Photonics Market

The global photonics market reached a size of USD 750.2 billion in 2020. It is projected to grow from USD 802.5 billion in 2023 to USD 1,267.3 billion by 2030, with a compound annual growth rate (CAGR) of 6.7% during the period of 2023-2030. The COVID-19 pandemic had an unprecedented and significant impact globally, leading to increased demand for photonics in all regions. Our analysis shows that the market experienced a higher growth rate of 14.37% in 2020 compared to the average year-on-year growth from 2017 to 2019. The rising CAGR is attributed to the market's demand and growth, which is expected to return to pre-pandemic levels after the pandemic subsides.

The global market will be driven by the increasing use of photonics-enabled devices in the healthcare, information and communication, and industrial production sectors throughout the projected period. Light-based technology breakthroughs have sparked a new wave of innovation by delivering long-term answers to global concerns, which have been regarded as significant growth drivers for the global market. These goods are becoming more popular and their usage has expanded significantly due to the long-term benefits offered by them.

Furthermore, innovations, such as Lidar and additive manufacturing are on the rise, will drive the photonics market growth. For decades, Lidar technology has been used to study the distribution of gases and contaminants in the atmosphere. In recent years, it has become a critical technology for autonomous driving.

COVID-19 Impact

Despite the pandemic's negative impact on many industries, the future of the 3D printing market remains promising. This technology continues to gain interest in various applications, such as laser, optical scanning systems, and imaging solutions. However, the deployment of 5G in several countries may face delays due to disruptions in the supply chain, and the costs of fiber optic cables could rise due to the impact on manufacturing countries like China.

When it comes to photonics, biomedicine is arguably one of the most profoundly affected sectors. In fact, healthcare, excluding telecommunications, has experienced significant influence from photonics. The primary testing method for diagnosing active COVID-19 infections involves a process called reverse transcription-polymerase chain reaction (rtPCR). All rtPCR test systems rely on photonics, utilizing an excitation source (typically an LED), a photodetector, and optical filters. This means that all rtPCR antigen and ELISA antibody tests for COVID-19 not only depend indirectly on photonics but are essentially optical analyses.

Latest Trends

The application of photonics technology has rapidly expanded beyond physics to encompass life sciences. Light and laser technology play a crucial role in various aspects of medical and biological research. Spectroscopy, for instance, enables in-depth analysis of biological components. Medical lasers are relied upon for diverse purposes, ranging from drug development and delivery to medical imaging, genomics, and even robotic guidance in surgery. Among the medical fields, diagnosis is particularly impacted by photonics. An example of this is OCT scanning, a modern invention that has revolutionized the detection of previously challenging conditions. Ophthalmology, in particular, has greatly benefited from OCT, as it enables the identification of optical degradation associated with glaucoma, retinopathy, and other disorders. This technology is now an integral part of modern optometry clinics and aids in diagnosing new retinal disorders.

Advancements in women's health examinations have significantly improved through the use of non-invasive and more comfortable treatment procedures. Invasive procedures have often discouraged early detection and diagnosis of serious illnesses in women. Across different regions, both those with easy access to women's healthcare and those with limited resources, individuals have reported that embarrassment and discomfort play a significant role in their decision to seek treatment or visit a clinic. The collaboration between biotechnology, biomedical engineering, and photonics has resulted in a wide range of medical devices. These devices encompass surgical guidance tools, biomarker detection systems, and other therapeutic instruments. Machine vision technology, which employs laser scanning, enables automated decision-making in various equipment, including self-driving cars, manufacturing systems, and robotics.

Driving Factors

Photonics goes beyond its foundational role in beam formation and steering. The increasing industrial maturity of this technology is supported by laser beam diagnostics and precise performance measurements based on photonics. Even slight adjustments in beam and scanning settings can have significant impacts on the quality of the entire manufacturing process, as some background information suggests. Constant introduction of new additive processes into the market leads to faster construction processes and a wider range of material options. Consequently, the number of industries utilizing these processes is also growing.

Various sectors, including automotive, aerospace, energy and chemical plants, medical technology, food industry, and mechanical engineering, rely on additive manufacturing (AM) processes. In addition to creating prototypes and tools, they employ these processes to indirectly manufacture molds for axle housings and wheel hubs. This technology enables the production of small quantities of highly complex vehicle components while offering design freedom. Well-planned designs allow for the integration of multiple individual parts into a single component with a sandwich structure. This reduces assembly work, certification requirements, quality assurance efforts, and warehousing tasks. Moreover, the use of lasers in the sandwich structure process selectively exposes metal powder only where the component structure is intended, resulting in lighter components and the possibility of integrating new features. These features can include cooling channels and devices for optimizing lubrication supply. The more specific the machinery or vehicle, the more advantageous it becomes to avoid storing spare parts and instead 3D print them based on stored design data as needed. In the context of Industry 4.0, additive manufacturing enables the pre-printing of sensor-monitored mechanical parts at the end of their useful life, ensuring proactive assembly before costly defects or machine failures occur during maintenance.

Restraining Factors

The performance of photonics products is being hindered by stringent environmental regulations. While most products are environmentally safe, a few compounds used to enhance performance are considered toxic to the environment. Chemicals like arsenic oxide and boron oxide, found in UV detectors, sensors, and other products, are subject to regulation under REACH and the RoHS. REACH is a European Union regulation that governs the registration, evaluation, authorization, and restriction of chemicals. It aims to regulate the manufacturing and use of chemical compounds, including arsenic oxide and boron oxide, due to their potential impact on human health and the environment. The RoHS directive restricts or prohibits the use of cadmium, lead, mercury, flame retardants, polybrominated biphenyls (PBB), polybrominated diphenyl ether (PBDE), and chromium VI in the production of electrical and electronic equipment. Photonics-enabled products and services are relatively expensive. However, they offer superior performance and greater energy efficiency compared to other alternatives.

Global Photonics Market Segmentation

By Application

• Displays
• Information
• Photovoltaics
• Measure and Machine Vision
• Medical Technology
• Production Technology
• Lighting
• Communication
• Defense and Security
• Optical Component

By Region

• North America (By Application)
  • U.S.
  • Canada
• Europe (By Application)
  • Germany
  • U.K.
  • France
  • Italy
  • Netherlands
  • Russia & CIS
  • Rest of Europe
• Asia Pacific (By Application)
  • China
  • Japan
  • Taiwan
  • South Korea
  • Rest of Asia Pacific
• Latin America (By Application)
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa (By Application)
  • South Africa
  • GCC
  • Rest of the Middle East & Africa