Market Size of US Photonics Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 152.51 Billion |
| Market Size (2029) | USD 191.97 Billion |
| CAGR (2024 - 2029) | 4.71 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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US Photonics Market Analysis
The US Photonics Market size is estimated at USD 152.51 billion in 2024, and is expected to reach USD 191.97 billion by 2029, growing at a CAGR of 4.71% during the forecast period (2024-2029).
- Photonics is considered a crucial technology that enables the creation of energy-efficient smart systems across various industries, including healthcare, automotive, communications, manufacturing, and retail. These sectors are adopting photonics to enhance efficiency and drive growth.
- In recent times, investments in various sectors have experienced substantial growth. Photonics, as a fundamental technology across multiple industries, is seeing rapid adoption, with the market expanding into new verticals.
- LiDAR technology has gained prominence in photonics. Originally used for studying atmospheric gas distribution and contaminants, it has now become crucial for autonomous driving. Advances in LiDAR mapping systems and related technologies have expanded its applications across various verticals, including aerospace, defense, automotive, mining, and oil and gas.
- The presence of industry players such as Google, Microsoft, and Facebook is the primary force driving the US market, necessitating optimization of the data transmission process for respective data centers. The country also provides a favorable environment for technological advancements and expansions. Furthermore, the significant funding landscape in the US silicon photonics devices industry has encouraged organizations and start-ups to invest in the expanding photonics market.
- In February 2023, Excelitas TechnologiesÒ Corp. which is a industrial technology manufacturer concentrated on delivering innovative, market-driven photonic solutions, acquired the Phoseon Technology, Inc, Hillsboro, OR, USA. Phoseon is a key player in the design and manufacturer of LED-based industrial curing and scientific illumination solutions offering the field-proven reliability and enabling significant efficiency gains for a wide range of global customers.
- However, compared to conventional products, the high initial cost of silicon-enabled photonic products and devices hinders technology deployment in many fields. While the technology provides higher performance and efficiency, photonics-based devices remain inaccessible to many small- and medium-sized end-users in various verticals due to limited budgets.
US Photonics Industry Segmentation
Photonics is an area of study that involves the use of radiant energy (such as light), whose fundamental elements are photons and waves that may be used to cure diseases, explore the universe, and even solve crimes.
The United States photonics market is segmented by application (surveying and detection, production technology, data communication, image capture and display, medical technology, lighting, and other applications).
The market sizes and forecasts are provided in terms of value in USD for all the above segments.
| By Application | |
| Surveying And Detection | |
| Production Technology | |
| Data Communication | |
| Image Capture and Display | |
| Medical Technology | |
| Lighting | |
| Other Applications |
US Photonics Market Size Summary
The US photonics market is poised for significant growth, driven by its critical role in developing energy-efficient smart systems across diverse industries such as healthcare, automotive, communications, manufacturing, and retail. The market is expanding rapidly as these sectors increasingly adopt photonics to enhance operational efficiency and stimulate growth. The rise of LiDAR technology, initially used for atmospheric studies, has become essential for autonomous driving, with its applications now spanning aerospace, defense, automotive, mining, and oil and gas sectors. The presence of major industry players like Google, Microsoft, and Facebook, coupled with a supportive environment for technological advancements, further propels the market. However, the high initial costs of silicon-enabled photonic products pose challenges for widespread adoption, particularly among small and medium-sized enterprises.
Silicon photonics is emerging as a transformative force within the photonics industry, offering advantages over traditional electrical conductors by enabling high-speed data transmission and processing. This technology is expected to significantly impact data centers, facilitating faster and more efficient data transfer solutions. The increasing demand for optical solutions in communication technologies, particularly optical broadband, is expected to bolster market growth. The shift from copper wire systems to optical fiber lines by telecommunications companies underscores the growing importance of photonics in infrastructure. Additionally, the market is witnessing a surge in the adoption of silicon photonics in medical applications, with startups leveraging silicon-integrated optics for innovative solutions. The competitive landscape is marked by the presence of numerous global and regional players, ensuring a high intensity of rivalry and sustained market dynamics.
US Photonics Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Market Overview
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1.2 Industry Attractiveness - Porter's Five Forces Analysis
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1.2.1 Bargaining Power of Suppliers
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1.2.2 Bargaining Power of Buyer/Consumers
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1.2.3 Threat of New Entrants
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1.2.4 Threat of Substitutes
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1.2.5 Intensity of Competitive Rivalry
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1.3 Industry Value Chain Analysis
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1.4 An Assessment of the Impact of Key Macroeconomic Trends
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2. MARKET SEGMENTATION
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2.1 By Application
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2.1.1 Surveying And Detection
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2.1.2 Production Technology
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2.1.3 Data Communication
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2.1.4 Image Capture and Display
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2.1.5 Medical Technology
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2.1.6 Lighting
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2.1.7 Other Applications
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US Photonics Market Size FAQs
How big is the US Photonics Market?
The US Photonics Market size is expected to reach USD 152.51 billion in 2024 and grow at a CAGR of 4.71% to reach USD 191.97 billion by 2029.
What is the current US Photonics Market size?
In 2024, the US Photonics Market size is expected to reach USD 152.51 billion.
