Japan Optoelectronics Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 9.80 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Japan Optoelectronics Market Analysis
The Japan optoelectronics market was valued at USD 5.22 billion and is anticipated to reach USD 9.14 billion by the end of the forecast period, registering a CAGR of 9.8% during the forecast period.
- The outbreak of COVID-19 across the country significantly disrupted the supply chain and production of the market studied in the initial phase of 2020. Many end-user industries of the market were also affected due to the pandemic, which negatively impacted the market. However, with many COVID-19-related restrictions easing in 2021, the demand for products incorporating laser diode and image sensors increased, positively influencing the market.
- Owing to the pandemic, the automotive industry witnessed a severe slump in demand, leading to negative growth in 2020 and 2021. At the onset of the pandemic, many automakers set aggressive cost curtailment targets. They announced cuts in capital expenditure to remain profitable amid low output and uncertain demand outlook. For instance, Toyota announced plans to cut global production in September 2021 by 40% compared to earlier plans as COVID-19 constricted the supply of semiconductors. The company announced suspensions in operations at multiple Japanese plants that month due to a parts shortage resulting from the spread of COVID-19 in Southeast Asia.
- Optoelectronics include devices that either convert light energy to electricity or electricity to light energy. These devices account for a significant share of the semiconductors market and witness growing consumption across various verticals. In the current market scenario, two- and one-dimensional electron channels, including quantum wells and quantum wires, and cells for electrons known as quantum boxes or quantum dots, are currently being fabricated on large wafers and used in optoelectronic devices.
- The advancement in quantum semiconductor heterostructures and the progress in heterostructure technology are the immediate outcomes of the new advances in fabrication techniques in the studied market. The growing consumption of advanced manufacturing and fabricating technologies is further driving the consumption of optoelectronic components in the industrial sector, using laser and machine vision systems.
- Advances in optoelectronics have made considerable contributions to the efficient transmission of information via optical fibers (including communication between processing machines and within them), to the high-capacity mass storage of data in laser disks, and several other specific applications.
- Moreover, the increasing demand in the automotive industry, specifically with the increase in the adoption of electric vehicles, self-driven trucks, and autonomous vehicles, is expected to boost optoelectronic devices' adoption, further driving the market.
- The demand for the optocoupler is expected to pick momentum as the demand for smartphones, electric vehicles, and other optocoupler-supporting devices increases in the country are growing significantly. Optocouplers are extensively used in communications systems. In January 2022, according to the Japanese government, the United States and Japan recently signed an agreement to jointly invest approximately USD 4.5 billion to develop beyond 5G technologies. Such advancements call for efficient optocouplers in Japan.
- Further, in November 2022, Sony Semiconductor Solutions Corporation (SSS) announced the launch of a fee-based service on its edge AI sensing platform AITRIOS. The service is designed to streamline developing and implementing sensing solutions using edge devices such as AI cameras. This fee-based service comprising AITRIOS is Console Developer Edition, intended mainly to support application and AI developers working to create and operate solutions.
Japan Optoelectronics Market Trends
Automotive is Expected to Hold Significant Market Share
- The automotive industry is going through a transition phase, moving from the traditional internal combustion engine to electrification and towards alternate/clean energy technology. Among the emerging technologies, electric vehicles are gaining the highest traction.
- With the race to electrify automotive fleets, accelerating and more vehicles are arriving from more manufacturers every year. This increase in the number and type of electric vehicles has created opportunities for electronic device/component suppliers to grow their footprint in the vehicle's power electronics systems.
- These drive systems' high voltages and noisy environments require high performance and robust galvanic isolation to ensure safe and reliable operation. Additionally, the ever-increasing power densities from shrinking the sizes of electric vehicle subsystems and raising the wattages also create demanding thermal and electrical noise conditions, which in turn is driving the demand for advanced and highly effective isolation solutions.
- Considering the growth prospects, most optocoupler providers offer products targeted at the automotive sector. For Instance, Toshiba Electronic's analog output IC optocoupler TLX9309 consists of a high-output GaAlAs LED optically coupled to a high-speed detector. The detector also includes a photodiode, a transistor, and a Faraday shield integrated into the photodetector chip to enhance levels of common-mode transient immunity.
- Further, to maintain their competitiveness in the market, vendors place a high priority on the introduction of new products. For instance, Vishay Intertechnology unveiled the first automotive-grade linear optocoupler (VOA300) that is AEC-Q102 qualified and offers a quicker response time and improved gain stability in November 2022.
Consumer Electronics is Expected to Drive the Market
- Image sensors are integral to consumer electronic products, such as smartphones, tablets, and wearables. The image sensors that are built in today's consumer electronic devices use either charge-coupled device (CCD) or complementary metal-oxide semiconductor (CMOS) technology. With the growing adoption of such devices in the country, the demand for image sensors is expected to increase over the forecast period.
- Most CCD image sensors that have been developed for consumer applications possess built-in anti-blooming capability, in contrast to most of the CCDs that have been specifically designed for industrial and scientific applications.
- Moreover, recently, ON Semiconductor introduced a new 50-megapixel-resolution CCD image sensor. As the highest-resolution interline transfer CCD image sensor is commercially available, the KAI-50140 provides the critical imaging detail and high image uniformity needed not only for the inspection of smartphone displays but also for circuit board and mechanical assembly inspection, as well as aerial surveillance. The KAI-50140 is designed in a 2.18-to-1 aspect ratio to match the format of modern smartphones, reducing the number of images captured to inspect a full display.
- Further, in March 2022, STMicroelectronics announced a new family of high-resolution ToF sensors that bring advanced 3D depth imaging to smartphones and other devices. The 3D family debuts with the VD55H1, a sensor that maps three-dimensional surfaces by measuring the distance to over half a million points. Objects can be detected up to five meters from the sensor and even further with patterned illumination.
- Further, many start-ups also focus on product innovation for the studied market. For instance, in February 2022, Metalenz, a meta-optic lens technology start-up, unveiled a new polarization technology that will integrate polarization sensing into consumer and mobile devices and lead to better smartphone healthcare management features.
Japan Optoelectronics Industry Overview
The Japan optoelectronics market is fragmented and is expected to grow in competition during the forecast period owing to the entry of several MNCs. The vendors are focusing on developing customized solution portfolios to fulfill local requirements. Some of the major players operating in the market include General Electric Company, Panasonic Corporation, Samsung Electronics Co., Ltd., Omnivision Technologies Inc., Sony Corporation, Osram Licht AG, Koninklijke Philips N.V., Vishay Intertechnology, Inc., Texas Instruments Inc., etc.
In October 2022, Aixtron Se, a provider of deposition equipment to the semiconductor industry, received an order for an AIX 2800G4 MOCVD System from Furukawa Fitel Optical Device (FFOD) Co., Ltd., a Japan-based manufacturer of compound semiconductor devices.
In March 2022, Nisshinbo Micro Devices Inc. completed the development of the NJL5830R reflective-type optoelectronic sensor for touchless pushbuttons and will begin manufacturing in April 2022. The NJL5830R is an optoelectronic sensor of the reflecting type that combines a high-power infrared light emitting diode (LED) with a reception photo IC in a single package. This solution will help with infection management and hygiene by selecting buttons on extremely public infrastructure, including touchless automatic vending machines, ticket dispensing machines, and elevators.
Japan Optoelectronics Market Leaders
General Electric Company
Panasonic Corporation
Samsung Electronics Co., Ltd.
Omnivision Technologies Inc.
Sony Corporation
*Disclaimer: Major Players sorted in no particular order
Japan Optoelectronics Market News
- December 2022: The Tokyo Metropolitan Government embarked on a research project with local plastics manufacturer Sekisui Chemical to deploy its thin-film perovskite solar cells on a portion of Tokyo's Morigasaki Water Reclamation Center to assess power generation efficiency and verify the corrosion resistance performance of these cells.
- August 2022: Toshiba Electronic Devices & Storage Corporation expanded its smart gate driver photocouplers lineup. The new device, 'TLP5222,' a 2.5A output smart gate driver photocoupler, has a built-in automatic recovery function from the protective operation. The lineup also includes TLP5212, TLP5214, and TLP5214A, which do not have a built-in automatic recovery function but reset to their regular operation by a signal input to their light-emitting-diode (LED).
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 Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 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 Next Generation Technologies
5.1.2 Increasing Industrial Applications of the Technology
5.2 Market Restraints
5.2.1 High Manufacturing and Fabricating Costs
6. MARKET SEGMENTATION
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 & 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 Co., Ltd.
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 Vishay Intertechnology, Inc.
7.1.9 Texas Instruments Inc.
7.1.10 Stanley Electric Co.
7.1.11 Rohm Semiconductor
7.1.12 Mitsubishi Electric Corporation
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
Japan Optoelectronics Industry Segmentation
Optoelectronics allows communication between the optics and the electronics that includes designing, studying, and manufacturing a hardware device that converts electrical energy into light energy and light into energy through semiconductors.
The study includes different component types such as LED, laser diode, image sensors, optocouplers, photovoltaic cells, and other component types for various end-user industries like automotive, aerospace & defense, consumer electronics, information technology, healthcare, residential and commercial, industrial, and other end-user industries.
For all of the above segments, market sizes and forecasts are provided in terms of value (USD billion).
| By Component type | |
| LED | |
| Laser Diode | |
| Image Sensors | |
| Optocouplers | |
| Photovoltaic cells | |
| Other Component Types |
| By End-user Industry | |
| Automotive | |
| Aerospace & Defense | |
| Consumer Electronics | |
| Information Technology | |
| Healthcare | |
| Residential & Commercial | |
| Industrial | |
| Other End-user Industries |
Frequently Asked Questions
What is the current Japan Optoelectronics Market size?
The Japan Optoelectronics Market is projected to register a CAGR of 9.80% during the forecast period (2024-2029)
Who are the key players in Japan Optoelectronics Market?
General Electric Company, Panasonic Corporation, Samsung Electronics Co., Ltd., Omnivision Technologies Inc. and Sony Corporation are the major companies operating in the Japan Optoelectronics Market.
What years does this Japan Optoelectronics Market cover?
The report covers the Japan Optoelectronics Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Japan Optoelectronics Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Japan Optoelectronics Industry Report
Statistics for the 2024 Japan Optoelectronics market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Japan 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.
