Photonics Market Growth Analysis | 2023-2028

Market Insights

The photonics market was estimated at USD 659.28 billion in 2022 and is likely to grow at a CAGR of 7.05% during 2023-2028 to reach USD 993.56 billion in 2028.

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Market Dynamics

Intorduction

Photonics is the technology of light and its application in generating, manipulating, detecting, and transmitting light. It is a multidisciplinary field that encompasses physics, electrical engineering, computer science, and materials science. The application of photonics is everywhere, including in all areas from the most advanced science to everyday life, such as light detection, information processing, lighting, spectroscopy, photonic computing, telecommunications, and metrology, etc.

Market Drivers

The photonics market is rapidly growing, and new applications are being developed all the time. There are several reasons behind the growth of the global photonics market. Here are some -

• Increased demand for high-speed data communication: Photonics is widely used in data transmission over optical fibers, which is considered the backbone of modern telecommunications networks. As the demand for high-speed data communication continues to grow, the demand for photonics is also expected to grow.
• Growing adoption of fiber optic sensors: Fiber optic sensors are used in a wide range of applications including telecommunications, the oil and gas industry, medical imaging, and manufacturing. As the adoption of fiber optic sensors grows, the demand for photonics is also expected to grow.

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• Development of new photonic technologies: Quantum photonics, metamaterials, biophotonics, holographic imaging, etc. are just a few of the many new photonic technologies that are being developed. For instance, in June 2023, the University of Rochester launched a new tool for generating microwave signals that could help propel advances in wireless communications, photonic technology, and more. Frequency combs are photonic devices that produce many equally spaced laser lines, each locked to a specific frequency to produce a comb-like structure. Such technologies have the potential to revolutionize many industries, and as they mature, the photonics industry will grow concurrently.
• Advancements in applications of photonics: Photonics is being used in a variety of new applications, such as 3D printing, medical diagnostic and energy harvesting, etc. As these new applications upgrade, the demand for photonics is also expected to grow. For instance, in October 2022, Nanoscribe introduced its latest 3D printer ‘Quantum X shape’, an ultra-precise 3D printer that offers alignment accuracies down to 100nm enabling the printer to print freeform optical elements directly onto optical fibers, photonic chips, etc.

Segments Analysis

By Product Type

Based on the product type, the market is segmented as LED, lasers, detectors, and sensors & imaging devices, optical communication systems & components, consumer electronics & devices, and others. The consumer electronics & devices segment is expected to be the fastest-growing segment during the forecast period. Consumer electronics include products such as watches, holography, scanners, and optical computer devices such as optical mice. The increasing demand for these products, globally, is driving the growth of this segment.

By Application Type

Based on the application type, the market is segmented as display, information & communication technology, photovoltaic, medical technology & life sciences, measurement & automated vision, lighting, production technology, and others. The information & communication technology segment is expected to remain the dominant market during the forecast period due to the increasing number of internet users and increase in data usage. Technological advancements such as high-speed optical fiber internet connectivity and digitization are going to rise the demand for this segment.

By End-Use Industry Type

Based on the end-use industry type, the market is segmented as building & construction, media, broadcasting & telecommunication, consumer & business automation, medical, security & defense, industrial, and others. The media, broadcasting & telecommunication segment leads the market owing to photonics being used in a wide range of applications such as display, information & communication technology, photovoltaic, medical technology & life sciences, measurement & automated vision, lighting, production technology, and others.

Regional Insights

In terms of regions, Asia-Pacific is estimated to be the largest market during the forecast period, owing to the increasing spending of government on digitization and increasing usage of photonic products in various applications such as lighting, information & communication technology, and displays.

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Key Players

Some of the major players in the market are:

• AGC Inc.
• American Elements
• Corning Incorporated
• Hoya Corporation
• II-VI Incorporated
• Nikon Corporation
• Ohara Corporation
• Schott AG
• Shin-Etsu Chemical Company
• Signify Holding.

Note: The above list does not necessarily include all the top players in the market.

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Research Methodology

This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s photonics market realities and future market possibilities for the forecast period of 2023 to 2028. After a continuous interest in our photonics market report from the industry stakeholders, we have tried to further accentuate our research scope to the photonics market to provide the most crystal-clear picture of the market. The report segments and analyses the market in the most detailed manner to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for the market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate the growth strategies to expedite their growth process.

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.

Market Segmentation

This report studies the market, covering a period of 12 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The photonics market is segmented into the following categories.

By Product Type

• LED
• Lasers, Detectors, Sensors & Imaging Devices
• Optical Communication Systems & Components
• Consumer Electronics & Devices
• Others

By Application Type

• Display
• Information & Communication Technology
• Photovoltaic
• Medical Technology & Life Sciences
• Measurement & Automated Vision
• Lighting
• Production Technology
• Others

By End-Use Industry Type

• Building & Construction
• Media, Broadcasting & Telecommunication
• Consumer & Business Automation
• Medical
• Security & Defense
• Industrial
• Others

By Region

• North America (Country Analysis: the USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, the UK, Russia, Spain, and the Rest of Europe)
• Asia-Pacific (Country Analysis: China, Japan, India, South Korea, and the Rest of Asia-Pacific)
• Rest of the World (Sub-Region Analysis: Latin America, the Middle East, and Others)

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Report Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to 3 players)
• SWOT analysis of key players (up to 3 players)

Market Segmentation

• Current market segmentation of any one of the product types by end-use industry type.

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances.

Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to [email protected].