In the past 24 months we've witnessed a remarkable shift in the industrial video marketplace. Manufacturing, automotive, aeronautics, and robotics are quickly adapting highly integrated technologies for smart vision systems.
The shift is leaving behind some video electronics manufacturers who are unable to adapt their products quickly. Demand for component products, e.g. cameras, optics, data capture hardware, is declining.
This is manifesting itself in strategic acquisitions or in some cases capitulation. Earlier this week we learned of the acquisition of Point Grey Research by FLIR Systems, a clear case of one company expanding it's intellectual property and another recognizing it's limitations in the changing landscape.
Now we learn Hitachi is considering divesting it's interest in Kokusai electronics, a long time giant in professional video products for industrial, medical, and broadcast. In April Hitachi reported a net drop in income of 26% from the division, citing a rapidly changing business environment for failure to meet their targets.
Hitachi, Japan’s second-largest manufacturer, is reviewing its portfolio amid a slowdown in demand from China as well as oil- and gas-producing countries, hit by low prices for crude. Hitachi Ltd is considering a sale of its controlling stake in Hitachi Kokusai Electric Inc that could ultimately lead to a [...]
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Last year Sony announced they would cease production of their CCD sensor product lines, a move that would cripple many video electronics manufacturers. They quickly reversed that decision amid harsh criticism by customers. However, it's only a matter of time before CMOS overtakes CCD as the technology of choice for visions systems.
"We can expect these consolidations and divestitures to continue through 2020 as the glut of vision electronics manufacturers reassess demand for new technologies and the continue decline of 'old school' vision component products" said JD Martin, product strategist for Industrial Camera Sales based in Traverse City Mi.
The post Is Hitachi The Next Company To Exit The Video Electronics Market? appeared first on Industrial Camera Product News & Events.
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