Photonics involves the technology associated with the generation and detection of light for different applications. Photonics help in improving communication, healthcare, security, entertainment, and manufacturing. The need for higher data transfer speeds in communication systems has accelerated the adoption of fiber optic cables which employ photonics for communication over long distances with improved bandwidth. Photonics are used in medical applications like diagnostic imaging such as fiber optic endoscopy and microscopy.
The global photonic 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 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends
One of the key trends driving the photonic market is increasing demand for fiber optic communication systems. Fiber optic communication employ photonics to transmit data through pulses of light through optical fibers with light propagation and minimum loss. This allows fiber optic communication systems to handle huge amounts of data at very high speeds over long distances. Increased internet usage and transition to 5G networks have accelerated the adoption of fiber optic communication systems. As per estimates, over 80% of all communications traffic in 2030 will be carried by optical fiber. Rapid deployment of fiber to the home networks to support gigabit internet speeds is also fueling the demand. Fiber optic systems offer bandwidth scalability and latency benefits compared to traditional copper networks. The growth in data traffic and upgrade of networks is propelling the photonic market growth through increased fiber optic system installation.
Segment Analysis
Telecommunications segment held the largest share in the photonics market in 2022 and is expected to continue its dominance during the forecast period. The high demand for optical components and systems in various telecommunication applications such as optical fiber cables, optical packet switching, coherent systems, wavelength division multiplexing, and spectroscopy drives the growth of this segment. Enhancement of network bandwidth, communication capabilities and reduced latency have increased the reliance of the telecom industry on photonics technologies.
Key Takeaways
The global photonics market is expected to witness high growth. Regional analysis related content comprises The Asia Pacific region dominated the global photonics market in 2022 and is expected to grow at the highest CAGR during the forecast period. The rapid digitalization and increasing investments in telecom infrastructure development in countries like China, Japan, and India are the major factors driving the photonics market in Asia Pacific. North America is also expected to see significant growth owing to high demand from healthcare, industrial manufacturing, and defense sectors in the region.
Key players related content comprises 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 growing importance of optic technologies across various industries especially telecom, healthcare and industrial manufacturing will drive the demand for photonics components and systems. Advancements in materials, design and manufacturing technologies will enable further diversification and improve application scope of photonics. Key players are investing in R&D to develop innovative photonic products and customized solutions. Partnerships and mergers & acquisitions are expected to feature prominently in the competitive landscape during the forecast period.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
