Global Terahertz Radiation Systems Market Expected to Flourish on Account of its Applications in Imaging and Spectroscopy

Terahertz (THz) radiation has thus far been one of the least explored forms of radiation in the entire electromagnetic spectrum. Terahertz radiation lies in the frequency gap between infrared and microwaves in the electromagnetic spectrum. Terahertz radiation has remained unexplored for a long time due to the lack of effective technology to channelise and use it in industrial and commercial applications.

However, innovations in sensors, detectors, and waveguides have helped reduce the ‘terahertz gap’ — a term used to describe the range of frequencies in the terahertz region — with terahertz radiation now being used in information and communications technology (ICT), transportation security, and environment monitoring among others.

Terahertz Radiation Systems Market Moving From Nascent Stage to Growth Phase

Globally, the terahertz radiation systems market is still at a nascent stage; however, considering the plethora of applications where terahertz radiation can be used, it is expected that the market will exhibit a very high CAGR through 2020. Development of new technologies that will close the terahertz gap and make it easier to use terahertz radiation in commercial applications is expected to be one of the key drivers for the growth of this market globally.
On the flip side, unreliability of terahertz radiation measurements, lack of acquisition speed, and competition from products based on existing radiation systems are the key challenges for the growth of this market.

Ease of Use, Increased Regulations, and Manufacturing Execution Systems (MES): Opportunities for Growth

As discussed previously, the terahertz radiation systems market is still at a nascent stage. Awareness about the applications of terahertz technology in commercial and industrial application is low and it will take a substantial period of time before this technology is adopted on a wider scale. The optimistic projections about the growth of terahertz radiation system are on account of the enormous opportunities that are, or will be available in this market in the near future.

In order to be truly adopted on a massive scale, products based on terahertz radiation system will have to be compact and affordable. Although innovation in femtosecond lasers and detectors has made it possible to produce light and cost-effective terahertz systems, it will take consistent innovations in terahertz system technology for it to emerge as a credible alternative to existing x-rays and microwaves based systems.

Increased government regulation is another key opportunity for the prospects of the terahertz radiation systems market. Stringent industrial and commercial regulations are expected to force manufacturers to focus on the quality of their product and this is expected to create the demand for terahertz-technology-based testing systems. Furthermore, terahertz technology is relatively more environment-friendly than x-rays and nuclear technology. The regulations to have safe testing technologies are expected to augur well for the growth of terahertz market in the near future.

Terahertz radiation systems have a huge potential to be used in manufacturing execution systems (MES). It is expected that there will be an increased demand for testing systems that perform highly accurate real-time measurements. This presents a key opportunity for the growth of terahertz systems market, especially terahertz imaging and spectroscopy.

Terahertz Radiation Systems: Market Segmentation

Terahertz radiation systems market is segmented on the basis of end-use applications and includes imaging, spectroscopy, communications and computing, and other sensors. The imaging segment is expected to exhibit high double-digit CAGR through 2020 and reach a valuation of about US $300 Mn.Terahertz imaging technology is widely used in commercial and industrial applications, such as non-destructive testing (NDT) and industrial process monitoring.

Currently, communication and computing is the second most dominant segment of terahertz radiation systems market and it is expected to remain so through 2020. Growth in this segment is expected to be on account of the use of terahertz technology in wireless and satellite communication. This segment is also expected to exhibit double-digit CAGR through 2020 and reach around US $20 Mn.

Spectroscopy, another important market segment, is projected to witness high single-digit CAGR and reach a valuation of US $20 Mn during the forecast period.The use of terahertz spectroscopy systems in measuring paper thickness and in non-destructive testing of composites and powders will be the key factor for the growth of this segment.

U.S. & Europe Will be Key Markets for Terahertz Radiation Systems Market

The U.S. and Europe are expected to be the key markets for the growth of the global terahertz radiation system market. Most of the research about the generation and detection of terahertz radiation has been done in the U.S. and Europe, and there is a great degree of awareness among the manufacturers and end-users in these regions about the potential of this technology.

In Asia Pacific, the penetration of terahertz technology is expected to remain low with Japan and South Korea being the notable exceptions. It is projected that in most countries of Asia Pacific, Africa, and South America, the terahertz radiation systems technology will take a considerable amount of time before it is adopted on a massive scale.

Terahertz Technology: Key Players

AcalBFi UK Ltd, Bruker Corporation, Coherent, Inc., Menlo Systems, NeTHIS, Rohde & Schwarz, and TeraVIL Ltd are the key global companies for terahertz radiation systems in the world. As terahertz technology becomes more mainstream in the near future, these companies will have an upper-hand over new entrants in this market.