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Photonics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Photonics Market is segmented by Application (Surveying and Detection, Production Technology, Data Communication, Image Capture and Display, Medical Technology, Lighting), and Geography.

Market Snapshot

CAGR
Study Period:

2018 - 2026

Base Year:

2020

Fastest Growing Market:

North America

Largest Market:

Asia Pacific

CAGR:

7.14 %

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Market Overview

The Global Photonics Market was valued at USD 589.82 billion in 2020, and it is expected to reach USD 1019.77 billion by 2026, registering a CAGR of approximately 7.14% during the period of 2021-2026. The COVID-19 outbreak has affected many industries. Due to the nationwide lockdown globally, many photonic devices manufacturing companies face supply chain interruption and manufacturing inefficiency. However, the COVID-19 outbreak has expanded the scope of photonic devices in the healthcare industry.

Ever since the COVID-19 pandemic struck, biophotonic researchers ramped up their efforts to count on their cutting-edge technologies against the infection and the virus that is the reason behind. Addressing this area of concern, the FiO+LS 2020 conference also hosted two special sessions.

  • Moreover, the trends in photonics, such as lidar or additive manufacturing are rising. Lidar technology has been used for decades to analyze the distribution of gases and pollutants in the atmosphere. It has become a crucial technology for autonomous driving in recent years.
  • Silicon-based photonics application is the key driver for the photonics market. Hybrid silicon lasers (silicon and group III-V semiconductor) are used in telecommunications and data center applications, which gives the advantage of light-emitting properties of III-V semiconductor materials.
  • Technological advancements in light-based technologies have been driving the new wave of innovation by providing sustainable solutions to global challenges, which has been identified as a major driving factor for the global market.
  • However, due to the high cost of applications of photonics products, the market is expected to face challenges in the future.

Scope of the Report

Photonics is an area of study that involves the use of radiant energy (such as light), whose fundamental element is the photon and waves that can be used to cure diseases, explore the universe, and even solve crimes. The advancements in the photonics market have been stimulated owing to developments in the field of fiber optics and introduction of electricity, which have given a boost to the conversion. The evolvement of photonics has also resulted in a steady increase in the performance of both OPV and OLED technologies.

Application
Surveying and Detection
Production Technology
Data Communication
Image Capture and Display
Medical Technology
Lighting
Other Applications (Traffic and Research)
Geography
North America
United States
Canada
Europe
Germany
United Kingdom
France
Russia
Rest of Europe
Asia Pacific
Japan
China
India
Taiwan
South Korea
Rest of Asia Pacific
Rest of the World

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Key Market Trends

Applications of Silicon Photonics to Gain Market Share in Data Communication

  • Silicon photonics is an evolving branch of photonics offering a clear advantage over electric conductors used in semiconductors, which are used in high-speed transmission systems.
  • In data center applications, fiber-based optical interconnects can be used to provide point-to-point links, enabling high-bandwidth, inter-rack, data communications. However, due to the use of bulk optical components, high energy and cost are key disadvantages.
  • The integration of silicon photonic devices can be used for high-bandwidth, multi-channel, wavelength division multiplexed with effective optical communication. The realization of an on-chip channelized spectrum monitor and a network-node-on-a-chip is a key example, where these optical integrated circuits are used to replace bulk optical components with their functional equivalents on monolithic silicon.
  • 100G silicon photonic transceiver is gaining the market share, due to its high data speed data communication with future integration in 5G technology. Intel Corporation's portfolio of 100G silicon photonics transceivers is optimized to meet the bandwidth requirements of next-generation communications infrastructure, while withstanding harsh environmental conditions.
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Asia Pacific Occupies the Major Market Share

  • Asia Pacific region occupies the most significant market because of the presence of emerging economies such as China and India. The availability of a cheap workforce coupled with favorable government initiatives is driving the market growth.
  • For instance, China aims to become a global leader in manufacturing by 2025 through its initiative " Made in China 2025". Currently, China is a leader in manufacturing smartphones and other consumer electronics, such as flat panel displays and, lighting products. Thus, through this initiative, China aims to become the world's "factory," and in return would have a positive impact on the market.
  • Moreover, with the rising young workforce in countries such as India, there is an increase in disposable income which is another primary reason which is expected to drive the market. This is because the major vendors are expanding their footprint in the country through partnerships or mergers and acquisitions to gain a competitive advantage.
  • For instance, Sansui Electric Co., Ltd in partnership with Jaina Group of New Delhi, announced establishing a manufacturing unit for television, washing machines, refrigerators, and air-conditioners in Gurgaon by June 2020. The group has entered into a 24-year licensing agreement and plans to invest INR 1,000 crore in the next three years. Such an initiative is expected to augment the market.
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Competitive Landscape

The photonics market is highly fragmented and the major players have used various strategies, such as expansions, new product launches, partnerships, agreements, joint ventures, and acquisitions, among others, to increase their footprints in this market. Key players in the market are Hamamatsu Photonics KK, Intel Corporation, Alcatel-Lucent SA, etc.

  • March 2020 - Hamamatsu Photonics KK purchased a 55% stock share in Hamamatsu Photonics Korea Co. Ltd based out of Korea, which is a new company, where Hamamatsu Photonics shifted its local sales distributor activities. The new company is now a subsidiary in Korea, and it aims to further increase sales in Asia by strengthening the sales structure of the Measurement Instruments business.

Recent Developments

  • April 2020 - A research team at Intel developed a photonic engine with the equivalent processing power of 16 100-Gb transceivers, or four of the latest 12.8-Tb generation. With the 1.6-Tb/s photonic engine, one can co-package the photonics in the same multichip package as the switch ASIC.
  • March 2020 - Huber+Suhnercreated a ground-breaking Polatisoptical switch platform with industry-leading capacity. The latest addition to the award-winning Polatisall-optical switch was designed to provide operators with 50% more capacity than any other solution in the market.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

      1. 4.2.1 Emergence of Silicon-based Photonics Applications

      2. 4.2.2 Increasing Focus on High Performance and Eco- friendly Solutions

    3. 4.3 Market Restraints

      1. 4.3.1 High Cost of Photonics Enabled Devices Due to High Integration

    4. 4.4 Industry Supply Chain Analysis

    5. 4.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.5.1 Threat of New Entrants

      2. 4.5.2 Bargaining Power of Buyers/Consumers

      3. 4.5.3 Bargaining Power of Suppliers

      4. 4.5.4 Threat of Substitute Products

      5. 4.5.5 Intensity of Competitive Rivalry

    6. 4.6 Technology Snapshot

    7. 4.7 Impact of COVID-19 on the Market

  5. 5. MARKET SEGMENTATION

    1. 5.1 Application

      1. 5.1.1 Surveying and Detection

      2. 5.1.2 Production Technology

      3. 5.1.3 Data Communication

      4. 5.1.4 Image Capture and Display

      5. 5.1.5 Medical Technology

      6. 5.1.6 Lighting

      7. 5.1.7 Other Applications (Traffic and Research)

    2. 5.2 Geography

      1. 5.2.1 North America

        1. 5.2.1.1 United States

        2. 5.2.1.2 Canada

      2. 5.2.2 Europe

        1. 5.2.2.1 Germany

        2. 5.2.2.2 United Kingdom

        3. 5.2.2.3 France

        4. 5.2.2.4 Russia

        5. 5.2.2.5 Rest of Europe

      3. 5.2.3 Asia Pacific

        1. 5.2.3.1 Japan

        2. 5.2.3.2 China

        3. 5.2.3.3 India

        4. 5.2.3.4 Taiwan

        5. 5.2.3.5 South Korea

        6. 5.2.3.6 Rest of Asia Pacific

      4. 5.2.4 Rest of the World

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles*

      1. 6.1.1 Hamamatsu Photonics KK

      2. 6.1.2 Intel Corporation

      3. 6.1.3 Polatis Photonics Inc.

      4. 6.1.4 Alcatel-Lucent SA

      5. 6.1.5 Molex Inc. (Koch Industries)

      6. 6.1.6 Infinera Corporation

      7. 6.1.7 NEC Corporation

      8. 6.1.8 Innolume GmbH

      9. 6.1.9 Finisar Corporation

      10. 6.1.10 IPG Photonics

      11. 6.1.11 Osram Licht AG

      12. 6.1.12 Philips Photonics (Trumpf GmbH)

      13. 6.1.13 Photonics SAS (Keopsys)

      14. 6.1.14 Schott AG

      15. 6.1.15 Carl Zeiss AG (Scantinel Photonics GmbH)

  7. 7. INVESTMENT ANALYSIS

  8. 8. FUTURE OF THE MARKET

**Subject to Availability

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Frequently Asked Questions

The Photonics Market market is studied from 2018 - 2026.

The Photonics Market is growing at a CAGR of 7.14% over the next 5 years.

North America is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2020.

  • Hamamatsu Photonics KK
  • Intel Corporation
  • POLATIS INCORPORATED (HUBER+SUHNER)
  • Alcatel-Lucent SA (Nokia Corporation)
  • Molex Inc. (Koch Industries)​

Are the major companies operating in Photonics Market.

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