Infrared Optoelectronics Market

• Increasing automotive industry and the growing need for advanced technologies in the automobile industry is driving the market growth

Market CAGR for infrared optoelectronics is being driven by the Increasing automotive industry and the growing need for advanced technologies in the automobile industry. The primary objective of electronic components is to enhance the performance and efficiency of powertrain systems in automobiles. These components play a crucial role in facilitating communication, signal detection, and overall management of activities within powertrain systems, contributing to increased safety and improved vehicle performance. In the current automotive landscape, modern vehicles are increasingly equipped with electronic components, including sensors, to meet evolving technological demands.

Against this backdrop, the burgeoning automotive sector is anticipated to drive market growth over the forecast period. Euromonitor predicts that automotive unit sales will reach 78 million units in 2022, surpassing pre-pandemic 2019 levels by 10% over 2021, which itself saw a 10% increase over 2020. This upward trajectory in OEMs' profits, with many achieving record highs, underscores the positive outlook for the automotive industry.

The escalating demand for advanced technologies within the automobile industry presents a significant market opportunity for infrared optoelectronics. Automakers are increasingly integrating infrared components into their vehicles for applications such as ambient light detection, gesture-controlled infotainment panels, and night vision. These emerging application areas position optoelectronics to capture a larger market share in rapidly evolving industries.

As a result, it is anticipated that throughout the projection period, demand for the Infrared Optoelectronics Market will increase due to the Increasing automotive industry and the growing need for advanced technologies in the automobile industry. Thus, driving the Infrared Optoelectronics Market revenue.

The Global Infrared Optoelectronics Market Industry is poised for substantial growth, with projections indicating a market size of 15.5 USD Billion in 2024 and an anticipated increase to 23.4 USD Billion by 2035. The compound annual growth rate of 3.81% from 2025 to 2035 reflects the ongoing advancements in infrared technologies and their expanding applications across various sectors. This growth is likely to be driven by factors such as increasing demand for infrared sensors, advancements in material technology, and the rising adoption of smart technologies. The market's trajectory suggests a robust future for infrared optoelectronics.

Advancements in material technology play a pivotal role in the Global Infrared Optoelectronics Market Industry, facilitating the development of more efficient and cost-effective infrared devices. Innovations in semiconductor materials, such as indium gallium arsenide and lead sulfide, enhance the performance of infrared detectors and emitters. These materials enable the production of devices that operate at lower power levels while maintaining high sensitivity and resolution. As a result, manufacturers are likely to witness increased adoption of these advanced materials, potentially driving the market towards a projected value of 23.4 USD Billion by 2035, reflecting the industry's commitment to technological progress.

The Global Infrared Optoelectronics Market Industry experiences a surge in demand for infrared sensors, driven by their applications in various sectors such as automotive, healthcare, and consumer electronics. For instance, the automotive sector increasingly integrates infrared sensors for advanced driver-assistance systems, enhancing safety and efficiency. In healthcare, infrared sensors are utilized in non-invasive monitoring devices, reflecting a shift towards patient-centric care. This growing demand is projected to contribute to the market's expansion, with estimates suggesting a market size of 15.5 USD Billion in 2024, indicating a robust trajectory as industries continue to adopt these technologies.

The Global Infrared Optoelectronics Market Industry is significantly influenced by the rising adoption of smart technologies across various applications. Smart homes, smart cities, and industrial automation increasingly rely on infrared optoelectronic devices for enhanced functionality and efficiency. For example, infrared sensors are integral to smart security systems, enabling motion detection and surveillance. This trend is likely to propel the market forward, as consumers and businesses seek to integrate smart solutions into their operations. The anticipated compound annual growth rate of 3.81% from 2025 to 2035 suggests a sustained interest in infrared technologies as they become essential components of modern infrastructure.

Regulatory support for energy efficiency is increasingly shaping the Global Infrared Optoelectronics Market Industry, as governments worldwide implement policies promoting the use of energy-efficient technologies. Regulations aimed at reducing carbon emissions and enhancing energy conservation are driving the adoption of infrared optoelectronic devices, particularly in lighting and heating applications. For example, energy-efficient infrared heating systems are gaining traction in residential and commercial sectors. This regulatory environment not only encourages innovation but also positions infrared technologies as viable solutions for meeting sustainability goals, thereby contributing to the market's growth trajectory.

Increased investment in research and development is a driving force within the Global Infrared Optoelectronics Market Industry, as companies strive to innovate and improve their product offerings. Governments and private entities are allocating substantial resources towards developing next-generation infrared technologies, which could lead to breakthroughs in efficiency and application versatility. For instance, initiatives aimed at enhancing the sensitivity and response time of infrared detectors are underway, potentially expanding their use in emerging fields such as environmental monitoring and industrial applications. This focus on R&D is expected to foster a competitive landscape, further propelling market growth.

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The anticipated expansion of the Infrared Optoelectronics market in North America can be attributed to several key factors. The integration of infrared optoelectronics in the North American aerospace industry serves diverse functions, including aircraft navigation, surveillance, and pilot assistance systems. Notably, according to data sourced from the Bureau of Transportation Statistics, U.S. airlines witnessed a notable surge in passenger numbers, reaching 674 million in 2021—a remarkable 82.5% increase from the preceding year, which recorded 369 million passengers.

However, despite this recovery, overall passenger traffic in 2021 remained 27.3% below the levels observed in 2019.

The persistent demand for sophisticated avionics and navigation technologies underscores the pivotal role of infrared optoelectronics in driving growth within the aerospace sector. Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: INFRARED OPTOELECTRONICS MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Infrared Optoelectronics Market accounts for the second-largest market share as The European automotive industry integrates infrared optoelectronics for diverse applications, notably in advanced driver-assistance systems (ADAS) and night vision systems. This pivotal sector directly and indirectly sustains 13.8 million jobs in Europe, constituting 6.1% of total EU employment. Within this workforce, 2.6 million individuals are engaged in the direct manufacturing of motor vehicles, representing 8.5% of EU employment in the manufacturing sector.

In the automotive domain, infrared sensors play a crucial role in features such as collision avoidance, lane departure warning, and pedestrian detection, contributing significantly to the incorporation of advanced safety features in vehicles. Further, the German Infrared Optoelectronics Market held the largest market share, and the UK Infrared Optoelectronics Market was the fastest-growing market in the European region

The Asia-Pacific Infrared Optoelectronics Market is expected to grow at the fastest CAGR from 2023 to 2032. The regional expansion is ascribed to the thriving consumer electronics and automotive industries, notably in China and India. According to the China Information Technology Industry, the production volume of electronics in China witnessed substantial growth, increasing from 10% in 2016 to 14.5% in 2017. This surge in the electronics industry is driven by escalating consumer demand for smart gadgets, virtual reality, and drones.

Specifically, China's smartphone production experienced remarkable growth, surging from 237.2 million units in 2012 to an impressive 901.2 million units in 2017.

Moreover, China retains its status as the largest global market for vehicles, leading in both annual sales and manufacturing output. The International Trade Administration projects domestic vehicle production in China to surpass 35 million units by 2025. According to data from the Ministry of Industry and Information Technology, approximately 26 million vehicles, including 21.48 million passenger cars, were sold in 2021, reflecting a noteworthy 7.1% increase from the previous year. This robust performance underscores the significance of the Chinese market in the automotive sector.

Moreover, China’s Infrared Optoelectronics Market held the largest market share, and the Indian Infrared Optoelectronics Market was the fastest-growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development to expand their product lines, which will help the Infrared Optoelectronics market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Infrared Optoelectronics industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Infrared Optoelectronics industry to benefit clients and increase the market sector. In recent years, the Infrared Optoelectronics industry has offered some of the most significant advantages to the fields of surveillance, night vision, and remote sensing, among others.

Major players in the Infrared Optoelectronics Market, including Vishay Intertechnology, Inc., OSRAM International GmbH (ams AG), Omnivision Technologies Inc., Panasonic Corporation, Maxim Integrated, Sharp Corporation, ROHM Co., Ltd., TT Electronics PLC. are attempting to increase market demand by investing in research and development operations.

Vishay Intertechnology Inc. (Vishay) is a prominent manufacturer specializing in discrete semiconductors and passive electronic components. The company boasts a comprehensive product portfolio encompassing MOSFETs, ICs, a diverse range of diodes and rectifiers, and various types of optoelectronic products. These offerings cater to singular functions like switching, amplifying, rectifying, and transmitting electrical signals. With a broad market presence, Vishay serves diverse industries, including automotive, computer, industrial, telecommunications, avionics, military, space, consumer goods, and the medical sector. The company distributes its products through original equipment manufacturers (OEMs), electronic manufacturing services (EMS) companies, and independent distributors.

Vishay operates manufacturing facilities strategically located across the Americas, Europe, Asia-Pacific, and the Middle East. The company's headquarters are situated in Malvern, Pennsylvania, in the United States.

OmniVision Technologies Inc. is a leading provider of advanced digital imaging and display solutions. The company specializes in offering a range of products, including image sensors, Application-Specific Integrated Circuits (ASIC), liquid crystal on silicon (LCOS), and camera cube chips. Their ASIC product line includes automotive companion chips, sensor bridges, and IoT processors. OmniVision's diverse product portfolio serves various applications such as automotive imaging, digital still and video cameras, entertainment, security and surveillance, medical imaging, mobile phones, notebooks, and webcams.

The company markets its products under brand names like Nyxel, PureCel, Omni Pixel, and CameraCubeChip. With a presence in key markets like automotive, security and surveillance, mobile phones, medical, computing, and emerging technologies, OmniVision operates in the United States, China, Taiwan, South Korea, the UK, and India. The company's headquarters are located in Santa Clara, California, in the United States. In a recent development in 2023, OmniVision Technologies announced the development of a new automotive image sensor tailored for applications in autonomous driving and advanced driver assistance systems.