Asia-Pacific Optoelectronics Market Size

Asia-Pacific Optoelectronics Market Analysis

The Asia-Pacific optoelectronics market is valued at USD 29.11 billion and is expected to register a CAGR of 11.2% during the forecast period to become USD 49.50 billion.

• The increasing adoption of advanced manufacturing and technologies drives the demand for optoelectronic elements in the industrial sector using laser and machine vision systems. According to the Ministry of Science and Technology, the Indian government has set a growth target of 16% of GDP for the manufacturing sector to 25% by 2025. The National Manufacturing Policy and the emphasis on "Make in India" are effective economic development strategies.
• Optoelectronics components are semiconductor devices that can either produce light or can react to it. The demand for optoelectronics increases in the region due to increased demand for smartphones and consumer electronics. Furthermore, promotive government policies and cheaper availability of labor and resources have led to the region being the center for semiconductor production and, thus, will grow substantially fast in the coming years.
• According to the National Bureau of Statistics of China, in December 2022, the production volume of cell phones in China amounted to around 143 million units, a slight increase from the previous month. In addition, the number of cell phone subscribers in China reached about 1.66 billion in June 2022, displaying a growth momentum of a few million subscribers each month, which may further propel the studied market growth.
• Furthermore, vendors in the market are focused on investing in medical investments. In November 2022, Integrated Endoscopy launched NUVIS Single-Use Arthroscope with a 4K endoscope designed for arthroscopic surgical procedures. In addition, according to the company, 60% of the image quality is expected to increase to 4K, thus driving image sensors in the market studied.
• The expansion of semiconductor optoelectronic device manufacturing facilities is likely to boost the market in the region. For instance, in March 2023, Virtuoso Optoelectronics (VOEPL), a manufacturer and mass producer of consumer goods and electronics manufacturing services (EMS), announced the opening of its fourth manufacturing facility in Nashik, Maharashtra.
• Increasing development in the automobile industry in the country is expected to contribute to the studied market growth over the forecast period. For instance, in November 2022, Kyocera Corporation announced the introduction of an Automotive Night Vision System capable of reliably identifying collision-risk items in low-visibility operating circumstances such as rain, night, snow, fog, or smoke. The technology is designed to minimize traffic accidents and encourage safer driving.
• Furthermore, the price of optoelectronics-based goods is greater than traditional products, among the aspects limiting industry growth. Customers may prefer substitute technologies to optoelectronics-based goods, including liquid crystal displays (LCDs), over light-emitting diode (LED) displays since LCD is a more cost-effective resolution. Further, compared to typical goods, the cost of replacing spare components is more elevated.
• Moreover, post-COVID-19, the market gained momentum, with production structures restarting full-capacity production to satisfy the expanded demand for optoelectronic parts throughout various industrial verticals. Furthermore, most industries are rapidly growing nowadays, which may propel studied market growth in the forecasted period. 
• According to India Brand Equity Foundation (IBEF), the production-linked incentive (PLI) scheme for large-scale electronics has appeared as one of the government's most successful projects. As of June 2022, the scheme has resulted in total production of over INR 1,67,770 crore (USD 22818. 04 million), including exports worth INR 65,240 crore (USD 8874.15 million). Furthermore, According to the Ministry of Economy, Trade and Industry (METI) (Japan), the entire production value of the electronics enterprise in Japan reached JPY 11 trillion (USD 100 billion) in 2022.