For the full video of this presentation, please visit: http://www.embedded-vision.com/industry-analysis/video-interviews-demos/computer-vision-and-artificial-intelligence-market-trends-a For more information about embedded vision, please visit: http://www.embedded-vision.com Anand Joshi of Tractica delivers the presentation, "Computer Vision and Artificial Intelligence: Market Trends and Implications," at the December 2015 Embedded Vision Alliance Member Meeting. Joshi presents market forecasts for vision in robotics, consumer, automotive, medical and other sectors.

1. Computer Vision
Technologies and Markets
December 9, 2015
ANAND JOSHI
Senior Analyst

2. About Tractica
2
Tractica is a market intelligence firm
that focuses on human interaction
with technology.
The firm’s market research and
consulting services provide industry
participants and stakeholders with in-
depth analysis of emerging technology
trends, business issues, market drivers,
and end-user demand dynamics across
multiple application domains.
Sector Focus
• Computer Vision
• Biometrics
• Digital Health
• Wearable Devices
• Automation & Robotics
Research Services
• Research Reports
• Research Subscriptions
• Analyst Inquiry Sessions
• Consulting Projects
• Go-to-Market Services
• End-User Surveys
Copyright © 2015 Tractica

3. Computer Vision Market
3
Computer vision refers to identification of objects via an image or video
Copyright © 2015 Tractica

4. Computer Vision - Technology
 Computers are notoriously inadequate
 Humans derive information based on context
 Unknown solution to unknown problem
 Deep learning technologies are emerging as front runner
 100% accuracy still remains elusive
 OCR, one of the oldest computer vision technology, is yet to exceed 99%
accuracy
 Device side vs server side processing
 Embedded devices
 GPUs and FPGAs
4

5. Computer Vision Market
 Six key application areas
 Automotive, sports & entertainment, consumer & mobile, robotics &
machine vision, medical, and security & surveillance
 Devices (hardware) make up majority of market
 Different business models
 Software-as-a-service
 Technology licensing
 One time payment
 Pay-as-you-go
5

6. Key Market Trends
 Fragmented. Startup dominated. Like a “rookie quarterback”
 Ready for takeoff
 “Killer apps” are eagerly awaited
 Different drivers in different markets
6

7. Key Application Markets
7

8. Computer Vision Market Forecast
8
(Source: Tractica)
Computer Vision Revenue by Application Market, World Markets: 2014-2019
 The total computer vision market is expected to grow from $5.7 billion
in 2014 to $33.3 billion in 2019 at a CAGR of 42%.
Copyright © 2015 Tractica
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2014 2015 2016 2017 2018 2019
Automotive
Sports & Entertainment
Consumer
Robotics and Machine Vision
Medical
Security & Surveillance
($Millions)

9. Computer Vision Hardware vs. Software
9
(Source: Tractica)
 The computer vision market is driven by hardware, but software and
services will be an increasing area of opportunity in the next few years.
Copyright © 2015 Tractica
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Computer Vision Revenue by Segment, World Markets: 2014-2019

10. Computer Vision in Automotive
 Key applications
 Advanced driver assistance systems, obstacle detection systems,
parking assist, driver alertness monitoring, lane departure warning…
 Dominated by hardware
 Ultimate vision: autonomous vehicles
 Drivers and challenges
 Regulations
 Buzz generated by self driving cars
 Liability issues
 Human factors (do I really trust my car more than me?)
 Security
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Computer Vision in Automotive
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(Source: Tractica)
The market is expected to increase from $1.28 billion in 2014 to $5.5 billion in
2019 at a CAGR of 33.7%.

12. Computer Vision in Consumer & Mobile
12
 Market trends and challenges
 Consumers want “cooler” devices and applications
 VR is being expected to be a “killer app”
 “Nice to have” vs. “must have”
 Camera on smartphone being utilized for CV apps
 Key applications
 Gaming and gesture recognition
 Smartphone and camera apps
 VR and AR
 OCR
 Wearables with vision
Copyright © 2015 Tractica

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Computer Vision in Consumer & Mobile
13
(Source: Tractica)
The consumer market is expected to grow at a CAGR of 61%
to $17.5 billion by 2019

14. Computer Vision in Robotics
& Machine Vision
14
 Market drivers and challenges
 Need for automation
 Lower costs
 Dedicated vs general purpose systems
 Key applications
 Quality inspection, measurement and alignment, label
inspection via OCR
 Programmable systems and self-guiding robots
Copyright © 2015 Tractica

15. $0
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Computer Vision in Robotics
& Machine Vision
15
(Source: Tractica)
The market will reach $5.49 billion by 2019 from $1.52 billion in 2014 at
a CAGR of 29%

16. Computer Vision in Medical
16
 Market drivers and challenges
 Ease of extracting relevant information
 Usefulness of data
 Key applications
 CT, MRI, Ultrasound
 Dentistry
 Artery highlighting
 Augmented reality
Copyright © 2015 Tractica

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Computer Vision in Medical
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(Source: Tractica)
The medical market will grow at a CAGR of 22.7% to $1.5 billion
by the year 2019.

18. Computer Vision in Sports & Entertainment
18
 Market drivers and challenges
 Powerful video effects for entertainment
 Play and strategy analysis
 Improved decisions
 On-field movement for better vision extraction
 Key applications
 Ball and puck tracking, virtual marker, 3D imaging
 Image stitching, warping, 3D effects are frequently used in
entertainment
 VR broadcast
Copyright © 2015 Tractica

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Middle East & Africa
Computer Vision in Sports & Entertainment
19
(Source: Tractica)
The sports and entertainment market is expected to grow at a CAGR of
25.9% to $1.37 billion by 2019.

20. Computer Vision in Security & Surveillance
20
 Drivers and challenges
 Terrorism
 Law Enforcement
 Privacy
 Key applications
 Person tracking, behavior analysis
 Facial recognition
 Biometrics
 Video storage and analysis
 Drone based surveillence
Copyright © 2015 Tractica

21. Computer Vision in Security & Surveillance
21
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Europe
Asia Pacific
Latin America
Middle East & Africa
The security and surveillance market is expected to reach $1.9 billion by 2019, growing
from $381 million in 2014 at a CAGR of 38.2%.

22. Conclusions
22
 Computer Vision is poised to take off
 Technology is maturing
 Market is ready
 Tractica believes key applications will emerge in VR, robotics
and automotive markets. Consumer will be the largest
application segment
 More value in hardware than software
 Tractica remains bullish and continues to follow developments
closely
Copyright © 2015 Tractica

23. Contact
anand.joshi@tractica.com
1111 Pearl Street, Suite 201
Boulder, CO 80302 USA
+1.303.248.3000
www.tractica.com