Asia Pacific optoelectronics market is estimated to be valued at US$20.102 billion in 2020.
Factors such as the rapid increase in demand for consumer electronics and growing demand for LEDs across the region will significantly contribute to the overall market growth. Additionally, the rising adoption of technological advancements across all the end-user industries and growing awareness of smart electronic devices are anticipated to drive the overall market growth during the forecast period. Furthermore, Asia-Pacific is the largest market for consumer electronics owing to the rising disposable income, rapid urbanization, and changing spending habits, because of which there is a high demand for high and medium-power LEDs. The market is segmented into: By Type, By End-User Industry, and By Country.
Asia-Pacific optoelectronics market: Growth Drivers
Factors such as shifting focus towards LEDs on account of their increasing use in a wide range of applications in the consumer electronics and lighting industry are increasing the demand for efficient semiconductors and optoelectronics. The surging demand for LED across the automotive, military, aerospace, and defense industry is another key factor boosting the overall market growth. Growing focus on the well-being of the environment and implementation of effective energy efficiency programs across various countries has significantly increased the demand for LED lighting in the market, which will further boost the overall market growth in the region. For instance, the government of India has initiated the use of bulk procurement of LED lights which will help the country conserve energy which in turn is influencing the optoelectronics market positively. Japan is also shifting towards the deployment of LED lighting solutions to encourage the country’s energy efficiency initiatives. In 2019, around 60k lights were used to light up trees along Tokyo’s Shibuyakoen-dori street and zelkova trees in the park in Japan.
Asia-Pacific Optoelectronics Market: By Country
The increasing investments in the development of smart infrastructure and the growing focus on automation technologies will significantly support the overall market growth across China. China has invested heavily in its laser and optoelectronics industry over the last 20 years and is forecasted to invest more in the coming years as well. Major optoelectronics enterprise development bases are present in the cities of Beijing, Wuhan, Shanghai, Shijiazhuang, Shenzhen, and Changchun. Moreover, various Optoelectronics Industry Development Science & Technology Zones, along with several National Engineering Research Centres, have been established in the last few years in the country. Additionally, there are more than eight important national optoelectronics laboratories and five laboratories within the Education Ministry. China is also rapidly becoming one of the major producers of display materials and devices. Japanese, Taiwanese and Korean companies are investing heavily in thin-film transistor LCD production lines located in China. China’s optoelectronics market is forecasted to witness significant growth in the coming years. China is the world’s largest vehicle market in both annual sales and manufacturing sectors. Its domestic production is expected to reach 35 million vehicles by 2025 (Source: ITA). The growing adoption and production of automotive vehicles are anticipated to increase the discrete semiconductors demand for electrification purposes which in turn is projected to drive the overall market growth.
The COVID-19 pandemic has slowed down the overall market growth due to the demand and supply imbalance. However, there is no such negative impact on the market. The overall semiconductor market witnessed significant growth in 2020 in comparison to 2019, and the market is further expected to grow in the future due to the massive demand from end-user industries, which will significantly have a positive impact on the overall market growth.
The Asia-Pacific optoelectronics market has been analyzed through the following segments:
Texas Instruments Incorporated
Analog Devices, Inc.
Infineon Technologies AG
Vishay Intertechnology, Inc.
Broadcom Inc. (Avago Technologies)
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