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The Optoelectronics Market size is forecast to increase by USD 40.4 billion, at a CAGR of 10.86% between 2023 and 2028. Market growth is driven by several factors: the expansion of the automotive industry, the rapid adoption of high-brightness LEDs in consumer electronics, and the enhanced efficiency of optoelectronic products. These elements contribute to market expansion by meeting demand for advanced lighting solutions in vehicles and electronic devices, improving energy efficiency, and enhancing product performance. The automotive sector's reliance on innovative lighting technologies underscores their role in safety and aesthetic enhancements. Simultaneously, the consumer electronics market's shift towards high-brightness LEDs reflects evolving consumer preferences for brighter displays and energy-efficient devices. As optoelectronic products continue to evolve to meet these demands, stakeholders are positioned to capitalize on emerging opportunities, driving innovation and competitiveness in the global market. This dynamic landscape underscores the importance of these factors in shaping the future of optoelectronics and automotive lighting industries.
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Optoelectronics, a subfield of electronics that deals with the generation, modification, and detection of light, is a rapidly evolving market driven by advancements in electronic materials and semiconductors. Optoelectronic devices, such as photodetectors, solar cells, and LEDs, play a crucial role in various applications, including telecommunications, medical technology, and renewable energy. Semiconductor alloys, multi-quantum well structures, and laser active regions are essential components of optoelectronic devices. The chemical composition of these materials significantly impacts their photodetecting properties and response time. Silicon photonics, 2D materials, and nanomaterials, such as metal chalcogenides, metal oxides, and topological crystalline insulators, are emerging areas of research in optoelectronics. Photodetectors and solar cells, which convert light into electrical energy, are critical components of optoelectronics. The market for photodetectors is driven by applications in defense, medical technology, and industrial automation. Solar cells, including dye-sensitized solar cells and photovoltaic devices, are essential for generating electrical energy from sunlight. Optical fibers, which transmit light signals, are another crucial component of the optoelectronics market. The use of ionic liquids and organic solvents in photovoltaic devices and polymer-based ILs in charge collection microscopy is gaining popularity due to their unique properties. The market for optoelectronics is expected to grow significantly due to the increasing demand for energy-efficient and high-speed electronic devices.
One of the key factors driving the optoelectronics market growth is the expanding automotive industry. There is a growing popularity for optoelectronics across the automotive industry due to its wide applications. The main applications of optoelectronic devices in the automotive industry include the detection of occupants, night vision, optical immobilizers, detection of drowsy drivers, automation of vehicle functions such as lights and brakes, and more.
Moreover, there is an increasing adoption of optoelectronic components due to the performance and efficiency of powertrain systems. The main advantage of these optoelectronic components is that it enable the communication, signal detection, and activity management functions of automobiles. Hence, such applications are positively impacting the market which in turn will drive the market growth during the forecast period.
A key factor shaping the optoelectronics market growth is the increasing application of optoelectronic components in the medical sector. There is an increasing requirement for sensors that convert diverse stimuli into electrical forms in medical equipment. As a result, there is a rising adoption of optoelectronic sensors that can detect patterns, pictures, motion, intensity, color, and other things by interacting with light.
Moreover, it is expected to fuel the optoelectronic applications in endoscopic surgery and treatment. Some of the other application areas of optoelectronics in the medical field include dental diagnosis, blood diagnostics, and pulse oximetry. Hence, such factors are positively impacting the market which in turn will drive the market growth during the forecast period.
High costs of optoelectronic products are one of the key challenges hindering market growth. Due to the high cost associated with optoelectronic products, several customers are opting for alternatives such as LED screens, which are less expensive than these components. Furthermore, regularly changing OS spare parts cost more than purchasing the original product.
Moreover, the increasing preference for alternatives among customers is declining the demand for optoelectronic components. Hence, such factors are negatively impacting the market which in turn will hinder the market growth during the forecast period.
The LED segment is estimated to witness significant growth during the forecast period. There is an increasing demand for energy-efficient LED components among consumers which is significantly contributing to the growth of this segment. The main advantage of the LED segment is that it is more durable, consumes less energy, and produces similar or better light compared with other types of lighting.
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The LED segment was the largest segment and was valued at USD 16.60 billion in 2018. In addition, there are several government initiatives promoting the adoption of the LED which has also fuelled the demand for this segment. For instance, in India, Navi Mumbai Municipal Corporation decided to convert all streetlights to LEDs; 35,000 streetlights will be replaced in 2022, which will save 7 billion Indian rupees (USD0.85 million) annually. Additionally, there is an increase in investment by several prominent market players in the research and development of LED technology. Furthermore, the increasing adoption of LED components for various applications across IT communication, and consumer electronics industries are expected to fuel the growth of this segment, which in turn will drive the market growth during the forecast period.
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APAC is estimated to contribute 57% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. One of the main factors that is significantly contributing to the growth of the global optoelectronics market in APAC is the growing consumer electronics and automotive industries, especially in countries such as China, Japan, and India. Additionally, the increasing strategic strategic developments, including several product launches in the automotive industry, will positively impact the market growth in the region.
For instance, in November 2022, Kyocera Corporation declared its plan to launch an automotive night vision system that can reliably identify collision-prone objects in low-visibility operating conditions including rain, night, snow, fog, or smoke. Hence, such factors are expected to drive the market growth in the region during the forecast period.
The optoelectronics market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
AC Photonics Inc: The company offers optoelectronics for communication applications which includes bandpass and edge filters.
Canon Inc: The company offers optoelectronics such as the MA 101 series laser trepanning scan system.
Coherent Inc: The company offers optoelectronics such as GaAs optoelectronics.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
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The market is at the forefront of technological innovation, integrating advancements in laser active region design and waveguides for efficient light-matter interactions in electronic devices and integrated circuits. Utilizing semiconductor nanowires and organic-inorganic hybrid perovskites, these sprays enhance photovoltaic effect and photodetector performance, improving photovoltage and response time crucial for high-speed applications. They optimize nanowire dimensions for precise electrical signal transmission, complementing nanoparticle technologies like metallic NPs with catalytic properties in fuel cells and petrochemistry. Furthermore, the market supports NP-based drug delivery and ceramic membranes, advancing magnetic NPs for enhanced functionality in magneto-electronic switches and spin information storage. As demand grows for efficient energy solutions and responsive electronic components, optoelectronics sprays continue to evolve, driving progress in both consumer electronics and industrial applications alike. The ceramic membrane enhances the efficiency of a magneto electronic switch in an electronic device, crucial for optimizing photodetector response time and facilitating NP based drug delivery.
Market Scope |
|
Report Coverage |
Details |
Page number |
178 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 10.86% |
Market growth 2024-2028 |
USD 40.4 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
9.52 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 57% |
Key countries |
China, US, Japan, India, and South Korea |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AC Photonics Inc., AFW Technologies Pty Ltd, Agiltron Inc., ams OSRAM AG, Canon Inc., Coherent Inc., Corning Inc., FOCI Fiber Optic Communications Inc., General Electric Co., IPG Photonics Corp., LG Innotek Co. Ltd., Lumileds Holding BV, Luna Innovations Inc., Nichia Corp., OmniVision Technologies Inc., Samsung Electronics Co. Ltd., Seoul Semiconductor Co. Ltd., Sony Group Corp., TRUMPF SE Co. KG, and Vishay Intertechnology Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period |
Customization purview |
If our market forecasting report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Component
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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