Global Terahertz Technologies Market - Growth, Trends, Covid-19 Impact, And Forecasts (2023 - 2028)

Global Terahertz Technologies Market - Growth, Trends, Covid-19 Impact, And Forecasts (2023 - 2028)

The Terahertz Technologies Market size is estimated at USD 0.62 billion in 2023, and is expected to reach USD 1.76 billion by 2028, growing at a CAGR of 23.14% during the forecast period (2023-2028).

Terahertz technology is an emerging and growing field with the potential for developing applications ranging from passenger scanning at an airport to large digital data transfers. It has been reflecting significant advancements on the scientific front.

Key Highlights

• Terahertz (THz) frequency range (0.1 THz - 3 THz) is the last span within the whole electromagnetic wave spectrum. It has yet to be technologically and commercially developed. For this reason, in literature, the terahertz frequency range is often referred to as a terahertz gap. At the same time, it is well known that this frequency range has fascinating prospects for many applications.
• THz radiation exhibits three unique properties that stimulate the development of the whole terahertz industry. The major advantage of terahertz waves (of sub-terahertz frequency range 0.1 THz - 0.3 THz) is that many materials blocking visible and IR spectra appear transparent in the terahertz region.
• Terahertz radiations range from the microwave band's high-end to the far-IR's lower end in the electromagnetic spectrum. THz technology has shown promising potential for applications in various fields, including communication, security inspection, and biomedicine. More particularly, in neuroscience, THz technology has been used to distinguish between benign and malignant brain tumors.
• A significant challenge to adopting terahertz technology in the market has been a sheer lack of knowledge of the technology. The research community has been making considerable inroads to exploit the potential of the technology by identifying the key positives capable of creating a separate market for itself. However, the need for more awareness of the topic, especially in developing regions, has been a major restraining factor for the market's growth.
• With the COVID-19 outbreak, the terahertz technology market witnessed significant growth, with its major applications in healthcare, biomedical, and security. The outbreak resulted in many research and development activities in the healthcare space to find appropriate technology to detect the virus, which is augmenting the market growth.

Terahertz Technologies Market Trends

Defense and Security Segment Holds Major Market Share

• In today's security environments, the ability to identify threats like hidden weapons and body-worn explosives is a strong operational need. In recent years, terahertz technology has seen an increase in interest due to the growing emphasis on imaging concealed explosives.
• One of THz technology's core features is the ability to detect and identify objects hidden behind barriers. At airports or other security-critical places, dangerous non-metallic substances like ceramic knives or plastic explosives can now be detected with terahertz beams. This is possible because T-rays get through clothes but cannot get through the upper skin (because of the water content).
• Additionally, metal detection and X-ray bag scanning are time-consuming processes. It becomes more difficult in the case of public transportation hubs, wherein there is a lot of movement. Hence, there is a need for technological solutions that can perform security checks even at a distance from the potential source. Terahertz technology allows scanning of many people without requiring them to stop for a security check, thereby offering a solution to these challenges.
• The new device produces output stronger than terahertz waves and more easily directed, thus contributing to technological innovation and product development in a wide range of fields and assisting the development of industries and societies that utilize terahertz wave technology. THz sensors' conceivable military applications are broad for intelligence, surveillance, and reconnaissance (ISR), including detecting isolated personnel behind enemy lines, fixing targets, and terminal guidance of precision weapons.
• In a non-combat environment, THz could help detect plastic or minimal metal land mines on current or former battlefields. Most anti-personnel mines combine metal and plastic (and are manufactured to avoid detection by metal detectors). The current technology for land-mine detection requires analysis of soil temperature. It is measured in three dimensions, then injected into cumbersome software algorithms that make rough estimates with limited confidence. This detection technique uses field programmable gate array (FPGA) technology. THz spectroscopic imaging is one of the logical alternatives to FPGA, as it can detect almost any material under the right conditions with relatively high confidence.

North America Holds Major Market Share

• The United States is a crucial market for terahertz technologies, primarily owing to the growing homeland security issues, investments in defense, and R&D. In addition, the stringent government regulations regarding the safety and production of aerospace technologies in the US and the growing automotive and aerospace industries are driving the market for THz technologies in the regional market.
• According to the data provided by the US Department of Commerce, the US aerospace industry contributed USD 118.5 billion to the American economy in export sales. It is anticipated that for the next 20 years, the number of large commercial planes may witness 3.5% growth per year, reaching 34,000 units, valued at around USD 4.5 trillion. Such heightened demand from the aircraft industry is a significant driver for the inspection systems' growth based on the terahertz technology.
• The increase in helicopters and commercial aircraft production in the United States is expected to drive the market—the aerospace industry of the US exports more than 60% of all aerospace production.
• In Canada, security screening equipment is expected to be in high demand due to an increase in public places where security screening is required. For instance, Canadian airlines screen passengers before they board flights bound for the country. Air Canada's union, the Canadian Union of Public Employees (CUPE), announced additional pre-flight screening by making flight attendants responsible.
• Moreover, Canadian innovators are focusing on producing a comprehensive range of technologically complex, increased-value products for domestic and competitive global markets, further shaping the future of the terahertz technologies market.

Terahertz Technologies Industry Overview

The terahertz technologies market is moderately fragmented, with the presence of major players like Luna Innovations, Teravil Ltd, TeraView Limited, Toptica Photonics AG, and HUBNER GmbH & Co. KG. A variety of strategies are being utilized by market players to enhance their product offerings and gain sustainable competitive advantage, such as partnerships, innovation, expansion, and acquisitions.

• September 2022: Toptica announced to increase in its capacity by building new facilities for a growing workforce. The new facility more than doubles the footprint and allows the company to increase its lab and production spaces which are critical for anticipated growth over the next decade.
• May 2022: TeraView announced to launch of EOTPR 4500 to address the growing needs in advanced IC packaging. The new auto-prober technology enables the customers to probe very large chip-let devices with a landing contact size of less than 5 µm, such as copper pillars and TSV tips. The company has collaborated with a significant advanced packaging customer to develop this product.

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