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Lasers, Optics and Photonics

Photonics Market Analysis

The Global Photonics Market was valued at USD 722.31 billion in 2021, and it is expected to reach USD 1089.00 billion by 2027, registering a CAGR of approximately 7.54% during 2022-2027.

·         Photonics is widely regarded as a critical enabling technology for developing smart systems that efficiently use energy without sacrificing overall system efficiency. Many verticals, including healthcare, automotive, communications, manufacturing, and retail, are leveraging the technology to attain higher efficiency, driving growth. The investments from these sectors also have witnessed significant growth in the recent past.

·         With photonics being a core technology of multiple industries, the consumption of the technology is witnessing rapid growth, with the market expanding in new verticals. Thus, the market is witnessing a robust growth rate.

·         Over the past few years, there has been an increasing trend of LiDAR or additive manufacturing in photonics. LiDAR has been used to study the distribution of gases and contaminants in the atmosphere for decades. In recent years, it has become a critical technology for autonomous driving. The advancements in LiDAR mapping systems and their enabling technologies penetrated different verticals, like aerospace and defense, corridor mapping and topographical survey, automotive, mining, oil and gas, and other verticals, which are increasing the scope of the market.

·         Compared to conventional products, the high initial cost of silicon-enabled products and devices hinders the deployment of technology in many fields. While the technology provides higher performance and efficiency, photonics-based devices remain inaccessible to a majority of the small- and medium-sized end-users in various verticals due to limited budgets.

·         The COVID-19 outbreak has affected many industries. Due to the nationwide lockdown globally, many photonic devices manufacturing companies face supply chain interruption and manufacturing inefficiency. However, the COVID-19 outbreak has expanded the scope of photonic devices in the healthcare industry. Moreover, with the growing adoption of technologies, like facial recognition amid the pandemic, the scope of photonic sensors may expand due to its technological advancement.

Photonics Market Trends

This section covers the major market trends shaping the Photonics Market according to our research experts:

Applications of Silicon Photonics to Gain Market Share in Data Communication

·         The growing use of optical solutions in communication technologies, such as optical broadband, is expected to drive the demand for technology in the market, with the segment commanding a major market share.

·         As the growing use of optical networks is part of the infrastructure, the investment from telecommunication companies in enhancing the legacy networks is expected to drive the demand. Telephone companies were the first to replace their old copper wire systems with optical fiber lines. Currently, telephone companies use optical fiber throughout their systems as the backbone architecture and a long-distance connection between the city phone systems.

·         Moreover, with the proliferation of technologies and the growing consumption of video content over the internet, the demand for broadband is increasing worldwide. According to TeleGeography’s submarine cable map, submarine cables act as the backbone of the internet. There are about 300 subsea cables that interconnect countries and continents.

·         In the past few years, cloud and content providers attempted to attract more users and offer reliable bandwidth-intensive services, thus increasing the popularity of the submarine infrastructure. The lifetime of submarine cables is expected to be about 25 years.

·         Photonics provides novel and disruptive techniques required to cope with the increasing bandwidth capacity requirements, particularly in the backbone networks.

·         Fiber optics can also handle real-time data collection and transfer, as it can support the bandwidth levels for futuristic technologies, such as 5G, IoT, and Big Data. In the process, mobile edge computing and several small cells (or nodes) are needed to eliminate network bottlenecks. These node deployments often utilize the technology of the millimeter-wave spectrum by relying heavily on the fiber-cabled connections for the backhaul portion of the network.