AI-powered 3D imaging, scan tunnel deployment, and automation are reshaping the future of industrial scanning and machine vision systems.
Following two years of contraction, the global machine vision market is expected to rebound, reaching over $8 billion in 2025, with industrial barcode scanning close behind. New capabilities like natural language AI interfaces, parallel structured light, and faster image processing are expanding use cases across verticals. However, tariffs and global regulation are complicating the next phase of growth.
50+ Vendors Mentioned in the Report, including Atlas Copco Machine Vision, Basler Vision, Baumer Group, Camtek, Cognex, Datalogic, HIKRobot, IDS Imaging, Keyence, National Instruments, Omron, SensoPart, SICK, Teledyne Digital Imaging, TKH Vision, VITRONIC, Zebra, and more.
Executive Summary
Persistent headwinds in the automotive and consumer electronics sectors contributed to moderate contraction in demand for machine vision solutions leading up to 2024. In 2024 demand was essentially flat with total machine vision solutions investments. However, much uncertainty and volatility remains with many companies sidelining capital investments until the tariff outlook clarifies. VDC expects tariffs to impact 2025 partially because these were not in effect for Q1 and mostly suspended for Q2 due to negotiations and temporary reversals.
Organic growth in machine vision and industrial scanning tends to be slow as customers hold equipment for many years, often well after full amortization. Vendors expect new product development to encourage customers to accelerate investments with noteworthy advances such as - adding deep learning and natural language capabilities to AI, improved 3D technology capable of carrying out sophisticated AI-driven tasks, and higher speed code reading and image processing. A good example of this is multi-sided scan-tunnel solutions which integrate various data and image capture and sensing technologies and should enjoy headwinds in the logistics and e-commerce sectors. Cognex, Datalogic, Keyence, SICK, VITRONIC and Zebra Technologies have all increased resources invested in tunnels in the past year.
M&A activity in the machine vision market over the past several years has been substantial with many vendors now directing their attention to integration efforts. For instance, Teledyne will consolidate nine software apps to improve interoperability between brands. TKH Vision tells a similar story; it transferred products across brands to unify 2D and 3D cameras, all running on Euresys software. Atlas Copco also coordinates its 2D ISRA Vision and 3D Perceptron brands. Datalogic has fully integrated Pekat Vision to add AI to new products. Zebra's recent major acquisition of Photoneo has also seen a relatively rapid integration cycle.
Growth of the machine vision and fixed industrial scanning industries over the long-term will continue despite tariffs, economic slowdowns and other external forces, because of the need organizations have to automate their operations. The enormous volumes of goods made and moved today, coupled with shortages of labor, makes smart use of MV and IBS a competitive differentiator. Multiple vendors such as Cognex and Zebra are advancing AI to work with natural language commands and in distributed architecture, which is making MV and IBS more widely accessible to individuals and large enterprises.
Machine Vision Key Findings:
- Market Size and Growth: VDC sizes the global 2024 market for machine vision hardware, software, services and accessories. While the industry was essentially flat in 2024, it is emerging from softness in 2023 that spilled into the past year.
- Key Market Forces: Arguably the greatest market force in 2025 is tariffs, including the uncertainty surrounding tariffs which could impact the industry in multiple ways: weakening of end markets, higher manufacturing and hence selling costs, turbulence in supply chains, and disruption of multinational relationships between vendors and customers Industries with multinational supply chains will be hit hardest. Using the automotive industry as an example, US car makers routinely source parts and assemblies from all around the world: Canada, Mexico, and multiple Asian countries. All are tariffed. A few assemblies go back and forth between the US and Canada more than once and could incur compounding tariffs. Cognex, Atlas Copco, SensoPart and other vendors specialize in the auto industry; Cognex publicly stated that it expects 2025 to be a bad year for automotive.
- Key Hardware Trends: 3D remains small in its percentage of MV hardware but is growing in its promise. VDC reports on significant 3D product announcements from Basler, Cognex, LMI, Teledyne, TKH Vision and Zebra. These vendors introduced the industry's first AI-enabled 3D smart camera (Cognex), 3D running on an NVIDIA platform for faster processing (TKH Vision), and a new technological approach to 3D called parallel structured light (Zebra). New products excel at vision-based AI-driven tasks such as dimensioning, inspections and high-speed sortation. At the same time, vendors such as SensoPart highlight their ability to execute the same tasks with multiple 2D area cameras for a less expensive solution.
- Key Software Trends: Advances in artificial intelligence for MV have the greatest impact of all software developments. Virtually every vendor is developing vertically oriented AI to add or enhance specialized functionality for a market sector (i.e. bead inspection for the automotive industry) and/or horizontally oriented AI for tasks such as dimensioning and anomaly detection, important for many markets. Also beneficial are numerous improvements to make AI and MV software easier to use, by individuals and enterprises.
- Key Competitive Trends: Among the primary vendors VDC follows, VDC observes less acquisition and more integration. Atlas Copco, Basler, Cognex, Datalogic, Teledyne, TKH Vision, Zebra and others all made multiple important acquisitions from 2018 to 2023. In 2024 and 2025, these leaders are unifying their brands. The vast majority of their sales are in China, but in coming years VDC expects to see them expanding into EMEA and Americas.
Fixed Industrial Scanning Key Findings:
- Market Size and Growth: FIS shipments in 2024 were essentially flat YoY. Going forward, VDC expects growth in 2025 based on opportunities in logistics which should be replicated in manufacturing, limited tariff impact so far this year, and a rebound from negative trends of the past two years.
- Key Market Forces: Scan tunnels offer the opportunity for sizable sales volumes for IBS (noting that "scan" tunnels do more than just scan), often combined with machine vision hardware plus professional services. Tunnels are not new but there have been noteworthy advances in the past year. Cognex, Keyence and Zebra are marketing branded tunnels for Logistics (the leading market for tunnels); Datalogic, Keyence, SICK, VITRONIC and Chinese vendors HIKRobot and Wayzim are all also industry leaders which are increasingly pursuing the scan tunnel market. With increasing demand for higher speed logistics automation, opportunities for scan tunnels are set to expand, especially as solutions become more user friendly and easier to deploy. In addition to line-of site scan tunnel solutions, demand for RFID tunnels is similarly increasing as organizations look to leverage existing retail operations-focused RFID investments to support logistics.
- Key Competitive Trends: A key basis for competition is whether a vendor markets laser or only imager- based industrial scanners. Among the largest players, SICK and Datalogic offer both technologies, while others like Cognex and Keyence offer imager-only solutions. Vendors gravitate to vertical markets based on this. Laser works well for food distribution, which is characterized by very high volume, low margins and most items carrying 1D codes. Imagers are preferred in logistics where labels often include 2D codes. Aside from leading vendors, VDC identifies the following as active market participants in the IBS segment - Baumer, Champtek, Codesquare, Denso Wave, HIKRobot, ifm efector, iRayple, Netum, OPT, Pepperl + Fuchs, Rakinda, SuperLead, Wayzim and Wenglor.