The global photonics industry size was valued at USD 920.56 billion in 2023 and is projected to grow from USD 983.51 billion in 2024 to USD 1,642.61 billion by 2032 at a CAGR of 6.7% during the 2024-2032 period.  Fortune Business Insights™ has delved into these insights in its latest research report titled, “Photonics Industry Size Report, 2024-2032.”

According to an analysis, the demand for photonics-enabled devices will be noticeable across information and communication, healthcare, and industrial production sectors. Lately, light-based technology has become sought-after across North America, Europe, and Asia Pacific. Besides, the COVID-19 pandemic accelerated the need for technology.

Photonics Industry Segments

In terms of application, the industry is segmented into information, displays, photovoltaics, medical technology, measure and machine vision, production technology, communication, lighting, optical component, and defense and security. Based on region, the industry is segmented into North America, Asia Pacific, Europe, the Middle East & Africa, and Latin America.

Major Players Profiled in the Photonics Industry Report:

TRUMPF (Ditzingen, Germany), Hamamatsu Photonics K.K. (Hamamatsu-city, Japan), IPG Photonics Corporation (Massachusetts, U.S.), Molex (Illinois, U.S.), Innolume (Dortmund, Germany), II-VI Incorporated (Pennsylvania, U.S.), NeoPhotonics Corporation (California, U.S.), One Silicon Chip Photonics Inc. (Montreal, Canada), NKT Photonics A/S (Birkerød, Denmark), AIO CORE (Tokyo, Japan), SICOYA GMBH (Berlin, Germany), RANOVUS (Ontario, Canada)

Photonics Report Coverage

The report emphasizes quantitative and qualitative assessments to offer a holistic view of the global industry. The report highlights bottom-up and top-down approaches to provide a comprehensive view of product mapping. Further, a host of primary interviews has been conducted with opinion leaders, suppliers, and other stakeholders. Primary data has been collated through emails, telephonic conversations, and questionnaires. The secondary sources referred are press releases, SEC filings, and websites.

Source- https://www.fortunebusinessinsights.com/photonics-market-106525 

Drivers and Restraints

Bullish Demand from Additive Manufacturing to Spur Growth Potentials

Stakeholders expect the photonics industry share to gain traction from the expanding penetration of additive manufacturing across the end-use sectors. Prominently, automotive and chemical plant manufacturers have become the major recipients of the technology. With the emergence of Industry 4.0, sensor-monitored mechanical parts became trendier across the emerging and advanced economies. Furthermore, the rising footprint of laser beam diagnostics and precise performance measures will solidify the position of leading companies vying to expand their penetration.

However, rigorous environmental regulations from watchdogs, such as REACH, could dent the industry growth. Notably, RoHS limits the use of cadmium, mercury, flame retardants polybrominated biphenyls (PBB), and chromium VI in electrical and electronic equipment.

Regional Photonics Industry Insights

Asia Pacific to Provide Promising Opportunities with Rising Investments in R&D

Burgeoning industrialization, along with the expansion of the healthcare sector, is expected to fuel the position of Asia Pacific in the global industry. Notably, emerging economies, such as China, have upped investments in photonics technology. With an uptick in production technology and investments in communication applications, industry players will continue to invest in the region.

Stakeholders anticipate the U.S. and Canada to witness investment galore owing to the presence of leading companies. The North America photonics industry growth will witness an appreciable gain during the forecast period. The trend is mainly attributed to the innate ability of the light to enhance high-speed data processing and operate at ambient temperature.

The Europe industry outlook will be strong on the back of investments in photonic devices across the U.K., France, Germany, and Italy. To illustrate, in June 2021, the European Photonics Industry Consortium and nonprofit industry association rolled out some of the most significant EU acceleration initiatives in a host of application areas, including automotive and architectural lighting. Strong demand from defense and security and robust governments policies will bode well for the regional growth.

Competitive Landscape

Stakeholders to Emphasize Collaborations to Gain Competitive Edge

Industry players are poised to focus on product launches, technological advancements, mergers & acquisitions, and R&D activities during the assessment period. Current dynamics indicate industry participants will invest in geographical expansion.

Key Photonics Industry Development

• March 2021 – Rockley Photonics and SkyWater Technology have expanded their collaboration to include wafer back-end-of-line processing for Rockley's spectrophotometer-on-a-chip health monitoring solution. The improved collaboration with SkyWater, which is part of Rockley's multi-sourcing activities will improve the dependability and scalability of the production network.

Research Approach:

The report incorporates primary information collected directly from key stakeholders through quantitative and qualitative analyses utilizing the Porter Five Force model’s parameters. The report emphasizes macroeconomic indicators, trends within the parent market, and growth drivers. A comprehensive understanding of the market is achieved through both primary and secondary research. Rigorous checks were performed on the data used in the report to ensure its authenticity and quality. The credibility of evaluations and market segments is established using both bottom-up and top-down methodologies.

Key Inquiries Addressed in the Photonics Market:

1. What is the global market size for the Photonics market?

2. Which screen size is most preferred by Photonics consumers?

3. What distribution channel is preferred by Photonics manufacturers?

4. Which age group is the target for Photonics manufacturers?

5. What factors drive or hinder market growth, and how do these factors impact the market?