The global photonics market is projected to grow at a CAGR of 5.56% to reach US$901.403 billion by 2027, from US$617.147 billion in 2020.
The photonics market is expected to surge during the forecast period owing to the extensive application of photonics in various end-use industries. This includes life sciences, manufacturing, electronics, information and communications technology, photovoltaics, security, and defence.
The growing miniaturization of devices has given rise to the designing of photonic sensors in addition to other sensors, propelling the growth of global photonics in the forecast period. Also, with the growing adoption of IoT and its advancements, the emergence of the internet of photonic things is boosting the market demand in the forecast period and in the upcoming years.
Growing concerns regarding the safety and security of industry personnel and homeland security are burgeoning the market demand for photonics in the next five years. Moreover, the growing trend of adopting silicon photonics for the enhancement of the speed of data transfer provides an impetus for the market to thrive at a rapid pace with the growing semiconductor industry. Based on geography, the European region is expected to hold a significant share, followed by the Asia Pacific, which is expected to be the fastest-growing in the global photonics industry during the forecast period.
Growing innovations in silicon photonics are driving the growth of the photonics industry around the globe in the forecast period.
The silicon integrated circuit and the semiconductor laser are the two most important inventions of the 20th century and form the basis of silicon photonics technology. Replacements have been made where tiny silicon chips are used in place of copper and they consist of built-in Indium phosphide (InP) lasers that are capable of data transfer at a speed of up to 100 Gbps by using optical fibres and support the world’s unsatisfying data demand. In addition to providing optical connections, silicon photonics is also allowing computers to exascale their computing speed.
Until now, the method of attaching the laser light sources to the silicon was done in a complicated manner. However, a novel approach has been designed which is currently in the research phase. The deposition of lasers onto the silicon chip uses nanolasers that can be directly deposited onto the chip and shows a great site-selective integration on the silicon wafer. Such novel approaches in the field of silicon photonics promise processing which is equivalent to the speed of light with greater energy efficiency as well. Hence, rising innovations in silicon photonics have a high impact on promoting the growth of the global photonics market.
The use of photonics for wider end-user industrial applications is propelling the growth of the global photonics market in the forecast period.
Over time, photonic technology is proving to be a versatile technology that finds immense utility in a wide range of applications. With continuous improvements in bandwidth, power dissipation, and signal integrity, the technology is poised to provide connectivity anywhere possible. Some of the anticipated applications of the technology include lab-on-chip applications, augmented reality goggles, portable real-time analysis biosensors for molecular analysis and cellular analysis and the development of high-speed supercomputers or quantum computers.
Industries like aerospace and defense are also showing interest in silicon photonics due to the reduced size, lower power consumption, and low weight of these devices. Furthermore, these devices are highly resistant to electromagnetic interference, which may otherwise cause them to underperform. Photonics technology will prove beneficial in activities such as car-to-car communication, navigation, and mapping with the advent of autonomous vehicles. Hence, the potential use of photonics in various industries is fueling the growth of the global photonics market in the forecast period and the upcoming years.
Global photonics market growth was strongly affected by the COVID-19 pandemic. Biophotonic researchers started conducting more research and development. Due to the pandemic, the demand for Photonics UV-C Led light increased as it was found out that UV-C Led light can be used to disinfect viruses. Due to supply chain interruptions, containment limits, and social distancing traditions, the epidemic caused havoc for many end-user enterprises. In spite of the pandemic's impact on major industries, the healthcare sector emerged as a lucrative application of photonics. The penetration of the light wave was fueled by an unprecedented demand for RT-PCR tests. In addition, the growing popularity of 3D printing amidst the pandemic encouraged industry players to invest in the sector. Due to the technological advancement of photonic sensors, along with the increasing adoption of technologies, such as facial recognition, the scope of photonic sensors expanded and will continue to do so in the forecasted period.
|Market Size Value in 2020||US$617.147 billion|
|Market Size Value in 2027||US$901.403 billion|
|Growth Rate||CAGR of 5.56% from 2020 to 2027|
|Forecast Unit (Value)||USD Billion|
|Segments Covered||Application, Industry Vertical, And Geography|
|Regions Covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies Covered||Magic Leap, Inc., Providence Photonics, LLC, Teledyne FLIR LLC, Thorlabs, Inc., Ocean Insight, IPG Photonics Corporation, GreenTEG AG, Orange Photonics, Inc., Teem Photonics|
|Customization Scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What is the size of the global photonics market?
A1. Photonics Market was valued at US$617.147 billion in the year 2020.
Q2. What will be the photonics market size by 2027?
A2. The global photonics market is projected to reach a market size of US$901.403 billion by 2027.
Q3. What are the growth prospects for the photonics market?
A3. The photonics market is projected to grow at a CAGR of 5.56% over the forecast period.
Q4. What factors are anticipated to drive the photonics market growth?
A4. The photonics market is expected to surge during the forecast period owing to the extensive application of photonics in various end-use industries.
Q5. How is the global photonics market segmented?
A5. The global photonics market has been segmented by application, industry vertical, and geography.
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 Forces 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 Photonics Market Analysis, by Application
5.2. Optical Components and Systems
5.3. Solar Energy
5.4. Flat Panel Displays
5.6. Information Technology
5.7. Optical Communications
5.8. Medical Engineering and Life Sciences
5.9. Measurement and Machine Vision
5.10. Production Technology
6. Global Photonics Market Analysis, by Industry Vertical
6.3. Life Sciences
6.6. Security and Defense
7. Global Photonics Market Analysis, by Geography
7.2. North America
7.2.1. United States
7.3. South America
7.5. Middle East and Africa
7.5.1. United Arab Emirates
7.6. Asia Pacific
7.6.4. 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. Magic Leap, Inc.
9.2. Providence Photonics, LLC
9.3. Teledyne FLIR LLC
9.4. Thorlabs, Inc.
9.5. Ocean Insight
9.6. IPG Photonics Corporation
9.7. GreenTEG AG
9.8. Orange Photonics, Inc.
9.9. Teem Photonics
Magic Leap, Inc.
Providence Photonics, LLC
Teledyne FLIR LLC
IPG Photonics Corporation
Orange Photonics, Inc.
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