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The US photonics market size is projected to increase by USD 51.37 million at a CAGR of 5.99% between 2023 and 2028. Market growth is influenced by factors such as emerging silicon-based photonics applications, increasing emphasis on eco-friendly solutions, and the rapid expansion of cloud computing in photonics technology. These elements drive innovation and market demand, reflecting the dynamic landscape of photonics. With advancements in silicon-based applications and the shift towards eco-friendly solutions, coupled with the expansion of cloud computing, the market anticipates significant growth opportunities.
Moreover, the market growth and forecasting report includes key player's detailed analyses of the competitive landscape of the market and information about 20 market companies, including, Hamamatsu Photonics KK, II VI Inc., Infinera Corp., Intel Corp., IPG Photonics Corp., Lumentum Holdings Inc., Molex LLC, NEC Corp., Photonic Systems Inc., Polatis Inc., Thorlabs Inc., TRUMPF SE Co. KG, and Vescent Photonics LLC. Additionally, American Elements company offers photonics, such as microwave photonics chips under the brand name American Elements, for high-speed signal processing.
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The market is witnessing significant growth propelled by advancements in technology and stringent environmental regulations. Innovations like 3D printing and green photonics are revolutionizing industries, particularly in medical technology & life sciences and aerospace and defense sectors. The Photonics materials & component industry is booming with the development of photodetectors and LED segments, while fiber optic cables are enhancing connectivity. Cutting-edge solutions such as deep learning and ASIC hardware accelerators are driving progress in measurement & automated vision and light modulation systems. Amidst rising demand, silicon photonics devices and amplifier systems are poised to play pivotal roles in shaping the future of photonics. Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
Emerging silicon-based photonics applications is the key factor driving the market. Emerging silicon-based photonics applications are driving innovation and shaping the market. Continued R&D activities in silicon photonics, leveraging silicon's properties to manipulate light, offer numerous advantages such as high-speed data transmission, energy-efficient products, and photonics-enabled products with existing semiconductor manufacturing market. In the data communication sector, silicon photonics enables the development of high-speed, low-power optical interconnects for data centers and telecommunications networks. Its integration with traditional semiconductor technologies facilitates the creation of compact, cost-effective solutions for handling the ever-increasing volumes of data.
Furthermore, silicon photonics is revolutionizing sensing technologies, particularly in the healthcare and environmental monitoring sectors. Its ability to integrate multiple optical functions on a single chip enhances the sensitivity and performance of sensing devices while reducing their size and complexity. Additionally, silicon photonics finds applications in emerging fields such as quantum computing, where it promises to enable scalable and efficient quantum communication in the healthcare sector, information and communication sector, and industrial manufacturing sectors. Thus, technological advancements further boost the growth of the market during the forecast period.
The rise in developments in US on photonics is the primary trend shaping the market. Factor such as the advancements in technology, increased investment, and growing demand across various industries are driving the market. For instance, in February 2023, Hamamatsu Photonics developed the P16671-01AS optical transceiver, capable of achieving fiber-optic communications at a data transmission speed of 1.25 Gbps (gigabits per second). This achievement stemmed from the companys unique design technology, honed over years of experience in opto-semiconductor manufacturing.
Similarly, in July 2023, ams OSRAM launched EVIYOS 2.0, an intelligent multipixel light-emitting diode (LED) tailored for the automotive sector. This cutting-edge technology enables fully adaptive, dynamic headlight operation and image projection. Notably, EVIYOS 2.0 can selectively illuminate the road ahead to optimize the drivers view in high-beam mode, all while minimizing the glare experienced by other road users. Thus, as photonics continues to evolve and diversify, its impact on various industries and society as a whole is expected to grow, driving further innovation and economic growth to further boost the growth of the market during the forecast period.
The high cost of photonics-enabled devices is a major challenge that affects market expansion. Photonics devices encompass a wide array of technologies, including lasers, optical fibers, detectors, and sensors, which find applications across numerous industries, such as telecommunications, healthcare, manufacturing, and defense. One major contributor to the high cost of photonics-enabled devices is the complexity and precision required in their manufacturing processes. Further, the R&D investments required to innovate and improve photonics technologies contribute to the overall cost of these devices.
Moreover, developing new materials, enhancing performance characteristics, and integrating advanced features demand substantial financial resources, which are ultimately reflected in product pricing. Besides, the high initial investment required to acquire photonics-enabled devices also acts as a barrier to adoption for many consumers and businesses, particularly smaller enterprises or those operating on tight budgets. Thus. such factors are expected to impede market growth during the forecast period.
The market share by the consumer electronics segment will be significant during the forecast period. In the market, consumer electronics stand as a significant segment, benefitting from a variety of photonics-enabled devices. Photonics technology greatly enhances the performance and functionality of consumer electronics, particularly in displays. From smartphones to AR devices, photonics-based display technologies like OLEDs and LCDs provide vibrant colors and high resolution, driving demand for premium visual output.
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The consumer electronics segment showed a gradual increase in the market share of USD 36.54 million in 2018. Additionally, photonics advancements improve imaging and sensing capabilities in devices like digital cameras and facial recognition systems. Emerging applications such as VR and AR devices also leverage photonics components for immersive experiences. As consumer demand for feature-rich electronics grows, US manufacturers are poised to innovate, driving further growth in the market and consumer electronics segment during the forecast period.
The WDM filters?segment will account for the largest share of this segment.?Wavelength division multiplexing (WDM) filters are vital in the market, allowing multiple optical signals to transmit simultaneously over a single fiber. DWDM filters, with high channel density, suit long-haul telecom and data center interconnects. Meanwhile, CWDM filters, with wider channel spacing, are cost-effective for shorter-distance applications like metropolitan area networks. Increasing data traffic from cloud computing and video streaming, coupled with the rise of 5G networks, drives demand for WDM filters. US manufacturers innovate to meet growing bandwidth needs, fostering market growth.
The market forecasting report includes the adoption lifecycle of the market research and growth, 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 trends strategies.
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.
Market analysis and report of 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 market research report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2018-2028
The global photonics market offers long-term benefits across various industries, from chemicals to medical technology & life sciences. With stringent regulations like REACH (registration, evaluation, authorization, and restriction of chemicals), and RoHS (restriction of hazardous substances), manufacturers navigate chemicals such as arsenic oxide and boron oxide to ensure compliance. Photonics technologies facilitate huge volumes of data processing, vital for intense competition in sectors like retail and aerospace and defence. From lighting and display applications to optical solutions in telecommunications, photonics plays a pivotal role. Consumer end-user industries benefit from photonics advancements, seen in everyday devices like barcode scanners, DVD players, and smartphone camera lens.
Additionally, the market is at the forefront of medical technology & life sciences (biophotonics), driving advancements in production technology and data generation. With a focus on data transformation and storage, photonics technologies facilitate efficient data conversion and enhance data usage across various sectors. In the United States, the market is thriving, particularly in optical broadband and its application in telecommunication companies. Consumer electronics, including TV remote controls, televisions, and mobile phones, benefit from photonics innovations supported by organizations like the Association of Computing Machinery and the consumer technology association (CTA), in tandem with the widespread adoption of the Internet.
Market Scope |
|
Report Coverage |
Details |
Page number |
161 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.99% |
Market Growth 2024-2028 |
USD 51.37 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.43 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
American Elements, ams OSRAM AG, Hamamatsu Photonics KK, II VI Inc., Infinera Corp., Intel Corp., IPG Photonics Corp., Lumentum Holdings Inc., Molex LLC, NEC Corp., Photonic Systems Inc., Polatis Inc., Thorlabs Inc., TRUMPF SE Co. KG, and Vescent Photonics LLC |
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. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Product
8 Market Segmentation by Application
9 Customer Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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