At this year’s Automatica in Munich, I sat down with Tim Dawson, VP of Industrial Research and Jonathan Sparks, Senior Analyst at Interact Analysis, to unpack the current state of the global machine vision market. With the industry navigating everything from geopolitical friction to AI disruption, our conversation covered the headwinds, the bright spots, and where growth is actually coming from.
Slower Growth, but Not a Standstill
Jonathan was quick to set realistic expectations. Interact Analysis is forecasting just 1.5% growth for the global machine vision market in 2025. It’s not the kind of figure that gets headlines but in context, it tells a bigger story.
“There’s still movement,” he told me. “Particularly in areas like 3D vision and AI software those are the segments keeping the market alive right now.”
Companies are still buying, but more selectively. Machine builders are beginning to build up inventory again, but this time with a focus on new capabilities rather than simply stockpiling against shortages, as seen during pandemic-era disruptions.
The Rise of 3D Vision and AI
One of the clearest trends Jonathan sees is the acceleration of 3D vision technology. Where multiple 2D cameras once did the job (albeit inefficiently), 3D systems are stepping in with better performance and a cleaner footprint. And the benefits aren’t just technical, they’re economic.
AI software is another big mover. What used to be a buzzword is now driving tangible improvements, especially in use cases like quality inspection, where better defect detection leads to less waste and higher throughput.
“AI software is growing five times faster than traditional vision software,” Jonathan noted. “That says a lot about where value is being created.”
A Split Global Picture
We also talked about regional differences, and it’s clear the recovery isn’t uniform. Asia-Pacific is leading the charge, driven by fast industrial growth and earlier adoption of new technology. Europe, by contrast, is still struggling, with Germany in particular weighed down by a slow-moving automotive sector.
That divide plays into Interact’s slightly rosier forecast for 2026. Around 6% global growth, but this is heavily skewed toward certain markets and verticals.
“It’s such a challenging time for the industry right now, with so much uncertainty — especially around tariffs. That’s causing real challenges in understanding the future,” Tim said.
“But there are bright spots. Automotive is picking up in China and the U.S., though unfortunately not helping Europe much at the moment.”
From Components to Platforms
Another theme that came up: consolidation. As vision systems become more complex and customer expectations rise the demand is shifting toward integrated solutions, not just standalone components. That’s leading to a wave of acquisitions, as companies look to build full-stack offerings.
“We’re seeing the industry shift toward platforms,” Jonathan explained. “It’s not just about cameras anymore; it’s cameras, AI, software, compute, all packaged together.”
Startups still matter, especially in software, but many are being absorbed into larger ecosystems, as integration becomes a competitive edge.
Innovation, but Not Where You Think
I asked Jonathan whether anything on the show floor at Automatica had truly surprised him a breakout product or big leap in capability. His answer? Not really. And that’s telling.
“The innovation isn’t happening in the hardware right now. It’s in the software,” he said. “That’s where the breakthroughs are….smarter tools, not just faster ones.”
That theme resonated with Tim as well, who highlighted how AI is now starting to support not just object detection, but also robot programming. A step toward lowering the barriers to entry for smaller companies.
“It’s about making adoption easier for companies that maybe don’t have amazing engineering teams,” Tim said. “That’s where AI is making a real difference, accessibility.”
What Interact Is Watching Next
Before we wrapped, both gave me a glimpse into what’s next from Interact Analysis. Their newly released global machine vision report is broad in scope, tracking 11 product categories, 20 industries, and 45 countries. This is just part of a growing portfolio.
“We recently published our machine vision research, a global study looking at the opportunity for all machine vision products across 45 countries,” Tim shared. “There’s lots of depth and granularity in there.”
Beyond vision, Interact is regularly publishing on mobile robotics, humanoid robotics, and the broader robotics value chain; including fixed industrial and collaborative robots. We can expect mid-year forecast updates, ongoing coverage of vision-guided robotics, and expanded analysis across packaging automation and related sectors.
“From Interact’s perspective, we’re really building out our research portfolio to cover all the interesting nuances and niches of industry coming around the corner,” Tim added.
As vision technology becomes smarter and more integrated, staying competitive means more than just sharper images, it requires smarter strategies, accessible platforms, and intelligent automation. From what I saw and gathered during this interview at Automatica 2025, the companies paying attention to those shifts are the ones positioning themselves to lead.
For more insights go to https://interactanalysis.com/
