Market Trends of Terahertz Technologies Industry
Telecommunications End User Segment is Expected to Witness Significant Growth in the Market
- The terahertz band (0.3 Terahertz to 10 Terahertz) is the successive frontier in wireless communications for its capability to unlock significantly broader segments of unused bandwidth. Though radio channels above 100 GHz are slightly known, several high-speed terahertz communication links have been demonstrated recently.
- Nowadays, the industry is preoccupied with mmWave frequency bands (30 to 300 GHz) to deliver multi-gigabit-per-second (Gbps) data rates for 5G mobile devices. However, like mmWave communications, terahertz bands can be used as mobile backhaul for transferring significant bandwidth signals between base stations.
- A terahertz communication system processing a multi-GHz channel is likely to demand more significant computational capacity in the digital domain, where the baseband subsystem contains tasks like physical layer (PHY) channel coding. Similarly, the analog domain requires improvements in analog-to-digital (ADC) and digital-to-analog (DAC) parts to capture higher-frequency signals efficiently. Moreover, 6G Communications will become one of the largest technology investments, which can widely serve the exponential growth with connected machines in 2030.
- The growing 5G subscriptions worldwide in 2022 are expected to create new opportunities for the 6G network and are expected to gain popularity among consumers in coming years due to its high-speed network capability, which will fuel the market growth. For instance, according to Ericsson, 5G subscriptions are forecast to increase globally from 2019 to 2028, from over 12 million to over 4.5 billion subscriptions, respectively.
- Many countries are launching projects to develop 6G telecommunications, which is expected to boost market growth. For instance, in October 2023, Ericsson launched the 'India 6G program' with the creation of an India 6G Research Team at its Chennai Research & Development Center. India's research team, along with Ericsson research teams in the United States and Sweden, will work together to develop the technology that will help to bring a cyber–physical continuum, where networks will provide immersive communications, critical services, and omnipresent IoT while maintaining the integrity of the delivered data.
- In February 2024, China Mobile, the largest telecom operator in China, stated that it launched the first satellite to test 6G architecture in space. Further, in February 2023, South Korea announced a plan to launch a 6G network service in 2028, two years prior to its original schedule. The country aims to secure an early dominance of future wireless frequencies. South Korea launched a five-year state project to spend around 220 billion won (USD 193 million) on developing core technologies for 6G telecommunication while stepping up joint research and cooperation with the United States. The country aims to achieve the world's first commercialization of 6G mobile telecommunication in 2028.
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North America is Expected to Hold Significant Market Share
- The United States is a key market for terahertz technologies, primarily owing to the growing homeland security issues, investments in defense, and R&D. In addition, the stringent government regulations regarding the safety and production of aerospace technologies in the United States and the growing automotive and aerospace industries are driving the market for Terahertz technologies in the regional market.
- According to the data provided by the Aerospace Industry Association, in 2023, the American A&D industry generated over USD 952 billion in total sales, which is up 6.7%over 2021 levels, and of this, USD 537 billion was generated through direct industry output, and USD 415 billion was generated through indirect output, demonstrating the value of the domestic A&D supply chain. In total, the industry generated USD 418 billion in economic value or 1.65% of the total nominal GDP of the United States, which is up nearly 7.0% above 2021. Such heightened growth from the aircraft industry is a significant driver for the growth of inspection systems based on terahertz technology.
- The increase in helicopters and commercial aircraft production in the United States is expected to drive the market—the aerospace industry of the US exports more than 60% of all aerospace production.
- Canada is expected to witness significant growth in demand for the technology due to increased demand for security screening equipment across various public places. For instance, Canadian airlines screen passengers before they board flights bound for the country. Air Canada's union, the Canadian Union of Public Employees (CUPE), announced additional pre-flight screening by making flight attendants responsible for the screening.
- New screening lanes were added near the airport's B Pier to reduce the wait time for domestic departures. The new lanes were open, representing a 30% increase in screening capacity. PBS-B is an interim solution, while the airport and Canadian Air Transport Security Agency (CATSA) look at long-term solutions for consolidating domestic screening into one location in the future.
- The Canadian government is investing in airport infrastructure to provide passengers and residents with better mobility, safety, and security. For instance, in February 2024, Montreal Metropolitan Airport (YHU) received a USD 90-million investment from the Canada Infrastructure Bank (CIB) for a new passenger terminal. The investment is expected to enable the development of a new domestic airport terminal to enhance mobility options for Canadians traveling to and from Montreal while supporting economic opportunities in the Montreal region. Investments like these are likely to add opportunities for evolving technologies that are expected to promote the proper functioning of airport infrastructures, including terahertz scanners.
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