China Optoelectronics Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 11.70 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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China Optoelectronics Market Analysis
The China optoelectronics market was valued at USD 12.45 billion and is expected to register a CAGR of 11.7% during the forecast period to become 24.18 billion by the end of the forecast period.
- The rising demand for luxury and ultra-luxury vehicles is expected to fuel the global market during the forecast period. The country's improving economic situation has transformed the overall lifestyle of consumers. With increasing disposable income, consumer demand has shifted along with new lifestyles, resulting in a shift in their tastes. These factors have positively affected the sales of ultra-luxury and luxury cars in the country.
- Optoelectronic is gaining momentum in the healthcare sector. Optoelectronic devices such as cameras, sensors, and detectors are crucial components in medical imaging equipment like endoscopes, ophthalmoscopes, and CT scanners. Optoelectronics can be utilized to create diagnostic tools, such as biosensors that detect specific proteins or other biomarkers. Biosensors can enable remote monitoring of patients and help diagnose diseases such as diabetes, cancer, and infections.
- Optoelectronics can be integrated into wearable devices for continuous health monitoring. Examples include heart rate monitors, blood oxygen sensors, and glucose monitors. Optoelectronics also forms a crucial part of light therapy devices, which use specific wavelengths of light to treat skin conditions such as acne, psoriasis, and eczema. The growing healthcare sector in China is likely to offer a significant boost to the growth of the studied market.
- Optoelectronic light-emitting diodes (LEDs) have a variety of uses in residential settings. LED bulbs and LED strips can be used in various lighting fixtures, including ceiling lights, table lamps, and floor lamps. LEDs are energy-efficient and can save homeowners money on their energy bills. LED lighting can also be used for outdoor applications such as garden lighting and security lighting. LEDs can provide bright, clear illumination for outdoor spaces and are durable enough to withstand harsh weather conditions. The lights can be integrated into smart home systems to provide automated lighting control. This can include motion sensors, timers, and remote control using a smartphone or other device.
- According to the National Bureau of Statistics of China, the output value of construction in China from 2011 to 2022 indicated a progressive growth in the industry. In 2022, the construction output value in China achieved its peak at around CNY 31.2 trillion (USD 4.8 trillion). The growth in construction activities in the region would augment the demand for LED optoelectronics.
- On the flip side, affordable and easily available substitutes for the technology are expected to restrain the growth of the market. Numerous substitutes are available for optoelectronic components. Halogen bulbs are extensively used in interior lighting and headlights. Halogen bulbs are cheaper than OLEDs and LEDs and manufactured easily. Xenon HID bulbs are brighter than halogen and also are used in headlights. LEDs, on the other hand, are both difficult to make and expensive.
- Further, the COVID-19 pandemic shut down a lot of avenues of raw materials and bulk electronic components, leaving electronics manufacturers with half-finished products and idle capacity. As China was ground zero for COVID-19, the shortages started to affect manufacturers worldwide. Component shortages persisted in 2021 also, as many crucial raw materials were in low supply or completely unavailable. The year 2022 also shaped up to be another year indicating a significant impact of COVID-19. Such factors are anticipated to restrain the growth of the studied market.
China Optoelectronics Market Trends
The Image Sensors Segment is Expected to Hold a Major Market Share
- Image sensors are electronic devices that convert optical images to electric signals that a computer can process. Charge-coupled device (CCD) image sensors use optoelectronic components to convert photons of light to electrons, which are then stored and read out from the device.
- Complementary metal-oxide-semiconductor (CMOS) image sensors use optoelectronic components to detect light and convert it to an electrical signal. CMOS sensors are used in many digital cameras and smartphones.
- Further, infrared (IR) image sensors use optoelectronic components to detect IR radiation, enabling them to see in low-light or no-light situations. Optoelectronics can also be utilized to enhance the sensitivity and performance of image sensors, making it easier to capture high-quality images in challenging lighting conditions.
- According to Groupe Speciale Mobile Association (GSMA), China will witness an additional 41 million mobile subscribers by 2030, taking the mobile penetration rate to 89%. Further, according to the Ministry of Industry and Information Technology (MIIT), China had 1.84 billion cellular Internet-of-Things (IoT) connections in 2022, making it the first big economy to surpass mobile consumers in terms of cellular IoT connections. Moreover, according to the National Bureau of Statistics of China, there were more than 1.69 billion mobile phone subscriptions as of February 2023 in China. The increasing mobile subscriptions and the developing IT & communications infrastructure in the region would boost the growth of the studied market.
- There are a few different standards organizations related to image sensors in China. For example, the China National Institute of Standardization (CNIS), the national standards organization of China, is responsible for developing and implementing standards in various areas, including image sensors. They have developed several standards related to the performance and characterization of image sensors.
- Similarly, China Electronics Standardization Institute (CESI) is an organization that develops and promotes standards for the electronics industry in China. They have developed standards related to image sensors, including methods for measuring image quality. Such organizations ensure robust quality and efficient functioning of new & innovative technology and products.
The Automotive Segment is Expected to Witness a High Market Growth
- There is a growing dependence on optoelectronics in the automotive industry, including in electric vehicles. Optoelectronics refers to studying and applying electronic devices that interact with light. In the context of electric vehicles, optoelectronics can be used in various ways, such as in light-emitting-diode (LED) lighting, image sensors, laser diodes, and other components.
- Additionally, optoelectronics can be used in charging systems for electric vehicles, including onboard chargers that are mounted within the vehicles. As the market for electric vehicles continues to grow, so too does the reliance on optoelectronics in the automotive industry.
- According to the China Association of Automobile Manufacturers (CAAM), the sales of new energy vehicles in China reached 299,000 units in April 2022, of which 280,000 were passenger electric cars, and 19,000 were commercial electric cars. In 2022, 212,000 and 68,000 passenger battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) were sold, respectively. Such a massive rise in electric vehicles would create an opportunity for the studied market to grow.
- Further, photovoltaic cells are being increasingly used in the automotive industry to power electric vehicles, including solar cars. The efficiency of PV cells is improving every year, and car manufacturers are developing solar-powered vehicles that can convert energy from sunlight into electricity and store solar energy in batteries.
- Solar modules designed and manufactured for car concepts have been presented by various automakers. Solar car roofs can generate up to 400 Watts of power and contribute to reducing the environmental impact of transportation. PV cells could also be integrated into thin-film solar cells that can be fabricated to fit any car model, making electric cars more affordable and contributing to carbon neutrality.
- The progress toward introducing solar cars would drive the growth of the studied market. For instance, in July 2022, the first entirely solar electric vehicle (SEV) was created in China due to multi-organizational collaboration. The car is presently on a tour of mainland China after being recently unveiled at the World Intelligence Conference. It weighs 2,250 pounds (1,020 kilograms). Even without the navigator's seat, it allows four people to sit comfortably.
- Moreover, LED automotive lighting has become increasingly popular in recent years due to its energy efficiency, durability, and versatility. LED bulbs provide brighter and more reliable lighting than traditional halogen bulbs and last longer. Due to its energy economy, dependability, and versatility, LED car lighting has grown in popularity in recent years. Compared to conventional halogen bulbs, LED bulbs offer brighter, more dependable lighting and lasts longer. According to the China Association of Automobile Manufacturers, in April 2022, around 210,000 commercial vehicles and 996,000 passenger cars were produced in China. The increasing automotive manufacturing in the country is anticipated to offer lucrative opportunities for the growth of the studied market.
China Optoelectronics Industry Overview
The China optoelectronics market is moderately fragmented, with the presence of several players like General Electric Company, Panasonic Corporation, Samsung Electronics, etc. The market players are constantly striving to innovate new products and solutions to cater to the evolving needs of consumers by investing in R&D, partnerships, mergers, acquisitions, etc. Some of the recent developments in the market are:
In September 2022, Applied Optoelectronics, Inc., a prominent provider of fiber-optic access network products for the cable television broadband, internet data center, telecom, and fiber-to-the-home markets, announced that it has entered into an agreement with YuhanOptoelectronic Technology Co., Ltd. for the sale of its manufacturing facilities in the People's Republic of China and assets related to its transceiver business and multi-channel optical sub-assembly products for the telecom, internet datacenter, and FTTH markets for a purchase price of USD 150 million, less a holdback amount.
In September 2022, Samsung Display terminated its LCD business. The company sold its LCD factory in Suzhou, China. Samsung completed transferring its LCD-related patents to China Star Optoelectronics Technology (CSOT). A total of 577 patents registered in the USA got transferred in June, and Samsung handed over additional patents registered in South Korea to CSOT.
China Optoelectronics Market Leaders
General Electric Company
Panasonic Corporation
Samsung Electronics
Sony Corporation
Mitsubishi Electric
*Disclaimer: Major Players sorted in no particular order
China Optoelectronics Market News
- April 2023: China's San'anOptoelectronics announced that it would utilize its own Silicon Carbide chips in cars from the fourth quarter of 2023. As per the company, the automobile industry is still short of chips, and manufacturing them domestically is one of the ways to solve shortages. The investment and construction period of silicon carbide chip projects is anticipated to be between 18 and 24 months, while the shortfall of silicon carbide power chips will last until 2025.
- May 2022: Huawei announced a partnership with National Star Optoelectronics for mini-LED development. Nationstar Optoelectronics would collaborate with its prowess in LED display, backlight, and other fields. On the other hand, Huawei would contribute with its expertise in chips, AI, 5G, etc.
Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat of New Entrants
4.2.4 Intensity of Competitive Rivalry
4.2.5 Threat of Substitutes
4.3 Technological Trends
4.4 Value Chain Analysis
4.5 Assessment of Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Growing demand for Smart Consumer Electronics and Advanced Technologies
5.1.2 Increasing awareness about vehicle safety
5.1.3 Enhanced socio-economic and demographic factors such as urbanization, growing population, disposable incomes
5.2 Market Restrains
5.2.1 Affordable and easily availabl esubstitues (like halogen bulbs)
5.2.2 High Manufacturing and Fabricating Costs
6. MARKET SEGMENATTION
6.1 By Component Type
6.1.1 LED
6.1.2 Laser Diode
6.1.3 Image Sensors
6.1.4 Optocouplers
6.1.5 Photovoltaic cells
6.1.6 Other Component Types
6.2 By End-User Industry
6.2.1 Automotive
6.2.2 Aerospace & Defense
6.2.3 Consumer Electronics
6.2.4 Information Technology
6.2.5 Healthcare
6.2.6 Residential and Commercial
6.2.7 Industrial
6.2.8 Other End-User Industries
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 General Electric Company
7.1.2 Panasonic Corporation
7.1.3 Samsung Electronics
7.1.4 Omnivision Technologies Inc.
7.1.5 Sony Corporation
7.1.6 Osram Licht AG
7.1.7 Koninklijke Philips N.V.
7.1.8 Texas Instruments Inc
7.1.9 Mitsubishi Electric
7.1.10 Rohm Semiconductor
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
China Optoelectronics Industry Segmentation
Optoelectronics is the field of technology concerned with electronic device applications for sourcing, detecting, and controlling light. It encompasses the design, manufacture, and study of electronic hardware devices that, as a result, convert electricity into photon signals for various purposes, such as medical equipment, telecommunications, and general science.
The China optoelectronics market is segmented by component type (photo voltaic (PV) cells, optocouplers, image sensors, light emitting diodes (LED), laser diode (LD), infrared components (IR), and component types) and end-user (aerospace & defense, automotive, consumer electronics, information technology, healthcare, residential and commercial, industrial, and other end-user industries).
The market sizes and forecasts are provided in terms of value (USD billion) for all the above segments.
Frequently Asked Questions
What is the current China Optoelectronics Market size?
The China Optoelectronics Market is projected to register a CAGR of 11.70% during the forecast period (2024-2029)
Who are the key players in China Optoelectronics Market?
General Electric Company, Panasonic Corporation, Samsung Electronics, Sony Corporation and Mitsubishi Electric are the major companies operating in the China Optoelectronics Market.
What years does this China Optoelectronics Market cover?
The report covers the China Optoelectronics Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the China Optoelectronics Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
China Optoelectronics Industry Report
Statistics for the 2024 China Optoelectronics market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. China Optoelectronics analysis includes a market forecast outlook to for 2024 to 2029) and historical overview. Get a sample of this industry analysis as a free report PDF download.
