applications through image processing. These checks are performed at various stages like assembling, post wave soldering and final quality check. The increase in use compact sized components and PCBs, growing demand of quality electronics in critical applications and need to identify various defects at initial stage with non-destructive methods are the prime factors for the growth of the market. The COVID-19 pandemic affected the growth of this market due to reduced production and demand of PCB. The drawback such as complex programming and its operations leading into false detection of flaws restrains the market growth.

Automated Optical Inspection System Market Report Coverage

The report: “Automated Optical Inspection System Industry Outlook – Forecast (2022-2027)”, by IndustryARC covers an in-depth analysis of the following segments of the Automated Optical Inspection System industry.

By Type of system:2D System, 3D System
By Technology: Inline System, Offline System
By Detection method: Template-matching method, Pattern matching, Statistical pattern matching
By Light source: Flourescent light, LED lighting, Infra-red or Ultra-violet
By Application: Fabrication Phase, Assembly Phase
By End Users: Energy & Power, Aerospace & Defence, Telecommunications, Automotive, Healthcare Devices, Manufacturing, Food and Beverages, Consumer Electronics, Others
By Geography: North America (U.S, Canada, Mexico), Europe(U.K, Germany, France, Italy, Spain,Others), APAC (China, Japan, South Korea, India, Australia, Others), South America (Brazil, Argentina, Others), RoW (Middle East, Africa)

Key Takeaways

  • The 3D system segment is predicted to grow faster than 2D system over the forecast period 2022-2027 in the automated optical inspection system market segmented by type. This is owing to more precise results with 3D system than 2D system, along with shorter debugging time and increased resolution of the defects.
  • The consumer electronics segment held the largest share in automated optical inspection system market by application, in 2021. This is attributed to miniaturization of circuit boards and need for precision quality in critical applications of printed circuit boards (PCBs).
  • APAC (Asia-Pacific) market held the largest market share of 38%, in 2021. This is due to established manufacturing sector for printed circuit boards (PCBs) and electronics in the countries of this area as they provide low-priced skilled labour, low production cost and business viable environment.
  • The growth of automation with the help of Artificial Intelligence to analyse the imaging results, need for precision and accuracy in circuits used in critical applications and rise in electronic application across various industry verticals are the contributing factors in the growth of automated optical inspection system market.

Automated Optical Inspection System Market Value Share, By Geography, 2021 (%)
 

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Automated Optical Inspection System Market Segment Analysis- By Type of system

The Automated Optical Inspection System market by type of system has been segmented into 2D system and 3D system.The2D system segment held the largest share of 60%, in 2021.This is owing to the low prices and better integration with the production and assembly lines. Due to the low system costs, printed circuit boards (PCB) manufacturers gain low initial investment benefits and comparatively lower maintenance costs, contributed for the rise of this segment. The 3D type in the automated optical inspection system market is predicted to witness a high growth over the forecast period of 2022-2027. This is attributed to the increased inspection efficiency and better imaging benefits over the conventional 2D systems. They offer shorter debugging time and increased resolution of the defects on circuit boards.In October 2021, Omron Automation Americas, the global leader in Automated Optical Inspection and other advanced automation systems, announced the launch of PCB inspection system "VT-S10 series," which features an industry-first imaging technique, advanced 3D AOI system and AI to best automate the high-precision inspection. Thus, the leading research and development to overcome the drawbacks and increase precision testing in 3D AOI system assists the growth of this market.

Automated Optical Inspection System Market Segment Analysis- By End User

The automated optical inspection system market by end user has been segmented into energy & power, telecommunications, automotive, healthcare devices, manufacturing, consumer electronics, and others. The consumer electronics segment held the largest share of 30%, in 2021. The automated optical inspection system is used in order to inspect printed circuit boards (PCBs) of small and compact consumer electronic devices, such as digital watches, smartphones, laptops, and other manufacturing products, to offer quality products to customers. The Automated Optical Inspection system scans with HD-cameras and identifies defects such as missing components or skewed and misplaced components from the printed circuit boards that are going to be used in consumer electronics. The growing demand for consumer electronics with IoT-connected technologies and compact size of the devices is driving the growth of automated optical inspection market. For example, FIH Mobile, one of the world’s largest mobile phone and wireless communication device manufacturers, uses Visual Inspection products, including AutoML Vision along with a automated optical inspection system, to help them improve product quality in their manufacturing process. 

Automated Optical Inspection System Market Segment Analysis- By Geography

The Automated Optical Inspection System market by geography is segmented into North America, Europe, Asia-Pacific (APAC), South America, and the rest of the world (RoW). APAC (Asia-Pacific) held the largest automated optical inspection system market share with 38% of total market size. The rise in demand for precise and defect-free manufactured products and increase in development of advanced camera and software for 3D image inspection with AI-based automated system in APAC market has led to the increased use of automated optical inspection system which acts a major contributing factor in the growth of this market. Many Asian countries have raised the quality standards for packaged food products due to the rise in spread of COVID-19 pandemic. To minimize the human contact in edible product inspection, the use of automated optical inspection system is growing on a large scale. In 2020, according to an article published by Zhenhub – E-commerce Solutions Company, stated that during holiday times due to shortage of workforce, some buyers have reported up to 40% defect rates from manufacturers in South or Southeast Asia. In order to deal with these large defect rates, there is an increasing need of automated optical inspection system. Hence, all these factors are assisting the growth of the automated optical inspection system market in the APAC market.

 Automated Optical Inspection System Market Drivers

The increase in miniaturization of printed circuit boards and electronic components results in need of precise automated optical inspection systems

Automated optical inspection system plays a pivotal role in manufacturing of any product, especially for the compact ones such as printed circuit boards. An automated optical inspection system uses image processing technique with the help of artificial intelligence based software to recognise the defects in any manufactured product. There is a rise in use of high density interconnect (HDI) printed circuit board which is more complex and densely packed with components. This is due to increasing demand for compact and portable structured devices. It is manually difficult to inspect the printed circuit boards, so the use of automated optical inspection system is increasingly adopted. In January 2022, in order to provide solution for COVID-19 pandemic curb, Dr Hester and his colleagues at Northwestern University in Illinois revealed the small electronic module packed with sensors that attaches to the inside of a standard medical-grade N95 mask. This mask shall work to detect leaks and diagnose COVID-19 virus. Hence, such growing innovations requiring miniaturization of circuits require automated optical inspection system to ensure the defect free end product. This increasing compact and complex printed circuit boards fuel the growth of automated optical inspection system.

The rise in need of precision testing methods for critical circuit manufacturing contributes to the growth of automated optical inspection system market

Automated optical inspection systems are used for mass production of compact and complex printed circuit boards, especially in critical applications such as automotive, medical and many others. There is a significant increase in use of printed circuit boards (PCBs) in automotive sector owing to the growing demand of vehicle automation and advanced safety systems. These systems are critical for safety of the driver and hence quality checked under automated optical inspection system. In case of healthcare sector, printed circuit boards need to meet strict standards for sanitation and accuracy, especially for implants. These printed circuit boards involve complex structure which is difficult to inspect manually. Hence, automated optical inspection system is used as the component is critical for the patient and an error can prove to be fatal. In the Aerospace industry, printed circuit boards with precise and accurate output is required for critical systems such as navigation and radar, control panel and many others. To ensure the correct design and structure of the printed circuit boards, automated optical inspection system is used for quality check. In April 2022, Boeing has awarded over $1.1 million towards the expansion of two advanced manufacturing workforce development initiatives developed by NextFlex, America’s Flexible Hybrid Electronics Manufacturing Innovation Institute. The Nextflex uses advanced 3D automated optical inspection system in its production line. Thus, growth of automated optical inspection system market is driven by use of critical application of components using printed circuit board.

Automated Optical Inspection System Market Challenges

There are challenges with complex programming of the automated optical inspection system leading to false calls of defects which restricts the growth of this market.

Implementing automated optical inspection requires technical setup and programming. Every component on a printed circuit board that gets inspected using automated optical inspection system requires programming for the inspection, involving hours of programming for each board. This required programming means that only known issues in certain locations are inspected. In many cases, the rejection is unnecessary and the flaws are wrongly identified. There can also be a case in which product with errors and flaws are passed out from the automated optical inspection system which may lead to severe mishap in case of critical applications or financial loss for the customers. This drawback holds back the manufacturers to use automated optical inspection system. This factor restrains the growth of the market and creates a need in the market to research on developing solution for this drawback. In December 2021, in India, Jidoka Technologies, a computer vision and artificial intelligence company, initiated a mission to bring AI into the mainstream of manufacturing. The company’s solution positively impacted customers by increasing their throughput by 33% and accuracy by 5-8%, and decreasing their false positives by 30%, as per the company report. Thus, continuous efforts are done for the solutions to overcome the drawback of high false call rate.

Automated Optical Inspection System Market Landscape

Product launches, acquisitions, and R&D activities are key strategies adopted by players in the automated optical inspection system industry. The automated optical inspection system top 10 companies include:

  1. Saki Corporation
  2. Viscom AG
  3. Goepel Electronic Gmbh
  4. Omron
  5. Nordson Corporation
  6. Koh Young Technology
  7. Test Research, Inc. 
  8. CyberOptics Corporation
  9. MIRTEC Co., Ltd.
  10. Daiichi Jitsugyo., Ltd.

Recent Developments:

  • In April 2022, Kistler's announced its automated quality assurance solutions for end-of-line inspection systems in Kistler's portfolio will be on display at Control: the KVC 821, equipped with up to eight matrix and line-scan cameras as well as 3D inspection capability, so complex testing tasks can be performed sequentially at multiple stations. This advanced product is potentially capable to capture a significant market share in various end user industry verticals.
  • In September 2021, Kopin Corporation, a leading developer of innovative wearable computing technologies and solutions, announced that its wholly owned subsidiary, Forth Dimension Displays Limited (ForthDD), has secured a US$3.4 million order commitment from JUTZE Intelligence Technology Co. Ltd. The order is to provide Spatial Light Modulators (SLMs) for JUTZE’s Edge series and Mirage series of 3D automated optical inspection equipment. This helps ForthDD’s SLMs have undoubtedly played a key role in growing JUTZE’s market share.
  •  In August 2020, Koh Young announced its collaboration with Siemens business, to deliver an enhanced programming solution, which will benefit the printed circuit board assembly market. It integrated its Valor Process Preparation Software to further simplify Automated Optical Inspection (AOI) programming and reduce production costs by saving time through the implementation of Mentor's Open Product Model.
  •  In April 2020, Viscom entered into a partnership with PCB Technologies for the sales of a wide range of products, particularly in the areas of AOI, SPI, and AXI. Both the companies also agreed to collaborate closely in product marketing and customer service. Initially, PCB Technologies will make use of the demonstration facilities in Germany but will later maintain automated optical inspection systems for customer demonstrations in Italy.

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1. Automated Optical Inspection System Market Overview
    1.1 Definitions and Scope
2. Automated Optical Inspection System Market - Executive Summary
    2.1 Market Revenue, Market Size and Key Trends by Company
    2.2 Key trends By Product Type
    2.3 Key trends segmented by Geography
3. Automated Optical Inspection System Market– Market Landscape
    3.1 Comparative Analysis
        3.1.1 Product/Company Benchmarking-Top 5 Companies
        3.1.2 Top 5 Financial Analysis
        3.1.3 Market Value Split by Top 5 Companies
        3.1.4 Patent Analysis
        3.1.5 Pricing Analysis(Comparison of General Price Offerings in the Market)
4. Automated Optical Inspection System Market– Startup Company Scenario (Premium)
    4.1 Venture Capital and Funding Scenario
    4.2 Startup Company Analysis
5. Automated Optical Inspection System Market– Industry Market Entry Scenario Premium (Premium)
    5.1 Regulatory Scenario
    5.2 Ease of Doing Business Index
    5.3 Case Studies
    5.4 Customer Analysis
6. Automated Optical Inspection System Market- Market Forces
    6.1 Market Drivers
    6.2 Market Constraints
    6.3 Porters five force model
        6.3.1 Bargaining power of suppliers
        6.3.2 Bargaining powers of customers
        6.3.3 Threat of new entrants
        6.3.4 Rivalry among existing players
        6.3.5 Threat of substitutes
7. Automated Optical Inspection System Market– By Strategic Analysis (Market Size -$Million/Billion)
    7.1 Value Chain Analysis
    7.2 Opportunities Analysis
    7.3 Product Life Cycle/Market Life Cycle Analysis
    7.4 Suppliers and Distributors
8. Automated Optical Inspection System Market – By Type of system
    8.1 2D System
    8.2 3D System
9. Automated Optical Inspection System Market – By Technology
    9.1 Inline System
    9.2 Offline System
10. Automated Optical Inspection System Market – By Detection method
    10.1 Template-matching method
    10.2 Pattern matching
    10.3 Statistical pattern matching
11. Automated Optical Inspection System Market – By Light Source
    11.1 Fluorescent light
    11.2 LED lighting
    11.3 Infra-red /Ultra-violet
12. Automated Optical Inspection System Market – By Application
    12.1 Fabrication Phase
    12.2 Assembly Phase
13. Automated Optical Inspection System Market– By End user
    13.1 Energy & Power
    13.2 Aerospace & Defence
    13.3 Telecommunications
    13.4 Automotive
    13.5 Healthcare Devices
    13.6 Manufacturing
    13.7 Food and Beverages
    13.8 Consumer Electronics
    13.9 Others
14. Automated Optical Inspection System Market- By Geography (Market Size -$Million/Billion)
    14.1 North America
        14.1.1 U.S
        14.1.2 Canada
        14.1.3 Mexico
    14.2 Europe
        14.2.1 Germany
        14.2.2 France
        14.2.3 UK
        14.2.4 Italy
        14.2.5 Spain
        14.2.6 Russia
        14.2.7 Others
    14.3 APAC
        14.3.1 China
        14.3.2 Japan
        14.3.3 South Korea
        14.3.4 India
        14.3.5 Australia
        14.3.6 Others
    14.4 South America
        14.4.1 Brazil
        14.4.2 Argentina
        14.4.3 Others
        14.5 RoW
        14.5.1 Middle East
        14.5.2 Africa
15. Automated Optical Inspection System Market- Market Entropy
    15.1 New product launches
    15.2 M&A's, collaborations, JVs and partnerships
16. Automated Optical Inspection System Market– Industry Competition Landscape (Premium)
    16.1 Market Share Global
    16.2 Market Share by Region
    16.3 Market Share By Product Type
17. Automated Optical Inspection System Market– Key Company List by Country Premium (Premium)
18. Automated Optical Inspection System Market- Company Analysis
    18.1 Saki Corporation
    18.2 Viscom AG
    18.3 Goepel Electronic GmbH
    18.4 Omron
    18.5 Nordson Corporation
    18.6 Koh Young Technology
    18.7 Test Research, Inc.
    18.8 CyberOptics Corporation
    18.9 MIRTEC Co. Ltd.
    18.10 Daiichi Jitsugyo Co. Ltd.
    18.11 Others
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