The global optoelectronics market is projected to grow at a CAGR of 5.61% to reach US$59.092 billion by 2027, from US$40.339 billion in 2020.
Optoelectronics, also known as photoelectric components, are semiconductor devices that can either create or respond to light. The demand for photoelectric components is expected to expand throughout the projected period as the global demand for cameras rises. Furthermore, rising smartphone adoption internationally, as well as ongoing camera advancements in the same, will drive market expansion in the future years.
Additionally, the growing need for optoelectronic devices in the automotive sector, especially with the increased use of electric cars, self-driving trucks, and autonomous vehicles, is projected to push the market further. The optoelectronics market is anticipated to grow rapidly as expenditures in LiDAR and additive manufacturing technologies increase. For example, Mitsubishi Electric Corporation introduced the ML562G86 pulse laser diode (LD) for projectors in December 2019, with a vivid 638-nanometer (nm) red light, an output power of 3.0W under pulse operation, and a mean time to failure1 (MTTF) of over 20,000 hours. Therefore, recent advances in the field of optoelectronics, such as plasmonic nanostructures, perovskite circuit boards, luminescent quantum dots, microscopic light bulbs, low-cost 3D imaging, beam 3D display technology, and Laser Li-Fi, are expected to cause a quantum shift in the dynamic scope of application areas of optoelectronic equipment.
Increased optoelectronics applications
Optoelectronics, which is widely utilized in automotive, telecommunications, and industrial applications, provides excellent beam-quality light with minimal power consumption and energy. Optoelectronics is employed in a variety of industrial applications, including proximity sensing, color quality assurance, scanners, and robotics. Many industrial businesses have turned to optoelectronic components for improved performance at a cheap cost and long-term operation. The ease of availability and rapidly increasing demand for these goods are the primary reasons translating into the potential for optoelectronics industry participants.
Due to fast industrialization and an increase in manufacturing activity in the area, the Asia Pacific region will have the greatest share of the market and will also expand at a booming CAGR in the upcoming years.
Furthermore, the ever-increasing expenditure on electricity by consumers in the Asia Pacific is predicted to contribute significantly to the market's high revenue. Japan is the world leader in robot manufacturing and factory automation technologies. Five of the top ten worldwide manufacturers are Japanese, including Softbank Robotics, Mitsubishi Motors Corporation, Yaskawa Electric Corporation, and others. Many enterprises in a variety of sectors are utilizing industrial automation to alter their operations. For example, in a Fanuc factory in Japan, the company has used automated manufacturing to produce industrial robots. This has enabled the corporation to decrease its human personnel to four people every shift. Because optoelectronics is a key component of robotics and industrial automation, it is in great demand in the region. Additionally, Mitsubishi Electric Corporation introduced the ML562G86 pulse laser diode (LD) for projectors in December 2019, with a vivid 638-nanometer (nm) red light, a pulse output power of 3.0W, and a mean time to failure1 (MTTF) of over 20,000 hours.
Increased partnerships and acquisitions will propel the market to grow in the coming years.
In May 2022, QT Optoelectronics, Inc. has been acquired by Fairchild Semiconductor International (QTO). QTO has agreed to sell for $97.8 million, with 12.5 percent paid in cash and the remainder in Fairchild shares. QTO will be renamed QT Optoelectronics, a Fairchild firm, and will become a completely owned subsidiary of Fairchild. QTO's product lines include optocouplers, LED lights and displays, and infrared components. The lines generate around 750 components and employ about 1500 workers worldwide. Moreover, in November 2020, E Ink Holdings, the world's leading creator of electronic ink technology, announced a strategic agreement with Yes Optoelectronics Co., Ltd., a leading developer and manufacturer of consumer LCD panels. The collaboration will concentrate on ePaper-related module research and development, product production, critical materials, and sales and marketing assistance.
Market Key Developments
|Market Size Value in 2020||US$40.339 billion|
|Market Size Value in 2027||US$59.092 billion|
|Growth Rate||CAGR of 5.61% from 2020 to 2027|
|Forecast Unit (Value)||USD Billion|
|Segments Covered||Type, End-User Industry, And Geography|
|Regions Covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies Covered||Texas Instruments Incorporated, Maxim Integrated, Renesas Electronics, Infineon Technologies AG, STMicroelectronics, Onsemi, Samsung Group, Broadcom Inc., Sony Semiconductor Solutions Corporation, OmniVision Technologies|
|Customization Scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What are the growth prospects for the optoelectronics market?
A1. The optoelectronics market is projected to grow at a CAGR of 5.61% during the forecast period.
Q2. How is the global optoelectronics market segmented?
A2. The global optoelectronics market has been segmented by type, end-user industry, and geography.
Q3. What will be the optoelectronics market size by 2027?
A3. The global optoelectronics market is projected to reach a total market size of US$59.092 billion by 2027.
Q4. What is the size of the global optoelectronics market?
A4. Optoelectronics Market was valued at US$40.339 billion in 2020.
Q5. What factors are anticipated to drive the optoelectronics market growth?
A5. The rising smartphone adoption internationally, as well as ongoing camera advancements in the same, will drive optoelectronics market expansion in the future years.
1.1. Market Overview
1.2. COVID-19 Scenario
1.3. Market Definition
1.4. Market Segmentation
2. RESEARCH METHODOLOGY
2.1. Research Data
3. EXECUTIVE SUMMARY
3.1. Research Highlights
4. MARKET DYNAMICS
4.1. Market Drivers
4.2. Market Restraints
4.3. Porter’s Five Force Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis
5. GLOBAL OPTOELECTRONICS MARKET, BY TYPE
5.2. CMOS Image Sensors
5.3. CCD Image Sensors
5.5. Laser Storage Pick-Ups
6. GLOBAL OPTOELECTRONICS MARKET, BY END-USER INDUSTRY
6.3. Consumer Electronics
7. GLOBAL OPTOELECTRONICS MARKET, BY GEOGRAPHY
7.3. Europe Middle East and Africa
7.4. Asia Pacific
7.4.3. South Korea
8. COMPETITIVE ENVIRONMENT AND ANALYSIS
8.1. Major Players and Strategy Analysis
8.2. Emerging Players and Market Lucrativeness
8.3. Mergers, Acquisitions, Agreements, and Collaborations
8.4. Vendor Competitiveness Matrix
9. COMPANY PROFILES
9.1. Texas Instruments Incorporated
9.2. Maxim Integrated
9.3. Renesas Electronics
9.4. Infineon Technologies AG
9.7. Samsung Group
9.8. Broadcom Inc.
9.9. Sony Semiconductor Solutions Corporation
9.10. OmniVision Technologies
Texas Instruments Incorporated
Infineon Technologies AG
Sony Semiconductor Solutions Corporation
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