Photonics Market Outlook (2023 to 2033)

The global photonics market size was valued at US$ 855.5 billion in 2022 and is set to reach US$ 911.5 billion in 2023. Total photonics sales are anticipated to rise at 5.8% during the assessment period (2023 to 2033), surpassing US$ 1.6 trillion by the end of 2033.

Displays are expected to remain top revenue-generating application of photonics during the assessment period. A steady CAGR of over 5.7% has been estimated by Future Market Insights (FMI) for the display segment during the forecast period of 2023 and 2033.

Growing applications of photonics in displays, medical technology, lighting, defense & security, information, and optical components is anticipated to drive the sales. A special branch of optics that involves the application of generation, detection, and manipulation of light is called photonics. In other words, photonics is the science and technology of light.

Since its development, photonics has been the key force behind several innovations that have transformed the way we live over the last few centuries. Lasers, cameras, displays, and optical fibers are few examples of photonics. Right from optical data communications and healthcare to displays and lighting, the application area of photonics keeps widening tremendously.

Increasing adoption of photonics-enabled devices such as sensors, lasers, displays, optical fibers, and others across the world is anticipated to help the market thrive rapidly during the projection period.

Since light has the tendency to detect and measure diseases quickly and accurately, photonics has incredible potential to revolutionize healthcare. Various photonics-based approaches are helping healthcare professionals to meet rising demand for rapid, accurate, personalized, and cost-effective medical interventions.

Demand in healthcare sector remains particularly high for biophotonics as it enables medical professionals to see how cells and tissues are working. Hence, rising importance across healthcare sector will continue to propel demand for photonics and photonic devices.

Growing usage of photonics in advanced light technology such as Solid State Lighting for general lighting applications is expected to boost the global market during the assessment period.

Over the years, growing concerns regarding greenhouse gas emissions and increasing fuel prices have prompted people to look for innovative solutions such as SSL. Solid State Lighting provides better lighting and significantly contributes to substantial energy savings. It is estimated that about 70% of energy could be saved by substituting incandescent bulbs with SSL technologies.

Similarly, increasing application of photonics sensors and detectors in safety and security will boost photonic sales over the next ten years. Thanks to growing importance of photonics in various fields, it has been recognized as one of Europe’s key enabling technologies of the 21st century.

Advancements in photonics due to increasing research and development activities will explore new application areas during the next ten years. Consequently, rising usage of photonics-enable devices such as fiber optic sensors and wireless sensors will bode well for the market.

Regionally, with an estimated valuation of US$ 450.28 billion in 2023, Asia Pacific will continue to remain at the top of the ladder in photonics industry. Further, it is projected that Asia Pacific photonics market will reach a valuation of US$ 793.4 billion by 2033.

Rising production and consumption of photonics-based technologies such as sensors, lasers, displays, cameras, etc. along with large presence of photonics businesses is a key factor driving growth in Asia Pacific market.

Growing usage of advanced medical equipment such as medical lasers and testing equipment will further boost photonic device sales across Asia Pacific.

Attributes Key Insights
Photonics Market Estimated Value (2023) US$ 911.5 billion
Projected Market Value (2033) US$ 1.6 trillion
Value-based CAGR (2023 to 2033) 5.8%
USA Market CAGR (2023 to 2033) 5.2%

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2018 to 2022 Photonics Sales Outlook Compared to Demand Forecast from 2023 to 2033

According to Future Market Insights, the global photonics market is forecast to expand at 5.8% CAGR between 2023 and 2033, in comparison to 6.7% CAGR registered during the historical period from 2018 to 2022.

Increasing usage of photonics and photonic-enabled products across numerous industries such as consumer electronics, healthcare, defense, and industrial manufacturing is a prominent factor driving the global market forward.

Photonics is the technology that deals with generation of photons, their detection, and their uses. These photons are light particles or light beams. Quantum is the smallest measurable unit of the physical property and hence quantum of light is the photon.

Devices that are capable of generating photons are called photonics devices. Photonic devices are laser diodes, light emitting diodes, solar and photovoltaic cells, displays, and optical amplifiers. Such photonics devices are used in displays, photovoltaics, measurement and machine vision, medical technology, production technology, lighting, communication, defense and security, and optical components.

Photonics technology is widely used in displays. For instance, Photonics Crystal Technology recently developed HD hologram displays and OLED transparent displays that are extensively used in commercial displays for advertisements, countertops, and shopping shop windows. Photonics is also used in photovoltaic technologies.

In defense, photonics technology is widely used for several applications. For instance, in the United States Department of Defense (DOD), photonics technology is used in precision laser machining, optical lithography for electronics, and Global Positioning Systems (GPS).

Also, in high-energy lasers, photonics technology is of utmost importance. For example, the United States Navy and Lockheed Martin, using photonics, have built 60-kW high energy lasers.

Subsequently, General Atomic and Boeing created a high-energy laser system called as HELLADS. Photonics technology also finds application in night vision goggles. Thus, photonics is being used in many applications and such factors aid in the expansion of the global photonics market.

Country-wise Insights

Country United States
Projected CAGR (2023 to 2033) 5.2%
Historical CAGR (2018 to 2022) 3.6%
Market Value (2033) US$ 268.4 billion
Country United Kingdom
Projected CAGR (2023 to 2033) 4.3%
Historical CAGR (2018 to 2022) 2.3%
Market Value (2033) US$ 42.3 billion
Country China
Projected CAGR (2023 to 2033) 7.3%
Historical CAGR (2018 to 2022) 8.8%
Market Value (2033) US$ 412.5 billion
Country Japan
Projected CAGR (2023 to 2033) 6.1%
Historical CAGR (2018 to 2022) 7.0%
Market Value (2033) US$ 253.9 billion
Country South Korea
Projected CAGR (2023 to 2033) 6.3%
Historical CAGR (2018 to 2022) 8.1%
Market Value (2033) US$ 99.2 billion

What Makes the United States a Lucrative Market for Photonics?

Increasing Application of Photonics in Medical and Defense Sectors Boosting Sales in the USA

According to Future Market Insights, the United States photonics market is anticipated to accelerate at 5.2% CAGR between 2023 and 2033, creating an absolute $ opportunity of US$ 106.6 billion. By 2033, the overall market size in the USA is set to reach US$ 268.4 billion. Between 2018 and 2022, the USA photonics industry registered a CAGR of 3.6%.

Growing application of photonics across healthcare, automotive, defense, and manufacturing industries is a key factor driving the United States market forward.

Photonic has become a crucial technology for developing smart and efficient systems across the United State. For instance, photonics enables medical device manufacturers to develop unique and low-cost devices.

Rising usage of photonics in medical technologies such as health monitoring devices and imaging equipment along with growing popularity of wearable devices is expected to boost the United States market. Photonics-enabled devices such as medical lasers are being widely used across the USA.

Similarly, increasing initiatives and investments specifically targeting innovations in photonics technology is playing a key role in expanding the USA photonics industry. For instance, in October 2021, to ensure the manufacturing readiness of advanced photonics, the American Institute of Manufacturing Photonics secured a 7-year cooperative agreement with the Research Foundation of the State of New York and the Air Force Research laboratory. This also includes support of over US$ 321 million.

Further, large presence of leading photonics companies is positively influencing overall photonics demand across the United States. Several USA-based companies are introducing novel products to meet growing end user demand.

For example, in October 2022, II-VI Incorporated, a manufacturer of optical materials using photonics technology based in Pennsylvania, United States demonstrated 3D cameras for Metaverse. These cameras have higher image resolution and longer ranges.

Will China Continue to Retain its Monopoly Over the Global Photonics Industry?

Robust Expansion of Automotive and Consumer Electronics Sectors Propelling Demand in China

China photonics market is forecast to expand at 7.3% CAGR during the projection period, in comparison to 8.8% CAGR recorded from 2018 to 2022. Between 2023 and 2033, China’s market is likely to create an absolute $ opportunity of US$ 207.7 billion, taking overall market size to a massive total of US$ 412.5 billion by the end of 2033.

Growth in China market is driven by rising demand for photonic sensors, detectors, and lasers, growing popularity of silicon photonics, and high penetration of factory automation.

Subsequently, rapid expansion of industries such as automotive and consumer electronics that are primary consumers of photonics technologies is creating lucrative growth opportunities for photonics companies.

Another key factor that is aiding in the expansion of photonics industry in China is the increasing spending on research and development. For instance, in June 2022, Shanhe Photonics, a China-based meta-surface chip developer announced that it have received funding of US$ 13.9 million. The new funds will be utilized for product research and development, small-scale mass production, and team expansion.

Sudip Saha
Sudip Saha

Principal Consultant

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Category-wise Insights

Which is the Most Lucrative Application of Photonics?

Displays to Remain the Most Remunerative Application of Photonics

Based on application, the global displays, information, photovoltaics, machine and measure vision, medical technology, production technology, lighting, communication, defense and security, and optical components.

Among these, displays will continue to remain the most lucrative application for photonics. Displays segment witnessed a growth rate of 6.5% CAGR from 2018 to 2022. For the assessment period (2023 and 2033), this segment is set to accelerate at a CAGR of 5.7%. Rising application of photonics in displays is a key factor spurring growth of the target segment.

Similarly, growing popularity of photonic crystal displays and development of new high-quality displays by companies such as Lockheed Martin and Agilent Technologies will further drive growth of the target segment during the forecast period.

Competitive Landscape

Key players in the market are II-VI Incorporated, Hamamatsu Photonics K.K., One Silicon Chip Photonics Inc., IPG Photonics Corporation, Trumpf, Molex, Innolume, Lumentum, NKT Photonics, AIOCORE Signify, Corning, American elements, Asahi glass, Schoft, Shin-etsu Chemicals, and Nikon corporation.

These companies are continuously focusing on expanding their portfolios by introducing novel products into the market. Besides this, investments in research and development, partnerships, acquisitions, facility expansions, collaborations, alliances, joint ventures, and mergers are few of the key strategies employed by photonics manufacturers.

Recent Developments

  • In December 2022, SiLC Technologies, a California-based developer of advanced machine vision technology launched the Eyeonic Vision System which is a Frequency Modulated Continuous Wave - LiDAR transceiver.
  • In September 2022, II-VI Incorporated, the United States-based photonics devices manufacturer acquired the laser developer and manufacturer Coherent Incorporation.
  • In March 2020, Signify completed the acquisition of Cooper Lighting Solutions. This deal is expected to help the market to strengthen its presence in North American lighting market.
  • In December 2022, Effect Photonics, a Netherland-based integrated optical solutions company announced that it has appointed Fabrinet, Thailand-based telecommunications company as its manufacturing partner for integrated assemblies. Fabrinet will perform assembly, test, procurement, and sourcing of integrated photonics devices. The need for a larger bandwidth is fulfilled because of the photonics technology which is useful in 5G services and cloud computing technologies. The help from Fabrinet is expected to be of great use for Effect Photonics.

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Scope of the Report

Attribute Details
Estimated Market Size (2023) US$ 911.5 billion
Projected Market Size (2033) US$ 1.6 trillion
Anticipated Growth Rate (2023 to 2033) 5.8% CAGR
Forecast Period 2023 to 2033
Historical Data Available for 2018 to 2022
Market Analysis US$ Million for Value and MT for Volume
Key Regions Covered North America; Latin America; Europe; Asia Pacific; and the Middle East & Africa
Key Countries Covered United States, Canada, Brazil, Mexico, Germany, United Kingdom, France, Italy, Spain, Nordic, Russia, Poland, China, India, Thailand, Indonesia, Australia and New Zealand, Japan, GCC countries, North Africa, South Africa, and others.
Key Segments Covered Application and Region
Key Companies Profiled Trumpf; Hamamatsu Photonics K.K.; IPG Photonics Corporation; Molex; Innolume; II-VI Incorporated; Lumentum; One Silicon Chip Photonics Inc.; NKT Photonics; AIOCORE
Report Coverage Market Forecast, Company Share Analysis, Competition Intelligence, Drivers Restraints Opportunity Trends Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives

Global Photonics Industry Segmentation

By Application:

  • Displays
  • Information
  • Photovoltaics
  • Machine and Measure Vision
  • Medical Technology
  • Production Technology
  • Lighting
  • Communication
  • Defense and Security
  • Optical Components

By Region:

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa

Frequently Asked Questions

Which Country is likely to be the Notably Growing Rice Milk Market?

The market in Malaysia is expected to thrive at 9.8% CAGR through 2033.

How Big is the Photonics Market?

The market is valued at US$ 911.5 billion in 2023.

Who are the Key Players in the Photonics Market?

Trumpf, Molex, and Innolume are the key market players.

Which is the Highly Preferred Application Segment?

The display segment is likely to remain preferred through 2033.

What is the Go-to-Market Strategy?

Players opt for mergers, partnerships, and acquisitions.

Table of Content
1. Executive Summary | Photonics Market
    1.1. Global Market Outlook
    1.2. Demand-side Trends
    1.3. Supply-side Trends
    1.4. Technology Roadmap Analysis
    1.5. Analysis and Recommendations
2. Market Overview
    2.1. Market Coverage / Taxonomy
    2.2. Market Definition / Scope / Limitations
3. Market Background
    3.1. Market Dynamics
        3.1.1. Drivers
        3.1.2. Restraints
        3.1.3. Opportunity
        3.1.4. Trends
    3.2. Scenario Forecast
        3.2.1. Demand in Optimistic Scenario
        3.2.2. Demand in Likely Scenario
        3.2.3. Demand in Conservative Scenario
    3.3. Opportunity Map Analysis
    3.4. Product Life Cycle Analysis
    3.5. Investment Feasibility Matrix
    3.6. PESTLE and Porter’s Analysis
    3.7. Regulatory Landscape
        3.7.1. By Key Regions
        3.7.2. By Key Countries
    3.8. Regional Parent Market Outlook
4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033
    4.1. Historical Market Size Value (US$ Million) Analysis, 2018 to 2022
    4.2. Current and Future Market Size Value (US$ Million) Projections, 2023 to 2033
        4.2.1. Y-o-Y Growth Trend Analysis
        4.2.2. Absolute $ Opportunity Analysis
5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application
    5.1. Introduction / Key Findings
    5.2. Historical Market Size Value (US$ Million) Analysis by Application, 2018 to 2022
    5.3. Current and Future Market Size Value (US$ Million) Analysis and Forecast by Application, 2023 to 2033
        5.3.1. Displays
        5.3.2. Information
        5.3.3. Photovoltaics
        5.3.4. Measure and Machine Vision
        5.3.5. Medical Technology
        5.3.6. Production Technology
        5.3.7. Lighting
        5.3.8. Communication
        5.3.9. Defence and Security
        5.3.10. Optical Component
    5.4. Y-o-Y Growth Trend Analysis by Application, 2018 to 2022
    5.5. Absolute $ Opportunity Analysis by Application, 2023 to 2033
6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region
    6.1. Introduction
    6.2. Historical Market Size Value (US$ Million) Analysis by Region, 2018 to 2022
    6.3. Current Market Size Value (US$ Million) Analysis and Forecast by Region, 2023 to 2033
        6.3.1. North America
        6.3.2. Latin America
        6.3.3. Europe
        6.3.4. Asia Pacific
        6.3.5. Middle East and Africa
    6.4. Market Attractiveness Analysis By Region
7. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
    7.1. Historical Market Size Value (US$ Million) Trend Analysis by Market Taxonomy, 2018 to 2022
    7.2. Market Size Value (US$ Million) Forecast by Market Taxonomy, 2023 to 2033
        7.2.1. By Country
            7.2.1.1. USA
            7.2.1.2. Canada
        7.2.2. By Application
    7.3. Market Attractiveness Analysis
        7.3.1. By Country
        7.3.2. By Application
    7.4. Key Takeaways
8. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
    8.1. Historical Market Size Value (US$ Million) Trend Analysis by Market Taxonomy, 2018 to 2022
    8.2. Market Size Value (US$ Million) Forecast by Market Taxonomy, 2023 to 2033
        8.2.1. By Country
            8.2.1.1. Brazil
            8.2.1.2. Mexico
            8.2.1.3. Rest of Latin America
        8.2.2. By Application
    8.3. Market Attractiveness Analysis
        8.3.1. By Country
        8.3.2. By Application
    8.4. Key Takeaways
9. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
    9.1. Historical Market Size Value (US$ Million) Trend Analysis by Market Taxonomy, 2018 to 2022
    9.2. Market Size Value (US$ Million) Forecast by Market Taxonomy, 2023 to 2033
        9.2.1. By Country
            9.2.1.1. Germany
            9.2.1.2. United Kingdom
            9.2.1.3. France
            9.2.1.4. Spain
            9.2.1.5. Italy
            9.2.1.6. Russia
            9.2.1.7. Rest of Europe
        9.2.2. By Application
    9.3. Market Attractiveness Analysis
        9.3.1. By Country
        9.3.2. By Application
    9.4. Key Takeaways
10. Asia Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
    10.1. Historical Market Size Value (US$ Million) Trend Analysis by Market Taxonomy, 2018 to 2022
    10.2. Market Size Value (US$ Million) Forecast by Market Taxonomy, 2023 to 2033
        10.2.1. By Country
            10.2.1.1. China
            10.2.1.2. Japan
            10.2.1.3. India
            10.2.1.4. South Korea
            10.2.1.5. Australia
            10.2.1.6. Rest of Asia Pacific
        10.2.2. By Application
    10.3. Market Attractiveness Analysis
        10.3.1. By Country
        10.3.2. By Application
    10.4. Key Takeaways
11. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
    11.1. Historical Market Size Value (US$ Million) Trend Analysis by Market Taxonomy, 2018 to 2022
    11.2. Market Size Value (US$ Million) Forecast by Market Taxonomy, 2023 to 2033
        11.2.1. By Country
            11.2.1.1. South Africa
            11.2.1.2. Saudi Arabia
            11.2.1.3. United Arab Emirates
            11.2.1.4. Israel
            11.2.1.5. Rest of Middle East & Africa
        11.2.2. By Application
    11.3. Market Attractiveness Analysis
        11.3.1. By Country
        11.3.2. By Application
    11.4. Key Takeaways
12. Key Countries Market Analysis
    12.1. USA
        12.1.1. Pricing Analysis
        12.1.2. Market Share Analysis, 2023
            12.1.2.1. By Application
    12.2. Canada
        12.2.1. Pricing Analysis
        12.2.2. Market Share Analysis, 2023
            12.2.2.1. By Application
    12.3. Brazil
        12.3.1. Pricing Analysis
        12.3.2. Market Share Analysis, 2023
            12.3.2.1. By Application
    12.4. Mexico
        12.4.1. Pricing Analysis
        12.4.2. Market Share Analysis, 2023
            12.4.2.1. By Application
    12.5. Germany
        12.5.1. Pricing Analysis
        12.5.2. Market Share Analysis, 2023
            12.5.2.1. By Application
    12.6. United Kingdom
        12.6.1. Pricing Analysis
        12.6.2. Market Share Analysis, 2023
            12.6.2.1. By Application
    12.7. France
        12.7.1. Pricing Analysis
        12.7.2. Market Share Analysis, 2023
            12.7.2.1. By Application
    12.8. Spain
        12.8.1. Pricing Analysis
        12.8.2. Market Share Analysis, 2023
            12.8.2.1. By Application
    12.9. Italy
        12.9.1. Pricing Analysis
        12.9.2. Market Share Analysis, 2023
            12.9.2.1. By Application
    12.10. Russia
        12.10.1. Pricing Analysis
        12.10.2. Market Share Analysis, 2023
            12.10.2.1. By Application
    12.11. China
        12.11.1. Pricing Analysis
        12.11.2. Market Share Analysis, 2023
            12.11.2.1. By Application
    12.12. Japan
        12.12.1. Pricing Analysis
        12.12.2. Market Share Analysis, 2023
            12.12.2.1. By Application
    12.13. India
        12.13.1. Pricing Analysis
        12.13.2. Market Share Analysis, 2023
            12.13.2.1. By Application
    12.14. South Korea
        12.14.1. Pricing Analysis
        12.14.2. Market Share Analysis, 2023
            12.14.2.1. By Application
    12.15. Australia
        12.15.1. Pricing Analysis
        12.15.2. Market Share Analysis, 2023
            12.15.2.1. By Application
    12.16. South Africa
        12.16.1. Pricing Analysis
        12.16.2. Market Share Analysis, 2023
            12.16.2.1. By Application
    12.17. Saudi Arabia
        12.17.1. Pricing Analysis
        12.17.2. Market Share Analysis, 2023
            12.17.2.1. By Application
    12.18. United Arab Emirates
        12.18.1. Pricing Analysis
        12.18.2. Market Share Analysis, 2023
            12.18.2.1. By Application
    12.19. Israel
        12.19.1. Pricing Analysis
        12.19.2. Market Share Analysis, 2023
            12.19.2.1. By Application
13. Market Structure Analysis
    13.1. Competition Dashboard
    13.2. Competition Benchmarking
    13.3. Market Share Analysis of Top Players
        13.3.1. By Regional
        13.3.2. By Application
14. Competition Analysis
    14.1. Competition Deep Dive
        14.1.1. Trumpf
            14.1.1.1. Overview
            14.1.1.2. Product Portfolio
            14.1.1.3. Profitability by Market Segments
            14.1.1.4. Sales Footprint
            14.1.1.5. Strategy Overview
                14.1.1.5.1. Marketing Strategy
        14.1.2. Hamamatsu K.K.
            14.1.2.1. Overview
            14.1.2.2. Product Portfolio
            14.1.2.3. Profitability by Market Segments
            14.1.2.4. Sales Footprint
            14.1.2.5. Strategy Overview
                14.1.2.5.1. Marketing Strategy
        14.1.3. IPG Corporation
            14.1.3.1. Overview
            14.1.3.2. Product Portfolio
            14.1.3.3. Profitability by Market Segments
            14.1.3.4. Sales Footprint
            14.1.3.5. Strategy Overview
                14.1.3.5.1. Marketing Strategy
        14.1.4. Molex
            14.1.4.1. Overview
            14.1.4.2. Product Portfolio
            14.1.4.3. Profitability by Market Segments
            14.1.4.4. Sales Footprint
            14.1.4.5. Strategy Overview
                14.1.4.5.1. Marketing Strategy
        14.1.5. Innolume
            14.1.5.1. Overview
            14.1.5.2. Product Portfolio
            14.1.5.3. Profitability by Market Segments
            14.1.5.4. Sales Footprint
            14.1.5.5. Strategy Overview
                14.1.5.5.1. Marketing Strategy
        14.1.6. II-VI Incorporated
            14.1.6.1. Overview
            14.1.6.2. Product Portfolio
            14.1.6.3. Profitability by Market Segments
            14.1.6.4. Sales Footprint
            14.1.6.5. Strategy Overview
                14.1.6.5.1. Marketing Strategy
        14.1.7. Lumentum
            14.1.7.1. Overview
            14.1.7.2. Product Portfolio
            14.1.7.3. Profitability by Market Segments
            14.1.7.4. Sales Footprint
            14.1.7.5. Strategy Overview
                14.1.7.5.1. Marketing Strategy
        14.1.8. One Silicon Chip Inc.
            14.1.8.1. Overview
            14.1.8.2. Product Portfolio
            14.1.8.3. Profitability by Market Segments
            14.1.8.4. Sales Footprint
            14.1.8.5. Strategy Overview
                14.1.8.5.1. Marketing Strategy
        14.1.9. NKT Photonics
            14.1.9.1. Overview
            14.1.9.2. Product Portfolio
            14.1.9.3. Profitability by Market Segments
            14.1.9.4. Sales Footprint
            14.1.9.5. Strategy Overview
                14.1.9.5.1. Marketing Strategy
        14.1.10. AIOCORE
            14.1.10.1. Overview
            14.1.10.2. Product Portfolio
            14.1.10.3. Profitability by Market Segments
            14.1.10.4. Sales Footprint
            14.1.10.5. Strategy Overview
                14.1.10.5.1. Marketing Strategy
15. Assumptions & Acronyms Used
16. Research Methodology
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