Enjoy complimentary customisation on priority with our Enterprise License!
The Optoelectronics Market size is estimated to grow at a CAGR of 9.27% between 2022 and 2027. The market size is forecast to increase by USD 30.64 billion. The growth of the market depends on several factors, including the expanding automotive industry, the rapid increase in the use of high-brightening LEDs in consumer electronics, and the efficiency of optoelectronic products. Optoelectronics are electronic devices that emit, detect, and control light. This includes devices such as displays, LEDs, optical switches, and more. For transmitting broadband, long-distance signals for shore-to-shore communication, optoelectronics has emerged as the ideal technology.
This optoelectronics market report extensively covers market segmentation by component (LED, image sensors, laser diode, optocouplers, and others), end-user (consumer electronics, automotive, information technology and communication, aerospace and defense, and others), and geography (APAC, North America, Europe, South America, and the Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
To learn more about this report, View Report Sample
One of the key factors driving the optoelectronics market growth is the expanding automotive industry. There is a growing popularity for optoelectronics across the automotive industry due to its wide applications. The main applications of optoelectronic devices in the automotive industry include the detection of occupants, night vision, optical immobilizers, detection of drowsy drivers, automation of vehicle functions such as lights and brakes, and more.
Moreover, there is an increasing adoption of optoelectronic components due to the performance and efficiency of powertrain systems. The main advantage of these optoelectronic components is that it enable the communication, signal detection, and activity management functions of automobiles. Hence, such applications are positively impacting the market which in turn will drive the market growth during the forecast period.
A key factor shaping the optoelectronics market growth is the increasing application of optoelectronic components in the medical sector. There is an increasing requirement for sensors that convert diverse stimuli into electrical forms in medical equipment. As a result, there is a rising adoption of optoelectronic sensors that can detect patterns, pictures, motion, intensity, color, and other things by interacting with light.
Moreover, it is expected to fuel the optoelectronic applications in endoscopic surgery and treatment. Some of the other application areas of optoelectronics in the medical field include dental diagnosis, blood diagnostics, and pulse oximetry. Hence, such factors are positively impacting the market which in turn will drive the market growth during the forecast period.
High costs of optoelectronic products are one of the key challenges hindering market growth. Due to the high cost associated with optoelectronic products several customers are opting for alternatives such as LED screens which are less expensive than these components. Furthermore, regularly changing OS spare parts cost more than purchasing the original product.
Moreover, the increasing preference for alternatives among customers is declining the demand for optoelectronic components. Hence, such factors are negatively impacting the market which in turn will hinder the market growth during the forecast period.
The LED segment is estimated to witness significant growth during the forecast period. There is an increasing demand for energy-efficient LED components among consumers which is significantly contributing to the growth of this segment. The main advantage of the LED segment is that it is more durable, consumes less energy, and produces similar or better light compared with other types of lighting.
Get a glance at the market contribution of various segments View Free PDF Sample
The LED segment was the largest segment and was valued at USD 15.32 billion in 2017. In addition, there are several government initiatives promoting the adoption of the LED which has also fuelled the demand for this segment. For instance, in India, Navi Mumbai Municipal Corporation decided to convert all streetlights to LEDs; 35,000 streetlights will be replaced in 2022, which will save 7 billion Indian rupees (USD0.85 million) annually. Additionally, there is an increase in investment by several prominent market players in the research and development of LED technology. Furthermore, the increasing adoption of LED components for various applications across IT communication, and consumer electronics industries are expected to fuel the growth of this segment which in turn will drive the market growth during the forecast period.
The increasing application of optoelectronic components in the consumer electronics segment will increase the market growth. There is increasing adoption of optoelectronics components in the manufacturing of consumer electronics and the integration of advancements in electronic gadgets including smartphones, smart television displays, LED projectors, and more. There is a growing adoption of a larger range of consumer electronics in the residential sector which is expected to fuel the growth of this segment. Hence, such factors are expected to fuel the growth of this segment which in turn will drive the market growth during the forecast period.
For more insights on the market share of various regions Download PDF Sample now!
APAC is estimated to contribute 57% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. One of the main factors that is significantly contributing to the growth of the global optoelectronics market in APAC is the growing consumer electronics and automotive industries, especially in countries such as China, Japan, and India. Additionally, the increasing strategic strategic developments including several product launches in the automotive industry will positively impact the market growth in the region.
For instance, in November 2022, Kyocera Corporation declared its plan to launch an automotive night vision system that can reliably identify collision-prone objects in low-visibility operating conditions including rain, night, snow, fog, or smoke. Hence, such factors are expected to drive the market growth in the region during the forecast period.
In 2020, during the COVID-19 pandemic, the growth of the global optoelectronics market witnessed a significant slowdown due to the temporary closure of various production facilities, including those of consumer electronics in APAC. However, in 2021, the initiation of large-scale vaccination drives lifted the lockdown and travel restrictions, which led to the resumption of production of optoelectronics components such as LEDs, image sensors, and optocouplers. Such factors are expected to drive the market during the forecast period.
The optoelectronics market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Optoelectronics Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
AC Photonics Inc: The company offers optoelectronics for communication applications which includes bandpass and edge filters.
Canon Inc: The company offers optoelectronics such as the MA 101 series laser trepanning scan system.
Coherent Inc: The company offers optoelectronics such as GaAs optoelectronics.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The optoelectronics market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Optoelectronics Market Scope |
|
Report Coverage |
Details |
Page number |
167 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 9.27% |
Market growth 2023-2027 |
USD 30.64 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
9.11 |
Regional analysis |
APAC, North America, Europe, South America, and the Middle East and Africa |
Performing market contribution |
APAC at 57% |
Key countries |
US, China, Japan, India, and South Korea |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AC Photonics Inc., AFW Technologies Pty Ltd, Agiltron Inc., ams OSRAM AG, Canon Inc., Coherent Inc., Corning Inc., FOCI Fiber Optic Communications Inc., General Electric Co., IPG Photonics Corp., LG Innotek Co. Ltd., Luna Innovations Inc., Nichia Corp., OmniVision Technologies Inc., Samsung Electronics Co. Ltd., Seoul Semiconductor Co. Ltd., Sony Group Corp., TRUMPF SE Co. KG, Vishay Intertechnology Inc., and Lumileds Holding BV |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.