Photonics Market Research Report Information By Application (Displays, Information & Communication Technology, Photovoltaic, Medical Technology & Life Sciences (Biophotonics), Measurement & Automated Vision, Lighting, and Production Technology), By End Use Industry (Building & Construction, Media, Broadcasting and Telecommunication, Consumer & Business Automation, Medical, Safety & Defense and Industrial), By Type (LED, Lasers, Detectors, Sensors, and Imaging Devices, Optical Communication Systems & Components, and Consumer Electronics & De

Global Photonics Market Overview

Photonics Market Size was valued at USD 615.2 Billion in 2022. The photonics market industry is projected to grow from USD 661.34 Billion in 2023 to USD 1179.485 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.50% during the forecast period (2024 - 2032).  The market is expected to rise in revenue due to several market drivers, including the growing need for photonics-based computing, the increasing popularity of Industry 4.0 technologies, and the rapid growth of fiber optic technology.

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

Photonics Market Trends

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  Rising data traffic is driving the market growth

  
  

Data traffic has increased as a result of the spread of data centers and cloud-based services. In data centers, photonics technologies are crucial for networking and server connections. Photonics facilitates reliable and quick data sharing since it takes the form of optical interconnects. Robust data communication networks are necessary due to the growing popularity of online gaming and video streaming services. The market is expected to expand as a result of all these factors working together to demand dependable and adaptable data services, which photonics can provide. Furthermore, a number of nations—particularly emerging nations—are actively engaged in the rollout of 5G network services; this factor is also seen to be a catalyst for the expansion of the worldwide photonics industry. For instance, in October 2022, India advanced the country's digital revolution by launching its first 5G services. Fifty cities nationwide had 5G service ready by December 2022.

These days, environmental considerations are rarely overlooked when developing new technologies. Innovations in photonics technology are increasingly driven by the need to protect the environment, and photonics itself is having a significant impact on the former. One important factor driving the industry has been highlighted as photonics-based devices' superior energy efficiency compared to competing technologies in several sectors. Photonics-based technologies have been shown to save up to 94% of material waste and need 30% less energy than traditional machinery when used in industrial applications. The technology changed data transfer and its energy requirements while also contributing to a reduction in the global lighting energy usage. Furthermore, photonics technologies like solar energy are being seen to address important environmental problems. Similarly, photonics technologies are being used by scientists in sensors to identify emissions of chemicals and particulates that pose a threat to the environment. Therefore, it is anticipated that the growing emphasis on high-performance and environmentally friendly solutions will fuel demand and favorably affect market expansion.

Modern defense operations can now function better because to the use of photonics-based devices and systems. Modern sensors and imaging systems for target acquisition, surveillance, and reconnaissance depend heavily on photonics. Better situational awareness and intelligence gathering are made possible by photonics-based technology including infrared cameras, LiDAR, and night vision devices, which assist defense operations. It is also necessary to apply advanced photonics technology in light of the growing development of directed energy weapons, such as high-powered lasers. The need for photonics systems is seen to be rising as the aerospace and defense industries seek more affordable solutions with focused technology platforms. As a result, the element presents a number of growth prospects for the market. Thus, driving the photonics market revenue.

Photonics Market Segment Insights

Photonics Application Insights

The Photonics Market segmentation, based on application includes Displays, Information & Communication Technology, Photovoltaic, Medical Technology & Life Sciences (Biophotonics), Measurement & Automated Vision, Lighting, and Production Technology. The displays segment dominated the market. Photonic crystal displays have higher display quality and superior performance. A method is used to modify the color band that these photonic crystal displays display. Because this material reflects every color in the visible spectrum, it eliminates the need for a large amount of crystal in a single display panel. Compared to colors created using standard Red, Green, and Blue (RGB), colors produced by this method methodology are richer and more varied.

Photonics End Use Industry Insights

The Photonics Market segmentation, based on end use industry, includes Building & Construction, Media, Broadcasting and Telecommunication, Consumer & Business Automation, Medical, Safety & Defense and Industrial. The media, broadcasting and telecommunication category generated the most income. The growing popularity of photonic computing, which is faster than traditional electrical systems and runs at lower temperatures by using light instead of electricity, can be attributable to this. The efficient operation of parallel computing systems may be facilitated by the use of photonics in high-speed, parallel connections.

Photonics Type Insights

The Photonics Market segmentation, based on type, includes LED, Lasers, Detectors, Sensors, and Imaging Devices, Optical Communication Systems & Components, and Consumer Electronics & Devices. The LED category generated the most income. The photonics devices that have great efficiency, improved precision, non-invasiveness, quick turnaround times, low costs, and simple operation are the ones that use LEDs the most. Light can be produced for a path using optical fibers, also known as light fibers. Light is transmitted using optical cables. Photonic crystal fibers and crystals in general are being investigated.  Signals are amplified through the use of optical amplifiers.

Figure 1: Photonics Market, by Type, 2022 & 2032 (USD Billion)

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

Photonics Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American photonics market area will dominate this market because of the expanding business sector's need for high-speed connections and their associated increased utilities. Additionally, it is anticipated that the early adoption of cutting-edge technologies in consumer electronics will fuel industry expansion. Photonic applications in data centers, healthcare, and telecommunications are currently seeing a surge in utilization across the nation. In the region, the United States dominates the market.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

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

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

Europe photonics market accounts for the second-largest market share driven by the growing use of photonics technology across a range of sectors, such as manufacturing, telecommunications, and healthcare. The market's revenue growth is being propelled by the growing acceptance of industry 4.0 technologies in European nations including Germany, the Netherlands, France, the United Kingdom, and others. Further, the German photonics market held the largest market share, and the UK photonics market was the fastest growing market in the European region

The Asia-Pacific Photonics Market is expected to grow at the fastest CAGR from 2024 to 2032 due to the existence of developing nations like China and India. The market is expanding due to the availability of a cheap labor supply and supportive government efforts. China is currently the industry leader in producing smartphones as well as other consumer electronics like lighting and flat panel displays. Moreover, China’s photonics market held the largest market share, and the Indian photonics market was the fastest growing market in the Asia-Pacific region.

Photonics Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the photonics 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, photonics 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 photonics industry to benefit clients and increase the market sector. In recent years, the photonics industry has offered some of the most significant advantages to medicine. Major players in the photonics market are attempting to increase market demand by investing in research and development operations includes Signify (The Netherlands), Shin-Etsu Chemical Company (Japan), Nikon Corporation (Japan), SCHOTT (Germany), Hoya (Japan), Corning (U.S), American Elements (U.S), Ohara (Japan), Asahi Glass, II-VI (U.S).

Technology is the focus of Schott AG (Schott), a division of Carl Zeiss Stiftung AG. Glass-ceramics and specialty glass materials are developed, produced, and sold by it. A wide range of special glass, specialty materials, components, and systems are available from the company. Its product line includes, among other things, flat glass, lighting and imaging solutions, pharmaceutical systems, electronic packaged goods, and sophisticated optics.

Corning Inc. is a company that produces and distributes specialty glasses, ceramics, and related products. Additionally, the company provides specialty glassware and advanced optics to the semiconductor, consumer electronics, optics, aerospace and defense, and telecom industries. Applications for Corning products include optical communications, automobiles, life sciences, mobile consumer electronics, and displays. It runs US research facilities.

Key Companies in the photonics market include

• Signify (The Netherlands)


• Shin-Etsu Chemical Company (Japan)


• Nikon Corporation (Japan)


• SCHOTT (Germany)


• Hoya (Japan)


• Corning (U.S)


• American Elements (U.S)


• Ohara (Japan)


• Asahi Glass, II-VI (U.S)

Photonics Industry Developments

August 2022: Intel Corporation's revolutionary Semiconductor Co-Investment Program (SCIP) has brought about a new finance paradigm for the capital-intensive semiconductor industry. A legally binding agreement was signed by Intel and Brookfield Asset Management, one of the largest global alternative asset managers, as part of Intel's mission to provide access to a newer and larger pool of capital for industrial build-outs.

July 2022: Through the acquisition of Aspire Technology Unlimited Company (Aspire Technology), based in Dublin, Ireland, NEC Corporation expanded its ability to provide operators worldwide with End-to-End Open RAN ecosystems as well as system design and integration for legacy networks.

Photonics Market Segmentation

Photonics Application Outlook (USD Billion, 2018-2032)

• Displays


• Information & Communication Technology


• Photovoltaic


• Medical Technology & Life sciences (Biophotonics)


• Measurement & Automated Vision


• Lighting


• Production Technology

Photonics End Use Industry Outlook (USD Billion, 2018-2032)

• Building & Construction


• Media, Broadcasting and Telecommunication


• Consumer & Business Automation


• Medical


• Safety & Defense


• Industrial

Photonics Type Outlook (USD Billion, 2018-2032)

• LED


• Lasers, Detectors, Sensors, and Imaging Devices


• Optical Communication Systems & Components


• Consumer Electronics & Devices

Photonics Regional Outlook (USD Billion, 2018-2032)

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America