US Photonics Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 152.51 Billion |
| Market Size (2029) | USD 191.97 Billion |
| CAGR (2024 - 2029) | 4.71 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
US Photonics Market Analysis
The US Photonics Market size is estimated at USD 152.51 billion in 2024, and is expected to reach USD 191.97 billion by 2029, growing at a CAGR of 4.71% during the forecast period (2024-2029).
- Photonics is considered a crucial technology that enables the creation of energy-efficient smart systems across various industries, including healthcare, automotive, communications, manufacturing, and retail. These sectors are adopting photonics to enhance efficiency and drive growth.
- In recent times, investments in various sectors have experienced substantial growth. Photonics, as a fundamental technology across multiple industries, is seeing rapid adoption, with the market expanding into new verticals.
- LiDAR technology has gained prominence in photonics. Originally used for studying atmospheric gas distribution and contaminants, it has now become crucial for autonomous driving. Advances in LiDAR mapping systems and related technologies have expanded its applications across various verticals, including aerospace, defense, automotive, mining, and oil and gas.
- The presence of industry players such as Google, Microsoft, and Facebook is the primary force driving the US market, necessitating optimization of the data transmission process for respective data centers. The country also provides a favorable environment for technological advancements and expansions. Furthermore, the significant funding landscape in the US silicon photonics devices industry has encouraged organizations and start-ups to invest in the expanding photonics market.
- In February 2023, Excelitas TechnologiesÒ Corp. which is a industrial technology manufacturer concentrated on delivering innovative, market-driven photonic solutions, acquired the Phoseon Technology, Inc, Hillsboro, OR, USA. Phoseon is a key player in the design and manufacturer of LED-based industrial curing and scientific illumination solutions offering the field-proven reliability and enabling significant efficiency gains for a wide range of global customers.
- However, compared to conventional products, the high initial cost of silicon-enabled photonic products and devices hinders technology deployment in many fields. While the technology provides higher performance and efficiency, photonics-based devices remain inaccessible to many small- and medium-sized end-users in various verticals due to limited budgets.
US Photonics Market Trends
Emergence of Silicon-based Photonics Applications to Drive the Market
- Silicon photonics, an emerging field within photonics, provides a distinct advantage over traditional electrical conductors found in semiconductors. These semiconductors are commonly used in high-speed transmission systems. This technology is expected to push the transmission speed up to 100 Gbps, with companies like IBM, Intel, and Kothura, achieving breakthroughs. Besides, this technology is revolutionizing the semiconductor industry, enabling high-speed data transfer and processing.
- Moreover, silicon-based photonics provides energy-efficient data transmission and processing solutions, making it suitable for applications where power consumption is a concern, such as data centers and high-power computing.
- The growth in internet traffic is not only accelerating the need for next-generation technology to support higher port density and faster speed transitions but is also accompanied by large physical data center sizes and faster connectivity between the data centers. As the data rates and distances to carry high-speed data are increasing, the limitations of traditional copper cable and multimode fiber-based solutions are becoming apparent, and the industry is shifting towards adopting single-mode fiber-optic solutions.
- Silicon-based photonics is expected to play a significant role in the evolution of data centers in the short term for 100G and then 400G and 800G pluggables. It will also be an enabling technology for disaggregating data centers and a possible future CPO approach. The technology is increasingly used for 500 m reach DR-standard connections but is also used with coherent technology in datacom applications. Moreover, the market is also witnessing increasing demand for 400ZR standard technology.
- Additionally, with the rising implementation of silicon photonics in medical applications, many start-ups have started using silicon-integrated optics as a manufacturing platform. According to US Census Bureau, the industry revenue of medical equipment and supplies manufacturing in the United States is expected to reach USD 43.51 billion by 2023. Whereas the national health expenditure in the country is expected to reach USD 7.174 trillion by 2031, which was USD 4.439 trillion in 2022, as stated by CMS.
- Consumer health development continues, with Rockley announcing the shipment of its VitalSpexTM biosensing platform in 2022-23. Such trends are expected to boost the integration of silicon photonics-based biosensors in wearables from prominent brands like Apple or Huawei.
Data Communication Application Segment is Expected to Hold Significant Market Share
- The increasing adoption of optical solutions in communication technologies, particularly optical broadband, is anticipated to boost demand for this technology in the market. This segment holds a significant market share.
- The increasing adoption of optical networks as part of infrastructure has led telecommunication companies to invest in upgrading their legacy networks. Telephone companies were pioneers in replacing their outdated copper wire systems with optical fiber lines. Telephone companies leverage optical fiber as the backbone architecture and a long-distance connection between the city phone systems.
- The global demand for broadband is on the rise due to the widespread adoption of technology and the increasing consumption of online video content. According to TeleGeography's submarine cable map, submarine cables act as the backbone of the Internet. Moreover, according to the US Naval Institute, of more than 400 fiber optics undersea cables, the United States is connected to the world through approximately 88, including 17 scheduled to be completed between 2022 and 2024.
- According to Global System for Mobile Communications (GSMA), the 5G penetration in the United States is expected to overtake 4G by 2025. In addition, the government is allocating several funds for the faster deployment of 5G services in the region. In April 2023, the Biden-Harris Administration introduced the Public Wireless Supply Chain Innovation Fund, which invested USD 1.5 billion to create open and interoperable networks. The initial round of funding will assist to ensure that the future of 5G and next-generation wireless technology is built by the United States and its global allies and partners.
US Photonics Industry Overview
The United States photonics market comprises several global and regional players vying for attention in a contested market space. Market incumbents, such as Finisar Corporation, Intel Corporation, NeoPhotonics Corporation, Infinera Corporation, Hamamatsu Photonics, IPG Photonics Corporation, and Coherent Inc., have a considerable influence on the overall market, with access to well-established distribution networks.
The existence of such a sheer number of significant vendors without compromising on their market shares is sustainable. Brand identity associated with major vendors became a synonym for various product offerings under the scope of the study worldwide. Overall, the intensity of competitive rivalry among the vendors in the market studied is expected to be high and remain the same during the forecast period.
- November 2023, Innolume launched O band Quantum Dot GaAs SOA that has reached 1W of optical power. It can be further leveraged in LiDARs, PONs and FSO.
- In September 2023, the ADLT Lighting Group announced the acquisition of Cree Lighting US, E-conolight, and Cree Lighting Canada, marking a significant milestone in the company's ambitious growth strategy. These acquisitions solidify ADLT Lighting Group's position as a global provider in the lighting industry and reinforce its commitment to innovation and excellence.
US Photonics Market Leaders
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Intel Corporation
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Neophotonics Corporation (lumentum Holdings)
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Infinera Corporation
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Molex Inc.
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Hamamatsu Photonics KK
*Disclaimer: Major Players sorted in no particular order
US Photonics Market News
- November 2023 - Ams OSRAM AG has expanded its OSTAR Projection Compact LED family by introducing Red, True Green, and Blue colors. These low-profile, ultra-high brightness LEDs allow manufacturers of machine vision systems or stage lighting fixtures to create more powerful and slimmer products. Due to their excellent thermal dissipation and small, flat package, the OSTAR Projection Compact LEDs can be densely packed in high-power luminaire designs. The thermal resistance is a mere 1.4 K/W, and the 4040 package measures 4.0 mm x 4.0 mm x 0.75 mm.
- September 2023 - IPG Photonics Corporation announced the launch of a New Dual-Beam Laser with the Highest Single-Mode Core Power at The Battery Show in Novi, Michigan. It offers unprecedented speed and productivity improvements for battery welding, with spatter-free welding speeding up to 2X faster than possible with lower core powers.
US Photonics Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Market Overview
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4.2 Industry Attractiveness - Porter's Five Forces Analysis
- 4.2.1 Bargaining Power of Suppliers
- 4.2.2 Bargaining Power of Buyer/Consumers
- 4.2.3 Threat of New Entrants
- 4.2.4 Threat of Substitutes
- 4.2.5 Intensity of Competitive Rivalry
- 4.3 Industry Value Chain Analysis
- 4.4 An Assessment of the Impact of Key Macroeconomic Trends
5. MARKET DYNAMICS
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5.1 Market Drivers
- 5.1.1 Emergence of Silicon-based Photonics Applications
- 5.1.2 Increasing Focus on High-performance and Eco-Friendly Solutions
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5.2 Market Challenges/Restraints
- 5.2.1 High Initial Cost of Photonics - Enabled Devices
6. MARKET SEGMENTATION
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6.1 By Application
- 6.1.1 Surveying And Detection
- 6.1.2 Production Technology
- 6.1.3 Data Communication
- 6.1.4 Image Capture and Display
- 6.1.5 Medical Technology
- 6.1.6 Lighting
- 6.1.7 Other Applications
7. COMPETITIVE LANDSCAPE
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7.1 Company Profiles
- 7.1.1 Intel Corporation
- 7.1.2 Neophotonics Corporation (lumentum Holdings)
- 7.1.3 Infinera Corporation
- 7.1.4 Molex Inc.
- 7.1.5 Hamamatsu Photonics KK
- 7.1.6 IPG Photonics
- 7.1.7 Coherent, Inc. (Coherent Corp.)
- 7.1.8 Vescent Photonics LLC
- 7.1.9 Photonic Systems Inc.
- 7.1.10 Thorlabs Inc.
- 7.1.11 NEC Corporation
- 7.1.12 ams OSRAM AG
- 7.1.13 Trumpf Group
- 7.1.14 Polatis Incorporated (huber+suhner)
- 7.1.15 Alcatel-lucent SA (Nokia Corporation)
- *List Not Exhaustive
8. EMPLOYEE SCENARIO - PHOTONICS INDUSTRY
9. MARKET OUTLOOK
** Subject To AvailablityUS Photonics Industry Segmentation
Photonics is an area of study that involves the use of radiant energy (such as light), whose fundamental elements are photons and waves that may be used to cure diseases, explore the universe, and even solve crimes.
The United States photonics market is segmented by application (surveying and detection, production technology, data communication, image capture and display, medical technology, lighting, and other applications).
The market sizes and forecasts are provided in terms of value in USD for all the above segments.
| By Application | Surveying And Detection |
| Production Technology | |
| Data Communication | |
| Image Capture and Display | |
| Medical Technology | |
| Lighting | |
| Other Applications |
US Photonics Market Research FAQs
How big is the US Photonics Market?
The US Photonics Market size is expected to reach USD 152.51 billion in 2024 and grow at a CAGR of 4.71% to reach USD 191.97 billion by 2029.
What is the current US Photonics Market size?
In 2024, the US Photonics Market size is expected to reach USD 152.51 billion.
Who are the key players in US Photonics Market?
Intel Corporation, Neophotonics Corporation (lumentum Holdings), Infinera Corporation, Molex Inc. and Hamamatsu Photonics KK are the major companies operating in the US Photonics Market.
What years does this US Photonics Market cover, and what was the market size in 2023?
In 2023, the US Photonics Market size was estimated at USD 145.33 billion. The report covers the US Photonics Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the US Photonics Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
US Photonics Industry Report
The United States Photonics Market Report is segmented by various applications, including surveying and detection, production technology, data communication, image capture and display, medical technology, lighting, and other applications. The market sizes and forecasts are provided in terms of value in USD for all these segments. The report includes an industry analysis and offers a comprehensive industry overview, providing market data and insights into market trends.
The industry report highlights the market growth and market forecast, offering a detailed market outlook and market review. This market research is essential for understanding the market leaders and their strategies within the industry. It also includes industry statistics and industry information that are crucial for market predictions and market segmentation.
The report example includes a report PDF download, which is valuable for research companies and those looking to understand the industry size and industry sales. The industry outlook offers a clear view of the market value and growth rate, ensuring stakeholders are well-informed about the market dynamics and future expectations.
Overall, this industry research provides a detailed market analysis, focusing on market trends and the factors driving market growth. The report is an essential resource for those looking to stay ahead in the photonics market, providing a thorough market overview and industry information to guide strategic decisions.
