IT & Telecom Optoelectronics Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 6.80 Billion |
| Market Size (2029) | USD 8.44 Billion |
| CAGR (2024 - 2029) | 4.40 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
IT & Telecom Optoelectronics Market Analysis
The IT & Telecom Optoelectronics Market size is estimated at USD 6.80 billion in 2024, and is expected to reach USD 8.44 billion by 2029, growing at a CAGR of 4.40% during the forecast period (2024-2029).
- Optoelectronics refers to electronic devices that interface with light, spanning the visible, infrared, or ultraviolet spectrum. Optoelectronic devices find diverse applications, spanning optical fiber communications, laser technology, and many optical metrology applications. At its core, optoelectronics heavily relies on semiconductor materials. These materials possess bandgap energies ideal for absorbing near-infrared and visible light, and while their electric conductivity is not flawless, it remains crucial for their applications.
- Optoelectronics plays a pivotal role in communication technologies. It facilitates higher data transmission speeds, enhances accuracy, and reduces costs. Harnessing light enables the transmission of data, audio, and video signals across vast distances, eliminating the necessity for intricate wiring or costly hardware. Its applications span diverse fields, including optical fiber communications, digital television, and radio frequency communication.
- Opto-electronics enables high-speed data transmission through fiber optics. Moreover, fiber optics exhibit greater resistance to electromagnetic interference, ensuring more dependable data transmission. The growing number of optical fiber communication projects drives market growth.
- In January 2024, the Government of India launched the Kochi-Lakshadweep Islands Submarine Optical Fiber Connection (KLI-SOFC) project, part of a series of developmental initiatives totaling over INR 1,150 crore. It spans sectors such as technology, energy, water resources, healthcare, and education.
- The KLI-SOFC project promises to elevate internet speeds, heralding a wave of new opportunities. Lakshadweep, for the first time post-independence, will be integrated into the national grid via a Submarine Optic Fiber Cable (OFC). This dedicated OFC marks a pivotal moment for Lakshadweep's communication infrastructure, paving the way for accelerated internet services, bolstering telemedicine, e-governance, educational outreach, digital banking, and promoting digital literacy.
- Opto-electronics enhances communication by enabling faster and more accurate data transmission. It boosts the efficiency of both digital and analog systems while simultaneously cutting down on power needs. Beyond this, optoelectronics finds applications in data network development, satellite communications, and high-speed Internet, solidifying its pivotal role in modern communication technology.
- Supply chain disruptions restrict semiconductor devices' mass production. The increasing inflation and interest rates reduce consumer purchasing power, which is expected to reduce the demand for telecommunication devices and hamper market growth.
- The Russia-Ukraine War disrupted the global supply chain, particularly affecting the availability and cost of electronic components and raw materials used in optoelectronics. This led to delays in production and increased costs for manufacturers. Moreover, the increased inflation and interest rates reduced consumer spending, hampered the semiconductor and electronics demand, and led to slow growth in the market. The United States and China trade war also disturbed the global semiconductor supply chain.
IT & Telecom Optoelectronics Market Trends
LED is Expected to Hold a Significant Market Share
- Optoelectronics such as LEDs facilitate long-distance data transmission and are pivotal in fiber optics for high-speed data transfer. Utilizing light-emitting diodes (LEDs), data is transmitted via light pulses. Additionally, this technology plays a crucial role in wireless communication networks.
- As the demand for higher bandwidth and faster data transmission surges, the significance of optoelectronics in data transmission and fiber optics technology grows. High-speed communication systems depend on this technology for swift and accurate data transmission. Furthermore, optoelectronics is instrumental in advancing new technologies, including 5G networks, enabling them to achieve speeds surpassing those of traditional networks.
- LEDs play a crucial role in optical fiber and free-space optics communications. Their rapid modulation capabilities make them essential for remote controls, opto-isolators, and various communication devices.
- LiFi, or Light Fidelity, is an innovative data transmission technology harnessing the power of light. LiFi transmits data by modulating LED light sources. The light pulses, undetectable to the human eye, are captured and decoded by receiving devices, facilitating smooth communication between connected devices. LiFi, utilizing light for secure and interference-free data transmission, offers solutions to challenges encountered by 5G networks. By harnessing the extensive network of LED light sources and their superior switching capabilities, LiFi ensures efficient connectivity in settings where conventional wireless networks struggle.
- The increasing deployment of 5G in various regions is also likely to offer numerous opportunities for the expansion of the market. According to data from 5G Americas, global 5G connections approached the two billion mark in Q1 2024, bolstered by the addition of 185 million new connections. North America spearheaded the 5G adoption wave, accounting for 32% of the world's wireless cellular connections. The region showcased robust growth, with operator networks welcoming an additional 22 million connections in Q1 2024, bringing the total to 220 million.
- The increasing investments in data center development in Asia-Pacific are increasing the demand for optoelectronics such as LEDs. As of September 2023, China was the leader in the region, with 448 data centers, as reported by CloudScene. Globally, China stood fourth in terms of total data center count that month.
China is Expected to Witness a High Market Growth Rate
- China is expected to hold the largest market share during the forecast period owing to the growing demand for optoelectronics for optical fiber communication. The increasing data traffic, internet penetration, and growing number of data centers drive the optical fiber communication market in the region. The region's market growth is bolstered by the widespread installation of 5G base stations.
- By the end of 2023, the number of 5G base stations in China amounted to 3.38 million. With extensive infrastructure investments and ambitious rollout plans, China achieved significant 5G coverage. According to MIIT forecasts, the number of base stations is projected to surpass six million by 2024.
- The Chinese government has made substantial progress in expanding its 5G network nationwide. The country's major telecom operators, including China Mobile, China Unicom, and China Telecom, have led the construction of robust 5G infrastructure in urban centers and key regions. This initiative has enabled millions of users to access high-speed, reliable internet services across China.
- Amid escalating US export restrictions, China unveiled a substantial fund, boasting a registered capital of CNY 344 billion (USD 47.5 billion), solely dedicated to bolstering its semiconductor industry. This new state-backed initiative dwarfs its predecessors in sheer size. China, the world's top semiconductor consumer, accounts for over 50% of the market.
IT & Telecom Optoelectronics Industry Overview
The IT & telecom optoelectronics market is fragmented and features key players like Vishay Intertechnology Inc., Omnivision Technologies Inc., Samsung Electronics, SK Hynix Inc., and Sony Corporation. Market participants strategically leverage partnerships and acquisitions to bolster their product portfolios and establish a sustainable competitive edge.
- July 2024: Marktech Optoelectronics, a frontrunner in optoelectronic solutions, unveiled its cutting-edge creation, silicon carbide (SiC) photodiodes, tailored for deep UVC sensing. These photodiodes boast solar-blind features, ideal for tracking far or deep UVC LEDs emitting at 235 nm and 255 nm.
- July 2024: Standard Energy was expected to launch its new 3 GW smart factory in Thailand, with its photovoltaic (PV) cell production line slated to start operations. This facility's construction at the LK Rayong Industrial City Hub, valued at over USD 100 million, started in 2023. This expansion aims to bolster the production capacity for both 3 GW of silicon wafers and 3 GW of PV cells. As the project progressed, the focus shifted to the installation of equipment. After the PV cell line's inauguration, the company plans to transition to activating the N-type silicon wafer production line, with the target set for September 2024.
IT & Telecom Optoelectronics Market Leaders
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Sony Corporation
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Vishay Intertechnology Inc.
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Omnivision Technologies Inc.
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Samsung Electronics
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SK Hynix Inc.
*Disclaimer: Major Players sorted in no particular order
IT & Telecom Optoelectronics Market News
- March 2024: OMNIVISION, a prominent global semiconductor developer specializing in digital imaging, analog, and touch and display technology, unveiled its latest innovation. The OV50K40, an inaugural smartphone image sensor to feature TheiaCel technology, achieves an unprecedented high dynamic range (HDR) comparable to the human eye, all with a single exposure. This breakthrough firmly established a new pinnacle of performance for flagship rear-facing main cameras.
- November 2023: Sony Semiconductor Solutions unveiled the IMX900, a cutting-edge 3.2 MP CMOS image sensor. This sensor boasts a resolution of 2064 x 1552 and stands out with its global shutter feature. Designed to be compatible with 1/3-type lenses, it also supports the S-mount M12 lens. With a unit cell size of 2.25 × 2.25 μm, the IMX900 can achieve an impressive frame rate of up to 120 fps. It features both MIPI and SLVS output interfaces. Despite its advanced capabilities, the IMX900 maintains a compact footprint of 12 mm x 9.4 mm, housed in a ceramic package.
IT & Telecom Optoelectronics Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Impact of COVID-19 Aftereffects and Other Macroeconomic Factors on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Technology Advancements, and AI Developments will Drive the Growth
5.1.2 The Growing Adoption for Wireless Communication Technology
5.2 Market Restraints
5.2.1 High Manufacturing and Fabricating Costs
5.2.2 Challenges With Energy Loss and Heating of Optoelectronic Devices
6. MARKET SEGMENTATION
6.1 By Device Type
6.1.1 LED
6.1.2 Laser Diode
6.1.3 Image Sensors
6.1.4 Optocouplers
6.1.5 Photovoltaic cells
6.1.6 Others
6.2 By Geography***
6.2.1 United States
6.2.2 Europe
6.2.3 China
6.2.4 Japan
6.2.5 South Korea
6.2.6 Taiwan
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles*
7.1.1 SK Hynix Inc.
7.1.2 Panasonic Corporation
7.1.3 Samsung Electronics
7.1.4 Omnivision Technologies Inc.
7.1.5 Sony Corporation
7.1.6 Ams Osram AG
7.1.7 Signify Holding
7.1.8 Vishay Intertechnology Inc.
7.1.9 Texas Instruments Inc.
7.1.10 LITE-ON Technology Corporation
7.1.11 Rohm Company Limited
7.1.12 Mitsubishi Electric Corporation
7.1.13 Broadcom Inc.
7.1.14 Sharp Corporation
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
IT & Telecom Optoelectronics Industry Segmentation
Optoelectronic devices are electronic devices and systems that involve studying, detecting, and controlling light. They are considered a sub-field of photonics and are used to convert electrical energy into light or vice versa. The study tracks the revenue accrued through the sale of IT and telecom optoelectronics by various players worldwide. The study also tracks the key market parameters, underlying growth influencers, and major vendors, which support the market estimations and growth rates over the forecast period. The study further analyses the overall impact of COVID-19 and other macroeconomic factors on the market.
The IT & telecom optoelectronics market is segmented by device type (LED, laser diode, image sensors, optocouplers, photovoltaic cells, and others) and geography (United States, Europe, China, Japan, Korea, Taiwan, and Rest of the World). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Device Type | |
| LED | |
| Laser Diode | |
| Image Sensors | |
| Optocouplers | |
| Photovoltaic cells | |
| Others |
| By Geography*** | |
| United States | |
| Europe | |
| China | |
| Japan | |
| South Korea | |
| Taiwan |
IT & Telecom Optoelectronics Market Research FAQs
How big is the IT & Telecom Optoelectronics Market?
The IT & Telecom Optoelectronics Market size is expected to reach USD 6.80 billion in 2024 and grow at a CAGR of 4.40% to reach USD 8.44 billion by 2029.
What is the current IT & Telecom Optoelectronics Market size?
In 2024, the IT & Telecom Optoelectronics Market size is expected to reach USD 6.80 billion.
Who are the key players in IT & Telecom Optoelectronics Market?
Sony Corporation, Vishay Intertechnology Inc., Omnivision Technologies Inc., Samsung Electronics and SK Hynix Inc. are the major companies operating in the IT & Telecom Optoelectronics Market.
What years does this IT & Telecom Optoelectronics Market cover, and what was the market size in 2023?
In 2023, the IT & Telecom Optoelectronics Market size was estimated at USD 6.50 billion. The report covers the IT & Telecom Optoelectronics Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the IT & Telecom Optoelectronics Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
IT & Telecom Optoelectronics Industry Report
Statistics for the 2024 IT & Telecom Optoelectronics market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. IT & Telecom Optoelectronics analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
