Photonics refers to the technology that deals with the generation, emission and detection of light. Photonics applications range from industrial laser processing, fiber optics communication, medical imaging, light therapy, digital photography and display technologies. Photonics products provide multiple advantages over traditional technologies such as high speed data transfer, compact packaging, greater precision and remote sensing capabilities. The growing need for high bandwidth data transfer and miniaturization of devices is driving demand for photonics products.
The global Photonics Market is estimated to be valued at US$ 757.3 Mn in 2023 and is expected to exhibit a CAGR of 7.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Integrated optics leverages the benefits of optical components within a single photonic integrated circuit. It allows higher levels of functional integration, compact packaging and lower manufacturing costs when compared to conventional discrete optical components. Integrated optics chips can integrate multiple optical functions like modulators, laser sources, detectors along with passive components like waveguides within a small footprint. Photonics companies are increasingly adopting integrated optics platforms to develop next generation devices for applications like data communications, biomedical imaging, quantum technologies and LiDAR. For example, Intel Corporation is developing advanced transceiver modules using its hybrid silicon photonics platform featuring integrated lasers and detectors to address high bandwidth needs of data centers. The trend towards integrated optics is poised to accelerate innovation in photonics applications over the coming decade.
SWOT Analysis
Strength: The photonics market offers several strengths such as large applications across various end-use industries, strong government funding for research and development, and growing need for high bandwidth data transfer solutions.
Weakness: High initial investment costs associated with photonics equipment and lack of standardization are some weaknesses of this market.
Opportunity: Increasing usage of fiber optic networks for telecommunications and rising demand for photonics components from healthcare sector present key opportunities.
Threats: Stiff competition among existing players and availability of substitutes pose major threats to the photonics market.
Key Takeaways
The global photonics market is expected to witness high growth over the forecast period of 2023 to 2030. The market size is projected to grow from US$ 757.3 Mn in 2023 to cross US$ 1,300 Mn by 2030, at a CAGR of around 7.9% during the forecast period.
Regional analysis: North America region currently dominates the photonics market with the largest share. This is attributed to heavy investments in R&D by both government and private organizations. Asia Pacific region is expected to exhibit fastest growth over the coming years due to expanding telecommunications infrastructure and rising penetration of fiber optics networks in countries like China and India.
Key players: Key players operating in the photonics market are Carl Zeiss AG (Scantinel Photonics GmbH), Hamamatsu Photonics KK, Schott AG, Intel Corporation, Photonics SAS (Keopsys), Polatis Photonics Inc., Philips Photonics (Trumpf GmbH), Alcatel-Lucent SA, Osram Licht AG, Molex Inc. (Koch Industries), IPG Photonics, Infinera Corporation, Finisar Corporation, NEC Corporation, and Innolume GmbH. These players are focusing on new product launches and partnerships to consolidate their market position.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
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