Photonics Market – Optech Consulting

The 2024 global photonics market comprises a volume of USD 769 billion. This comprises systems and components.

The market comprises ten segments:

Production Technology
Measurement
Medical Technology and Life Science
Communication
Consumer Electronics and Information Technology
Flat Panel Displays
Lighting
Defense & Security
Optical and Optoelectronic Components and Systems Photovoltaics

Global Market for Photonics Systems and Components 2024

The global market for photonics systems and components accounted for USD 769 billion in 2024.

Photonics Market: Production Technology

The global 2024 market volume in the production technology segment amounts to USD 59.6 billion. The segment comprises manufacturing equipment that uses lasers or other light sources as a tool. This includes laser systems for materials processing as well as lithography systems. At the component side, lasers are included in the present segment. Also, optical projection optics for microlithography are included. Note that other light sources (lamps, LEDs) are included in the lighting segment. Other optical components are included in the segment of optical and optoelectronic components and systems.

Photonics Market: Measurement

The 2024 global market for optical measurement systems accounts for USD 42.5 billion. Major products in terms of market volume are photoelectric measurement systems, spectrometers, semiconductor measurement systems, and geometrical measuring systems. Other optical measurement systems are designed to measure dynamic parameters, environmental parameters, and particles. In addition, there are optical measurement system dedicated to certain industries such as optical networking, geospatial and construction applications, and oil and gas exploration. Note that lasers and other light sources, photodetectors, and other optical and optoelectronic components for measurement systems are included in the segment of optical and optoelectronic components and systems.

Photonics Market: Medical Technology and Life Science

The 2024 global market for photonic systems and components for medical technology and life science accounts for USD 71.1 billion. Systems comprise therapeutic medical systems and equipment for in-vivo and in-vitro diagnostics. Photonics-based life science systems include analytical equipment used in R&D, in the pharmaceutical industry, and in the biotechnology industry. Major products of the segment include endoscope systems, therapeutic and cosmetic laser systems, medical imaging systems (CR, DR), fluorescence diagnostic and analytical systems, diagnostic systems for ophthalmology, optical coherence tomography systems, microscopes, capillary electrophoresis systems, DNA sequencers, cell sorters, and plate readers. In addition, monitors for diagnostic purposes and for the surgery room are included. Note that non-photonic medical imaging systems such as analog X-ray, NMR and ultrasound systems are not included. On the component side, the market comprises spectacle lenses, contact lenses, and intraocular lenses. Also, lasers for therapeutic and cosmetic laser systems are included. Other optical and optoelectronic components for the segment are included in the sector of optical and optoelectronic components and systems.

Photonics Market: Communication

Optical communication systems and components account for a total of USD 38.1 billion in 2024. Optical communication uses light for the transmission of data in the long range (wide area networks) and in the short range (local area networks). The long-range includes metropolitan to worldwide data transmission with technologies such as wavelength division multiplexing (WDM / DWDM) and synchronous optical network / synchronous digital hierarchy (SDH/SONET). In the metro segment, increasingly also Ethernet is used. Also, industrial networks (wide area networks and local area networks, including data center networks) increasingly use optical ethernet, besides application specific networks for the short range. Data center networks account for an increasing share. Optical interconnect comprises data center (DC) interconnect and intra-DC connect (DDI). Additional growth potential is offered by extending optical interconnect to the row, rack and shelf level, besides potential chip to chip and intra-chip optical interconnects. Optical networking systems include multiplexer/de-multiplexers, optical switches, optical amplifiers, transceivers (including for data centers), and optical routers. Optical networking components include lasers, LEDs, detectors, splitters, connectors, as well as other passive optical components. Also, optical fibers are included on the components side, while fiber cables are not included.

Photonics Market: Consumer Electronics and Information Technology

The 2024 global market for optical consumer electronics and information technology accounts for USD 40.0 billion. Major systems in the segment include optical printers and copiers, digital cameras, document and photo scanners, and (bar-) code readers. The segment of information technology and consumer electronics underwent big changes in the past 15 years. Initially, digital cameras, printers and optical disk drives accounted for a dominating market share. However, growth in the laser printer market suffered from the competition of ink jet printers and due to price erosion. The digital camera market shrank due to the competition of smartphones. Note that smartphones are not included as photonic devices. Their photonic components, such as displays, camera modules, and optical sensors, are included in the display segment and in the optical and optoelectronics components segment, respectively.

Photonics Market: Flat Panel Displays

The 2024 global market for flat panel displays accounts for USD 157.8 billion. The flat panel display market mainly comprises LCD displays and OLED displays. Other display types include electroluminescent displays, e-paper (electrophoretic displays, electrochromic displays, and other), plasma displays (PDP), and LCOS-displays. LCD displays include passive and active matrix types. LCD displays also include the so-called LED displays (LCD displays with LED backlighting). LCD displays further comprise LCD-based quantum dot displays. OLED displays comprise OLED-based quantum dot displays.

Photonics Market: Lighting

The 2024 global market for all type of lamps combined accounts for USD 44.6 billion. This included LED lamps, fluorescent lamps, discharge lamps, as well as incandescent and halogen lamps in all applications: general lighting, automotive lighting, LCD backlighting, signaling applications, as well as applications such as lithography and water purification. Light control units, drivers, and ballasts are not included. Also, luminaires are excluded.

Photonics Market: Defense & Security

The 2024 global market for photonics-based defense and security accounts for USD 53.5 billion. Defense is by far the largest end market, but also homeland and civil security contribute to the demand. Systems for vision and infrared vision account for a major share of the segment of photonics-based defense and security. Products range from (gated) vision equipment and range finding binoculars to periscopic sights and cameras for satellites. Further, products comprise lidar systems, missile and munition guidance systems, countermeasure systems, as well as fiber-optic communication systems for aircraft and military vehicles. Displays form another segment of the market, including avionics displays and head up displays for security applications. Directed energy systems are still in an evaluation phase. Components comprise segment-specific sensors and lasers. Other optical and optoelectronic components used in defense and security are included in the segment of optical and optoelectronics components.

Photonics Market: Optical and Optoelectronic Components and Systems

The 2024 global market for optical and optoelectronic components and systems accounts for USD 98.2 billion. The segment includes optical components and assemblies (lenses, prisms, polarizers, objectives, etc.) for applications ranging from consumer electronics to production technology, astronomy, and inertial fusion experiments. The segment also includes optoelectronic components, such as optical detectors, not elsewhere classified.

Photovoltaics The 2024 global market in photovoltaics accounts for USD 170.0 billion. This comprises solar cell panels. The market value of solar cells is not added separately. Many of the largest panel makers produce their own cells (captive market).

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