Market Trends of Americas Optoelectronics Industry
Laser Diodes are Expected to Witness a Significant Growth
- Laser diodes are employed in a variety of industries, including automobile industries. Laser diodes are utilized in the automobile sector to produce car headlights that improve driver visibility, leading to better road safety. Furthermore, the tendency to downsize vehicle headlights is increasing demand for laser diodes. For instance, according to the Bureau of Economic Analysis (BEA), in the fourth quarter of 2022, approximately 3.59 million light vehicles were sold to customers in the United States. Hence, increased automobile demand will drive the studied market in the forecasted region.
- Laser diodes are employed in a variety of industries, including automobile industries. Laser diodes are utilized in the automobile sector to produce car headlights that improve driver visibility, leading to better road safety. Furthermore, the tendency to downsize vehicle headlights is increasing demand for laser diodes.
- Moreover, increasing development in the automobile industry is expected to contribute to segment growth over the forecast period. For instance, in February 2023, Naxinwei introduced Optocoupler-Compatible Intelligent Isolated Single-Transistor Driver. The NSi68515's input mode is compatible with optocoupler input, and the input and output ports use dual-capacitor-enhanced isolation technology. Based on Nanochip Adaptive OOK coding technology, it supports a minimum common-mode transient immunity (CMTI) of 150kV/s, which improves system robustness.
- Increasing advancement in laser diodes will likely increase market demand over the forecast period. For instance, in January 2023, Kyocera SLD Laser, Inc. debuted its new high-power 5-watt blue laser diode solutions for industrial, medicinal, defense, and display applications at the SPIE Photonics West Exhibition in San Francisco, CA, from January 31 to February 2, 2023.
- Furthermore, these process plastics for medical devices (polymer processing). There is an increased demand for cosmetic surgery, including surgical and non-surgical procedures that improve appearance by reshaping and enhancing the body structure.
- For instance, in February 2023, Fluence announced the release of the newest member of the Jasper family of femtosecond lasers. Pulse duration is adjustable from 270 femtoseconds to 8 picoseconds, making it useful in complex applications (optionally flexible up to 20 picoseconds). The pulse energies at 1 MHz can be changed to 5 J, and the output can range from pulse-on-demand to 20 MHz.The Jasper Micro provides numerous advantages for a variety of industries, including medical, material processing, and microtechnology.
- Laser diodes are widely utilized optoelectronic elements in laser generation, with capabilities ranging from fiber DVD/Blu-ray recorders to printing and networking technologies, optic communications, and barcode readers. Furthermore, high usage of electronic equipment has established standard display technology, with consumers wanting better resolution and efficiency, driving the rising demand for electronic devices and increasing the optoelectronics industry.
- High power lasers are finding extensive demand in industrial sectors for various applications, including cutting, welding, and fabrication. Companies are moving towards laser technologies to take advantage of high performance and reliability, driving the demand for high-power laser diodes.
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United States is Expected to Hold a Significant Share
- In the current market scenario, the increasing investments in the development of smart infrastructure and the surging adoption of automation technologies would be key to the growth of the market in the studied region.
- The US government is also promoting light-emitting diode (LED) lighting solutions across various end-user verticals to increase energy efficiency. According to the Department of Energy, In the United States, demand for LED lights is anticipated to rise between 2020 and 2035, particularly for outdoor uses. By 2025, LED lighting is projected to be used in 93% of outdoor lighting installations, making it the most widely used type across all industries.
- Optoelectronics applications in the indicators and headlights of vehicles. For instance, in 2022, electric car sales in the United States increased by 55%, making it the third largest market and reaching a global sales share of 8%. This number is expected to increase over the forecast period, which would fuel the demand for the studied market.
- With the expanding local manufacturing in the country, the region is expected to witness heavy investments in local semiconductor manufacturing facilities, thus boosting optoelectronics development.
- Several cities across the globe have already experienced savings from street and roadway lighting programs. For instance, New York has replaced hundreds of thousands of streetlights with LED fixtures as part of Smart Street Lighting NY's objective of replacing at least 500,000 streetlights with LED technology by 2025. The effort directly supports the aims of the Climate Leadership and Community Protection Act, the nation's most stringent clean energy law, by encouraging member towns to employ energy efficiency to lower their yearly electricity use by 3%, which is 1.8 million New York households by 2025.
- According to the US Census Bureau and the US Department of Housing and Urban Development, privately owned housing units permitted by building permits, housing starts, and housing completions are, respectively, 1873000, 1793000, and 1303000 for new residential construction in March 2022. Growth of the LED lighting market would be positively impacted by residential sector development, which will increase demand for Optoelectronics for LED lights.
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