Terahertz Technology Market Report 2025

The terahertz technology market size has grown rapidly in recent years. It will grow from $0.72 billion in 2024 to $0.84 billion in 2025 at a compound annual growth rate (CAGR) of 16.9%. The growth in the historic period was driven by the rising demand for high-speed wireless communication, increased adoption of terahertz spectroscopy, the growing need for advanced security screening systems, the expanding use of terahertz technology in industrial quality control, and the greater utilization of terahertz waves in next-generation semiconductor manufacturing.

The terahertz technology market size is expected to see rapid growth in the next few years. It will grow to $1.55 billion in 2029 at a compound annual growth rate (CAGR) of 16.5%. The growth in the forecast period can be attributed to the increasing adoption of terahertz-based sensing technologies, the expanding use of terahertz imaging in consumer electronics, the rising demand for ultra-fast, high-capacity data links, the ongoing development of terahertz communication infrastructure, and the growing need for precision agriculture solutions. Key trends expected during this period include enhancements in terahertz imaging resolution, advancements in semiconductor materials, progress in terahertz communication protocols, breakthroughs in terahertz signal processing, and innovations in terahertz radar systems.

The rising demand for non-invasive imaging is expected to drive the growth of the terahertz technology market in the coming years. Non-invasive imaging involves diagnostic methods that allow visualization and analysis of internal body structures without surgical intervention. This demand is increasing due to the need for safer diagnostic procedures that reduce patient exposure to harmful radiation or invasive methods while still delivering accurate results. Terahertz technology supports non-invasive imaging by utilizing low-energy electromagnetic waves that can penetrate soft tissues, producing high-resolution internal images without harming the patient. It also enables real-time abnormality detection, aiding early diagnosis of conditions such as cancer and cardiovascular diseases. For example, in November 2023, the National Health Service (NHS), a UK-based government department, reported that England conducted 45 million imaging tests in the year ending March 2023, representing a 2.2% increase from the previous year’s 44 million tests. These included 10.3 million ultrasound scans, up 1.8%; 7.1 million CT scans, up 5.5%; and 4.1 million MRI scans, up 6.2%. This trend demonstrates how the demand for non-invasive imaging is boosting the adoption of terahertz technology.

Companies in the terahertz technology market are focusing on innovations such as next-generation 6G data transmission to deliver ultra-high-speed wireless communication and advanced imaging capabilities. Next-generation 6G refers to the sixth generation of wireless communication technology, offering extremely high-speed, low-latency, and reliable data transfer. This advancement enables applications such as real-time holographic communication, autonomous vehicles, and large-scale IoT connectivity, thereby increasing demand for terahertz technology. For instance, in January 2023, Canon Inc., a Japan-based multinational technology company, introduced a compact terahertz device that achieved the world’s highest output among 450 GHz semiconductor devices. The device integrates 36 synchronized active antennas onto a single semiconductor chip, resulting in around 10 times greater output and 20 times higher directivity compared to conventional models. Its compact design, nearly 1000 times smaller than traditional systems, allows for potential use in security scanning, high-speed imaging, and next-generation 6G data transmission without the need for bulky frequency multipliers or lenses.

In July 2025, TeraView Limited, a UK-based developer of terahertz light systems, formed a partnership with Doolim-Yaskawa to advance automotive paint inspection processes. The collaboration aims to improve the precision of multi-layer paint applications in the Korean automotive industry by integrating TeraView’s terahertz technology with Doolim-Yaskawa’s robotic automation solutions. This approach enables non-destructive measurement and enhances quality control. Doolim-Yaskawa Co. Ltd., based in Korea, specializes in robotic automation systems that include automated painting, sealing, and production processes designed to improve manufacturing efficiency and productivity.

Major players in the terahertz technology market are Canon Inc., Advantest Corporation, Bruker Corporation, Hübner Group, Thorlabs Inc., Daheng New Epoch Technology, Luna Innovations Incorporated, M Squared Lasers Ltd., Virginia Diodes Inc., Gentec Electro-Optics, Menlo Systems GmbH, TeraView Ltd., Neteera Technologies, TeraSense Group Inc., Alpes Lasers SA, Boston Electronics Corporation, TeraLumen Solutions, TYDEX, Batop GmbH, Bakman Technologies.

North America was the largest region in the terahertz technology market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in this report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the terahertz technology market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid rise in U.S. tariffs and the subsequent trade frictions in spring 2025 are having a major impact on the electrical and electronics sector, with semiconductors, display panels, and rare-earth metals (essential for batteries and motors) subject to steep duties. Consumer electronics brands face profit erosion, as competitive markets limit their ability to pass costs to buyers. Industrial electronics manufacturers, meanwhile, grapple with delayed projects due to shortages of tariff-impacted components like printed circuit boards. Companies are responding by relocating assembly to tariff-exempt countries, increasing inventory buffers, and redesigning products to reduce dependency on restricted materials.

Terahertz technology involves the application of electromagnetic waves within the terahertz frequency band (0.1 to 10 THz) for uses such as imaging, spectroscopy, and high-speed wireless communication. It is applied in fields such as non-destructive testing, security screening, biomedical imaging, and advanced wireless communication by leveraging its ability to penetrate materials and deliver spectroscopic insights.

The primary categories of terahertz technology are terahertz imaging, terahertz spectroscopy, and terahertz communication. Terahertz imaging is a non-invasive method that employs terahertz waves to generate high-resolution images of internal structures, supporting applications in healthcare, manufacturing, and security. This category encompasses multiple technologies, including photoconductive switching, quantum cascade lasers, free-space electro-optic sampling, and fiber-coupled terahertz spectroscopy, and it operates across various frequency ranges: sub-terahertz (0.1-1 THz), low terahertz (1-3 THz), high terahertz (3-10 THz), and ultrafast terahertz (10+ THz). These technologies are deployed in imaging, communication, and spectroscopy, serving end users across laboratory research, healthcare and medicine, defense and security, industry, telecommunications, and other sectors.

The terahertz technology market research report is one of a series of new reports that provides terahertz technology market statistics, including terahertz technology industry global market size, regional shares, competitors with the terahertz technology market share, terahertz technology market segments, market trends, and opportunities, and any further data you may need to thrive in the terahertz technology industry. This terahertz technology 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 terahertz technology market consists of revenues earned by entities providing services such as material characterization, security screening, biomedical imaging, quality control in manufacturing, and wireless communication testing. The market value includes the value of related goods sold by the service provider or included within the service offering. The terahertz technology market also includes sales of waveguides, beam splitters, modulators, filters, and time-domain spectroscopy (TDS) 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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