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Photonics technologies enable the conversion of electronic signals into light and back, allowing real-time transmission of data at extremely high speeds over long distances. Photonics solutions find applications in sectors like telecommunications, industrial manufacturing, healthcare, defense and security, sensing and metrology. Optical fibers form the backbone of global internet connectivity and data transmission networks through submarine cables laid on the ocean floors as well as terrestrial fiber networks. Medical technologies such as endoscopes, laser surgeries and LED lights rely on photonics. Emerging areas like LiDAR and 3D printing also utilize photonics-based solutions.
The global Photonics Market is estimated to be valued at US$ 757.03 Mn in 2024 and is expected to exhibit a CAGR of 7.9% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the photonics market is the growing adoption of silicon photonics. Silicon photonics utilizes silicon as the optical medium, allowing for tighter integration of optical components with microelectronics. This facilitates the manufacturing of photonic integrated circuits (PICs) on a mass scale using existing semiconductor fabrication facilities and process technologies. Compared to traditional photonics platforms, silicon photonics provides advantages such as lower power consumption, compact footprint, and the potential for volume production. Several players are making advances in silicon photonics research which is expected to lead to wider commercialization and adoption across sectors over the coming years. Another notable trend is the increasing demand for 3D sensing technologies such as LiDAR for applications in autonomous vehicles, drones and AR/VR. This presents significant growth opportunities for photonics technologies and components involved in 3D laser beam forming and time-of-flight measurements.
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.
Porter’s Analysis
Threat of new entrants: Low startup costs and presence of new technologies like fiber optics make entry slightly possible. However, well established industry players, need for large R&D investments and intellectual property create high barriers.
Bargaining power of buyers: Buyers have moderate power due to presence of many suppliers. However, customized and technical nature of products gives some bargaining power to suppliers.
Bargaining power of suppliers: Presence of many component manufacturers and intellectual capital providers limits individual supplier power. Suppliers of specialized materials enjoy some bargaining power.
Threat of new substitutes: Emerging technologies in 3D printing and rising alternative solutions pose minimal threat currently due to high performance needs.
Competitive rivalry: Intense competition exists among major players to gain market share and expand product portfolio. Focus on innovation, collaboration and mergers & acquisitions are common strategies.
Regional analysis: Europe accounts for a significant share led by Germany, UK and France. Increasing investments in R&D by European Commission and national governments is supporting growth of photonics technologies. The region is focusing on developing advanced solutions for industries like healthcare, manufacturing and transport.
Key Takeaways
The global Photonics Market is expected to witness high growth.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
