Market Trends of Acousto Optic Devices Industry
This section covers the major market trends shaping the Acousto Optic Devices Market according to our research experts:
Laser Processing to Drive the Market Growth
- Laser-based manufacturing is increasingly being used in the semiconductor and the automotive industries. With the increase in demand for semiconductor wafers and discrete semiconductor components, various semiconductor companies increased their manufacturing capacities.
- According to SEMI Silicon Manufacturers Group (SMG), the global silicon wafer area shipments increased by 2.7% to 2,920 million square inches in the first quarter of 2020, compared to the fourth quarter of 2019, with shipments of 2,844 million square inches, but dropped by 4.3% year-over-year. The increase in the number of shipments indicates the rise in demand for expanding manufacturing capacities, necessitating the use of laser-based machines, thereby augmenting the market's growth.
- For instance, in May 2020, Taiwan Semiconductor Manufacturing Co. announced its plans to spend USD 12 billion on building a chip plant in Arizona, a decision designed to allay US national security concerns regarding protecting global supply chains amid the coronavirus pandemic and shift more high-tech manufacturing to America.
- Also, the growing trend toward laser-based fiber optic sensing systems for robotics applications, as they offer maximum precision and repeatability needed to control and measure very fine movement, is anticipated to augment the demand in the market studied. The market for acousto-optic devices is expected to benefit from the growing need for laser devices in the healthcare vertical for LASIK surgery, hair removal, tattoo removal, skin resurfacing, wrinkle reduction, optical coherence tomography, body contouring, etc.
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Asia-Pacific Expected to Witness Significant Growth
- The Asia-Pacific region is expected to witness significant growth in the upcoming years. The region is fast picking up pace in the acousto-optic devices market owing to the growing industrialization and adoption of optical technologies to provide accurate solutions by developing countries. Countries like China, Japan, India, and South Korea are some of the major markets.
- The increasing construction of electronics, manufacturing facilities, massive growth in the semiconductor industry, and emerging applications of acousto-optic devices are some of the reasons for the growth of the overall market.
- China's semiconductor companies are shoring up investment for expansion, as their customers look to secure supply in response to US restrictions on Chinese suppliers.
- For instance, in June 2020, Yangtze Memory, a subsidiary of Tsinghua Unigroup, started the second phase of construction of its National Storage Base project to scale up its flash memory production to meet the demand for 5G and data center applications. The company plans to boost its output to 50,000-100,000 units by the end of the year from 20,000 with the first phase of the project, increasing to 300,000 in the second phase.
- In the same month, China-based electric vehicle (EV) producer BYD secured a second round of financing for its BYD Semiconductor subsidiary, to increase its production of insulated gate bipolar transistors (IGBTs). IGBTs are silicon-based power semiconductors that increase the efficiency of electric motors in EVs. With such initiatives expected to improve the manufacturing capacities in the region, the demand for acousto-optic devices is expected to increase.
- Further, in the healthcare sector, the region has been witnessing an increase in the need for laser-based surgeries. Also, the decreasing cost of laser-based surgeries such as LASIK surgery in the developing economies in the region is anticipated to support the growth of the market.
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