Photonics Market size to grow by USD 287.13 billion from 2022 to 2027|Reduction in transmission costs and scalability beyond 400G drives the market -Technavio

NEW YORK, Aug. 1, 2023 /PRNewswire/ -- The photonics market size is estimated to grow by USD 287.13 billion from 2022 to 2027, at a CAGR of 6.11% according to Technavio.

Photonics Market Insights - 

• Vendors: 15+, Including AIO Core Co. Ltd., ams OSRAM AG, Ayar Labs Inc., Carl Zeiss AG, Corning Inc., Hamamatsu Photonics KK, II VI Inc., Infinera Corp., Innolume GmbH, Intel Corp., International Business Machines Corp., IPG Photonics Corp., Koch Industries Inc., NKT Photonics AS, Nokia Corp., OSCPS Motion Sensing Inc, Polatis Inc., RANVOUS Inc., Sicoya GmbH, and TRUMPF SE Co. KG,  among others
• Coverage: Parent market analysis; key drivers, major trends, and challenges; customer and vendor landscape; vendor product insights and recent developments; key vendors; and market positioning of vendors
• Segments: Application (Consumer electronics, Displays, Safety and defense technology, Medical and healthcare, and Others), Product (WDM filters, Optical modulators, Optical interconnects, Photo detectors, and Others), and Geography (North America, Europe, APAC, Middle East and Africa, and South America)

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Photonics market - Customer Landscape
To help companies evaluate and develop growth strategies, the report outlines –

• Key purchase criteria
• Adoption rates
• Adoption lifecycle
• Drivers of price sensitivity
• For highlights on customer landscape analysis, download a sample!

Photonics market - Vendor Insights

The growing competition in the market is compelling vendors to adopt various growth strategies such as promotional activities and spending on advertisements to improve the visibility of their services. Technavio report analyzes the market's competitive landscape and offers information on several market vendors, including  AIO Core Co. Ltd., ams OSRAM AG, Ayar Labs Inc., Carl Zeiss AG, Corning Inc., Hamamatsu Photonics KK, II VI Inc., Infinera Corp., Innolume GmbH, Intel Corp., International Business Machines Corp., IPG Photonics Corp., Koch Industries Inc., NKT Photonics AS, Nokia Corp., OSCPS Motion Sensing Inc, Polatis Inc., RANVOUS Inc., Sicoya GmbH, and TRUMPF SE Co. KG

Photonics Market – Market Dynamics

Major Drivers

The reduction in transmission costs and scalability beyond 400G is the major factor notably driving market growth. The increasing adoption of photonics in communication network carriers is driven by its ability to transmit data across multiple end-user establishments on a single wavelength, meeting specific requirements efficiently. This leads to cost reduction as separate wavelengths for different clients are not needed, ensuring optimal bandwidth utilization. Photonics also enables high-capacity services at speeds of 100G and above, further enhancing its appeal. As a result of these advantages, the global photonics market size is anticipated to grow during the forecast period.

Significant Trends

The emergence of optical data centers is a key trend shaping market growth. The growth of cloud-based applications and big data analytics has transformed data center networks, necessitating large and efficient interconnection networks to handle thousands of servers. Optical wavelength division multiplexing (WDM), also known as WDM, offers terabits of data transmission capacity, while optical switching enables fast and energy-efficient switching in intra-data center networks. Photonics plays a crucial role in ultra-high-speed optical switch applications, driving the global photonics market size during the forecast period.

Major challenges

The availability of substitute technologies is one of the key challenges impeding market growth. The availability of substitutes like vertical-cavity surface-emitting lasers (VCSEL) is one of the main reasons hindering the widespread use of photonics. VCSEL is a potential alternative used in fiber optic communications, and its adoption is expected to negatively impact the growth of the photonics market. VCSEL has the capability to enhance communication networks' efficiency and data transfer rates, and it offers advantages in checking for processing issues and material quality during production. These factors are likely to hinder the global photonics market size during the forecast period.

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What are the key data covered in this Photonics Market report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the photonics market between 2023 and 2027
• Precise estimation of the Photonics Market size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behaviour
• Growth of the photonics market  across North America, Europe, APAC, Middle East and Africa, and South America
• A thorough analysis of the market's competitive landscape and detailed information about vendors
• Comprehensive analysis of factors that will challenge the growth of photonics market vendors

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Table of contents

1 Executive Summary

• 1.1 Market overview 
• Exhibit 01: Executive Summary – Chart on Market Overview
• Exhibit 02: Executive Summary – Data Table on Market Overview
• Exhibit 03: Executive Summary – Chart on Global Market Characteristics
• Exhibit 04: Executive Summary – Chart on Market by Geography
• Exhibit 05: Executive Summary – Chart on Market Segmentation by Application
• Exhibit 06: Executive Summary – Chart on Market Segmentation by Product
• Exhibit 07: Executive Summary – Chart on Incremental Growth
• Exhibit 08: Executive Summary – Data Table on Incremental Growth
• Exhibit 09: Executive Summary – Chart on Vendor Market Positioning

2 Market Landscape

• 2.1 Market ecosystem 
• Exhibit 10: Parent market
• Exhibit 11: Market Characteristics

3 Market Sizing

• 3.1 Market definition 
• Exhibit 12: Offerings of vendors included in the market definition

• 3.2 Market segment analysis 
• Exhibit 13: Market segments

• 3.3 Market size 2022 

• 3.4 Market outlook: Forecast for 2022-2027
• Exhibit 14: Chart on Global - Market size and forecast 2022-2027 ($ billion)
• Exhibit 15: Data Table on Global - Market size and forecast 2022-2027 ($ billion)
• Exhibit 16: Chart on Global Market: Year-over-year growth 2022-2027 (%)
• Exhibit 17: Data Table on Global Market: Year-over-year growth 2022-2027 (%)

4 Historic Market Size

• 4.1 Global photonics market 2017 - 2021
• Exhibit 18: Historic Market Size – Data Table on global photonics market 2017 - 2021 ($ billion)

• 4.2 Application Segment Analysis 2017 - 2021
• Exhibit 19: Historic Market Size – Application Segment 2017 - 2021 ($ billion)

• 4.3 Product Segment Analysis 2017 - 2021
• Exhibit 20: Historic Market Size – Product Segment 2017 - 2021 ($ billion)

• 4.4 Geography Segment Analysis 2017 - 2021
• Exhibit 21: Historic Market Size – Geography Segment 2017 - 2021 ($ billion)

• 4.5 Country Segment Analysis 2017 - 2021
• Exhibit 22: Historic Market Size – Country Segment 2017 - 2021 ($ billion)

5 Five Forces Analysis

• 5.1 Five forces summary 
• Exhibit 23: Five forces analysis - Comparison between 2022 and 2027

• 5.2 Bargaining power of buyers 
• Exhibit 24: Chart on Bargaining power of buyers – Impact of key factors 2022 and 2027

• 5.3 Bargaining power of suppliers 
• Exhibit 25: Bargaining power of suppliers – Impact of key factors in 2022 and 2027

• 5.4 Threat of new entrants 
• Exhibit 26: Threat of new entrants – Impact of key factors in 2022 and 2027

• 5.5 Threat of substitutes 
• Exhibit 27: Threat of substitutes – Impact of key factors in 2022 and 2027

• 5.6 Threat of rivalry 
• Exhibit 28: Threat of rivalry – Impact of key factors in 2022 and 2027

• 5.7 Market condition 
• Exhibit 29: Chart on Market condition - Five forces 2022 and 2027

6 Market Segmentation by Application

• 6.1 Market segments 
• Exhibit 30: Chart on Application - Market share 2022-2027 (%)
• Exhibit 31: Data Table on Application - Market share 2022-2027 (%)

• 6.2 Comparison by Application 
• Exhibit 32: Chart on Comparison by Application
• Exhibit 33: Data Table on Comparison by Application

• 6.3 Consumer electronics - Market size and forecast 2022-2027 
• Exhibit 34: Chart on Consumer electronics - Market size and forecast 2022-2027 ($ billion)
• Exhibit 35: Data Table on Consumer electronics - Market size and forecast 2022-2027 ($ billion)
• Exhibit 36: Chart on Consumer electronics - Year-over-year growth 2022-2027 (%)
• Exhibit 37: Data Table on Consumer electronics - Year-over-year growth 2022-2027 (%)

• 6.4 Displays - Market size and forecast 2022-2027
• Exhibit 38: Chart on Displays - Market size and forecast 2022-2027 ($ billion)
• Exhibit 39: Data Table on Displays - Market size and forecast 2022-2027 ($ billion)
• Exhibit 40: Chart on Displays - Year-over-year growth 2022-2027 (%)
• Exhibit 41: Data Table on Displays - Year-over-year growth 2022-2027 (%)

• 6.5 Safety and defense technology - Market size and forecast 2022-2027 
• Exhibit 42: Chart on Safety and defense technology - Market size and forecast 2022-2027 ($ billion)
• Exhibit 43: Data Table on Safety and defense technology - Market size and forecast 2022-2027 ($ billion)
• Exhibit 44: Chart on Safety and defense technology - Year-over-year growth 2022-2027 (%)
• Exhibit 45: Data Table on Safety and defense technology - Year-over-year growth 2022-2027 (%)

• 6.6 Medical and healthcare - Market size and forecast 2022-2027 
• Exhibit 46: Chart on Medical and healthcare - Market size and forecast 2022-2027 ($ billion)
• Exhibit 47: Data Table on Medical and healthcare - Market size and forecast 2022-2027 ($ billion)
• Exhibit 48: Chart on Medical and healthcare - Year-over-year growth 2022-2027 (%)
• Exhibit 49: Data Table on Medical and healthcare - Year-over-year growth 2022-2027 (%)

• 6.7 Others - Market size and forecast 2022-2027
• Exhibit 50: Chart on Others - Market size and forecast 2022-2027 ($ billion)
• Exhibit 51: Data Table on Others - Market size and forecast 2022-2027 ($ billion)
• Exhibit 52: Chart on Others - Year-over-year growth 2022-2027 (%)
• Exhibit 53: Data Table on Others - Year-over-year growth 2022-2027 (%)

• 6.8 Market opportunity by Application 
• Exhibit 54: Market opportunity by Application ($ billion)
• Exhibit 55: Data Table on Market opportunity by Application ($ billion)

7 Market Segmentation by Product

• 7.1 Market segments 
• Exhibit 56: Chart on Product - Market share 2022-2027 (%)
• Exhibit 57: Data Table on Product - Market share 2022-2027 (%)

• 7.2 Comparison by Product 
• Exhibit 58: Chart on Comparison by Product
• Exhibit 59: Data Table on Comparison by Product

• 7.3 WDM filters - Market size and forecast 2022-2027
• Exhibit 60: Chart on WDM filters - Market size and forecast 2022-2027 ($ billion)
• Exhibit 61: Data Table on WDM filters - Market size and forecast 2022-2027 ($ billion)
• Exhibit 62: Chart on WDM filters - Year-over-year growth 2022-2027 (%)
• Exhibit 63: Data Table on WDM filters - Year-over-year growth 2022-2027 (%)

• 7.4 Optical modulators - Market size and forecast 2022-2027 
• Exhibit 64: Chart on Optical modulators - Market size and forecast 2022-2027 ($ billion)
• Exhibit 65: Data Table on Optical modulators - Market size and forecast 2022-2027 ($ billion)
• Exhibit 66: Chart on Optical modulators - Year-over-year growth 2022-2027 (%)
• Exhibit 67: Data Table on Optical modulators - Year-over-year growth 2022-2027 (%)

• 7.5 Optical interconnects - Market size and forecast 2022-2027 
• Exhibit 68: Chart on Optical interconnects - Market size and forecast 2022-2027 ($ billion)
• Exhibit 69: Data Table on Optical interconnects - Market size and forecast 2022-2027 ($ billion)
• Exhibit 70: Chart on Optical interconnects - Year-over-year growth 2022-2027 (%)
• Exhibit 71: Data Table on Optical interconnects - Year-over-year growth 2022-2027 (%)

• 7.6 Photo detectors - Market size and forecast 2022-2027
• Exhibit 72: Chart on Photo detectors - Market size and forecast 2022-2027 ($ billion)
• Exhibit 73: Data Table on Photo detectors - Market size and forecast 2022-2027 ($ billion)
• Exhibit 74: Chart on Photo detectors - Year-over-year growth 2022-2027 (%)
• Exhibit 75: Data Table on Photo detectors - Year-over-year growth 2022-2027 (%)

• 7.7 Others - Market size and forecast 2022-2027
• Exhibit 76: Chart on Others - Market size and forecast 2022-2027 ($ billion)
• Exhibit 77: Data Table on Others - Market size and forecast 2022-2027 ($ billion)
• Exhibit 78: Chart on Others - Year-over-year growth 2022-2027 (%)
• Exhibit 79: Data Table on Others - Year-over-year growth 2022-2027 (%)

• 7.8 Market opportunity by Product 
• Exhibit 80: Market opportunity by Product ($ billion)
• Exhibit 81: Data Table on Market opportunity by Product ($ billion)

8 Customer Landscape

• 8.1 Customer landscape overview 
• Exhibit 82: Analysis of price sensitivity, lifecycle, customer purchase basket, adoption rates, and purchase criteria

9 Geographic Landscape

• 9.1 Geographic segmentation 
• Exhibit 83: Chart on Market share by geography 2022-2027 (%)
• Exhibit 84: Data Table on Market share by geography 2022-2027 (%)

• 9.2 Geographic comparison 
• Exhibit 85: Chart on Geographic comparison
• Exhibit 86: Data Table on Geographic comparison

• 9.3 North America - Market size and forecast 2022-2027
• Exhibit 87: Chart on North America - Market size and forecast 2022-2027 ($ billion)
• Exhibit 88: Data Table on North America - Market size and forecast 2022-2027 ($ billion)
• Exhibit 89: Chart on North America - Year-over-year growth 2022-2027 (%)
• Exhibit 90: Data Table on North America - Year-over-year growth 2022-2027 (%)

• 9.4 Europe - Market size and forecast 2022-2027
• Exhibit 91: Chart on Europe - Market size and forecast 2022-2027 ($ billion)
• Exhibit 92: Data Table on Europe - Market size and forecast 2022-2027 ($ billion)
• Exhibit 93: Chart on Europe - Year-over-year growth 2022-2027 (%)
• Exhibit 94: Data Table on Europe - Year-over-year growth 2022-2027 (%)

• 9.5 APAC - Market size and forecast 2022-2027 
• Exhibit 95: Chart on APAC - Market size and forecast 2022-2027 ($ billion)
• Exhibit 96: Data Table on APAC - Market size and forecast 2022-2027 ($ billion)
• Exhibit 97: Chart on APAC - Year-over-year growth 2022-2027 (%)
• Exhibit 98: Data Table on APAC - Year-over-year growth 2022-2027 (%)

• 9.6 Middle East and Africa - Market size and forecast 2022-2027 
• Exhibit 99: Chart on Middle East and Africa - Market size and forecast 2022-2027 ($ billion)
• Exhibit 100: Data Table on Middle East and Africa - Market size and forecast 2022-2027 ($ billion)
• Exhibit 101: Chart on Middle East and Africa - Year-over-year growth 2022-2027 (%)
• Exhibit 102: Data Table on Middle East and Africa - Year-over-year growth 2022-2027 (%)

• 9.7 South America - Market size and forecast 2022-2027
• Exhibit 103: Chart on South America - Market size and forecast 2022-2027 ($ billion)
• Exhibit 104: Data Table on South America - Market size and forecast 2022-2027 ($ billion)
• Exhibit 105: Chart on South America - Year-over-year growth 2022-2027 (%)
• Exhibit 106: Data Table on South America - Year-over-year growth 2022-2027 (%)

• 9.8 US - Market size and forecast 2022-2027
• Exhibit 107: Chart on US - Market size and forecast 2022-2027 ($ billion)
• Exhibit 108: Data Table on US - Market size and forecast 2022-2027 ($ billion)
• Exhibit 109: Chart on US - Year-over-year growth 2022-2027 (%)
• Exhibit 110: Data Table on US - Year-over-year growth 2022-2027 (%)

• 9.9 China - Market size and forecast 2022-2027
• Exhibit 111: Chart on China - Market size and forecast 2022-2027 ($ billion)
• Exhibit 112: Data Table on China - Market size and forecast 2022-2027 ($ billion)
• Exhibit 113: Chart on China - Year-over-year growth 2022-2027 (%)
• Exhibit 114: Data Table on China - Year-over-year growth 2022-2027 (%)

• 9.10 Japan - Market size and forecast 2022-2027
• Exhibit 115: Chart on Japan - Market size and forecast 2022-2027 ($ billion)
• Exhibit 116: Data Table on Japan - Market size and forecast 2022-2027 ($ billion)
• Exhibit 117: Chart on Japan - Year-over-year growth 2022-2027 (%)
• Exhibit 118: Data Table on Japan - Year-over-year growth 2022-2027 (%)

• 9.11 Germany - Market size and forecast 2022-2027
• Exhibit 119: Chart on Germany - Market size and forecast 2022-2027 ($ billion)
• Exhibit 120: Data Table on Germany - Market size and forecast 2022-2027 ($ billion)
• Exhibit 121: Chart on Germany - Year-over-year growth 2022-2027 (%)
• Exhibit 122: Data Table on Germany - Year-over-year growth 2022-2027 (%)

• 9.12 UK - Market size and forecast 2022-2027
• Exhibit 123: Chart on UK - Market size and forecast 2022-2027 ($ billion)
• Exhibit 124: Data Table on UK - Market size and forecast 2022-2027 ($ billion)
• Exhibit 125: Chart on UK - Year-over-year growth 2022-2027 (%)
• Exhibit 126: Data Table on UK - Year-over-year growth 2022-2027 (%)

• 9.13 Market opportunity by geography 
• Exhibit 127: Market opportunity by geography ($ billion)
• Exhibit 128: Data Tables on Market opportunity by geography ($ billion)

10 Drivers, Challenges, and Trends

• 10.1 Market drivers 

• 10.2 Market challenges 

• 10.3 Impact of drivers and challenges 
• Exhibit 129: Impact of drivers and challenges in 2022 and 2027

• 10.4 Market trends 

11 Vendor Landscape

• 11.1 Overview 

• 11.2 Vendor landscape 
• Exhibit 130: Overview on Criticality of inputs and Factors of differentiation

• 11.3 Landscape disruption 
• Exhibit 131: Overview on factors of disruption

• 11.4 Industry risks 
• Exhibit 132: Impact of key risks on business

12 Vendor Analysis

• 12.1 Vendors covered 
• Exhibit 133: Vendors covered

• 12.2 Market positioning of vendors 
• Exhibit 134: Matrix on vendor position and classification

• 12.3 ams OSRAM AG 
• Exhibit 135: ams OSRAM AG - Overview
• Exhibit 136: ams OSRAM AG - Business segments
• Exhibit 137: ams OSRAM AG - Key offerings
• Exhibit 138: ams OSRAM AG - Segment focus

• 12.4 Ayar Labs Inc. 
• Exhibit 139: Ayar Labs Inc. - Overview
• Exhibit 140: Ayar Labs Inc. - Product / Service
• Exhibit 141: Ayar Labs Inc. - Key offerings

• 12.5 Carl Zeiss AG 
• Exhibit 142: Carl Zeiss AG - Overview
• Exhibit 143: Carl Zeiss AG - Business segments
• Exhibit 144: Carl Zeiss AG - Key offerings
• Exhibit 145: Carl Zeiss AG - Segment focus

• 12.6 Corning Inc. 
• Exhibit 146: Corning Inc. - Overview
• Exhibit 147: Corning Inc. - Business segments
• Exhibit 148: Corning Inc. - Key news
• Exhibit 149: Corning Inc. - Key offerings
• Exhibit 150: Corning Inc. - Segment focus

• 12.7 Hamamatsu Photonics KK 
• Exhibit 151: Hamamatsu Photonics KK - Overview
• Exhibit 152: Hamamatsu Photonics KK - Business segments
• Exhibit 153: Hamamatsu Photonics KK - Key news
• Exhibit 154: Hamamatsu Photonics KK - Key offerings
• Exhibit 155: Hamamatsu Photonics KK - Segment focus

• 12.8 II VI Inc. 
• Exhibit 156: II VI Inc. - Overview
• Exhibit 157: II VI Inc. - Business segments
• Exhibit 158: II VI Inc. - Key news
• Exhibit 159: II VI Inc. - Key offerings
• Exhibit 160: II VI Inc. - Segment focus

• 12.9 Infinera Corp. 
• Exhibit 161: Infinera Corp. - Overview
• Exhibit 162: Infinera Corp. - Product / Service
• Exhibit 163: Infinera Corp. - Key offerings

• 12.10 Innolume GmbH 
• Exhibit 164: Innolume GmbH - Overview
• Exhibit 165: Innolume GmbH - Product / Service
• Exhibit 166: Innolume GmbH - Key offerings

• 12.11 Intel Corp. 
• Exhibit 167: Intel Corp. - Overview
• Exhibit 168: Intel Corp. - Business segments
• Exhibit 169: Intel Corp. - Key news
• Exhibit 170: Intel Corp. - Key offerings
• Exhibit 171: Intel Corp. - Segment focus

• 12.12 International Business Machines Corp.
• Exhibit 172: International Business Machines Corp. - Overview
• Exhibit 173: International Business Machines Corp. - Business segments
• Exhibit 174: International Business Machines Corp. - Key news
• Exhibit 175: International Business Machines Corp. - Key offerings
• Exhibit 176: International Business Machines Corp. - Segment focus

• 12.13 IPG Photonics Corp. 
• Exhibit 177: IPG Photonics Corp. - Overview
• Exhibit 178: IPG Photonics Corp. - Product / Service
• Exhibit 179: IPG Photonics Corp. - Key offerings

• 12.14 Koch Industries Inc. 
• Exhibit 180: Koch Industries Inc. - Overview
• Exhibit 181: Koch Industries Inc. - Product / Service
• Exhibit 182: Koch Industries Inc. - Key news
• Exhibit 183: Koch Industries Inc. - Key offerings

• 12.15 Nokia Corp. 
• Exhibit 184: Nokia Corp. - Overview
• Exhibit 185: Nokia Corp. - Business segments
• Exhibit 186: Nokia Corp. - Key offerings
• Exhibit 187: Nokia Corp. - Segment focus

• 12.16 Polatis Inc. 
• Exhibit 188: Polatis Inc. - Overview
• Exhibit 189: Polatis Inc. - Product / Service
• Exhibit 190: Polatis Inc. - Key offerings

• 12.17 TRUMPF SE Co. KG 
• Exhibit 191: TRUMPF SE Co. KG - Overview
• Exhibit 192: TRUMPF SE Co. KG - Business segments
• Exhibit 193: TRUMPF SE Co. KG - Key offerings
• Exhibit 194: TRUMPF SE Co. KG - Segment focus

13 Appendix

• 13.1 Scope of the report 

• 13.2 Inclusions and exclusions checklist
• Exhibit 195: Inclusions checklist
• Exhibit 196: Exclusions checklist

• 13.3 Currency conversion rates for US$ 
• Exhibit 197: Currency conversion rates for US$

• 13.4 Research methodology 
• Exhibit 198: Research methodology
• Exhibit 199: Validation techniques employed for market sizing
• Exhibit 200: Information sources

• 13.5 List of abbreviations 
• Exhibit 201: List of abbreviations

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