Optoelectronics Global Market Report 2024

Optoelectronics focuses on the application of electronic devices for the detection, generation, and control of light. This field involves the study of electronic and hardware devices that convert electricity into photon signals, with applications in medical equipment, telecommunications, and various scientific disciplines. Optoelectronics is prominently utilized in hospitals and telecommunications infrastructure, playing a crucial role in devices such as X-ray machines and fiber optic technology.

The primary types of optoelectronics include light-emitting diodes (LEDs), laser diodes, image sensors, optocouplers, photovoltaic cells, and other components. LEDs find applications in various devices such as indication lights, computer components, medical devices, watches, instrument panels, switches, fiber-optic communication, consumer electronics, household appliances, traffic signals, and automobile brake lights. Different materials are used in optoelectronics, including gallium nitride, gallium arsenide, gallium phosphide, silicon germanium, silicon carbide, and indium phosphide. Optoelectronic technologies cater to a wide range of industries, including automotive, aerospace and defense, consumer electronics, information technology, healthcare, residential and commercial sectors, industrial applications, and other end users.

The optoelectronics market research report is one of a series of new reports that provides optoelectronics market statistics, including optoelectronics industry global market size, regional shares, competitors with a optoelectronics market share, detailed optoelectronics market segments, market trends and opportunities, and any further data you may need to thrive in the optoelectronics industry. This optoelectronics market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The optoelectronics market size has grown rapidly in recent years. It will grow from $7.39 billion in 2023 to $8.76 billion in 2024 at a compound annual growth rate (CAGR) of 18.4%. The growth observed in the historical period can be attributed to factors such as the expansion of telecommunications infrastructure, advancements in consumer electronics, the development of medical devices, the incorporation of optoelectronics in automotive lighting, and an increasing focus on energy efficiency across various industries.

The optoelectronics market size is expected to see rapid growth in the next few years. It will grow to $17 billion in 2028 at a compound annual growth rate (CAGR) of 18.0%. The anticipated growth in the forecast period can be attributed to factors such as increased demand in semiconductor manufacturing, applications in military and defense, the integration of optoelectronics in autonomous vehicles, the trend towards miniaturization in electronics, and the ongoing information technology revolution. Key trends expected in the forecast period include advancements in display technology, the proliferation of optical sensors, the expansion of 5G networks, developments in optoelectronic materials, and the exploration of quantum technologies.

The surge in demand for luxury and ultra-luxury vehicle models is anticipated to drive the growth of the optoelectronics market. Luxury vehicles, known for their emphasis on comfort, quality, and innovative features, are increasingly incorporating optoelectronic technologies to enhance safety and lighting. Ongoing research and development activities focused on vehicle automation, including functions like automated brake lights and headlights, contribute to the expanding role of optoelectronics in luxury automobiles. The rise in sales of luxury and ultra-luxury vehicles, as reported by the Federation of Automobile Dealers Associations (FADA) in December 2021, with a 19.7% increase in retail luxury car sales, is indicative of a growing demand for optoelectronics. Consequently, the heightened sales of luxury and ultra-luxury vehicles act as a catalyst for the optoelectronics market's growth.

The escalating demand for consumer electronics is poised to be a driving force behind the growth of the optoelectronics market. Consumer electronics encompass a wide array of personal-use electronic devices designed for communication, entertainment, productivity, and various everyday applications. Optoelectronic components like organic light-emitting diodes (OLEDs) and liquid crystal displays (LCDs) play a crucial role in electronic screens, such as those found in smartphones, televisions, laptops, and tablets, offering vibrant and high-resolution visuals. Data from the Japan Electronics and Information Technology Industries Association in May 2023 reveal a substantial production increase in electronic equipment, reaching $6,722 million (¥771,457 million), with consumer electronics production rising from $230.9 million (¥25,268 million) in May 2022 to $280 million (¥32,099 million) in May 2023. Therefore, the growing demand for consumer electronics is set to propel the optoelectronics market.

Strategic partnerships are reshaping the landscape of the optoelectronics market, with many companies entering collaborations to meet evolving customer demands. A notable example is the ongoing strategic partnership between semiconductor manufacturing company Global Foundries and commercial electronics manufacturing company Raytheon to develop innovative gallium nitride on silicon technology.

Leading companies in the market are concentrating on the development of advanced products, such as rigid-flex boards and flex circuits, to enhance their product portfolios. Rigid-flex boards and flex circuits represent sophisticated electronic components that combine the flexibility of flexible circuits with the structural support of rigid boards, enabling versatile and space-efficient designs in electronic assemblies. For instance, OSI Optoelectronics Ltd., a US-based manufacturer of advanced optoelectronics and electronic assemblies, recently introduced a range of advanced products and services, including rigid-flex board and flex circuit design, manufacturing, and assembly. These offerings adhere to the most stringent OEM specifications and encompass various solutions, from flexible printed circuits to ultra-high-density designs, demonstrating OSI's commitment to meeting the diverse requirements of OEM clients.

In March 2021, Largan Precision Co. Ltd., based in Taiwan, acquired China's Ability Optoelectronics Technology with a deal involving 20 million shares. This strategic move, translating to a 15.2 percent stake in the smaller rival, aligns with Largan Precision's goal to enhance its position on the Taiwan stock exchange by acquiring $21.08 million worth of shares. Ability Optoelectronics Technology, based in Taiwan, specializes in manufacturing optoelectronic products such as lenses, filters, scanners, and digital still cameras.

Major companies operating in the optoelectronics market include General Electric Company, Accelink Technologies Co. Ltd., Avago Technologies Limited, BetaLED Inc., Broadcom Inc., Broadex Technologies Co. Ltd., Browave Co. Ltd., Cree Inc., Finisar Corporation, Fujitsu Limited, Hamamatsu Photonics K.K., JDS Uniphase Corporation, Micropac Industries Inc., NeoPhotonics Corporation, Oclaro Inc., Omnivision Technologies Inc., ON Semiconductor Corporation, Oplink Communications LLC, OSRAM Licht AG, Panasonic Corporation, Koninklijke Philips N.V., Renesas Electronics Corporation, ROHM Co. Ltd., Samsung Electronics Co. Ltd., Sharp Corporation, Sony Corporation, Texas Instruments Incorporated, Toshiba Corporation, TT Electronics PLC, Vishay Intertechnology Inc., Aixtron SE, ASML Holding N.V., Canon Inc., Coherent Inc., EMCORE Corporation

Asia-Pacific was the largest region in the optoelectronics market in 2023. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the optoelectronics market analysis report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The countries covered in the optoelectronics market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.

The optoelectronics market includes revenues earned by entities by providing optoelectronics solutions testing of Laser, LED and LED clusters, photo diode / transistor, opto coupler, and fiber optical cables to analysing wavelength, optical power, optical attenuation, and luminous Flu to offer sourcing, detection, and control of light in electronic devices and systems.Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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