Photonics Market Synopsis

Photonics Market Size Was Valued at USD 757.6 Billion in 2023, and is Projected to Reach USD 1403.4 Billion by 2032, Growing at a CAGR of 7.09% From 2024-2032.

Photonics is a field of optics that concentrates on producing, detecting, and controlling light (photons) using emission, transmission, modulation, signal processing, switching, amplification, and sensing. Photonics deals with practical engineering applications, while quantum electronics is centred on theoretical aspects and they are closely related. Photonics involves using light in various applications, primarily within the visible and near-infrared spectrums. It was created as a result of progress in semiconductor light emitters and advances in optical fibre technology.

• Photonics technology has progressed in efficiency, speed, and small size, as enhancements in lasers, optical components, and detectors have boosted system capabilities. The incorporation of electronics has resulted in improved optoelectronic devices, such as optical communication systems that have enhanced data rates and reduced power usage. The growing need for data transmission, fuelled by big data, cloud computing, and 5G networks, depends on photonics technology for fast and effective data transfer. Optical fibres and components are perfect for tasks that need rapid and dependable data transmission due to their high bandwidth and low latency.
• The demand for sensors and displays in advanced photonics components is being fuelled by consumer electronics such as smartphones, wearables, AR, and VR technologies. Photonics also has a vital role in the fields of healthcare and life sciences, being used in medical imaging, diagnostics, and therapeutic methods such as laser surgery. Furthermore, photonics is applied in environmental monitoring for tasks such as remote sensing, pollution detection, and climate research using satellite-based imaging and ground-based systems.
• Photonics is essential for both industrial manufacturing and scientific research. It is employed in various industries for precise cutting, welding, and inspection tasks, as well as playing a role in fundamental physics experiments, material science, and astronomy. The government and private industries are investing heavily in research and development (R&D) to speed up advancements in photonics. Investments are also being allocated towards infrastructure projects to bolster cutting-edge photonics technologies such as fibre optic networks and high-speed communication systems.

Photonics Market Trend Analysis

Higher Usage of Photonic Integrated Circuits or PICs

• By using PICs, the various optical functions can be integrated into one single chip which in turn means less size and cost. This is very important in areas where space is limited and where the goal is to come up with cheap solutions. In addition, PICs have faster transmission rates for data and increased bandwidth than traditional systems, which is essential in telecommunication and data centres. Overall, it can be stated that PICs offer enhanced performance, features, and effectiveness across various photonics systems. Manufacturers are also advantaged by the superior cost performance achieved through the use of PICs in both the manufacturing and operation phases. All in all, an ability to manage energy and overall resources is in compliance with the trends in sustainability throughout different industries further reducing the negative impact on the environment.
• Low-power PICs use less power than if using individual photonic devices, thus reducing the need for optical interfacing and positioning. Some of the important uses of renewable energy include in areas that require a lot of energy such as data centres and telecommunication. Integrative photonic devices offer enhanced thermal management and thus, stable and longer lives of the components involved. Hence PICs result in improved reliability and stability by minimizing misalignment and other optical losses. Smaller these devices are they will be sturdier and longer lasting than their larger counterparts, thus reducing the likelihood of components failing and increasing the effectiveness of the system.
• Advances in technology have led to premiums in material and structural designs, enhancing the efficiency and capacity of Photonic Integrated Circuits (PICs). High-performance materials including Silicon photonics, Indium Phosphide (InP), and hybrid materials are known to have suitable optical features. Techniques such as photolithography and etching have over the years improved on how they are used to increase the precision and cost-effectiveness of fabricating PICs. The growth in the demand of PICs is due to the market requirement of high-speed optical communication in various sectors of telecommunications, compact and efficient photonics in electronics and_probs, integrated photonics components in various sectors of health care in different industries.

Technological Advancement with Innovations

• Innovative materials and production methods are enhancing optical parts like photonic crystals and metamaterials, enabling more precise manipulation of light on a small level. The rapid development of optoelectronics, the merging of photonics and electronics, is advancing to address the demand for quicker and more effective communication technologies.
• Photonics plays a vital role in quantum technologies such as computing and communication, establishing secure channels and enhancing computing capabilities. Photonics advancements in the medical field enhance imaging techniques, leading to increased precision in diagnostics and treatments.
• Advancements in photonics are transforming consumer electronics by improving displays and sensors, ultimately enhancing user experiences. Advances in photonics, such as LIDAR technology, improve the precision and timeliness of data gathering in environmental monitoring for tasks ranging from climate studies to autonomous vehicle guidance.
• Novel photonic materials and devices are increasing energy efficiency in areas such as LED technology and solar cells. Advancements in optical fibre and photonic circuits are enhancing telecommunications by allowing for increased bandwidth and secure data transmission.

Photonics Market Segment Analysis:

Photonics Market Segmented on the basis of Type, Application, End-User, Distribution channels, Region.

By Type, LED Segment Is Expected to Dominate the Market During the Forecast Period

• LED technology has made strides in both efficiency and performance. LEDs that are energy-efficient can transform a higher amount of electrical energy into light compared to traditional bulbs, which results in decreased energy consumption. Advancements in materials and production processes have enhanced the brightness, colour accuracy, and longevity of LEDs, expanding their range of uses. The incorporation of smart technology into LEDs has led to the development of intelligent lighting systems, allowing for remote control, customization of colour and brightness, and integration with home automation. Continual LED studies are resulting in fresh uses like horticultural lighting and UV LEDs for sanitizing purposes
• LEDs are commonly used in a variety of areas such as general lighting, consumer electronics, automotive lighting, signage and displays, as well as healthcare. Generally, their popularity in residential, commercial, and industrial settings is due to their extended lifespan and energy efficiency. LEDs play a crucial role in consumer electronics such as TVs and smartphones because of their high image quality and energy efficiency, particularly for backlighting. LEDs are being more commonly utilized in automotive lighting due to their durability and intense light emission. LEDs are crucial for the vivid colours and brightness of signage and displays. LEDs are utilized in healthcare and specialized applications for their accuracy and unique light wavelengths.
• LED technology has become more affordable, allowing for a wider range of uses and strengthening its hold on the market. LEDs offer a significant return on investment because of their efficient energy use, extended lifespan, and cost-effective operation. LEDs are considered eco-friendly as they help cut energy usage by as much as 80% when compared to regular light bulbs, resulting in reduced carbon emissions. Their extended lifespan also reduces waste and the environmental effects of frequent bulb changes, in line with worldwide sustainability and energy preservation initiatives.
• The incorporation of smart technology into LEDs has led to the development of intelligent lighting systems, allowing for remote control, customization of colour and brightness, and integration with home automation. Continual LED studies are resulting in fresh uses like horticultural lighting and UV LEDs for sanitizing purposes.

By Application, Informative and Communication Technology Segment Held the Largest Share In 2023

• The use of optical fibre technology is essential for fast data transfer in telecommunication networks, utilizing light to send data over long distances with minimal loss and increased bandwidth. Technologies such as DWDM have increased data transmission speeds and network capabilities. Data centres are facing an increase in requests for fast data transfer because of cloud computing and applications with a lot of data. Photonics technology, including optical transceivers and active optical cables, is crucial for fulfilling the needs of contemporary data centres. Fibre-optic communication is crucial for broadband networks, offering fast internet access through technologies such as fibre-to-the-home (FTTH) and fibre-to-the-premises (FTTP). Photonics plays a vital role in ensuring efficient data transmission and infrastructure in mobile networks, particularly for 4G LTE and 5G technologies.
• Devices like optical transceivers and photonic integrated circuits (PICs) are necessary for transmitting data through optical fibres.
  Photonics is being used in emerging technologies such as quantum communication and optical computing to enhance data security and processing capabilities. These developments could transform information security and greatly improve performance in a variety of networking applications.
• Photonics technologies, such as optical fibres and components, provide cost savings compared to traditional electronic communication methods because they have lower operational expenses. The growth of the market is fueled by a rising need for high-speed internet and the expansion of data centres. Global trends and investments are centred on the expansion of 5G networks, which necessitate advanced photonics solutions, and on the increase in IoT devices that depend on efficient data transmission via photonics technology for strong communication infrastructure.

Photonics Market Regional Insights:

Asia Pacific is Expected to Dominate the Market Over the Forecast Period

• Countries in the APAC region, such as China and India, have experienced quick industrialization and economic expansion, leading to a surge in the need for photonics technologies in telecommunications and consumer electronics industries. The rise of the middle class and higher disposable income in the area has also driven the need for advanced consumer electronics such as LED displays and optical sensors. In the APAC region, there are important technology centres such as Silicon Valley in China and Bengaluru in India. These hubs are investing heavily in research and development to advance photonics technologies and establish the area as a frontrunner in technological progress.
• APAC has a major impact on the worldwide telecommunications and data centre industries through the growth of its telecommunications infrastructure and the rise in data centre numbers. The area concentrates on fibre-optic networks, 5G technology, and photonics components to optimize data transfer. In China and APAC, there is a robust manufacturing foundation for photonics components like optical fibres and LEDs, offering cost benefits for implementing photonics technologies in the area.
• APAC nations are putting money into smart city initiatives that utilize advanced photonics technology such as smart lighting and traffic systems. Advances in healthcare technology are also progressing through the use of photonics for imaging and diagnostics. In Asia Pacific, governments put in place favourable policies for advanced industries such as photonics, providing financial support for research and development, tax breaks, and assistance for new businesses. National initiatives such as China's "Made in China 2025" and India's "Digital India" seek to increase the use of advanced technologies, including photonics.

Photonics Market Active Players

• Applied Optoelectronics, Inc. (USA)
• Lumentum Holdings Inc. (USA)
• Coherent, Inc. (USA)
• Thorlabs Inc. (USA)
• Hamamatsu Photonics K.K. (Japan)
• Nikon Corporation (Japan)
• Jenoptik AG (Germany)
• OSRAM Opto Semiconductors (Germany)
• Broadcom Inc. (USA)
• Infinera Corporation (USA)
• Mirion Technologies (USA)
• IPG Photonics Corporation (USA)
• Laser Components GmbH (Germany)
• Lightwave Logic, Inc. (USA)
• Anritsu Corporation (Japan)
• Oclaro, Inc. (now part of Lumentum) (USA)
• United Technologies Corporation (UTC) (USA)
• Norsat International Inc. (Canada)
• EpiPhotonics, Inc. (Singapore)
• Alight Technologies (USA)
• Rofin-Sinar Technologies Inc. (USA)
• Sill Optics GmbH & Co. KG (Germany)
• Keyence Corporation (Japan)
• Princetel, Inc. (USA), and Other Active Players

Key Industry Developments in the Photonics Market:

• In July 2024, Knight Optical, a premier provider of custom precision optical components and sub-assemblies, announced its acquisition by Torrent Photonics LLC, a leading innovator in photonics technology. For Torrent Photonics, this acquisition marks a significant milestone in its growth strategy. This strategic move is set to expand the global reach and capabilities of both companies, providing an enhanced product portfolio, volume manufacturing capabilities and a seamless customer experience.
• In February 2024, A research team led by Professor Wang Cheng from the Department of Electrical Engineering (EE) at City University of Hong Kong (CityUHK) developed a world-leading microwave photonic chip that is capable of performing ultrafast analogue electronic signal processing and computation using optics.

1. INTRODUCTION
   1. RESEARCH OBJECTIVES
   2. RESEARCH METHODOLOGY
   3. RESEARCH PROCESS
   4. SCOPE AND COVERAGE
      1. Market Definition
      2. Key Questions Answered
   5. MARKET SEGMENTATION
2. EXECUTIVE SUMMARY
3. MARKET OVERVIEW
4. GROWTH OPPORTUNITIES BY SEGMENT
5. MARKET LANDSCAPE
   1. PORTER’S FIVE FORCES ANALYSIS
      1. Bargaining Power of Supplier
      2. Threat Of New Entrants
      3. Threat Of Substitutes
      4. Competitive Rivalry
      5. Bargaining Power Among Buyers
   2. INDUSTRY VALUE CHAIN ANALYSIS
   3. MARKET DYNAMICS
      1. Drivers
      2. Restraints
      3. Opportunities
      4. Challenges
   4. MARKET TREND ANALYSIS
   5. REGULATORY LANDSCAPE
   6. PESTLE ANALYSIS
   7. PRICE TREND ANALYSIS
   8. PATENT ANALYSIS
   9. TECHNOLOGY EVALUATION
   10. MARKET IMPACT OF THE RUSSIA-UKRAINE WAR
       1. Geopolitical Market Disruptions
       2. Supply Chain Disruptions
       3. Instability in Emerging Markets
   11. ECOSYSTEM
6. PHOTONICS MARKET BY TYPE (2017-2032)
   1. PHOTONICS MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3. LED
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2017-2032F)
      3. Historic And Forecasted Market Size in Volume (2017-2032F)
      4. Key Market Trends, Growth Factors and Opportunities
      5. Geographic Segmentation Analysis
   4. LASER
   5. DETECTORS
   6. SENSORS
   7. IMAGING DEVICES
   8. OPTICAL COMMUNICATION SYSTEM
7. PHOTONICS MARKET BY APPLICATION (2017-2032)
   1. PHOTONICS MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3. DISPLAYS
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2017-2032F)
      3. Historic And Forecasted Market Size in Volume (2017-2032F)
      4. Key Market Trends, Growth Factors And Opportunities
      5. Geographic Segmentation Analysis
   4. INFORMATION
   5. PHOTOVOLTAICS
   6.  MEASURE AND MACHINE VISION
   7. MEDICAL TECHNOLOGY
   8. PRODUCTION TECHNOLOGY
8. PHOTONICS MARKET BY END-USER (2017-2032)
   1. PHOTONICS MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3. AEROSPACE AND DEFENSE SOURCE
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2017-2032F)
      3. Historic And Forecasted Market Size in Volume (2017-2032F)
      4. Key Market Trends, Growth Factors And Opportunities
      5. Geographic Segmentation Analysis
   4. DISPLAY SOURCE
   5. SOLAR
   6. LED LIGHTING
   7. MEDICAL
   8. BIOINSTRUMENTATION
9. PHOTONICS MARKET BY DISTRIBUTION CHANNELS (2017-2032)
   1. PHOTONICS MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3. DIRECT SALES
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2017-2032F)
      3. Historic And Forecasted Market Size in Volume (2017-2032F)
      4. Key Market Trends, Growth Factors And Opportunities
      5. Geographic Segmentation Analysis
   4. VALUE-ADDED RESELLERS
   5. SYSTEM INTEGRATORS
   6. ONLINE SALES CHANNELS
   7. INDUSTRY SPECIFIC CHANNELS
10. COMPANY PROFILES AND COMPETITIVE ANALYSIS
    1. COMPETITIVE LANDSCAPE
       1. Competitive Benchmarking
       2. Photonics Market Share By Manufacturer (2023)
       3. Industry BCG Matrix
       4. Heat Map Analysis
       5. Mergers & Acquisitions
    2. APPLIED OPTOELECTRONICS, INC. (USA)
       1. Company Overview
       2. Key Executives
       3. Company Snapshot
       4. Role of the Company in the Market
       5. Sustainability and Social Responsibility
       6. Operating Business Segments
       7. Product Portfolio
       8. Business Performance (Production Volume, Sales Volume, Sales Margin, Production Capacity, Capacity Utilization Rate)
       9. Key Strategic Moves And Recent Developments
       10. SWOT Analysis
    3. LUMENTUM HOLDINGS INC. (USA)
    4. COHERENT, INC. (USA)
    5. THORLABS INC. (USA)
    6. HAMAMATSU PHOTONICS K.K. (JAPAN)
    7. NIKON CORPORATION (JAPAN)
    8. JENOPTIK AG (GERMANY)
    9. OSRAM OPTO SEMICONDUCTORS (GERMANY)
    10. BROADCOM INC. (USA)
    11. INFINERA CORPORATION (USA)
    12. MIRION TECHNOLOGIES (USA)
    13. IPG PHOTONICS CORPORATION (USA)
    14. LASER COMPONENTS GMBH (GERMANY)
    15. LIGHTWAVE LOGIC, INC. (USA)
    16. ANRITSU CORPORATION (JAPAN)
    17. OCLARO, INC. (NOW PART OF LUMENTUM) (USA)
    18. UNITED TECHNOLOGIES CORPORATION (UTC) (USA)
    19. NORSAT INTERNATIONAL INC. (CANADA)
    20. EPIPHOTONICS, INC. (SINGAPORE)
    21. ALIGHT TECHNOLOGIES (USA)
    22. ROFIN-SINAR TECHNOLOGIES INC. (USA)
    23. SILL OPTICS GMBH & CO. KG (GERMANY)
    24. KEYENCE CORPORATION (JAPAN)
    25. PRINCETEL, INC. (USA)
11. GLOBAL PHOTONICS MARKET BY REGION
    1. OVERVIEW
    2. NORTH AMERICA
       1. Key Market Trends, Growth Factors And Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size By Type
       4. Historic And Forecasted Market Size By Application
       5. Historic And Forecasted Market Size By End-User
       6. Historic And Forecasted Market Size By Distribution Channels
       7. Historic And Forecasted Market Size By Country
          1. USA
          2. Canada
          3. Mexico
    3. EASTERN EUROPE
       1. Key Market Trends, Growth Factors And Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size By Segments
       4. Historic And Forecasted Market Size By Country
          1. Russia
          2. Bulgaria
          3. The Czech Republic
          4. Hungary
          5. Poland
          6. Romania
          7. Rest Of Eastern Europe
    4. WESTERN EUROPE
       1. Key Market Trends, Growth Factors And Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size By Segments
       4. Historic And Forecasted Market Size By Country
          1. Germany
          2. United Kingdom
          3. France
          4. The Netherlands
          5. Italy
          6. Spain
          7. Rest Of Western Europe
    5. ASIA PACIFIC
       1. Key Market Trends, Growth Factors And Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size By Segments
       4. Historic And Forecasted Market Size By Country
          1. China
          2. India
          3. Japan
          4. South Korea
          5. Malaysia
          6. Thailand
          7. Vietnam
          8. The Philippines
          9. Australia
          10. New-Zealand
          11. Rest Of APAC
    6. MIDDLE EAST & AFRICA
       1. Key Market Trends, Growth Factors And Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size By Segments
       4. Historic And Forecasted Market Size By Country
          1. Turkey
          2. Bahrain
          3. Kuwait
          4. Saudi Arabia
          5. Qatar
          6. UAE
          7. Israel
          8. South Africa
    7. SOUTH AMERICA
       1. Key Market Trends, Growth Factors And Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size By Segments
       4. Historic And Forecasted Market Size By Country
          1. Brazil
          2. Argentina
          3. Rest of South America
12. INVESTMENT ANALYSIS
13. ANALYST VIEWPOINT AND CONCLUSION
    1. Recommendations and Concluding Analysis
    2. Potential Market Strategies
       1. 1. Thailand
          2. Vietnam
          3. The Philippines
          4. Australia
          5. New-Zealand
          6. Rest Of APAC
    3. MIDDLE EAST & AFRICA
       1. Key Market Trends, Growth Factors And Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size By Segments
       4. Historic And Forecasted Market Size By Country
          1. Turkey
          2. Bahrain
          3. Kuwait
          4. Saudi Arabia
          5. Qatar
          6. UAE
          7. Israel
          8. South Africa
    4. SOUTH AMERICA
       1. Key Market Trends, Growth Factors And Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size By Segments
       4. Historic And Forecasted Market Size By Country
          1. Brazil
          2. Argentina
          3. Rest of South America
14. INVESTMENT ANALYSIS
15. ANALYST VIEWPOINT AND CONCLUSION
    1. Recommendations and Concluding Analysis
    2. Potential Market Strategies