Owing to beneficial features such high bandwidth, low power consumption, and low cost, the global photonics market is experiencing a surge in its demand lately. It has been experiencing a greater adoption as compared to its other alternatives that operate in the market.
With the need for high-speed data transfer and image processing applications, the demand for photonic devices is expected to increase in the coming years. Various companies and businesses are adopting photonics. These factors have further propelled the demand for photonics thus, increasing the dependence on this market.
Fast-growing end-use markets in a variety of sectors, including consumer electronics, displays, safety & military technology, communication, metrology, sensing, medical & healthcare, high-performance computing, and more, are encouraging impressive growth in the worldwide photonics market. The market consistently undergoes a series of developments in order to provide better services.
Advantages such as low cost, high speed and low power consumption have made Photonics increasingly popular in a variety of industries. This has resulted in the growth of the photonics market. Other benefits like high bandwidth, low power consumption, and cost-effectiveness have made photonics a key technology in the modern world. These factors encourage further adoption of the photonics market in the long run.
Considering these factors, it is reasonable to say that the global photonics market is growing at an appreciable compound annual growth rate (CAGR) of 8.6%. It is expected that the market might acquire a size of USD 1173.3 billion during the period of forecast, that is, 2021-31.
Photonics is an interdisciplinary field that applies the principles of light and its properties in various applications. It is a rapidly expanding technology, driven by advancements in optical components, systems and networks. Numerous uses can be found for photonics. In photonics, light is used to carry both information and energy. It is the science and engineering of producing, managing, and detecting light particles.
The photonics market is witnessing significant growth across the globe due to rising demand for high-speed communication technologies such as 5G and fiber optics. Increasing adoption of lasers in medical treatments such as ophthalmology procedures is further expected to drive the photonics market growth over the forecast period. In addition to this, increasing government initiatives to support research & development activities related to photonic technologies is also leading to strong growth opportunities for key players operating in the industry.
However, drawbacks such as high costs associated with the market and lack of knowledge related to photonics have been hindering the growth of the market. In spite of these limitations, the market is registering a considerable rate of growth because of the advancements that have been takimg place accompanied by an increased level of knowledge about this field.
The key players in the photonics market are TRUMPF (Ditzingen, Germany), Hamamatsu Photonics K.K., IPG Photonics Corporation (Massachusetts, U.S.), Molex (Illinois, U.S.), Innolume (Dortmund, Germany), II-VI Incorporated (Pennsylvania, U.S.), NeoPhotonics Corporation (California, U.S.), and One Silicon Chip Photonics Inc. among others. These players compete with each other in the market and each of them aims to earn higher profits and acquire a position above that of their competitors in the market.
Lasers to Remain the Most Lucrative Segment
Based on type, the market is categorized into lasers, optical modulators, waveguides, optical interconnects, filters, photo detectors, amplifiers and others. Lasers are more likely to have one of these over the research period with a greater compound annual growth rate (CAGR). Lasers are anticipated to rule the market during the projection period due to their extensive use in numerous applications, including sensing and imaging.
The Consumer Electronics Segment to Ensure Maximum Revenue
By application, the market is divided into safety & defense technology, consumer electronics, communication, sensing, displays, metrology, medical & healthcare, high-performance computing, and others. Among these, the consumer electronics segment will remain the most lucrative sector due to its wide range of applications such as barcode scanners, projection systems, and optical storage devices.
Asia-Pacific Region is Expected to Render Ample Investment Avenues Followed by North America
North America, Europe, Asia Pacific, the Middle East and Africa, and South America are further major markets. Due to rising consumer electronics consumption in countries such as China and India, the Asia-Pacific region is anticipated to lead the global market throughout the forecast period. North America is estimated to be a major market due to high adoption of photonic technologies in communication networks, medical & healthcare sectors and military & defense industry.
Covid-19 Impact and Market Status
The crisis of the novel coronavirus was received by different industries in varying manners. The production process got adversely affected and the flow of raw materials was disturbed. The demand and supply chain was impacted negatively.
The photonics market has been significantly impacted by the COVID-19 epidemic.
Due to the pandemic, demand for photonics goods and services has dramatically decreased, leading to numerous companies suspending or delaying operations. The decline in demand has been most severe in the consumer electronics and display segments, where sales have been hit hard by the economic downturn. However, to a lesser extent, the communication and medical industries have also been impacted. In the long term, the pandemic is expected to have a positive impact on the photonics market as businesses invest in new technologies to improve efficiency and productivity. The adoption of 5G networks and advanced manufacturing techniques will drive growth in the market.
Latest Innovations in the Global Photonics Market: a Snapshot
• In June 2020, Finisar Corporation, a leading provider of optical communication products, introduced the new Finisar FTLX3711LCx SFP+ transceiver modules. The modules feature 10G Base-T and 10G Multi-Mode Fiber (MMF) support and are small form-factor pluggable design that is used for data center applications.
• In October 2019, Hamamatsu Photonics K.K., a manufacturer of opto-semiconductors, acquired the entire shares of A&D Medical Co., Ltd., a diagnostic device manufacturer based in Japan. This acquisition enabled Hamamatsu Photonics K.K. to strengthen its position in the medical imaging field by utilizing A&D Medical’s product portfolio and technologies.
Photonics Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2031||USD 1173.3 billion|
|Growth Rate||CAGR of 8.6% during 2021-2031|
|Segment Covered||Type, Application, End Users, Regions|
|Regions Covered||North America, Europe, Asia Pacific, Middle East and Africa, South America|
|Key Players Profiled||TRUMPF (Ditzingen, Germany), Hamamatsu Photonics K.K., IPG Photonics Corporation (Massachusetts, U.S.), Molex (Illinois, U.S.), Innolume (Dortmund, Germany), II-VI Incorporated (Pennsylvania, U.S.), NeoPhotonics Corporation (California, U.S.), and One Silicon Chip Photonics Inc. among others.|
Key Segments of the Photonics Market
By Type Overview, 2021-2031 (USD Billion)
• Optical Modulators
• Optical Interconnects
• Photo Detectors
By Application Overview, 2021-2031 (USD Billion)
• Consumer Electronics
• Safety & Defense Technology
• Medical & Healthcare
• High-performance Computing
By Regional Overview, 2021-2031 (USD Billion)
• Rest of Europe
• Rest of Asia Pacific
• Rest of South America
Middle East and Africa