Optoelectronics Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Optoelectronics Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The optoelectronics market was valued at USD 5.14 billion in 2020 and is expected to reach USD 9.83 billion by 2026, and grow at a CAGR of 10.25% over the forecast period (2021 - 2026). Optoelectronics include devices that either convert light energy to electricity or electricity to light energy. These devices account for a major share in the global semiconductors market and are witnessing growing consumption across various verticals.

Key Highlights

• Growing consumption of advanced manufacturing and fabricating technologies is further driving the consumption of optoelectronic components in the industrial sector, with the use of Laser and Machine vision systems.
• The increasing demand in the automotive industry specifically with the increase in the adoption of electric vehicles, self-driven trucks, and autonomous vehicles is expected to boost the usage of optoelectronic devices which would further drive the market.
• Light Emitting Diode (LED), has become standard display technology in electronics devices, with consumers demanding higher resolution and performance has been the reason for a high demand of LED's which would, in turn, influence the optoelectronics market positively.
• Due to the significant rise in the consumption of consumer electronics in the Asia-Pacific and Latin Americas region has opened up new potential for the optoelectronics manufacturers which would drive the growth of the optoelectronic market.
• In September 2018. Chinese LED chip maker Sanan Optoelectronics announced to build it's Micro LED epi-wafer and chip production for smart wearable devices, large size displays of over 100-inches and automobile taillights. In collaboration with Samsung, the company is also developing Micro LED display technology

Key Market TrendsLaser Diodes are Expected to Witness a Significant Growth

• Laser diodes are the most widely used optoelectronic components deployed in laser generation across various applications including fiber optic communications, DVD/Blu-ray players, Bar Code readers, Printing and Communication technologies. While growing demand for Lasers in the industrial sector has also been identified to boost the market growth.
• With Increasing investments in LiDAR and additive manufacturing technologies, the optoelectronics market is expected to grow significantly. For instance, in 2018, the BMW venture capital fund in the LIDAR start-up Blackmore (USA).
• High Power lasers are finding extensive demand in industrial sectors, for a wide range of applications including cutting, welding, and fabrication. Companies are moving towards Laser technologies to take advantage of high performance and reliability, which is driving the demand for high power laser diodes.
• In December 2019, Mitsubishi Electric Corporation launched the ML562G86 pulse laser diode (LD) for projectors, featuring a vibrant 638-nanometer (nm) red light, the output power of 3.0W under pulse operation and mean time to failure1 (MTTF) of over 20,000 hours.

North America is Expected to Hold a Significant Share

• Increasing investments in the development of smart infrastructure and focus in automation technologies will be key in the growth of the market in this region while growing investments in infrastructure development are likely to further support the market.

• U.S. Department of Agriculture’s National Institute of Food and Agriculture (NIFA) has sanctioned a grant funding to the Purdue-led team of academic and industry scientists from Wisconsin, Michigan, and New Jersey to investigate the use of light emitting diodes in order to provide a perfect light spectrum which is most efficient for photosynthesis in plants. Initiatives like these are supposed to boost the optoelectronics market.

• With optoelectronics finding its applications in the indicators and headlights of the vehicles, the US in the year imported USD 178.5 billion worth of cars originating from a total of 68 countries or territories. This number is expected to grow over the forecasted period which would boost the optoelectronics market.

• With the focus of local manufacturing in the country growing, the country is expected to invest heavily in developing local semiconductor manufacturing facilities. This is expected to have a great impact over the coming years.

Competitive Landscape

The competitive rivalry in the optoelectronics market is high owing to the presence of major players like Samsung, Sony, Mitsubishi Electric Toshiba and many more. Due to their ability to innovate their products coupled with hefty investments in research and development has allowed them to gain a competitive advantage over their competitors. Strategic partnerships and mergers and acquisitions have allowed the companies to grow and gain a substantial amount of market share and maintaining a strong foothold in the market.

• In November 2018, Solid state PLC acquired optoelectronics and displays specialist Pacer Technologies Ltd. In a move which has allowed the Solid State to access the US markets through an already established Pacer's US subsidiary.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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