Published: Sep, 2016
Owing to a few players at the forefront of the global photonics market, the competitive rivalry is likely to stay high in the upcoming years, reports Transparency Market Research in a new study. The growing industrial sector and upcoming manufacturing utilities due to foreign investment in the emerging economies has impelled the key players to set up manufacturing units in these regions. The key players operating in the global photonics market are Intel Corporation, Hamamatsu Photonics K.K., Hewlett-Packard Company,
IBM Corp., Finisar Corporation, Luxtera Inc., Infinera Corporation, 3S Photonics S.A.S., and Innolume GmbH.
The global photonics market is anticipated to rise at a 5.8% CAGR from 2014 to 2020. In 2013, the market was valued at US$509.75 bn and is anticipated to touch a valuation of US$765.89 bn in 2020. Displays are likely to emerge as the prime application segment in terms of consumption of photonics with a market worth US$188.54 bn in 2020. Owing to the changing consumer requirements due to rise in disposable income levels in developing countries, the demand for displays is likely to significantly rise in the coming years.
North America to Emerge as Prime Region in Terms of Photonics Consumption
North America is anticipated to emerge dominant due to the presence of large number of manufacturing utilities in the region. It is projected to account for almost 36.2% of the overall share in the global photonics market by the end of 2020. The factors driving the demand for photonics based equipment in North America are the growing volume of data transfers, need for high speed data transfer with less power consumption. The demand for fast and easy diagnosis in the healthcare sector and the rise in the geriatric population in North America are further expected to boost the consumption of photonics in the region.
Need for High-speed Electronic Devices to Drive Growth of Photonics Industry
The robust growth in the semiconductors industry has resulted in a rise in the demand for high-speed electronics capable of transferring data in swiftly. The need for speedydata transfer is boosting technological developments in the field of communication leading to a surge in the demand for photonics based equipment as well. Photonics based communication equipment uses optical technologies that enables fast transfer compared to existing technologies.
Photonics-based equipment also consumes less power in comparison to traditional equipment, thus reducing operational costs. Furthermore, the increasing volume of data transfer is another factor driving the demand for photonics. Transfer of data through conventional channels such as copper transmitters have bandwidth limitations. Thus, only limited amount of data can be transferred through them. Photonics based equipment enable large volume of data transfer in short time.
Vulnerability to Thermal Instability to Affect Sales of Photonics-based Equipment
Photonics-based instruments are immensely vulnerable to the thermal effect. The possibility of thermal effect at high temperatures increases in photonics based devices due to the existence of carrier injections in them.As a result of this, photonics based thermal devices tend to slow down or the power consumption level increases. The susceptibility of photonics to thermal effect is likely to impede the growth of the global photonics market. However, the ongoing research and development projects are likely to present a solution to overcome this problem.
Manufacturers of photonics are expected to gain lucrative opportunities in emerging economies. Owing to the extensive growth of industries in Asia Pacific and Rest of the World, the photonics market in these regions is expected to witness a strong growth. The increasing application of photonics in sensing, metrology, and consumer electronics in the emerging economies is also further expected to augment the growth of the photonics industry
In order to maintain their position in the global photonics market, the leading companies are aiming at product upgradation with better quality and longer life. Companies are also entering into long term agreements with suppliers to maintain end-product quality.
The review is based on the findings of a TMR report titled, “Photonics Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2014 – 2020.”
The global photonics market is segmented into:
- Optical Modulators
- Optical Interconnects
- Wavelength Division Multiplexer Filters
- Photo Detectors
- Consumer Electronics
- Safety and Defense Technology
- Medical and Healthcare
- High Performance Computing
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