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The global Photonics Market was valued at over $600 billion in 2015 and is expected to reach $979.90 billion by 2024. It has witnessed a radical change in the technology of photonics in the recent past, based on the research activities performed. The photonic technology has been developed and implemented in many verticals. The advances in the global photonics market have been stimulated owing to the developments in the field of fiber optics. The introduction of electricity has given a boost to the conversion. The advancement of optics reached the peak point of the use of electric bulbs and primeval lamps to the highly advanced lasers.
The global photonics market has started developing products which are eco-friendly. These products are expected to be developed and introduced over the next few years. Some of the major factors driving the global photonics market include a better substitute for the conventional technology, increased requirement for higher security and safety solutions, and growth in the wireless technology. On the contrary, lack of awareness among the consumers, lack of technological and industrial standards, and the requirement for huge initial capital investment is projected to negatively impact the overall photonics market growth.
Photonics is the foremost technology for the advent of newest smart systems. The applications of photonics are omnipresent. From the regular everyday life to the highly advanced science, photonics finds application in lighting, visual art, light detection, information processing, holography, production technologies, agriculture, photonic sensors, robotics, medicine (vision correction, health monitoring, surgery, endoscopy), telecommunications, laser material processing, metrology, displays, spectroscopy, defense technologies, bio-photonics, and photovoltaic.
Photonics involves the generation, switching, detection, emission and modulation of light. Adding to this, photonics additionally involves all uses of light across the spectrum, extending from ultraviolet to visible light. The application segment of photonics includes displays, communication, sensing, consumer electronics, defense and safety technology, and metrology. Adding to it, photonics find application in high-performance computing segment and health and medical care.
The fastest growing segment of the global photonics market is medical and health care. The most important products of photonics include waveguides, optical interconnects, wavelength division multiplexer filters, lasers, spectroscopes, optical modulators, LED (light emitting diodes), photo detectors, and amplifiers. Equipment based on photonics are comparatively cheaper than the conventional devices.
The factors driving the global photonics market include the requirement for high-speed electronics and lesser consumption of power. The most important product of photonics is wavelength division multiplexer filter. Growing demand for high-speed communication is one of the key factors responsible for boosting the demand for wavelength division multiplexers. Regulations shift towards Energy Efficient Equipment, the requirement for high-speed transfer of data, storage systems, and development in the emerging economies are the factors which benefit the global photonics market.
However, huge initial investments, counterfeit technology, technological obsolescence, lack of proper international standards, slow rate of adoption, and lack of awareness among the consumers are the various factors which may hamper the growth of the overall photonics market.
North America accounted for the highest market share globally on account of growing demand for quick diagnostics along with demand for high-speed computing. Furthermore, factors including rising need for quick and fast diagnosis and high demand for negligible hostile surgery are also anticipated to fuel the demand for the global photonics market. The market is poised for growth owing to the increasing geriatric population levels.
Asia-Pacific is projected to witness the fastest rate of growth over the forecast period owing to factors such as growing industrial development of emerging nations of China, South Korea, India, and Malaysia. Factors which propel the growth of the photonics market in this region is increased initiatives taken by the government, huge capitalization and investments by the major industry participants and improving facilities for health care.
The fundamental companies of the photonics market produce LEDs, detectors, lenses, optical filters, fiber optics, photonic components, materials, lasers, image sensors, prisms, and gratings. The major industry participants making huge investments and venturing into the global photonics market include Hewlett-Packard Company, Finisar Corporation, Luxtera Inc., 3S Photonics, S.A.S., Innolume GmbH, Intel Corporation, Hamamatsu Photonics K.K., IBM Corp., and Infinera Corp. the key strategies of these companies include investing into the research & development activities and mergers & acquisitions.