Market Overview:

Photonics utilizes the wave/particle properties of light to perform a variety of functions for applications in both classical optics and quantum optics. It has widespread applications in communication, sensing, lighting, displays and other consumer goods. Advancements in integrated photonics and quantum computing have enabled new design concepts and enhanced functionalities.

Market Dynamics:

Advancements in integrated photonics is expected to drive the growth of the photonics market. Integrated photonics is gaining increased traction as it allows functions like light emission, modulation, detection and manipulation on a single photonic chip. This helps in reducing costs and improving functionality. Emergence of quantum computing is another key factor augmenting market growth. Photonics finds extensive application in quantum key distribution and simulation, which are crucial for development of quantum computers. Integration of photonics and microelectronics is enabling faster and higher-performance quantum photonic circuits. However, complexity in manufacturing photonic integrated circuits pose challenges. Ongoing R&D for developing cost-effective fabrication techniques will help address this issue and boost market expansion.

The global Photonics Market Share is estimated to be valued at US$ 757.3 million 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.

SWOT Analysis

Strength: The photonics market offers various strengths such as high precision in manufacturing, wider usage in medical and healthcare devices, and ability to generate and control light. Photonics technology is highly reliable and offers long operational life. The solutions provide non-contact and non-destructive functionality.

Weakness: High initial investment requirements and complex manufacturing processes associated with photonics technology are some weaknesses. There is also a lack of standardization and technological complexity involved in product development.

Opportunity: Increasing demand for fiber optic cables from telecommunication industry and growing need for advanced healthcare devices present lucrative opportunities. Rapid infrastructure growth especially in emerging nations further expands the scope.

Threats: Technology obsolescence is a major threat as newer generations get introduced frequently. Significant threat also emerges from open source software and increasing low-cost alternatives from Asian manufacturers.


Key Takeaways

The global photonics market is expected to witness high growth, exhibiting CAGR of 7.9% over the forecast period, due to increasing demand for fiber optic cable networks and advanced medical devices. The market size is estimated to reach USD 757.3 million in 2023.

Regional analysis

Europe dominated the global market in 2023 and is expected to continue its dominance over the forecast period. This is attributed to rapid advancements in telecommunications and presence of prominent photonics players in the region. Asia Pacific is projected to witness the fastest growth due to rising photonics adoption in manufacturing sector and increasing infrastructure development in countries like China and India.

Key players

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 players focus on new product launches, partnerships and mergers to gain a competitive edge in the market.

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