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The Photonics Market size is forecast to increase by USD 287.13 billion at a CAGR of 6.11% between 2022 and 2027.
The growth and forecasting of the photonic market hinge on several critical factors. These include advancements in lasers, optics, and fiber components, which drive innovation across various applications and industries. With a rising demand for high-speed communication and precise sensors, the market is witnessing increased research and development activities. Moreover, the emphasis on energy-efficient products like silicon photonics underscores the industry's commitment to sustainability. As telecommunications and electronics sectors continue to evolve, the global photonics market remains at the forefront of innovation, offering scalable solutions for diverse technological needs.
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The photonics market refers to the global industry related to the science and technology of generating, manipulating, and neurophotonic, detecting light. The market is experiencing rapid growth and innovation across various sectors. With advancements in lasers, optics, and fiber components, photonics technology finds applications in diverse fields such as waves, telecommunications, electronics, and medical devices. From high-speed communication to precise sensing, photonics plays a crucial role in enabling cutting-edge research and development in silicon photonics devices industry. The demand for photonics devices and systems is soaring globally, driven by their wide range of applications and superior performance. As the industry continues to push the boundaries of technology, the photonics market is expected to witness sustained growth in the coming years.
One of the key factors driving the global market is the reduction in transmission costs and scalability beyond 400G. There is increasing adoption of the technology due to its benefits in communication network carriers. One of the main advantages of this network structure is that it facilitates communication network carriers to transmit data across several end-user establishments on a single wavelength and maintain their specific requirements.
As a result, there is a significant cost reduction in transmission as this technology does not require separate wavelengths for different clients, which ensures efficient bandwidth utilization. The main advantage is that it can offer high-capacity services at speeds of 100G and above. Hence, such benefits are expected to drive the global market size during the forecast period.
A key factor shaping the market is the emergence of optical data centers. The continuous demand in cloud-based applications and big data analytics has revolutionized the scale of data center networks. Advanced data centers require large and efficient interconnection networks as they are made up of thousands of servers.
Moreover, WDM also known as optical wavelength division multiplexing has the ability to provide terabits of data transmission, and optical switching facilitates fast and low-energy switching, energy efficiency capabilities for intra-data center networks. Hence, it is widely used in such ultra-high-speed optical switch applications which is expected to drive the global market size during the forecast period.
The availability of substitute technologies is one of the key challenges hindering market penetration. Some of the main reasons which hinder the wide use include the availability of substitutes such as vertical-cavity surface-emitting lasers (VCSEL). VCSEL is a potential alternative to this technology which is widely used in fiber optic communications.
However, VSCEL is expected to negatively impact the market growth as it is set to revolutionize communication networks by enhancing efficiency and data transfer rates. One of the main advantages of VSCEL is that it can check for processing issues and material quality during the production process. Hence, such factors are expected to hinder the global market size during the forecast period.
The consumer electronics segment is estimated to witness significant growth during the forecast period. There is a significant increase in the growth of the consumer electronics segment due to the advances in the technology which led to a profitable, sustainable, and innovative future in electronics and lighting.
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The consumer electronics segment was the largest segment and was valued at USD 198.78 billion in 2017. Some of the main applications of this technology in the consumer electronics segment are high-resolution screens for smartphones, tablets, and TVs, leading the LED technology revolution, intelligent lighting solutions, and Lifi. One of the main applications of this technology in high-resolution screens for smartphones, tablets, and TVs segment is laser technology innovations, such as ultrafast lasers, which are critical to the continuous manufacturing and cost-effective production of these advanced consumer electronics. Additionally, this acts as an essential foundation in intelligent digital lighting solutions. Hence, such applications of this technology are expected to drive the growth of this segment which in turn will drive the global market size during the forecast period.
The wide applications of the WDM segment are expected to drive the global market growth during the forecast period. WDM, as known as Wavelength division multiplexing (WDM) can be referred to as a process where optical signals with different wavelengths are combined and transmitted together and then separated again. WDM is widely used in optical fiber communications for the transmission of data in different channels with slightly varying wavelengths. One of the main advantages of WDM is that it enhances the transmission capacities of fiber-optic links, so it can be used in the most effective way with the efficient use of active components such as fiber amplifiers. Hence, such wide applications are expected to drive the growth of the segment which in turn will drive the global market growth during the forecast period.
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North America is estimated to contribute 28% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional market trends and drivers that shape the market during the forecast period. One of the main factors contributing to the significant growth of the global market in North America is its well-developed and advanced telecommunications network system, which strengthens the regional telecommunications sector. Some of the key countries in North America that have a well-established telecommunication network include US and Canada. For instance, while all other regions are trying to upgrade to 100G bandwidth, North America is focusing on developing a new system with 400G. Hence, such innovations in the telecommunication network infrastructure are expected to drive the global market growth in the region during the forecast period.
The market industry 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 market growth and forecasting strategies.
Global 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.
AMS OSRAM AG: The company offers photonics such as Osram metal can TO56, PLT5 522FA P.
Ayar Labs Inc: The company offers photonics such as TeraPHY optical I O.
Corning Inc: The company offers photonics such as SMF-28e+ photonic fiber.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market players, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market report forecasts market growth and trends by revenue at global, regional & country levels and provides a market analysis and report of the latest market trends and analysis and market growth analysis opportunities from 2017 to 2027.
The Photonics Market is a diverse landscape spanning automotive, retail, aerospace, and defense, harnessing radiant energy and electromagnetic radiation for various purposes. LiDAR technology revolutionizes corridor mapping and topographical surveys in mining, oil and gas, and aerospace industries. Technological advancements drive innovation in deep learning, computer vision, and natural language processing, enhancing data transmission and silicon photons devices. Despite challenges like semiconductor supply shortages, photonics finds applications in consumer electronics such as DVD players and TV remote controls, as well as emerging technologies like virtual reality and the Internet of Things (IoT), promising significant growth and investment opportunities amidst a dynamically evolving market.
The rapidly evolving field encompasses various aspects of technology and research. From detection to imaging, photonics plays a crucial role in diverse applications such as security, equipment, and materials. It contributes significantly to disease detection and production technology, offering advanced imaging solutions for early diagnosis. Moreover, it aids in enhancing security measures through smart systems and energy-efficient solutions. With substantial investments pouring into the sector, photonics drives innovation in additive manufacturing and automation purposes. It is integral to the semiconductor manufacturing market and plays a pivotal role in revolutionizing industries like logistics, supply chain management, and retail environments. Photonics also powers cutting-edge technologies such as LiDAR mapping systems, virtual reality (VR), and data centers, shaping the future of information interaction and processing.
Market Scope |
|
Report Coverage |
Details |
Page number |
172 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.11% |
Market growth 2023-2027 |
USD 287.13 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.42 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 28% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
AIO Core Co. Ltd., ams OSRAM AG, Ayar Labs Inc., Carl Zeiss AG, Corning Inc., Hamamatsu Photonics KK, II VI Inc., Infinera Corp., Innolume GmbH, Intel Corp., International Business Machines Corp., IPG Photonics Corp., Koch Industries Inc., NKT Photonics AS, Nokia Corp., OSCPS Motion Sensing Inc, Polatis Inc., RANVOUS Inc., Sicoya GmbH, and TRUMPF SE Co. KG |
Market dynamics |
Parent market analysis, Market forecasting, 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.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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