Photonics Market To Generate $1,214.5 Billion Revenue by 2030

The rising need for energy-efficient products and increasing deployment of the photonics technology in communication applications will help the photonics market grow at a CAGR of 6.9% during the forecast period (2020–2030). According to P&S Intelligence, the market was valued at $576.8 billion in 2019, and it is projected to generate $1,214.5 billion revenue in 2030. Besides, the escalating demand for electronic products, such as smartphones, tablets, wearable devices, and laptops, will contribute to the market growth globally.

The burgeoning demand for energy-efficient products is one of the key growth drivers for the market, as such products help in reducing the fossil fuel consumption at power plants and operate efficiently for long hours at low maintenance costs. As a result of these advantages, energy efficiency has become a prominent parameter in the development of high-performance computing systems. Moreover, the photonics technology is being extensively used in the production of solar modules, as governments across the world are encouraging the establishment of solar power plants.

Browse detailed - Photonics Market Revenue Estimation and Growth Forecast Report

Moreover, the increasing adoption of light in communication applications will supplement the photonics market growth in the upcoming years. For instance, data centers are increasingly deploying silicon photonic instruments to develop high-speed transmission systems, as these instruments provide high data transfer rates and consume lesser power. Additionally, the increasing focus of Datacom protocols on high-speed signaling is boosting the demand for photonics products and reducing the deployment of copper-based optical cables.

The product type segment of the photonics market is categorized into light-emitting diode (LED), laser, sensor and detector, and optical component and system. Under this segment, the LED category is expected to exhibit the fastest growth during the forecast period due to the increasing adoption of the LED technology to conserve electricity. This technology is being integrated into intelligent digital lighting solutions to reduce energy consumption by around 70%. Moreover, the greater lifespan of LED lights contributes to the growth of this category.