Global Photonics Market Report and Forecast 2024-2032

Global Photonics Market Outlook

The global photonics market size reached approximately USD 741.65 billion in 2023. The market is projected to grow at a CAGR of 7.5% between 2024 and 2032, reaching a value of around USD 1421.38 billion by 2032.

Key Takeaways

• Photonics has the capability to revolutionise various sectors by enhancing efficiency, precision, and capabilities of manufacturing processes and operations.

• Photonics and photonics-powered solutions support data communication systems by enabling data transmission over optical fibres, which carry information encoded in light pulses.

• In surveying and detection, photonics is used primarily for its precision, non-invasiveness, and ability to cover large distances quickly.

Photonics refers to the science of light as it controls, detects, and produces photons and light waves or light particles. It encompasses the study of the application of light across various spectrums, from infrared to visible and ultraviolet regions. Photonics also involves the use of light (photons) to perform functions that traditional electronics (electrons) do, including communications, information processing, lighting, and sensing, among others.

The rising demand for energy-efficient products and the increasing use of photonic products in different applications are the major drivers propelling the photonics market growth. Another major driving force for the market is its rising application in silicone-based photonics. For telecommunications and data centre applications, hybrid silicon lasers (silicon and group III-V semiconductor) are used, which benefit from the luminous properties of III-V semiconductor materials. The technological progress of light-based technologies has driven a new wave of innovation by offering sustainable solutions to various challenges.

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Key Trends and Developments

Photonic integrated circuits (PICs) for next-gen applications; trend of sustainability and green photonics; the pivotal role of photonics in quantum technologies; and technological advancements in laser technology are the major trends in the photonics market

Photonics Market Trends

The emphasis on sustainability within the photonics sector is a reflection of the broader global movement towards environmental responsibility and the reduction of carbon footprints across various end-use sectors. Photonics technologies enable the development of intelligent lighting systems that adjust based on natural light availability, occupancy, and other factors, further reducing energy consumption. Photonics is critical in the development and optimisation of photovoltaic cells for solar energy, and advances in materials science and photonic designs have led to higher efficiency solar panels, capable of converting more sunlight into electricity.

In December 2023, ORCA Computing, a London-based startup, made a significant announcement regarding its expansion into quantum computing infrastructure. The company revealed that it has been chosen to install two of its PT-1 quantum photonic systems at the Poznań Supercomputing and Networking Center (PSNC) in Poland. Quantum photonic systems, like the PT-1 developed by ORCA Computing, use light (photons) to perform quantum computations and this approach is distinct from other quantum computing technologies that might rely on superconducting circuits or trapped ions.

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Market Segmentation

“Photonics Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

LEDs account for a major photonics market share owing to their growing adoption across the lighting sector

LEDs hold the highest share in the market due to their widespread application in lighting, displays, automotive, and consumer electronics. Their energy efficiency, long lifespan, and decreasing cost have driven their adoption across various sectors, making them a dominant technology in general lighting, automotive lighting, and backlighting for TVs, smartphones, and other devices.

The optical communication systems and components segment is also expected to witness a robust growth in the forecast period due to the critical role of optical communication in modern telecommunications infrastructure. The increasing demand for high-speed internet and data services has propelled the growth of optical communication technologies, including fibre optic cables, transceivers, amplifiers, and switches. These components are essential as the backbone of the internet, data centres, and cloud computing, supporting the massive data flow across global networks.

Data communication applications are expected to maintain their dominance in the photonics market

There is a surge in usage of photonics in data communication to enable high-speed, high-bandwidth communication systems, supporting the photonics market growth. Optical fibre technology, which relies on photonics, is the backbone of the Internet and global telecommunications, supporting the massive increase in data traffic.

Medical technology is another major application that holds a significant share of the photonics market. Photonics plays a crucial role in various medical and healthcare technologies, including diagnostic imaging systems (such as MRI, CT scans, and X-rays), laser surgeries, phototherapy, and endoscopy. The increasing adoption of advanced medical technologies for diagnosis, treatment, and patient care, combined with an ageing global population and rising healthcare standards, drives the demand for photonics in this segment.

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Competitive Landscape

The market players are increasing their research and development activities and are increasingly focusing on cross-industry collaborations to develop strategic partnerships and gain a competitive edge

Other major players in the photonics market include Intel Corporation, Ohara Corporation, and Hamamatsu Photonics K.K., among others. These companies operate in various segments, including optical components, lasers, imaging systems, photovoltaic cells, and fibre optics, among others.

Photonics Market Analysis by Region

The demand for photonics in North America is strong and growing, driven by several key factors and applications across various end-use sectors. The internet and telecommunications heavily rely on optical fibre technologies, which are a cornerstone of photonics. The demand for higher bandwidth and faster data transmission rates in North America has led to increased investments in upgrading and expanding fibre optic networks. The ongoing rollout of 5G technology and the expansion of data centre capacities further fuel this demand. Moreover, the defence and security sector in North America, particularly in the United States, invests heavily in photonics for applications ranging from night vision systems and laser-based communication to surveillance and guidance systems.

The Europe photonics market is robust, driven by a strong emphasis on innovation and sustainable development. The healthcare sector in Europe is a major driver of photonics demand, with applications ranging from medical diagnostics and imaging to therapeutic devices and minimally invasive surgeries. Europe's focus on advanced healthcare solutions and personalised medicine has spurred the development and adoption of photonic technologies in biophotonics, including lab-on-a-chip devices and optical biosensors.

Key Highlights of the Report

Photonics Market Report Snapshots

Photonics Market Size

Photonics Market Trends

Photonics Market Regional Analysis

Photonics Companies