The global photonics market was valued at over USD 600 billion in 2015. The industry is anticipated to witness a significant growth over the forecast period owing to photonics’ wide range of applications in the domains of medical sciences, jewelry, security, automotive, lighting, manufacturing, and information technology.
The development of optics has reached its zenith with highly advanced contemporary lasers gradually replacing traditional electric bulbs and primitive lamps. Advancements in optics have made rapid strides in the photonic-based field in the past few years and are further broadening the technological horizons.
Innovative photonic-enabled connected services and products are expected to be introduced and are expected to have positive impacts on organizational as well as consumer activities. The emergence of flat screen displays and the increasing use of the photonic-enabled high-speed internet have considerably changed the dynamics of the market. Photonics is a Key Enabling Technology (KET) within the Information and Communications and Technology (ICT) vertical owing to its advantages and high economic growth across various industries.
The industry is characterized by the presence of considerable growth opportunities over the forecast period. An emerging trend in the industry is the commercialization of environment-friendly photonic-based renewable energy sources, such as solar cells. Although other developments, such as flexible PV-based on plastic electronics, offer lower efficiencies, they are anticipated to reduce the production cost, consequently leading to the mass use of solar cells on the exterior cladding of buildings, cars, and clothing.
However, high initial investments associated with photonic-enabled technologies are envisioned to challenge the market growth in the near future. The high cost of technology has led to the slow adoption rates of photonic-based products among the general population. Moreover, technological obsolescence and rising demand for counterfeit technology are expected to challenge the market growth over the next eight years.
North America photonics market by product, 2015 - 2024 (USD Billion)
Products analyzed in the report include waveguides, optical modulators, optical interconnects, LEDs, Wavelength Division Multiplexer (WDM) filters, photo detectors, lasers, and amplifiers. WDM filters are envisioned to emerge as a predominant product segment over the forecast period on account of their advantages such as mass productivity, high port counts, and low loss. WDM filters are presumed to contribute significantly to the construction of contemporary photonic networks including optical cross-connect and optical add/drop multiplexing systems.
The demand for photo detectors is presumed to grow at a significant rate over the forecast period. Photo detectors are being increasingly used in various devices as they enable greater interaction in the machine environment interface. These devices are a low-volume and low-mass alternative for large traditional detectors and sensors.
High brightness LEDs are revolutionizing the lighting industry and are envisioned to drive the market for LEDs over the forecast period. The demand for high-brightness LEDs has grown over the past few years owing to their broad application base. An emerging trend in the segment is the integration of LEDs with television backlights and mobile phones to enhance their lighting, display, as well as energy efficiency. These products are critical for the further development of low carbon economy.
Applications analyzed in the report includes consumer electronics, displays, safety & defense technology, communication, metrology, sensing, medical & healthcare, and high-performance computing. The display segment is expected to retain its dominance throughout the forecast period owing to its broad application base, including bio sources, discrete and integrated optical components, PV and solar cells, super continuum sources and laser, image sensors, optical fibers, and LEDs. Application of photonic-based components in displays provides enhanced energy efficiency and light beams by manipulating the flow of incident light source.
High-performance computing is relatively a new application of photonics and is not matured. The market is thus presumed to witness a considerable growth over the forecast period owing to rising developments in the high-performance computing application segment. The growth in this segment can be attributed to a substantial increase in the computational power over the last few years. The increasing amount of processed data coupled with the need for high computational speed is envisioned to drive the demand for photonic in high-performance computing over the forecast period.
Safety & defense is presumed to emerge as a key revenue generating segment over the forecast period owing to the ability to gather intelligence, defend the population, and protect troops in the field. Photonic-enabled optical sensing technology provides enhanced reconnaissance and surveillance, and identification of nuclear, biological, and chemical threats. Photonics technology is being increasingly used in defense electronics to improve the accuracy of laser-guided weapons and provide lasers for critical missile defense capabilities.
North America is envisioned to emerge as a predominant region over the forecast period owing to the increasing adoption of advanced next-generation technologies in the region. The growth in the U.S. can be attributed to increasing government funding in the R&D and applications of laser optics and photonic-enabled technology. Substantial investments from the U.S. government to work on the development of advanced lasers for military applications are presumed to drive the industry growth over the forecast period.
Europe is expected to grow at a considerable rate over the forecast period. Member states across the region have formed a long-term commitment to Public Private Partnership (PPP) to lead to a competitive photonics industry in the region. The region is increasingly establishing pilot production facilities for research institutes and industries to work on the development of innovative photonic-based component production processes.
Projected to grow at a significant rate over the forecast period, the Asia Pacific market incorporates considerable opportunities for growth over the forecast period. Advancements in photonics technology across emerging economies, such as China, Japan, Singapore, and Taiwan, are expected to drive the regional market over the forecast period. Moreover, low labor cost, high infrastructure quality, and growing industrialization are anticipated to contribute substantially to the regional industry growth.
Competitive Market Share Insights
Key companies in the industry include Dunlop Boots, Honeywell Safety Products, JAL Group, Uvex Safety Group, Rock Fall, VF Corporation, Wolverine, Anbu Safety, and Hewats. Manufacturers are increasingly working on the development of low-cost, comfortable, static-dissipative, slip-resistant, lightweight, and durable safety shoes for use in industries. Companies are developing lightweight composites to minimize the problem of discomfort, such as heaviness and difficulty in walking, associated with traditional Polyvinyl Chloride (PVC).
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