Photonics Industry Size, Share, Growth, Companies Overview & Market Analysis (2025 - 2030)

The Photonics Industry Outlook Report is Segmented by End-User Industry (Consumer, Aerospace and Defense, Display, Solar, LED Lighting, Medical and Bioinstrumentation, Industrial and Manufacturing, Automotive, and Other End-User Industries) and Geography (North America, Europe, Asia-Pacific, and the Rest of the World). The Global Market Size and Forecasts are Provided in Terms of Value (USD) for all the Above-Mentioned Segments.

Photonics Industry Size, Share, Growth, Companies Overview & Market Analysis (2025 - 2030)

Photonics Industry Size

Photonics Market Summary
Study Period 2019 - 2030
Market Size (2025) USD 1.75 Trillion
Market Size (2030) USD 2.39 Trillion
CAGR (2025 - 2030) 6.50 %
Fastest Growing Market Asia Pacific
Largest Market Asia Pacific
Market Concentration Low

Major Players

Photonics Market Major Players

*Disclaimer: Major Players sorted in no particular order

Compare market size and growth of Photonics Industry with other markets in Technology, Media and Telecom Industry

Automation

Digital Commerce

Electronics

Information Technology

Media and Entertainment

Security & Surveillance

Photonics Industry Analysis

The Photonics Industry is expected to grow from USD 1.75 trillion in 2025 to USD 2.39 trillion by 2030, at a CAGR of 6.5% during the forecast period (2025-2030).

The photonics industry is experiencing transformative growth driven by technological convergence across multiple sectors, particularly in consumer electronics and telecommunications. According to recent data, smartphone sales in the United States reached USD 74.7 billion in 2022-2023, despite temporary market challenges due to economic factors. The integration of photonic components in smartphones, particularly for advanced camera systems and sensing technologies, continues to drive innovation in the consumer electronics sector. This trend is further supported by projections indicating North American smartphone subscribers will reach 328 million by 2025, with internet penetration rates expected to hit 80% in the same period.


The data center industry represents a crucial growth vector for photonics market growth, with applications ranging from optical fiber interconnects to high-speed data transmission systems. The United States leads globally with 2,670 data centers, followed by the United Kingdom with 452 and Germany with 443, highlighting the substantial infrastructure supporting digital transformation. Major technology companies are increasingly investing in photonics-based solutions to address data center bottlenecks and improve energy efficiency, particularly in high-performance computing applications.


The automotive sector is witnessing a revolutionary transformation through the integration of photonics-based technologies, particularly in autonomous driving systems and advanced driver assistance systems (ADAS). LiDAR technology, a critical component for autonomous vehicles, has evolved from environmental monitoring to becoming an essential element in self-driving capabilities. The advancement in LiDAR mapping systems has expanded beyond automotive applications into aerospace, defense, corridor mapping, and topographical surveying, creating a diverse ecosystem of applications.


The industrial automation sector is increasingly adopting photonics-based solutions for manufacturing and quality control processes. Laser-based manufacturing processes, particularly in high-precision applications, are becoming more sophisticated through the integration of photonics technology. This trend is particularly evident in the semiconductor industry, where photonic integrated circuit technology plays a crucial role in lithography and inspection systems. The emergence of new players and technologies, exemplified by OpenLight's launch of an open silicon photonics market platform in June 2022, is democratizing access to advanced photonics capabilities across various industrial applications.

Segment Analysis: By Applications

Image Capture and Display Segment in Optical Photonics Market

The Image Capture and Display segment continues to dominate the global optical photonics market, commanding approximately 26% market share in 2024. This segment's prominence is driven by the increasing adoption of advanced display technologies across consumer electronics, automotive displays, and professional imaging systems. The segment encompasses a broad range of applications, including OLED displays, digital cameras, machine vision systems, and holographic displays. The growing demand for high-resolution displays in smartphones, tablets, and other electronic devices, coupled with the rising implementation of augmented reality (AR) and virtual reality (VR) technologies, has significantly contributed to this segment's market leadership. Additionally, the industrial sector's increasing reliance on machine vision and image processing systems for quality control and automation has further strengthened this segment's position.

Market Analysis of Photonics Market: Chart for By Applications

Data Communication Segment in Photonics Market

The Data Communication segment is emerging as the fastest-growing segment in the photonics market, with an expected growth rate of approximately 9% from 2024 to 2029. This remarkable growth is primarily driven by the increasing demand for high-speed data transmission and the ongoing deployment of 5G networks globally. The segment is witnessing substantial innovation in silicon photonic integrated circuit technology, which is revolutionizing data center interconnects and telecommunications infrastructure. The rising adoption of cloud computing services, expanding internet traffic, and the growing need for energy-efficient communication solutions are further accelerating the segment's growth. Additionally, the development of advanced optical transceivers and the increasing implementation of fiber-optic networks in emerging economies are contributing to this segment's rapid expansion.

Remaining Segments in Photonics Market Segments

The other segments in the photonics market segments, including Surveying and Detection, Medical Technology, Production Technology, and Lighting, each play crucial roles in different applications. The Surveying and Detection segment is vital for security systems and environmental monitoring applications. Medical Technology applications focus on diagnostic imaging, therapeutic devices, and surgical systems. Production Technology encompasses laser-based manufacturing and quality control systems. The Lighting segment continues to evolve with LED and OLED technologies for energy-efficient lighting solutions. These segments collectively contribute to the diverse applications of optical systems technology across various industries, from healthcare and manufacturing to environmental monitoring and smart lighting systems.

Photonics Market Geography Segment Analysis

Photonics Market in North America

The North American photonics market demonstrates strong technological leadership and innovation capabilities across various applications, including telecommunications, healthcare, and industrial manufacturing. The United States and Canada form the key markets in this region, with both countries showing significant investments in research and development of photonic technologies. The region benefits from the presence of major technology companies and research institutions that drive advancement in optical communications, silicon photonics, and integrated photonics circuits.

Market Analysis of Photonics Market: Forecasted Growth Rate by Region

Photonics Market in the United States

The United States dominates the North American photonics market, holding approximately 79% of the regional market share in 2024. The country's market leadership is driven by substantial investments in data center infrastructure, the presence of major technology companies, and advanced research capabilities in silicon photonics. The US market benefits from strong government support through initiatives in quantum computing and photonics research, alongside the presence of leading semiconductor manufacturers and photonics companies in the USA. The country's robust ecosystem of universities, research institutions, and private enterprises continues to drive innovation in areas such as LiDAR technology, optical communications, and integrated photonic circuits.

Photonics Market in Canada

Canada emerges as the fastest-growing market in North America, with a projected growth rate of approximately 10% during 2024-2029. The country's photonics industry is experiencing rapid expansion driven by increasing investments in optical fiber infrastructure and growing adoption of photonic technologies in various sectors. Canada's strong focus on research and development, particularly in quantum technologies and optical communications, positions it well for future growth. The country's photonics sector benefits from government initiatives supporting technological innovation and the presence of world-class research institutions specializing in optics and photonics.

Photonics Market in Europe

The European photonics market showcases strong technological capabilities and innovation across multiple countries, including the United Kingdom, Germany, France, and Italy. The region's market is characterized by robust research and development activities, particularly in areas such as optical communications, industrial photonics, and medical applications. European countries demonstrate strong collaboration between industry and academia, supported by various EU-level initiatives promoting photonics research and commercialization.

Photonics Market in the United Kingdom

The United Kingdom stands as the largest photonics market in Europe, commanding approximately 52% of the market share in 2024. The country's leadership position is supported by its advanced research infrastructure and strong focus on developing next-generation photonic technologies. The UK's photonics industry benefits from significant investments in quantum technologies, optical communications, and integrated photonic circuits, alongside a robust ecosystem of research institutions and technology companies working on innovative applications.

Photonics Market in France

France emerges as the fastest-growing photonics market in Europe, with its market expansion driven by increasing investments in optical fiber infrastructure and growing adoption of photonic technologies across various industries. The country's strong focus on research and development, particularly in areas such as silicon photonics and quantum technologies, positions it well for future growth. France's photonics sector benefits from government support for technological innovation and strong collaboration between industry and research institutions.

Photonics Market in Asia-Pacific

The Asia-Pacific region represents a dynamic and rapidly evolving photonics market, encompassing major economies such as China, Japan, India, South Korea, and Taiwan. The region demonstrates strong capabilities in manufacturing photonic components and devices, supported by robust semiconductor and electronics industries. APAC's photonics sector benefits from significant investments in telecommunications infrastructure, growing adoption of automation technologies, and an increasing focus on indigenous technology development.

Photonics Market in China

China stands as the largest photonics market in the Asia-Pacific region, driven by its massive manufacturing capabilities and growing technological prowess. The country's photonics industry benefits from strong government support through initiatives like Made in China 2025, which emphasizes the development of advanced technologies, including photonics. China's market leadership is supported by significant investments in telecommunications infrastructure, data centers, and research facilities, alongside a growing ecosystem of domestic technology companies.

Photonics Market in India

India emerges as the fastest-growing market in the Asia-Pacific region, driven by increasing investments in digital infrastructure and growing adoption of photonic technologies across various sectors. The country's photonics industry benefits from government initiatives promoting domestic manufacturing and technological innovation. India's market growth is supported by expanding telecommunications infrastructure, rising demand for data center solutions, and increasing applications in healthcare and industrial sectors. Notably, the presence of leading photonics companies, including a prominent photonics company in India, contributes to the country's burgeoning market.

Photonics Market in Rest of the World

The Rest of the World region, encompassing Latin America and the Middle East & Africa, demonstrates growing adoption of photonic technologies across various applications. These regions show increasing investments in telecommunications infrastructure and rising demand for photonic solutions in industrial and healthcare sectors. The market growth is driven by digital transformation initiatives, expansion of data center facilities, and increasing focus on advanced manufacturing capabilities. Latin America, particularly Mexico, emerges as the largest market in this region, while Middle Eastern countries show the fastest growth potential driven by investments in smart city initiatives and telecommunications infrastructure.

Photonics Industry Overview

Top Companies in Photonics Market

The global photonics marketplace features prominent players like Intel Corporation, Hamamatsu Photonics, Nokia (Alcatel-Lucent), Molex, IPG Photonics, and Carl Zeiss, among others, driving innovation through extensive R&D investments. These photonics industry companies are actively expanding their technological capabilities through strategic acquisitions and partnerships, particularly in emerging areas like silicon photonics, LiDAR systems, and optical communications. The industry demonstrates a strong focus on vertical integration, with many players maintaining in-house manufacturing facilities for critical components while simultaneously pursuing collaborations to access new markets and technologies. Companies are increasingly emphasizing the development of integrated photonic solutions that combine multiple functionalities on single chips, while also expanding their geographical presence through strategic facility establishments and distribution partnerships across key regions.

Dynamic Market Structure Drives Industry Evolution

The photonics market exhibits a complex competitive structure characterized by the presence of both large diversified technology conglomerates and specialized photonics company solutions providers. Major conglomerates leverage their extensive R&D capabilities and established market presence to maintain leadership positions, while specialized players carve out niches through focused innovation in specific application areas. The market demonstrates moderate consolidation with ongoing merger and acquisition activities, particularly focused on acquiring innovative technologies and expanding geographical reach. Companies like Nokia and Intel have strengthened their market positions through strategic acquisitions of smaller, specialized photonics company firms, while others have formed joint ventures and partnerships to combine complementary capabilities and address emerging market opportunities.


The competitive dynamics are further shaped by the increasing convergence of optical and electronic technologies, driving companies to expand their portfolios through both organic growth and strategic acquisitions. Market participants are actively pursuing vertical integration strategies to maintain control over critical components and technologies, while simultaneously establishing strategic partnerships to access new markets and applications. The industry has witnessed several notable acquisitions aimed at consolidating market position and acquiring technological capabilities, particularly in emerging areas like silicon photonics, quantum optics, and integrated optical solutions.

Innovation and Integration Drive Future Success

Success in the global photonics industry increasingly depends on companies' ability to develop integrated solutions that address evolving customer needs across multiple applications. Photonics market leaders are investing heavily in research and development to maintain technological leadership, while also focusing on operational efficiency and manufacturing scale to remain cost-competitive. The industry's future trajectory is being shaped by the growing demand for high-speed data communication, autonomous vehicles, and advanced sensing applications, requiring companies to maintain robust innovation pipelines and flexible manufacturing capabilities. Companies must also navigate complex supply chains and establish strong relationships with both suppliers and customers to ensure sustainable growth.


Market participants need to carefully balance their investment in emerging technologies while maintaining profitability in established product lines. Success factors include the ability to scale production efficiently, maintain strong intellectual property portfolios, and establish effective go-to-market strategies across diverse application segments. Companies must also address potential regulatory challenges, particularly in sensitive applications like healthcare and autonomous vehicles, while managing the risk of technological substitution through continuous innovation. Building strong relationships with end-users and understanding their evolving needs remains crucial, as does the ability to provide comprehensive solutions rather than standalone products.

Photonics Industry Leaders

  1. Hamamatsu Photonics KK

  2. Intel Corporation

  3. Polatis Incorporated (HUBER+SUHNER)

  4. Alcatel-lucent SA (Nokia Corporation)

  5. Molex Inc. (koch Industries)

  6. *Disclaimer: Major Players sorted in no particular order
Photonics Market Concentration
Need More Details on Market Players and Competiters?
Download PDF

Photonics Industry News

  • November 2023 - Ams OSRAM AG added Red, True Green, and Blue colors to its OSTAR Projection Compact family of low-profile, ultra-high brightness LEDs, which enables manufacturers of machine vision systems or stage lighting fixtures to create more powerful and slimmer products. The OSTAR Projection Compact LEDs can be packed very closely together in high-power luminaire designs because of their excellent thermal dissipation and small, flat packages. The thermal resistance is just 1.4 K/W, while the 4040 package has 4.0 mm x 4.0 mm x 0.75 mm dimensions. 
  • September 2023 - IPG Photonics Corporation announced the launch of a New Dual-Beam Laser with the Highest Single-Mode Core Power at The Battery Show in Novi, Michigan. It offers unprecedented speed and productivity improvements for battery welding, with spatter-free welding speeding up to 2X faster than possible with lower core powers. 

Photonics Industry Report - 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 Bargaining Power of Suppliers
    • 4.3.2 Bargaining Power of Buyers/Consumers
    • 4.3.3 Threat of New Entrants
    • 4.3.4 Threat of Substitute Products and Services
    • 4.3.5 Intensity of Competitive Rivalry
  • 4.4 Impact of COVID-19 Aftereffects and Other Macroeconomic Factors on the Market
  • 4.5 Technology Snapshot

5. MARKET DYNAMICS

  • 5.1 Market Drivers
    • 5.1.1 Emergence of Silicon-based Photonics Applications
    • 5.1.2 Increasing Focus on High Performance and Eco-friendly Solutions
  • 5.2 Market Restraints
    • 5.2.1 High Initial Cost of Photonics-enabled Devices

6. MARKET SEGMENTATION

  • 6.1 By End-user Industry
    • 6.1.1 Consumer
    • 6.1.2 Aerospace and Defense
    • 6.1.3 Display
    • 6.1.4 Solar
    • 6.1.5 LED Lighting
    • 6.1.6 Medical and Bioinstrumentation
    • 6.1.7 Industrial and Manufacturing
    • 6.1.8 Automotive
    • 6.1.9 Other End-user Industries
  • 6.2 By Geography
    • 6.2.1 North America
    • 6.2.1.1 United States
    • 6.2.1.2 Canada
    • 6.2.2 Europe
    • 6.2.2.1 United Kingdom
    • 6.2.2.2 Germany
    • 6.2.2.3 France
    • 6.2.2.4 Italy
    • 6.2.2.5 Rest of Europe
    • 6.2.3 Asia-Pacific
    • 6.2.3.1 Japan
    • 6.2.3.2 China
    • 6.2.3.3 India
    • 6.2.3.4 Taiwan
    • 6.2.3.5 South Korea
    • 6.2.3.6 Rest of Asia-Pacific
    • 6.2.4 Rest of the World

7. COMPETITIVE LANDSCAPE

  • 7.1 Vendor Positioning Analysis
  • 7.2 Company Profiles*
    • 7.2.1 Hamamatsu Photonics KK
    • 7.2.2 Intel Corporation
    • 7.2.3 Polatis Incorporated (HUBER+SUHNER)
    • 7.2.4 Alcatel-lucent SA (Nokia Corporation)
    • 7.2.5 Molex Inc. (Koch Industries)
    • 7.2.6 Infinera Corporation
    • 7.2.7 NEC Corporation
    • 7.2.8 Innolume GmbH
    • 7.2.9 Coherent Corporation
    • 7.2.10 IPG Photonics Corporation
    • 7.2.11 AMS OSRAM AG
    • 7.2.12 Signify NV
    • 7.2.13 LEA Photonics SAS (Keopsys)
    • 7.2.14 Schott AG
    • 7.2.15 Carl Zeiss AG (Scantinel Photonics GmbH)
    • 7.2.16 Nikon Corporation
    • 7.2.17 Corning Inc.

8. INVESTMENT ANALYSIS

9. FUTURE OUTLOOK OF THE MARKET

**Subject to Availability
You Can Purchase Parts Of This Report. Check Out Prices For Specific Sections
Get Price Break-up Now

Photonics Industry Industry Segmentation

Photonics is an area of study involving 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 scope of the study focuses on the industry analysis of photonics-enabled systems sold globally, and market sizing encompasses the revenue generated through photonics-enabled systems sold by various market leaders. The study also tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry, which supports the market estimations and growth rate during the forecast period. This industry outlook report further analyzes the overall impact of key macroeconomic trends on the ecosystem. The report's scope encompasses market sizing and forecast for segmentation by end-user industry and geography. 

The photonics market is segmented by end-user industry (consumer, aerospace and defense, display, solar, LED lighting, medical and bio-instrumentation, industrial and manufacturing, automotive, and other end-user industries), by geography (North America [United States, Canada], Europe [United Kingdom, Germany, France, Italy, and Rest of Europe], Asia-Pacific [Japan, China, India, Taiwan, South Korea, and Rest of Asia-Pacific], and Rest of the World). The market size and forecasts for the above-mentioned market segments are provided in terms of value in USD. 

By End-user Industry Consumer
Aerospace and Defense
Display
Solar
LED Lighting
Medical and Bioinstrumentation
Industrial and Manufacturing
Automotive
Other End-user Industries
By Geography North America United States
Canada
Europe United Kingdom
Germany
France
Italy
Rest of Europe
Asia-Pacific Japan
China
India
Taiwan
South Korea
Rest of Asia-Pacific
Rest of the World
Need A Different Region or Segment?
Customize Now

Photonics Industry Research FAQs

How big is the Photonics Market?

The Photonics Market size is expected to reach USD 1.75 trillion in 2025 and grow at a CAGR of 6.5% to reach USD 2.39 trillion by 2030.

What is the current Photonics Market size?

In 2025, the Photonics Market size is expected to reach USD 1.75 trillion.

Who are the key players in Photonics Market?

Hamamatsu Photonics KK, Intel Corporation, Polatis Incorporated (HUBER+SUHNER), Alcatel-lucent SA (Nokia Corporation) and Molex Inc. (koch Industries) are the major companies operating in the Photonics Market.

Which is the fastest growing region in Photonics Market?

Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).

Which region has the biggest share in Photonics Market?

In 2025, the Asia Pacific accounts for the largest market share in Photonics Market.

What years does this Photonics Market cover, and what was the market size in 2024?

In 2024, the Photonics Market size was estimated at USD 1.64 trillion. The report covers the Photonics Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Photonics Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.

Photonics Industry Research

Mordor Intelligence provides comprehensive insights into the photonics industry through detailed market analysis and industry outlook reports. Our research covers crucial segments including optical photonics, silicon photonics, biophotonics, and integrated photonics, delivering valuable market data and growth forecasts. The report pdf includes in-depth analysis of photonics market size, emerging trends, and competitive landscape of largest photonics companies. Our expertise spans across various applications from optical communications to quantum photonics, offering stakeholders a thorough understanding of market dynamics, technological innovations, and growth opportunities in the global photonics market.
Beyond market research, our consulting team specializes in technology scouting and R&D analysis critical for the photonics industry. We support businesses with patent analysis, new product launch tracking, and technology feasibility assessment specific to photonic integrated circuits and optical components. Our expertise extends to competition assessment, helping companies understand their positioning in the photonics marketplace. Through B2B surveys and data analytics, we provide actionable insights on emerging applications in nanophotonics and optical interconnects, enabling businesses to make informed decisions about market entry strategies and product development initiatives.