The optoelectronic components market is projected to grow at a CAGR of 12.24% to reach US$131.344 billion by 2026, from US$58.530 billion in 2019. Optoelectronic devices and components are electronic devices that operate on both light and electrical currents. These electronic components detect and regulate light, as well as transform electrical signals into infrared or visible energy, or vice versa.
Optoelectronics has become an essential component for many modern technologies. Healthcare and automotive are two prominent industries that have begun to employ optoelectronics in recent years. The use of optical sensors for biosensing applications in the healthcare industry allows monitoring of the heart rate as well as the functioning of other critical organs in the human body. As a result, the adoption of non-intrusive, low-cost sensors across advanced healthcare applications has resulted in a paradigm shift in consumer wellness. The increasing demand for optoelectronic devices in the automotive sector, especially with the growing use of electric cars, self-driving trucks, and autonomous vehicles, is anticipated to push the market further.
Other industries that employ this technology are aerospace and defense, IT and telecommunication, food and beverage, etc., with major applications including measurement, lighting, communications, and security & surveillance. Optoelectronic components have also found their way into consumer electronics due to increased technological advancements and the increasing use of consumer goods such as high-end sophisticated cameras, photocopy machines, smartphones, blue-ray storage devices, flat & flexible television displays, and more.
The key players in the market implement growth strategies such as product launches, mergers, and acquisitions, etc. to gain a competitive advantage over their competitors. For instance, in February 2019, Osram (Germany) acquired Ring Automotive, a British manufacturer and distributor of vehicle lighting and auto-electrical parts. The acquisition enabled OSRAM to strengthen its expertise in automotive lighting and tap into additional sales potential by utilizing the distribution channels of Ring Automotive. Later that year in April, Vishay (US) added two new series of optocouplers, DIP-6 and SMD-6. The off-state voltage of both optocouplers is 800 V.
Also, in August 2018, TT Electronics (UK) expanded its product portfolio by launching OP207CL under its optoelectronics product line. The OP207CL is an infrared LED emitter with a spot diameter of 7mm. The emitter offers up to 10mW radiated power at a maximum drive current of 100mA. In the same year in October, Hamamatsu (Japan) expanded its product portfolio by adding a 4-channel pulsed laser diode to its laser diode product line. The laser diode can operate at temperatures as high as to 105°C.
Geographically, the market is divided into North America, South America, Europe, Asia-Pacific, and the Middle East, and Africa. Asia-Pacific is the hub of semiconductor component manufacturing, and the majority of key players operating in the optoelectronic component market such as Samsung Electronics Co., Ltd., Sony Corporation, and Sharp Corporation are based here.
Low power consumption, longer life, and ability to operate in extreme environments are the major factors driving the growth of the optoelectronic components market. Optoelectronic components are used in commercial electronic devices as well as in major industries such as healthcare, and automotive industries. There is an increasing demand for such durable and power-saving technologies.
Recent advancements in LED technology have resulted in the development of Li-Fi, which can transfer data using visible light. Because of its capacity to transport data by light, this technology is much more energy-efficient than other wireless data transmission systems. As a result, industry participants in the optoelectronic components market will have more opportunities to grow.
The availability of user-friendly and cheaper substitute technologies is expected to restrain the positive growth of the optoelectronic components market. The high price of raw materials along with the huge initial investment required for developing energy-efficient LED displays are likely to negatively affect the growth of the optoelectronic components market.
The Covid-19 pandemic negatively affected the Optoelectronic components market, due to the lockdown, restrictions imposed by the governments, consequently shutting down on-premise business processes and manufacturing operations and disrupting supply chains and production schedules. Moreover being the epicenter of the virus outbreak, led to huge losses during 2020. However, with the ease of restrictions globally, the market is expected to rebound during the forecast period.
|Market size value in 2019||US$58.530 billion|
|Market size value in 2026||US$131.344 billion|
|Growth Rate||CAGR of 12.24% from 2019 to 2026|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Components, Application, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||Sony, Samsung, Sharp Corporation, Advanced Optoelectronics Technology Inc., Cree LED, Osram Opto Semiconductors GmbH, OmniVision Technologies Inc., Vishay International Inc., Philips|
|Customization scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What is the size of the global optoelectronic components market?
A1. Optoelectronic Components Market was valued at US$58.530 billion in 2019.
Q2. What will be the optoelectronic components market size by 2026?
A2. The global optoelectronic components market is projected to reach a total market size of US$131.344 billion by 2026.
Q3. What are the growth prospects for the optoelectronic components market?
A3. The optoelectronic components market is projected to grow at a CAGR of 12.24% during the forecast period.
Q4. What factors are anticipated to drive the optoelectronic components market growth?
A4. The increasing demand for optoelectronic devices in the automotive sector, especially with the growing use of electric cars, self-driving trucks, and autonomous vehicles, is anticipated to push the market further.
Q5. Which region holds the maximum market share of the optoelectronic components market?
A5. Geographically, Asia Pacific is expected to hold a significant share of the optoelectronic components market.
Advanced Optoelectronics Technology Inc.
Osram Opto Semiconductors GmbH
OmniVision Technologies Inc.
Vishay International Inc.
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