The optical material market was valued at US$22.658 billion in 2019.
Optical material possesses optical properties such as transmission, reflection, absorption, refraction, and scattering, etc. Depending on how they interact with visible light, these materials are classified as transparent, translucent, and opaque. Transparent material transmits light while having little absorption and reflection. The materials in which light is transmitted diffusely are called translucent. And, the materials in which light does not transmit are called opaque. These are used for wide applications in consumer products and high-tech industrial requirements.
Global demand for optical materials will increase due to their benefit to various industries, such as the automotive industry, due to optical properties such as transmission, reflection, absorption, refraction, and more. Additionally, optical semiconductors are becoming increasingly common in consumer electronics, contributing to market growth. Therefore, the increasing demand for optical materials across a wide range of end-use industries will encourage the optical materials industry to grow.
The construction industry is growing and its advancement is expected to bring the optical materials market to surge. When used to construct buildings, translucent concrete allows sunlight to easily penetrate and conserve electricity. Fiber optics, glass rods, and resins make up the optical element. There is great potential for the optical material market in the Middle East and the Asia Pacific. Government support and massive ongoing construction projects are allowing the construction sector in this region to grow at a phenomenal rate. India, the UAE, and China are focusing more and more on residential and commercial construction. Building and infrastructure would drive optical material sales in the region as a result of this positive growth. Meanwhile, Indonesia received approximately 2.2 billion dollars in foreign direct investment in real estate and business services in 2020.
The construction industry in India is rapidly expanding, along with urban development projects. By 2025, India is expected to rank third among global construction markets, as the country aims to develop its infrastructure, advance its cities, and boost employment. This industry has been opened up to foreign investment and in 2020 alone, US$5 billion will be invested into the real estate sector. (Source: ibef.org)
The medical community has long recognized the advantages of optical fibers. Fiber optics are thin, flexible, non-conductive, immune to electromagnetic interference, chemically inert, non-toxic, and, of course, small. Medical sterilization can also be performed on them. Additionally, after Covid-19, countries are making immense investments in healthcare and medical equipment. This is one of the major growth factors for the optic material market. As of early October 2020, COVID-19–related health funding announced by the government of Canada amounted to more than $29 billion. (Source: Canadian Institute for Health Information). A preliminary assessment of health spending in 16 OECD countries shows that health spending reached 9.9% of GDP in 2020, and per capita, health spending drove upwards to 4.9%. Increased government health spending was the primary driver of this growth. (Source: oecd.org).
Wearable medical devices, which largely run on optical materials, are set to flood the market in the coming years, not healthcare professionals but also for patients and other consumers. Within the Asia Pacific, India, China, and Japan are predicted to account for most of the share. China and India have a large population pool, which contributes substantially to market growth.
The manufacturing cost of optical materials is a possible challenge for the growth of global optical materials. Although optical materials can be installed at a reasonable cost, in the form of wires, they are not as robust. A special piece of equipment is typically needed. The fitting process can sometimes make them highly vulnerable. In comparison to copper wires, optical cables are more delicate. Special devices are needed to ensure optical fiber cable transmission. Placement of an optic cable requires expensive splicing machines and specialized personnel.
As a result of the COVID-19 pandemic in 2020, economic activity was halted for long periods, disrupting growth patterns and resulting in mass job losses in key sectors, including construction, which relies heavily on migrant labor. Several countries have closed down their construction sites. Additionally, operational restrictions and disruptions to supply chains are common at open sites.
Government budgets are under pressure as a result of the COvid-19 economic crisis. Governments across the world have increasingly invested in healthcare, causing the industry to grow.
The development of high-speed optical fibers is one of the prime reasons driving the optical material market growth during the next few years. Also, the emergence of IoT and increasing focus on developing smart cities will lead to sizable demand in the market. Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the optical materials market. Major players in the optical materials market are Nikon, Opco Laboratory, Oxide Corporation, Dynasil, Canon Optron, Inrad Optics, and Knight Optical LLC among others.
|Market size value in 2019||US$22.658 billion|
|Growth Rate||CAGR of during the forecast period|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Type, Industry Vertical, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||Phosctech Photonics, Korth Kristalle, Opco Laboratory, Glass Fab, Oxide Corporation, Eksma Optics, Nikon, Jenoptik, Knight Optical, Dynasil|
|Customization scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What is the size of the global optical material market?
A1. The optical material market was valued at US$22.658 billion in 2019.
Q2. Who are the major players in the optical material market?
A2. Major players in the optical materials market are Nikon, Opco Laboratory, Oxide Corporation, Dynasil, Canon Optron, Inrad Optics, and Knight Optical LLC among others.
Q3. How is the global optical material market segmented?
A3. The global optical material market has been segmented by type, industry vertical, and geography.
Q4. What factors are anticipated to drive the optical material market growth?
A4. The increasing demand for optical materials across a wide range of end-use industries will encourage the optical materials industry to grow.
Q5. What is the base year considered in the optical material market report?
A5. 2019 has been taken as the base year in the optical material market.
1.1. Market Definition
1.2. 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. Porters Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. The Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Function
4.4. Function Value Chain Analysis
5. Optical Materials Market Analysis, By Type
6. Optical Materials Market Analysis, By Industry Vertical
6.2. Aerospace and Defense
6.5. Consumer Electronics
7. Optical Materials Market Analysis, By Geography
7.2. North America
7.2.1. United States
7.3. South America
7.5. Middle East and Africa
7.5.2. Saudi Arabia
7.6. Asia Pacific
7.6.5. 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. Phosctech Photonics
9.2. Korth Kristalle
9.3. Opco Laboratory
9.4. Glass Fab
9.5. Oxide Corporation
9.6. Eksma Optics
9.9. Knight Optical
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