Key Market Overview:
Optoelectronics market size garnered over USD 46.8 Billion in 2022 and is projected to surpass USD 95.3 Billion by 2030, growing at a CAGR of 9.3% during the forecast period (2023-2030).
Optoelectronics (also referred to as optronics) is a study and application of light-detecting or light-emitting devices. The study is typically considered as a sub-discipline of photonics. The optoelectronics is considered as one of the fastest emerging technology fields which consist of applying electronic devices to source, detect, and gain control of light. This allows such devices to be a part of various applications such as telecommunications, military services, medical equipment, automatic access control systems, and others.
A few examples of such electronics include LEDs, phototransistors, photo diodes, photo resistors (also known as LDRs), visual indicators, light emitters, detectors, and optocouplers. Further, optoelectronic technology witnesses diverse applications in fields such as sensing and monitoring, LiDAR with long wavelengths, microwave photonic links, medical equipment, and general scientific research. For instance, fiber optic communication systems and X-ray machines in healthcare facilities are a few examples of how the technology is used.
Further, the advent of new services such as 4K virtual reality, Internet of Things (IoT), and cloud computing is anticipated to result in increased demand for optoelectronics to improve network bandwidth, concurrency ratio, and real-time capabilities. In current circumstances, optical modules are widely used in various network scenarios such as metro-integrated bearer networks, DC networking, and large-capacity and long-haul transmission networks. For instance, according to an IEEE report, the number of device connections is expected to reach over 28.5 billion by 2022. Thus, as a result, the average annual growth rate of network traffic remains at a high level of 26% due to a significant surge in network traffic.
Optoelectronics Report Coverage:
|Report Attributes||Report Details|
|Market Size in 2030 (USD Billion)||95.3 Billion|
|CAGR (2022-2030)||9.3 %|
|By Type||Display Modules, Fiber & Cable, Transceiver Modules, Source & Detectors, Receivers, Others|
|By Device Material||Silicon Germanium, Silicon Carbide, Gallium Nitride, Gallium Arsenide, Gallium Phosphide, Indium Phosphide|
|By Light Source||Visible Light, Ultraviolet, X-Rays, Infrared|
|By Component||Photo Voltaic (PV) Cells, Optocouplers, Image sensors, Light Emitting Diodes (LED), Laser Diode (LD), Infrared Components (IR)|
|By End Use||Automotive, Consumer Electronics, Industrial, Aerospace & Defense, Medical, Others|
|By Geography||Asia-Pacific [China, Southeast Asia, India, Japan, Korea, Western Asia] |
Europe [Germany, UK, France, Italy, Russia, Spain, Netherlands, Turkey]
North America [United States, Canada, Mexico]
Middle East & Africa [GCC, North Africa, South Africa]
South America [Brazil, Argentina, Columbia, Chile, Peru]
|Key Players||Infineon Technologies AG, Analog Devices, Inc., NXP Semiconductors, Renesas Electronics Corporation, Robert Bosch GmbH, Continental, ROHM CO., LTD, Semiconductor Components Industries, LLC (Onsemi), STMicroelectronics, Texas Instruments Incorporated, TE Connectivity, TOSHIBA ELECTRONIC DEVICES & STORAGE CORPORATION, Melexis, Valeo|
The rise of digital communication technologies, such as 5G, cloud computing, and big data analytics, fuels the demand for optoelectronic components such as optical transceivers, optical fibers, and laser diodes. Also, growing expenditures on research and development of several optical module solutions to support the construction of extremely wide broadband pipelines boosts the optoelectronics market statistics to accommodate significant data traffic volumes in the ICT industry. Moreover, the rising demand for LED lighting among the population due to the focus on energy efficiency and long lifespan also drives the demand for optoelectronic components such as LEDs and OLEDs.
High manufacturing costs of optoelectronics technology mainly hampers the growth of market statistics. Furthermore, the imposition of strict regulations and standards in terms of optoelectronics devices and systems also results in limited market adoption. Moreover, the lack of supporting infrastructure such as optical fiber networks hampers the market growth in terms of meeting the complete potential of optoelectronics systems and technologies.
The advancements in smart devices such as smartphones, tablets, and wearables are anticipated to offer lucrative opportunities for market growth in terms of adaptive lighting and high-quality imaging and video capture. Moreover, the scope of improvements in optical communication components such as infrared (IR) sensors and transmitters is anticipated to offer creative opportunities for optoelectronics to witness increased applications in short-range communication protocols such as IrDA and NFC.
Optoelectronics Market Segmentation:
The type segment is separated into display modules, fiber & cable, transceiver modules, source & detectors, receivers, and others. The fiber & cables segment contributed largest shares to the optoelectronics market growth in 2022. Growing prevalence of fiber optical communications to meet requirements for high bandwidth, transmission over long distance, or immunity to electromagnetic interference supports the demand for such fiber & cables as an alternative to electrical cabling. Such type of communication also enables the transmission of voice, video, and telemetry through various networks such as local area networks, computer networks, and even over long distances. Moreover, display modules segment is anticipated to contribute substantial shares to the market growth during the forecast period. Increased demand for highly sophisticated glass and polymer modules, especially for medical products such as blood sugar meters, POC (point-of-care) components and units and optical systems and units for dental scanners is expected to boost the segmental growth.
By Device Material
The device material segment is divided into silicon germanium, silicon carbide, gallium nitride, gallium phosphide, indium phosphide and gallium arsenide. The gallium nitride segment contributed the largest shares to the market growth in 2022. The wurtzite crystallographic form of gallium nitride (GaN) results in high built-in electric fields with low growth temperatures. GaN is a direct bandgap semiconductor which belongs to the binary III/V group suitable for the creation of high-power transistors that function efficiently even in high-temperature environments. Thus, increased usage of such material, especially in applications that fall within the green/blue/UV spectral range with a low-medium voltage range (200–600 V) supports the segmental growth. Moreover, the silicon carbide (SiC) segment is also estimated to support the market growth in terms of volume due to large usage in a third-generation semiconductors such as photonic integrated circuits (PICs). The growing advancements in the development of PICs are expected to boost the demand for SiC for broad functionalities such as wide bandgap, controllable artificial spin defects, high refractive index, high optical nonlinearities, and a CMOS-compatible fabrication process.
By Light Source
The light source segment is separated into visible light, ultraviolet, x-rays, and infrared. The ultraviolet segment is expected to contribute significant shares to the market growth during the forecast period. The segmental growth is mainly attributed to the large-scale absorption of ultraviolet light as photon energy that exceeds the band gap energy of numerous materials. Although optical glasses remain transparent to visible light, such glasses also experience alterations in the chemical makeup due to excitation caused by ultraviolet light such as bond breakage. Thus, such characteristics play a significant role in laser material processing methods, including pulsed laser deposition, laser ablation, and fiber Bragg grating fabrication. Additionally, ultraviolet light finds major applications for sterilizing water and medical instruments.
The component segment is categorized into photo voltaic (PV) cells, optocouplers, image sensors, light-emitting diodes (LED), a laser diode (LD), and infrared components (IR). The laser diode (LD) segment accounted for largest share contribution to the market growth in 2022. The favorable demand for laser diodes due to unique features such as single color wavelength, straight trajectory, consistent phase, rapid pulse response, and concentrated intensity supports large usage in various applications such as optical discs (OPU), multifunctional equipment, and laser printers. Further, the light-emitting diodes (LED) segment is anticipated to witness significant growth during the forecast period in terms of value and volume. In the context of optoelectronic applications, the wide range of advantages offered by LEDs as compared to traditional light sources is estimated to support segmental growth for extended lifespan, lower power usage, greater brightness, and improved spectral accuracy.
By End Use
The end-user segment comprises automotive, consumer electronics, industrial, aerospace, medical, and others. The consumer electronics segment accounted for the largest share contribution to the market growth in 2022. Growing adoption of optoelectronics for several applications in consumer electronics such as smartphones, LED projectors, high-end cameras, organic LEDs, smart television displays, and flexible 3-D displays results in high demand for optoelectronics, especially as optical interconnects, LED lighting and illumination, optical sensors, and solar cells. Moreover, the automotive segment is also anticipated to support market growth in terms of volume and value. The scope of advancements within automotive industry in terms of advanced technological tools such as lasers to improve productivity, ensure quality control, and facilitate product development is estimated to support the demand for optoelectronics. Such increased demand is related to the latest application of lasers in exploring areas such as materials processing, metal joining, process control, parts inspection, robotics, and combustion research.
The regional segment includes Asia Pacific, North America, Europe, Latin America, and the Middle East and Africa. Asia Pacific is anticipated to contribute the largest shares to the market growth in 2022. Growing expenditures on infrastructure development, including smart city projects, public transportation systems, and renewable energy projects are expected to propel optoelectronics market demand in the Asia Pacific region.
Moreover, North America is also estimated to support market growth in terms of value and volume. The large presence of data centers, cloud computing facilities, and high-speed communication networks in North America is anticipated to boost the market growth in the region due to extensive usage of components such as lasers, fiber optics, and photodetectors.
Optoelectronics Market Competitive Landscape:
The market players operating in the market of optoelectronics compete on various factors such as product innovation, quality, price, and distribution channels to maintain their market position. Thus, a growing focus on product innovations and next-generation connectivity solutions in terms of machine vision applications is estimated to help businesses gain a competitive edge over other manufacturers. Mentioned are the market players that currently operate in the market circumstances–
• Sony Corporation
• Samsung Electronics
• Sharp Corporation
• General Electric Company (US)
• Intel Corporation
• Omron Electronics
• Cree Inc.
• HiSilicon Optoelectronics Co., Ltd.
• Texas Instruments
• ON Semiconductor
• Vishay Intertechnology, Inc.
• ams-OSRAM International GmbH.
• ROHM CO., LTD.
• Broadcom Inc. (Avago Technologies)
• Analog Devices, Inc.
• Hamamatsu Photonics K.K.
• Tata Advanced Systems Limited
• In September 2022, Samsung introduced the latest LED solution for outdoor lighting called the 5050 LED. The product is expected to replace the existing ceramic-based 3535 LED due to the high costs.
• In December 2022, ams OSRAM, a leading global provider of optical solutions, and Crytur, an optical device manufacturer revealed the launch of a new color-converted laser module called MonaLIGHT. The product was developed with the combination of ams OSRAMs PLPT9 450LB_E blue laser diode and Cryturs new phosphor conversion technology.
• In February 2023, ams OSRAM, a worldwide optical solutions leader, and AIXTRON SE, a top supplier of deposition equipment to the semiconductor industry, announced that AIXTRONs AIX G5+ C and G10-AsP MOCVD systems have been approved by ams OSRAM for a Micro LED application on 200mm wafers.