Photonics Market Size
|Study Period||2018 - 2028|
|Market Size (2023)||USD 0.81 Trillion|
|Market Size (2028)||USD 1.17 Trillion|
|CAGR (2023 - 2028)||7.54 %|
|Fastest Growing Market||Asia Pacific|
|Largest Market||Asia Pacific|
*Disclaimer: Major Players sorted in no particular order
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Photonics Market Analysis
The Photonics Market size is expected to grow from USD 0.81 trillion in 2023 to USD 1.17 trillion by 2028, at a CAGR of 7.54% during the forecast period (2023-2028).
- Photonics is regarded as a critical enabling technology for developing smart systems that efficiently use energy without sacrificing overall system efficiency. Many verticals, including healthcare, automotive, communications, manufacturing, and retail, are leveraging the technology to attain higher efficiency, driving growth. Investments from these sectors also have witnessed significant growth in the recent past.
- With photonics being a core technology of multiple industries, the consumption of the technology is witnessing rapid growth, with the market expanding in new verticals. Thus, the market is witnessing a robust growth rate.
- Over the past few years, there has been an increasing trend of LiDAR or additive manufacturing in photonics. LiDAR has been used to study the atmosphere's distribution of gases and contaminants for decades. In recent years, it has become a critical technology for autonomous driving. The advancements in LiDAR mapping systems and their enabling technologies penetrated different verticals, like aerospace and defense, corridor mapping and topographical survey, automotive, mining, oil and gas, and other verticals, which are increasing the market scope.
- Compared to conventional products, the high initial cost of silicon-enabled products and devices hinders technology deployment in many fields. While the technology provides higher performance and efficiency, photonics-based devices remain inaccessible to most small- and medium-sized end-users in various verticals due to limited budgets.
- The COVID-19 outbreak affected many industries. Due to the nationwide lockdown globally, many photonic device manufacturing companies faced supply chain interruption and manufacturing inefficiency. However, the COVID-19 outbreak expanded the scope of photonic devices in the healthcare industry. Moreover, with the growing adoption of technologies, like facial recognition amid the pandemic, the scope of photonic sensors was expected to expand due to its technological advancement.
Photonics Market Trends
Applications of Silicon Photonics to Gain Market Share in Data Communication
- The growing use of optical solutions in communication technologies, such as optical broadband, is expected to drive the demand for technology in the market, with the segment commanding a major market share.
- As the growing use of optical networks is part of the infrastructure, the investment from telecommunication companies in enhancing the legacy networks is expected to drive the demand. Telephone companies were the first to replace their old copper wire systems with optical fiber lines. Telephone companies use optical fiber as the backbone architecture and a long-distance connection between the city phone systems.
- Moreover, with the proliferation of technologies and the growing consumption of video content over the Internet, the demand for broadband is increasing worldwide. According to TeleGeography's submarine cable map, submarine cables act as the backbone of the Internet. There are about 300 subsea cables that interconnect countries and continents.
- In the past few years, cloud and content providers attempted to attract more users and offer reliable bandwidth-intensive services, thus increasing the popularity of the submarine infrastructure. The lifetime of submarine cables is expected to be about 25 years.
- Photonics provides novel and disruptive techniques to cope with the increasing bandwidth capacity requirements, particularly in backbone networks.
- Fiber optics can also handle real-time data collection and transfer, as it can support the bandwidth levels for futuristic technologies, such as 5G, IoT, and Big Data. In the process, mobile edge computing and several small cells (or nodes) are needed to eliminate network bottlenecks. These node deployments often utilize the technology of the millimeter-wave spectrum by relying heavily on fiber-cabled connections for the backhaul portion of the network.
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North America Expected to Register Significant Growth
- The North American photonics market is expected to grow significantly over the forecast period, with the United States dominating the regional market. This region's photonics market strongly correlates with growth in adjacent markets such as lighting, safety and protection applications, healthcare, and production technology.
- In addition, the United States dominates the data center hardware market, which is still one of the most important applications for photonics. The presence of several market incumbents, such as IBM, Intel Corp., and HP, along with increased access to R&D funds, is expected to drive growth in this region. The United States has the highest concentration of photonics-based application companies that rely heavily on consumer feedback.
- The presence of industry giants such as Microsoft and Facebook is the primary force driving the US market, necessitating optimizing the data transmission process for respective data centers. The country also provides a favorable environment for technological advancements and expansions. Furthermore, the significant funding landscape in the United States silicon photonics devices industry has encouraged organizations and start-ups to invest in the expanding photonics market.
- Photonics advancements are impacting many areas of the economy significantly, and Canada is well-placed to build a strong position in this future industry. It has many world-class physicists and engineers who work in optics and photonics.
- Furthermore, a team of engineers created a new camera design that replaces lenses with an ultra-thin optical phased array (OPA), allowing smartphone manufacturers to make their devices slimmer. Similarly, similar trends are expected to generate significant demand for photonics adoption in the country over the forecast period.
- Wireless operators in Canada are expected to invest approximately USD 25.8 billion in deploying 5G infrastructure between 2020 and 2026; as a result, the government is also encouraging telecom equipment manufacturing. These initiatives will likely broaden the scope of the country's 5G infrastructure and provide a massive opportunity for market study vendors.
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Photonics Industry Overview
The photonics market is highly fragmented. 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.
In May 2023, ANELLO Photonics announced a partnership with NVIDIA Inception to nurture startups revolutionizing industries with technology advancements. The company is focused on building low-noise and low-drift optical gyroscope smart sensors leveraging ANELLO's patented photonic integrated circuit technology.
In March 2022, IPG Photonics developed the GLPN-500-R laser, which combined single-mode beam quality, short wavelength, short pulse duration, and higher power to enable the exploration of new applications.
In February 2022, Intel announced its plan to acquire Tower Semiconductor for USD 5.4 billion. The company was to expand its manufacturing capabilities as a foundry and add to its global portfolio as a semiconductor manufacturer. Tower Semiconductor is known for significant partnerships and collaborations for laser-power applications and photonics and semiconductor manufacturing facilities in Israel, which was to be a part of Intel's aggressive plans to expand its semiconductor foundry business.
Photonics Market Leaders
Hamamatsu Photonics KK
AMS OSRAM AG
*Disclaimer: Major Players sorted in no particular order
Photonics Market News
- May 2022 : ams OSRAM AG announced the launch of the OSLON Optimal family of LEDs for horticulture lighting, based on the latest ams OSRAM 1mm2 chip, which offered an outstanding combination of high efficiency, reliable performance, and great value.
- May 2022 : Hamamatsu Photonics developed a technology that upgrades the spatial resolution of two-photon excitation fluorescence microscopy. The technology was ideal for high-precision observations of deep regions in biological samples. It promised to be an integral tool for understanding brain functions. The development could be achieved through intensive research utilizing the company's spatial light modulators (SLM) and the optical control technology developed over the years.
Photonics Market Report - Table of Contents
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 Buyers/Consumers
4.3.2 Bargaining Power of Suppliers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Assessment of the Impact of 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
6.1.1 Surveying and Detection
6.1.2 Production Technology
6.1.3 Data Communication
6.1.4 Image Capture and Display
6.1.5 Medical Technology
6.1.7 Other Applications
6.2.1 North America
184.108.40.206 United States
220.127.116.11 United Kingdom
18.104.22.168 Rest of Europe
22.214.171.124 South Korea
126.96.36.199 Rest of Asia-Pacific
6.2.4 Rest of the World
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles*
7.1.1 Hamamatsu Photonics KK
7.1.2 Intel Corporation
7.1.3 NEC Corporation
7.1.4 AMS OSRAM AG
7.1.5 IPG Photonics
7.1.6 Polatis Photonics Inc.
7.1.7 Alcatel-Lucent SA
7.1.8 Molex Inc. (Koch Industries)
7.1.9 Infinera Corporation
7.1.10 Innolume GmbH
7.1.11 Finisar Corporation
7.1.12 Philips Photonics (Trumpf GmbH)
7.1.13 LEA Photonics SAS
7.1.14 Schott AG
7.1.15 Carl Zeiss AG (Scantinel Photonics GmbH)
8. INVESTMENT ANALYSIS
9. FUTURE OUTLOOK OF THE MARKET
Photonics Market Research FAQs
How big is the Photonics Market?
The Photonics Market size is expected to reach USD 0.81 trillion in 2023 and grow at a CAGR of 7.54% to reach USD 1.17 trillion by 2028.
What is the current Photonics Market size?
In 2023, the Photonics Market size is expected to reach USD 0.81 trillion.
Who are the key players in Photonics Market?
Hamamatsu Photonics KK, Intel Corporation, NEC Corporation, AMS OSRAM AG and IPG Photonics 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 (2023-2028).
Which region has the biggest share in Photonics Market?
In 2023, the Asia Pacific accounts for the largest market share in Photonics Market.
Photonics Industry Report
Statistics for the 2023 Photonics market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Photonics analysis includes a market forecast outlook to for 2023 to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.