However, growth is expected from 2025 onwards, with a projected compound annual growth rate (CAGR) of 6.6% over the next five years. Particularly strong growth is expected in the software and 3D camera segments, with a CAGR of 8.8% for software and 9.4% for 3D cameras. Software revenues are expected to rise from $490 million in 2024 to nearly $750 million in 2029, while revenues from 3D cameras are expected to grow from $787 million to over $1.2 billion over the same period.

Machine vision encompasses specialized programs for processing and analyzing visual information captured by imaging devices. Traditionally, these have been based on predefined software libraries, but the market for AI-based software is now growing as it enables systems to learn and evaluate more diverse outputs. AI software facilitates the implementation and programming of vision applications, especially in challenging environments, and enables new customers to leverage automation.

The market for AI software is expected to grow faster than that for traditional software, rising from $114 million in 2024 to over $275 million in 2029. Particularly strong growth is expected in the area of bin picking applications, where a CAGR of 20.9% is forecast. Bin picking, in which robots identify and remove randomly arranged objects from a container, is particularly common in the logistics industry.

Another growth driver is falling prices for 3D cameras, which enable customers to upgrade their systems. The market for 3D cameras continues to grow as new vendors introduce products and drive price competition. In China in particular, aggressive price cuts are leading to market share gains over established Western companies. The new ‘Machine Vision 2025’ report provides detailed insights into the market for 3D cameras and other products in various industries and countries.