by Market Overview:
Photonics refers to the science and technology of light generation, detection, and manipulation through emission, transmission, modulation, signal processing, switching, amplification or sensing. Photonics enable crucial components and sub-systems used in various products such as LCD and OLED displays, fiber optic communication systems, laser material processing, medical therapies and imaging technologies, LED illumination, solar cells, sensors and detectors.
Market Dynamics:
The photonics market is primarily driven by growing adoption of fiber optics in telecommunication and the emergence of solid-state lighting. Fiber optics plays a vital role in the telecommunication industry as they enables high-speed data transmission over long distance. With increasing internet penetration and 5G deployments, the use of fiber optics is expected to grow substantially over the forecast period. Furthermore, solid-state lighting such as LEDs provides various benefits over traditional lighting such as high efficiency, low power consumption and longer lifespan. LEDs penetration in commercial and residential lighting is increasing rapidly which is propelling the growth of the photonics market. In addition, growing government investments in LiDAR and sensing technologies for autonomous vehicles is also expected to boost the market growth during the forecast period.
Segment Analysis
The global photonics market is dominated by optical fibers and optical fiber cables which accounts for nearly 25% market share in 2023. Optical fibers enable high speed, reliable and economical transmission of data and are widely used in telecommunication networks. The widespread adoption of 4G and 5G technology along with expansion of internet infrastructure has fueled the demand for optical fibers and cables globally.
The global Photonics Market Share is estimated to be valued at US$ 757.3 million in 2023 and is expected to exhibit a CAGR of 7.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
PEST Analysis:
Political: Developed markets like the US, Europe, etc. provide a supportive regulatory environment for R&D in photonics which help the industry grow. Some regulations ensure quality standards and safety which boost consumer confidence.
Economic: High disposable income, growing demand for high-speed internet and tech adoption drives the markets in developed nations. Emerging markets contribute significantly due to economic growth, infrastructure development, and the rise of the middle class.
Social: Increasing digitalization, social media usage, cloud computing, work from work-from-home trends have increased data consumption globally boosting the need for photonics technologies for communication networks. Developed nations have a high affinity for the latest consumer electronics using photonics.
Technological: Advancements in materials, devices, and integrated photonics systems enable applications in new areas like healthcare, industrial automation, transportation etc. Besides, the miniaturization of components and systems positively impacts the industry.
Key Takeaways
The global photonics market is expected to witness high growth, exhibiting CAGR of 7.9% over the forecast period 2023 to 2030, due to increasing data consumption and utilization of high speed internet globally.
North America dominated the global photonics market in 2023 and is expected to maintain its lead, growing at a CAGR of over 8% during 2023-2030. Presence of key market players, strong funding in R&D and growing adoption of advanced technologies drive the regional market.
Key players operating in the photonics market are Carl Zeiss AG (Scantinel Photonics GmbH), Hamamatsu Photonics KK, Schott AG, Intel Corporation, Photonics SAS (Keopsys), Polatis Photonics Inc., Philips Photonics (Trumpf GmbH), Alcatel-Lucent SA, Osram Licht AG, Molex Inc. (Koch Industries), IPG Photonics, Infinera Corporation, Finisar Corporation, NEC Corporation, and Innolume GmbH. Major players focus on developing innovative integrated photonics systems and collaborative R&D to strengthen their market position.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
