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Photonics refers to the science and technology of generating, controlling and detecting photons. Photonics technology involves the emission, transmission, modulation, signal processing, amplification and detection of light. Devices and systems based on photonics play a vital role in applications ranging from optical fibers and data communication to medical imaging and lasers. Optical communication networks rely heavily on photonics components like light-emitting diodes, laser diodes, photodetectors and fiber optics to transmit data digitally over long distances using modulated light signals. The rising adoption of 5G networks and continued growth in data usage is fueling the demand for higher bandwidth optical networks which in turn drives the photonics market.
The global Photonics Market is estimated to be valued at US$ 757.3 Mn in 2023 and is expected to exhibit a CAGR of 7.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Optical communications using photonics is enabling next-generation technologies like 5G and supporting applications requiring ultra-fast data transmission capabilities. Emerging technologies leveraging photonics include fiber-optic sensors, light detection and ranging (LiDAR), and integrated photonic circuits. Advancements in materials like indium phosphide and gallium nitride are driving more compact and efficient photonic devices with greater bandwidth and lower power consumption. Devices based on integrated silicon nitride photonics have gained significant traction as they allow for miniaturization and large-scale integration of photonic circuits similar to electronic ICs. The convergence of photonics, microelectronics and data processing is expected to revolutionize fields like high-performance computing, quantum science and space exploration over the next decade.
Porter’s Analysis
Threat of new entrants: The Photonics market requires high R&D investments and manufacturing capabilities to develop technologically advanced products, creating high entry barriers for new companies.
Bargaining power of buyers: Buyers have moderate bargaining power in the Photonics market due to the availability of substitutes and differentiated products offered by numerous established vendors.
Bargaining power of suppliers: A few large companies dominate the supply of raw materials and components used in photonics technology, giving them strong influence over pricing.
Threat of new substitutes: No direct substitutes currently exist for photonics technology due its diverse range of applications across industries. However, new technologies may emerge as potential substitutes.
Competitive rivalry: The photonics market features intense competition among numerous global and regional players owing to their technological expertise and focus on R&D to develop innovative solutions.
Key Takeaways
The global photonics market is expected to witness high growth over the forecast period driven by expanding applications in various end-use industries such as IT & telecom, healthcare, industrial manufacturing, and consumer electronics.
Regional analysis: North America currently dominates the global photonics market owing to technological advancements and presence of major photonics companies in the region such as IPG Photonics and Hamamatsu Photonics. Asia Pacific is expected to showcase the fastest growth on account of increasing government initiatives to develop domestic photonics industries and growing demand from lucrative end-use sectors.
Key players: Key players operating in the photonics market are Carl Zeiss AG, Hamamatsu Photonics KK, Schott AG, Intel Corporation, Photonics SAS, Polatis Photonics Inc., Philips Photonics, Alcatel-Lucent SA, Osram Licht AG, Molex Inc., IPG Photonics, Infinera Corporation, Finisar Corporation, NEC Corporation, and Innolume GmbH.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
