North America Optoelectronics Market - Forecasts from 2022 to 2027

North American optoelectronics market is estimated to be valued at US$8.060 billion in 2020. Optoelectronics, or the photonics market, is the research, design, and manufacture of a hardware device that turns electrical energy into light energy and light energy into energy through semiconductors. The optoelectronics industry and technology have produced new added values in many industrial domains, including optical communications, display, solid-state lighting, optical storage, laser/optical processing, optical energy, and sensing/measuring. Photoelectric components, often known as optoelectronics, are semiconductor devices that can produce or respond to light. As the demand for smartphones and consumer electronics rises, so will the demand for optoelectronics in the region. Furthermore, government efforts in the United States, such as Make in America, are boosting industrial activity in the region, leading to a growth in demand for optoelectronics in the next years.

Market Trend

Optoelectronics is a critical component in developing telecommunication networks, and the devices are used to reduce the cost of high-speed network termination equipment. Furthermore, the future predicts increased use of optoelectronic devices in the telecommunications industry, resulting in several prospects in the optoelectronics market. With the adoption of laser transmitters for high-speed optical networks, North America has the most modern telecommunication technologies. Moreover, optoelectronic devices are widely used in the medical equipment industry, which is experiencing a surge in demand in the region. One of the main reasons the optoelectronics industry is gaining traction in the region is that automobiles employ optoelectronic devices in their indicators and headlights.

Advances in Li-Fi technology, which permits data transfer using light sources to circumvent the issues that 5G and Wi-Fi technologies encounter, are likely to boost optoelectronic component growth in the future years. The need for optoelectronic components is being driven by enhanced smartphones and wearables with intuitive displays and camera technology. In addition, image sensors with the ability to capture exact high-quality images are required by high-tech cameras, fueling market expansion. Increasing investments in smart infrastructure development and a focus on automation technologies will be critical to the market's growth in this area while increasing infrastructure development investments are projected to boost the market further.

Growth Factors

Increase in manufacturing units because of government efforts

Optoelectronics is a crucial component of several modern technologies. The country is projected to invest considerably in creating local semiconductor manufacturing facilities as the country's focus on local manufacturing grows. Increasing investments in smart infrastructure development and a focus on automation technologies will be critical to the market's growth in this area while increasing infrastructure development investments are projected to boost the market further. They’ll gain a competitive advantage over their competitors due to their capacity to create their products combined with significant investments in research and development.

Restraint

A large number of investments required

The primary problem in the optoelectronics business is that R&D requires a significant expenditure that not all vendors can afford. Furthermore, the most recent lights, displays, and medical equipment that contain optoelectronics devices are costly, further dwarfing the market size. Furthermore, because of the disadvantages of transparent metal oxides, there is a demand for alternate conducting film, which raises the entire cost. The big players, on the other hand, are investing, and the field will continue to evolve in the future.

Impact of COVID-19 Pandemic:

The unexpected onset of the COVID-19 pandemic had a significant impact on both public health and industry. To stop the virus from spreading, governments worldwide implemented lockdowns, which disrupted supply chains and production schedules by shutting down on-premise business activities and manufacturing operations. As a result of this circumstance, a demand-supply gap for components used in residential and healthcare applications developed. Due to the closure of consumer electronics, automobile, industrial, and other manufacturing facilities around the world, demand for optoelectronics has decreased.

Segmentation:

By Type

• CMOS Image Sensor
• CCD Image Sensor
• Lamps
• Laser Storage Pick-up
• Displays
• Couplers

By End-user Industry

• Communication
• Consumer Electronics
• Automotive
• Manufacturing

By Country

• Brazil
• Argentina
• Others