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The photonics market is projected to grow from $556.4 billion in 2018 to$780.4 billion by 2023, at a CAGR of 7.0%.
The increased demand for photonics in applications such as displays, information & communication technology, photovoltaic, medical technology & life sciences, measurement & automated vision, lighting, and production technology is expected to drive the growth of the photonics market across the globe. Improved properties, such as better energy efficiency and longer lifespan, contribute to the increased demand for photonics.
Photonics is the science and technology of generating, controlling, and detecting photons that are particles of light. The main function of photonics is to obtain, convey, or process information through the use of light.
Photonics harnesses light and hence is used in lasers, optical fibers, and lighting systems. Lasers are an intense beam of monochromatic light generated by the stimulated emission of photons. They are used for non-invasive surgeries, welding & cutting in the automobile and manufacturing sectors, surveying & ranging applications in security & defense systems.
Optical fibers have applications in the transmission of communication signals over long distances; whereas lighting systems use photonics in the form of CFLs and LEDs that are commonly found in constructional lightings, displays, and screens. Market players are exploring more applications of photonics by focusing on continuous research & development (R&D). The media, broadcasting & telecommunication segment is the largest consumer of photonics. Photonics is also used in the building & construction, industrial, and security & defense sectors.
The increasing need for energy-efficient products and the rising adoption of photonics products in various applications are factors contributing to the growth of the photonics market. However, stringent environmental regulations on the use of some chemical substances are hampering the performance of photonics products, which is restraining the photonics market. Although photonics-enabled products and services cost high and there is intense competition in the market, technological advancements reducing the cost of photonics products and growing demand from emerging markets are expected to provide growth opportunities for the key market players.
The leading players in the market are Signify (the Netherlands), Schott (Germany), Nikon (Japan), Shin-Etsu Chemical Company (Japan), Hoya (Japan), Corning (US), Asahi Glass Company (Japan), II-VI (US), OHARA (Japan), and American Elements (US).