Photonics Market

Global Photonics Market Size (2024-2029):

The global photonics market was worth US$ 726 million in 2023 and is anticipated to reach a valuation of US$ 1223 million by 2029 and it is predicted to register a CAGR of 9.1% during the forecast period 2024-2029

MARKET DRIVERS AND RESTRAINTS:

Increased usage of lightweight materials in Industries as per government norms is one of the driving forces for the growth of the photonics market throughout the globe. Consumers prefer small and lightweight gadgets; this triggers the demand for conductive ink. Products using conductive ink are comparatively easier to handle than their heavyweight counterparts. The introduction of advanced telecommunication networks has also sparked a demand from the photonics industry. Initiatives such as 5G which is imminent to take over from its previous generation claim to provide 20 times better performance. For such improvement, the production of 5 G-compatible devices is also increasing.

The industry encompasses a plethora of products that are photonic-based. The growth outlook towards the adaptation of green and sustainable products is promoting the use of Photovoltaic cells (PV-cells). The stringent government policies related to the usage of eco-friendly products are acting as a positive element in the expansion of the global photonics market.

The photovoltaic market has tremendously grown in the past few years and it has triggered high demand for the conductive ink industry. Along with photovoltaic, the display industry is also expected to dominate the market in the forecasted period. The radiation from the photonic products is used to cure diseases and other activities. Hence, the photovoltaic system also looks like a promising growth sector for the photonics industry.

The highly advanced materials providing superior features are costly. Many industries do not consider such features as of cardinal importance; hence it gets overlooked. In addition to this, extreme usage and adoption of products utilizing photonics will gradually lead to the accumulation of older E-waste that will have harmful environmental impacts. Given how stringent government norms are during this time, this could be a hindering factor to the growth of the photonics industry. Lacking international standards can also be a hindering factor for the industry.

COVID-19 IMPACT ON THE PHOTONICS MARKET:

Coronavirus has had its impact all over the globe. Markets in Europe, North America, and Asia are the most affected by the pandemic. Europe was the early hotspot for the virus and the initial lockdown thwarted all production activities in the region. Followed by Europe, North America, and Asian countries had to adopt a similar solution, with production activities coming to a halt; the photonics market was left very narrow. In North America, the Photonics market includes major suppliers like American Elements, Ohara, KGaA, Heraeus Holding GmbH, Johnson Matthey, etc. These companies have their manufacturing facilities spread across various countries in different regions. Despite this COVID-19 has impacted their businesses and disrupting the supply chain. These market players have announced the suspension of production due to the lowered demand, and supply chain bottlenecks, and to protect the safety of their employees in the United States during the pandemic. As a consequence, the demand for Photonics has declined in 2020. Recovery in the business is likely to start post-2021.

PHOTONICS MARKET REPORT COVERAGE:

SEGMENTAL ANALYSIS

Photonics Market Analysis By Product:

• LED and Laser
• Detectors
• Sensors
• Imaging Devices

Photonics Market Analysis By Application

• ICT
• Production Techniques

Photonics Market Analysis End-user

• Media Broadcasting and Telecom
• Consumer & Business Automation

REGIONAL ANALYSIS

• North America
• Latin America
•  Europe
• Asia Pacific
• Middle East & Africa

RFID is expected to register the highest CAGR during the period between 2020 and 2025. The electronics market has been growing rapidly and conductive ink is gaining popularity because of its lightweight and ease of handling. The processors and graphics are improving significantly each year. Silicon-based photonics are extremely popular. These are optimized in order to meet the required bandwidth for communication.

Asia Pacific (APAC) region is expected to be the largest market during the outlook period of 2020 and 2025. In this region, China accounts for the biggest share. Consumer electronics, retail, transportation, healthcare, etc., are some sectors where the demand for photonics has increased rapidly over the past few years. Another reason is the availability of cheap labor in China and India which attracts various industries to invest in the region.

The second-largest market in North America, with the USA being the prominent contributor because of its vast production abilities and robust economy. Photovoltaic systems are finding increased demand around the world, which is proliferating the call for the photonics market.

KEY PLAYERS IN THE GLOBAL PHOTONICS MARKET

1. Create Materials Inc.
2. Asahi Glass
3. Ohara
4. Mineral Technologies
5. American elements
6. Schott
7. Nikon