Photonics involves the science and technology of generating, controlling, and detecting photons or light particles across a wide spectrum of applications including telecommunications, sensing, industrial automation, and life sciences. Photonics products such as LEDs, laser diodes, fiber optic cables, and sensors are increasingly being used in applications like optical communications, microscopy, surveillance, and biomedical imaging due to their advantages of lower power consumption, higher bandwidth capacity, and design miniaturization.
The global Photonics Market is estimated to be valued at US$ 757.03 Mn in 2024 and is expected to exhibit a CAGR of 7.9% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends: Growing demand for fiber optic technology in telecommunications networks is one of the key trends propelling growth of the photonics market. Fiber optic cables are increasingly replacing copper cables in telecommunication networks due to their advantages of higher bandwidth capacity to support data-intensive applications and lower signal loss over long distances. Leading telecom operators are undertaking extensive fiber deployment projects for 5G rollout and expansion of broadband networks. For example, Verizon Communications plans to spend US$ 25 billion from 2020 to 2024 to complete its fiber buildout across 45 cities in the U.S. Growing data traffic and increasing connectivity needs are expected to drive further investments in fiber optic networks, supporting demand for photonics products.
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. The key players are focused on new product launches and strategic partnerships to gain competitive advantage and increase their market share in the photonics industry.
Strength: The photonics market has wide scope of applications across various industries such as telecom, healthcare, industrial, and commercial sectors. This diversification provides opportunities for continuous growth.
Weakness: High initial investment cost required for setting up photonics manufacturing units poses challenges for small and medium enterprises.
Opportunity: Growing demand for fiber optic communication networks and laser-based materials processing from developing economies in Asia Pacific and Latin America regions offers lucrative opportunities.
Threats: Fluctuating prices of raw materials used in manufacturing photonics components and presence of alternative technologies threaten market growth.
Regional analysis: Asia Pacific region dominates currently and is expected to continue its dominance during the forecast years. Growing investments in optical fiber networks by telecom operators in China, India, and Southeast Asian countries is driving the photonics market growth in the region.
The global Photonics Market is expected to witness high growth during the forecast period of 2024 to 2031.
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it