Middle East And Africa Optoelectronics Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Type (CMOS Image Sensors, CCD Image Sensors, Lamps, Laser Storage Pick-Ups, Displays, Couplers, Others), By End-user Industry (Communication, Consumer Electronics, Manufacturing, Automotive), And By Country - Forecasts From 2022 To 2027

The Middle East and Africa optoelectronics market is estimated to be valued at US$357.870 million in 2020.

Introduction

Optoelectronics, or the photonics market, is the research, design, and manufacture of a hardware device that turns electrical energy into light energy and light energy into energy through semiconductors. The optoelectronics industry and technology have produced new added values in many industrial domains, including optical communications, display, solid-state lighting, optical storage, laser/optical processing, optical energy, and sensing/measuring. The market in this region is shaped by Turkey, Israel, South Africa, the United Arab Emirates, Saudi Arabia, and the rest of the Middle East and Africa. The surge in demand for smartphones and consumer electrical gadgets will drive up demand for optoelectronics during the predicted period. Furthermore, the region's growing industry and automation will drive up demand for optoelectronics shortly. Moreover, in the coming years, the region's demand for optoelectronics will grow even more due to the shift to renewable energy.

Market Trend

Saudi Arabia's Vision 2030 strategy calls for a huge digital revolution. Furthermore, the country's mega-city projects are expected to combine cutting-edge technology such as big data and the Internet of Things. Several businesses focus on using big data to find new customers or acquire insights into consumer behavior to produce new products. As a result, the increased adoption of big data, as well as the Internet of Things, is affecting the demand for photonics solutions. Therefore, the photonics market in Saudi Arabia is on the rise.

To become a leader in IoT technology, the government is also investing heavily in the deployment of smart solutions. Furthermore, big data technologies are expected to be important growth facilitators for Vision 2030's success. As a result, they are yet another set of elements that are assisting the growth of Saudi Arabia's photonics market.

Turkey, on the other hand, has a diverse economy with a strong industrial sector. IPG Photonics Corporation, a renowned developer of photonics systems, is also based in the country. In addition, the country's IT and Telecom sector has benefited from strong commercial relations with Europe. As a result, these factors are expected to promote the photonics market's growth in Turkey.

Growth Factors

• The Optoelectronics Market is expanding due to government incentives in the country

Optoelectronics is an essential component of several modern technologies. In recent years, the government in Saudi Arabia formed the vision 2030 to boost economic growth in terms of all industries. Automotive production and assembly, as well as local supply chains, will be boosted under Vision 2030. Saudi Arabia intends to build a car-manufacturing metropolis as part of the plan, including granting investment incentives and maintaining a steady supply of raw materials at reasonable costs. Increased adoption of renewable energy and Saudi Arabia's plans for investment in the sector will boost the demand for the photonics market.

Restraint

• Usage of complex fabrication

Complicated manufacturing is a challenge for optoelectronics technology, making it difficult to secure appropriate supplies of fabrication technology from vendors, which are scarce. The majority of raw materials used in creating optoelectronic devices are manufactured in China, and trade restrictions imposed as a result of COVID-19 have created a demand-supply gap.

Impact of COVID-19 Pandemic:

The unexpected onset of the COVID-19 pandemic had a major impact on public health and industry. To stop the virus from spreading, governments worldwide implemented lockdowns, which disrupted supply chains and production schedules by shutting down on-premise business activities and manufacturing operations. As a result of this circumstance, a demand-supply gap for components used in residential and healthcare applications developed. Due to the closure of consumer electronics, automobile, industrial, and other manufacturing facilities globally, the demand for optoelectronics has decreased. Exports and imports were severely hit as most raw materials were imported from other nations. Saudi Arabia is a large importer of cars, and COVID-19 impacted their imports. Hence Vision 2030 demands more manufacturing units for cars, as optoelectronic devices are also used in the making of cars.

 Segmentation:

• By Type
  • CMOS Image Sensor
  • CCD Image Sensor
  • Lamps
  • Laser Storage Pick-up
  • Displays
  • Couplers
  • Others
• By End-user Industry
  • Communication
  • Consumer Electronics
  • Automotive
  • Manufacturing
• By Country
  • Saudi Arabia
  • Israel
  • Turkey
  • Others