Photonics devices are being increasingly used in the manufacturing facilities in the communication domain and production process, owing to the ongoing industry 4.0 revolution. This revolution aims to create smart and efficient factories which use automation solutions, internet of things (IoT)-enabled devices, and smart sensors for an efficient manufacturing process. Innovations in smart factories primarily depend on developments in optical fibers, laser technology, and sensor technology. Such highly digitized production units use lasers for drilling, cutting, and engraving purposes and utilize optical fibers to allow reliable data communication at high speed within the factory.
Additionally, the mounting cost of integrating devices in production units will drive the photonics market at a CAGR of 6.9% during the forecast period (2020–2030). The market generated a revenue of $576.8 billion in 2019 and it is expected to generate $1,214.5 billion revenue by 2030. Photonics technology plays a pivotal role in the field of manufacturing, optical data communications, safety and security, lighting and displays, and medical and life sciences, due to the increasing use of light energy which is more rapid than other conventional energies.
Get More Insights: Photonics Market Revenue Estimation and Growth Forecast Report
Moreover, the escalating need for energy-efficient products is also resulting in the large-scale use of photonics products such as light-emitting diodes (LEDs), sensors and detectors, lasers, and optical components and systems in the industrial, consumer electronics, telecommunication, defense and security, medical, entertainment, and aerospace sectors. As energy efficiency has become a priority for many end-use industries, they are focusing on reducing the consumption of fossil fuels and increasing the use of non-conventional sources such as light energy. The escalating use of photonics technology can also be attributed to the rising implementation of government initiatives aimed at promoting the adoption of clean energy.
The application segment of the photonics market is classified into display, information technology (IT), photovoltaic (PV), communication, lighting, production technology, measurement and image processing, medical technology and life sciences, and others, such as holography and terahertz imaging. Among these, the lighting category is expected to witness the fastest growth during the forecast period, due to the amplifying need for lighting solutions in retail lighting, entertainment lighting, and agricultural lighting. Moreover, the booming construction industry will also augment the use of lighting products in the forecast years.