USD 630 billion
Photonics Market Size, Share, Growth Analysis, By Product Type(LED, Lasers, Detectors, and Sensors & Imaging Devices), By Application(Display [Display in Mobile Devices, Display in Televisions], Information & Communication Technology [Data Transmission, Data Storage]), By End-use Industry(Building & Construction [Smart Cities Construction], Media, Broadcasting & Telecommunication, Consumer & Business Automation), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG45K2073 |
Region:
Global |
Published Date: September, 2024
Pages:
165
|Tables:
72
|Figures:
75
Photonics Market Insights
Global Photonics Market size was valued at USD 426 billion in 2022 and is poised to grow from USD 456.67 billion in 2023 to USD 796.46 billion by 2031, growing at a CAGR of 7.20% during the forecast period (2024-2031).
The global market will be driven by the increasing use of photonics-powered devices in healthcare, information and communication industries, as well as industrial products throughout the forecast period. Light-based technological advances have stimulated innovation to provide long-term solutions to global problems, which are considered important drivers of the global market. These products are becoming increasingly popular, and their use has widened considerably due to the introduction of time benefits.
Furthermore, increasing innovations such as lidar and additives will fuel the growth of the photonics market. For decades, lidar technology has been used to study the distribution of gases and pollutants in the atmosphere. In recent years, it has become an important technology for self-driving cars.
Although much of the industry has been affected by the pandemic, the outlook for the photonics market. This technology is an area of growing interest in laser, optical scanning systems and imaging solution applications. Supply disruptions could delay 5G deployment in many countries, while fiber optic cable costs could rise as fiber optic cable manufacturers such as China are adversely affected.
US Photonics Market is poised to grow at a sustainable CAGR for the next forecast year.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Lasers
Fastest Growth
Lasers
Growth Rate
7.3% CAGR
Global Photonics Market ($ Bn)
Country Share for North America Region (%)
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Photonics Market Segmental Analysis
Global Photonics Market is segmented by Product Type, Application, End-use Industry, and region. Based on Product Type, the market is segmented into LED, Lasers, Detectors, and Sensors & Imaging Devices, Optical Communication Systems & Components, Consumer Electronics & Devices, and Others. Based on Application, the market is segmented into Display, Information & Communication Technology, Photovoltaics, Medical Technology & Life Sciences, Measurement & Automated Vision, Lighting, Production Technology, and Others. Based on End-use Industry, the market is segmented into Building & Construction, Media, Broadcasting & Telecommunication, Consumer & Business Automation, Medical, Security & Defense, Industrial, and Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & and Africa.
Photonics Market Analysis by Application
The display segment is expected to preserve its dominance through the forecast period because of its huge application base, along with biosources, discrete and integrated optical components, PV and solar cells, supercontinuum assets. The software of photonics-based components in displays presents more advantageous strength performance and light beams by way of manipulating the flow of incident light source. The display segment holds an important function inside the photonics marketplace, pushed by way of the increasing demand for excessive-decision, power-green, and lightweight displays throughout diverse industries, including customer electronics, automotive, and healthcare. Photonics-based totally displays, including OLED (Organic Light-Emitting Diodes), micro-LED, and laser shows, offer advanced brightness, shade accuracy, and reaction times compared to standard show technology. These advancements are crucial in gadgets like smartphones, capsules, televisions, and wearable gadgets.
The high-performance computing segment plays a pivotal role in the photonics marketplace by using leveraging the residences of photonics to address the growing demand for faster facts processing and more computational electricity. Traditional digital-based computing systems face limitations in speed, energy consumption, and warmth technology as data volumes keep growing. Photonics, with its capability to transmit statistics at the rate of light, offers an efficient and scalable method to those demanding situations. Photonics-primarily based technology such as optical interconnects, photonic processors, and optical networks are being increasingly included into HPC systems to enhance facts transmission quotes, lessen latency, and lower strength consumption. These innovations are vital in programs like synthetic intelligence (AI), machine getting to know, large information analytics, and clinical simulations, in which enormous quantities of facts should be processed rapidly and correctly.
Photonics Market Analysis by Product Type
The LED segment plays an important role in the photonics market due to its wide range of applications in various industries driven by energy efficiency, longevity and versatility of applications. LEDs have become the preferred lighting solution for residential, commercial and industrial applications. This shift is due to increased awareness of energy conservation and sustainability that tend to replace bulbs, as LED technology has a much lower energy consumption and lasts longer, reducing overall operating costs. Apart from general lighting, LEDs are important in displays including televisions, smartphones and computer screens, where they increase brightness, color quality and energy efficiency. Improvements on the Internet (IoT) and in smart lighting solutions have further expanded the demand for LED technology through the integration of sensors and connectivity components for smart controls.
The laser segment is a keystone of the photonics market, known for its accuracy, efficiency and control for a wide range of applications across industries. Lasers are needed in areas such as telecommunications, manufacturing, health and safety, and make them an important driver of optics innovation. In telecommunications, lasers are used in optical fiber communication systems, enabling high-speed data transmission over long distances. Their ability to maintain signal integrity and reduce loss makes them increasingly valuable as global demand for fast and reliable internet connectivity increases.
In manufacturing, lasers facilitate advanced processes such as cutting, welding, engraving and 3D printing. The precise manufacturing process enables durability and high-quality finishes, contributing to efficiency and reducing waste in the manufacturing process.
In the medical field, lasers are used in a variety of applications, including laser surgery, diagnostic testing, and imaging. Minimally invasive treatments are offered, enhancing patient outcomes and reducing treatment time. Applications such as laser-based medicine and optical coherence tomography (OCT) demonstrate the important role of lasers in advanced healthcare technologies.
Global Photonics Market By Application (%)
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Photonics Market Regional Insights
North America plays a key role in the global photonics market, with strong investments in R&D, cutting-edge technology infrastructure and strong demand in the telecom, healthcare and security industries, leading innovation in optical communications systems, laser technology, and quantum computing. The industry benefits from a very popular telecommunications industry, which fuels demand for high-speed fiber optics and data communication technologies. In addition, the North America focus on medical advances has led to growth in ophthalmic applications in diagnostic imaging laser surgery, especially government programs and funding for defense and aerospace research further solidifies North America dominance in optics.
Asia-Pacific is the fastest growing region in the market due to rapid technological development, technological advancements and increasing demand for lighting-based solutions in industry. Countries such as China, Japan, South Korea, Taiwan contribute majorly to this growth with large manufacturing capacities, consumer with the widespread use of glass in electronics, automotive and telecommunications and companies such as Hamamatsu Photonics and Sony, Japan is leading the development of laser technology and optical sensors. Besides the province’s investments in autonomous vehicles and renewables that drive optics in sensors and low-energy technologies, there are government grants and funding for photonics research, especially quantum computing and smart cities, further strengthen Asia Pacific’s position as a major contributor to global photonics.
Global Photonics Market By Geography
- Largest
- Fastest
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Photonics Market Dynamics
Photonics Market Driver
Growing Demand for High-speed Data Connections
- One of the major drivers of the photonics market is the increasing demand for high-speed data connections. Faster and more efficient data communication systems are needed due to the proliferation of smartphones, cloud computing, Internet of Things (IoT). Optical fibers offer a solution to this growing demand with the ability to transmit more data at the speed of light to optimize its system to handle the increasing traffic. As businesses and consumers embrace 5G networks and beyond, optics will become increasingly important to enable faster and more reliable data transfers.
Advances in Medical Technology
- Another major factor is the extensive use of eyesight in medicine, especially in diagnosis and treatment. Laser technology is changing procedures such as surgery, imaging, and noninvasive diagnosis. Using eye tracking, medical devices improve accuracy and precision, reducing recovery time and improving patient outcomes. In addition, optical biosensors and imaging techniques are gaining increasing popularity due to increasing personalized medicine and demand for early diagnosis. This growth is driving investment and R&D in photonics for healthcare applications and driving market growth.
Restraints
Initial High Cost of Photonics Technology
- Although optical technology offers distinct advantages, the high initial cost of its products and systems is a major limiting factor in the market growth. Optical devices such as lasers, optical sensors and fiber optic components in manufacturing technologies. In addition, companies that have yet to realize a clear return on investment from photonic applications may delay adoption, further limiting market expansion.
Technical Challenges and Lack of Skilled Labour
- Another mandate is the technical difficulties associated with optical systems. Lighting equipment requires specialized skills and knowledge to manufacture, integrate and maintain, which can be a challenge for less skilled industries. Lack of skilled workers with expertise in optical technology including design, engineering and in practice hinders the widespread adoption of this solution. As a result, businesses in these regions are reluctant to integrate optics into their operations, slowing overall market growth.
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Photonics Market Competitive Landscape
The photonics marketplace is characterized by intense competition, driven by rapid technological advancements and the expanding use of photonics across diverse industries, including telecommunications, healthcare, and automotive. These companies focus on expanding their product lines and innovating in areas such as laser technology, optical sensors and fiber optics. Strategic partnerships, mergers and acquisitions are common, enabling companies to increase their R&D capacity and geographic reach. In addition, smaller companies and start-ups are emerging, offering niche solutions for specific applications such as quantum computing, autonomous vehicles, etc. Technological advances, specific applications and increasing demand for high-speed data shape the and the growing demand for high-speed data transmission.
Top Players in the Global Photonics Market
- Signify (Netherlands)
- Schott (Germany)
- Shin-Etsu Chemical Company (Japan)
- Nikon Corporation (Japan)
- Hoya (Japan)
- Corning (US)
- American Elements (US)
- Ohara (Japan)
- Asahi Glass (Japan)
- II-VI (US)
- Huawei Technologies (China)
- Cisco Systems (US)
- Coherent Inc. (US)
- Trumpf GmbH (Germany)
- General Electric Company (US)
- Hitachi (Japan)
- Emerson (US)
- Siemens (Germany)
- LG Display Co., Ltd. (South Korea)
- Samsung Electronics (South Korea)
- Innolux (Taiwan)
- OSRAM Licht (Germany)
- Trina Solar (China)
- IPG Photonics (US)
Photonics Market Recent Development
- November 2023 - Ams OSRAM AG adds Red, True Green and Blue colors to its OSTAR Projection Compact family of low-profile ultra-high brightness LEDs, empowering designers of machine vision systems or stage lighting installations. OSTAR Projection Compact LEDs have excellent thermal absorption and can be installed very closely in high-power lighting systems due to the small thin object.
- September 2023 - IPG Photonics Corporation announced a new dual-beam laser with the highest single-mode core power at The Battery Exhibition in Novi, Mich. It delivers unprecedented speed and performance improvements for battery welding, including spatter-free welding Up to 2X faster than possible with low core power.
- September 2023 - Ames Osram AG and Investment and Development Authority of Malaysia (MIDA) announced mutual support for continued investment and expansion in Malaysia. Through collective bargaining, MIDA expressed overwhelming support for Ams OSRAM’s program in Malaysia.
Photonics Key Market Trends
- Widespread Applications of Photonics in Quantum Computing: One of the most important trends driving the optics market is its integration into the field of quantum computing. Light-based quantum computing has the potential to revolutionize data processing and problem-solving capabilities, with light-based qubits providing faster, more robust performance compared to traditional electronics. Companies and research institutions are using quant. and investing heavily in photonics research for applications, and it is expected that this trend, aimed at addressing current computing limitations, will drive innovation in the lighting industry and open new revenue streams, especially when quantum computers are approaching the business.
- Expanding Optics in Autonomous Vehicles: Another emerging trend is the use of eye monitoring technology in self reliant automobiles. Light sensors consisting of LIDAR (Light Detection and Ranging) are critical for the guidance and safety of self-driving automobiles. These sensors use laser mild to locate the gadgets, map the surroundings, and offer real-time feedback to ensure safe operation of vehicles. As demand for self-reliant and related cars increases, the car industry will depend upon photonics technology more to enhance vehicle overall performance, accuracy and safety.
Photonics Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to SkyQuest analysis, the photonics market is growing exponentially due to the increasing demand for excessive-pace information communications and improvements in medical generation. However, the market faces challenges consisting of high begin-up charges and lack of professional labour, which may additionally prevent widespread adoption. Major tendencies which include the combination of photonics into quantum computing and its use in self-reliant motors open new avenues for innovation and market enlargement. As industries demand efficient, precise technologies and reliable, optics' role in shaping the future of communications, healthcare and automotive aspirations.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 426 billion |
| Market size value in 2031 | USD 796.46 billion |
| Growth Rate | 7.20% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Photonics Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Photonics Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Photonics Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Photonics Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Photonics Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Photonics Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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