The Global Terahertz Technologies Market (henceforth referred to as the market studied) was valued at USD 421.5 million in 2021. It is expected to reach USD 1,465.1 million by 2027, registering a CAGR of 23.22% during 2022-2027 (henceforth referred to as the forecast period).
- Terahertz technology is an emerging and growing field with potential for developing applications varying from passenger scanning at an airport to large digital data transfers and has been reflecting significant advancements on the scientific front. Terahertz (THz) radiation exhibits three unique properties, which stimulate the development of the whole terahertz industry.
- Terahertz (THz) frequency range (0.1 THz - 3 THz) is the last span within the whole electromagnetic wave spectrum, which has not been 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.
- The market is witnessing various technological advancements, with researchers across the globe developing new ways to utilize terahertz energy in developing advanced devices/systems. Recently in February 2022, a device was created by the researchers enabling them to electronically steer and focus a beam of THz electromagnetic energy with high precision. This opens the door to real-time, high-resolution imaging devices that are a hundred times smaller in size than other radar systems and more robust than other optical systems. The researchers demonstrated the device by generating 3D depth images of scenes.
- Further, the rising concerns regarding security systems across a variety of industries have created a dire need for efficient solutions that are eventually driving the growth of the market. The comparative niche market potential of the THz technology has been primarily implemented in applications such as security imaging and non-destructive testing (NDT). The non-ionizing and non-invasive radiations of the THz waves have rendered them immensely useful in the healthcare industry.
- The ability to perform partial or full-body scanning and other related security screening without any radiation on vital elements is one of the significant factors driving the adoption of the terahertz technology in the security industry. The technology is witnessing considerable adoption in the airport screening vertical, helping to increase the screening throughput with high proven detection performance. As per the statistics published by the Canadian Air Transport Security Authority (CATSA), the number of passengers screened per hour at Canadian Airport increased to 217 per hour in 2020 from 159 per hour in 2016. However, the same number amounted to 102 passengers in the FY 2021, dropping by 53% compared to 2019 levels owing to the COVID-19 pandemic.
- With the outbreak of COVID-19, the terahertz technology market is expected to witness growth with its major application in healthcare, biomedical, and security application. With a limited supply of COVID-19 testing kits in countries such as India and other parts of the world, people with mild symptoms are less likely to be tested. In order to tackle this issue, in May 2020, a team of researchers from the Defence Research Development Organisation (DRDO) and North Eastern Hill University is working on developing artificial intelligence-based terahertz radiation (t-ray) scanning unit to address the limitation of the infrared thermal scanner in the accurate and early detection of coronavirus patients.
Key Market Trends
Defense and Security is Expected to Witness Robust Market Growth
- In today's security environments, the ability to identify threats like hidden weapons and body-worn explosives is a strong operational need. Owing to the growing emphasis on imaging concealed explosives, Terahertz technology for security and defense-related applications has recently experienced an increase in interest. THz sensors' conceivable military applications are broad for intelligence, surveillance, and reconnaissance (ISR), including detection of isolated personnel behind enemy lines, fixing targets, and terminal guidance of precision weapons.
- In a non-combat environment, THz could be used to help detect plastic or minimal metal land mines on current or former battlefields. Most anti-personnel mines are a combination of metal and plastic (and manufactured to avoid detection by metal detectors). The current technology for land-mine detection requires analysis of soil temperature and is measured in three dimensions, which is 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.
- Air surveillance radar systems are another technological pairing that is beginning to be explored as the potential use case for THz imaging. According to some articles released by the South China Morning Post, China North Industries Group Corporation, one of the country's largest arms manufacturers, successfully tested THz instruments capable of detecting stealth aircraft.
- China's past pursuits of foreign and dual-use technologies suggest that the country will continue to grow its THz technology in competition with other international powers such as the US. The radiation produced, or 'T-rays,' can penetrate the composite metals in examining underlying aircraft metals. These metals are specifically used for certain types of aircraft, making the process of finding and positively identifying any detectable substances.
North America is Expected to Hold a Major Market Share
- The United States is considered to be a key 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, to reach a total of 34,000 units, which is 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.
- US Air Force researchers are looking into technologies for future line-of-sight air-to-air communications and networking at frequencies higher than 100 GHz to help aircraft exchange mission-critical battle-management information. For the same, Air Force experts are expected to test terahertz communication technologies through modeling and simulation.
- Further, the EMS (Electromagnetic spectrum) is critical to daily activities and encompasses all known and measurable wavelengths and frequencies. Due to its inherent capability to link warfighting equipment, electronics, and subsystems together, the US and its adversaries have begun to understand the prime importance of exploiting EMS dependencies. If harnessed correctly, the THz band of the EMS can accelerate the military capabilities ahead of an adversary.
- Canada is expected to witness significant growth in demand for the technology due to an increase in the demand for security screening equipment across various public places. For instance, Canadian airlines screen passengers before they board flights bound for the country. Air Canada's union, which is the Canadian Union of Public Employees (CUPE), announced additional pre-flight screening by making flight attendants responsible for the screening. Furthermore, AG recently announced the expansion of its manufacturing facility in Canada. The company trained personnel assigned.
The Global Terahertz Technologies Market is highly competitive and consists of several major players. In terms of market share, few of the major players currently dominate the market. These major players with prominent shares in the market are focusing on expanding their customer base across foreign countries. These companies are leveraging on strategic collaborative initiatives to increase their market shares and profitability. The companies operating in the market are also acquiring start-ups working on terahertz technologies to strengthen their product capabilities. Thus market concentration is medium.
- October 2021 - HÜBNER announced the expansion of its technology portfolio to include short-pulse femtosecond fiber lasers with the recent acquisition of VALO Innovations GmbH. The proprietary fiber laser technology of VALO Innovations delivers market-unique short pulse performance. With pulse lengths of< 50 fs and peak powers of >2 MW from compact and stable turn-key systems, and fully integrated group-velocity dispersion pre-compensation control, the VALO Innovations of fiber lasers bring desirable features for applications in bioimaging, spectroscopy, and micro-machining.
- September 2021 - Advantest Corporation launched TAS7400TS High-Frequency Resolution Option terahertz optical sampling analysis system. This system features cost performance and ease of operation added with a measurement method for high-frequency characteristic evaluation of radio wave absorbers and base materials, indispensable for beyond 5G / 6G next-generation communications technology and for the millimeter-wave radar technology used in ADAS (advanced driver assistance systems)
- March 2021 - Bakman Technologies announced its new controller based on the electronics from its THz spectrometers of PB7220 series of frequency-domain. This was a major improvement in the controller to make it suitable for portable, avionics-ready, spectroscopic THz sensors. Although it is designed for this specific task, the controller could also be used for any optical heterodyne or photo mixing application between DC and 10 THz.
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1.2 Scope of the Study
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Intensity of Competitive Rivalry
4.3.5 Threat of Substitute Products
4.4 Assessment of the Impact of COVID-19 on the Market
5.1.1 Increased Demand in the Medical Sector, and Non Destructive Testing Applications
5.1.2 Holistic Approach to Security through the Usage of Terahertz Technology
5.2 Market Restraints
5.2.1 Lack of Awareness of the Technology in the Market
5.2.2 Lacking the Device Infrastructure to Support the Adoption of Terahertz Technology
6.1.1 Terahertz Imaging Systems
184.108.40.206 Active System
220.127.116.11 Passive System
6.1.2 Terahertz Spectroscopy Systems
18.104.22.168 Time Domain
22.214.171.124 Frequency Domain
6.1.3 Communication Systems
6.2.2 Defense and Security
6.2.5 Food and Agriculture
6.2.7 Other End-Users
6.3.1 North America
126.96.36.199 United States
188.8.131.52 United Kingdom
184.108.40.206 Rest of Europe
6.3.3 Asia Pacific
220.127.116.11 South Korea
18.104.22.168 Rest of Asia Pacific
6.3.4 Rest of the World
22.214.171.124 Latin America
126.96.36.199 Middle East and Africa
7.1.1 Luna Innovations
7.1.2 Teravil Ltd.
7.1.3 TeraView Limited
7.1.4 TOPTICA Photonics AG
7.1.5 HÜBNER GmbH & Co. KG
7.1.6 Advantest Corporation
7.1.7 Batop GmbH
7.1.8 Terasense Group Inc.
7.1.9 Microtech Instrument Inc.
7.1.10 Menlo Systems GmbH
7.1.11 Gentec Electro-optics Inc.
7.1.12 Bakman Technologies LLC
A selection of companies mentioned in this report includes:
- Luna Innovations
- Teravil Ltd.
- TeraView Limited
- TOPTICA Photonics AG
- HÜBNER GmbH & Co. KG
- Advantest Corporation
- Batop GmbH
- Terasense Group Inc.
- Microtech Instrument Inc.
- Menlo Systems GmbH
- Gentec Electro-optics Inc.
- Bakman Technologies LLC