South America Optoelectronics Market - Forecasts from 2022 to 2027

South American optoelectronics market is estimated to be valued at US$834.121 million 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. Mexico, Brazil, Panama, Argentina, and Chile are likely to contribute to the growth of the photonics market in South America. Manufacturers have been drawn to these countries because of lower costs than in the United States and Europe. Furthermore, the expanding number of elements is expected to boost the market's growth. Moreover, the building industry in Panama is gaining traction, which will fuel photonics demand to a considerable extent.

Market Trend

The growing need for smart consumer electronic devices, increasing demand for optical solutions in the healthcare and automotive industries, and surging demand for long-life and low-power consumption components contribute to the overall optoelectronics market's growth. Rising IoT applications, developments in Li-Fi technology, and breakthroughs in optoelectronic devices are all driving market expansion. Furthermore, big data and the Internet of Things have boosted submarine cable deployments, undoubtedly impacting the demand for photonics solutions. As a result, such advances have the potential to broaden the photonics market in the region.

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. The massive surge in consumer electronics consumption in Latin America has opened up new opportunities for optoelectronics makers, which will drive the optoelectronic market forward.

Growth Factors

The Optoelectronics Market is expanding due to the rising demand for optical solutions in the healthcare and automotive industries.

Optoelectronics is an important component of several modern technologies. In recent years, the healthcare and automotive industries have become essential adopters of optoelectronics. The employment of optical sensors in biosensing applications in the healthcare industry allows for the monitoring of the heart rate and other key organs in the human body. As a result, the widespread use of non-intrusive, low-cost sensors in sophisticated healthcare applications has ushered in a new era of consumer well-being. Furthermore, rising demand for interior and exterior car lighting, as well as head-up display devices, is predicted to drive demand for optoelectronic components, including LEDs and display panels, in South American regions.

Restraint

Usage of complex fabrication

The use of complicated fabrication is difficult for optoelectronics technology, making it challenging to obtain adequate supplies of fabrication technology from vendors, as these are rarely available. Most of the raw materials used in the making of optoelectronic devices are manufactured in China, and due to trade restrictions imposed because of COVID-19, this, in turn, created a gap between demand and supply.

Impact of COVID-19 Pandemic:

The unexpected onset of the COVID-19 pandemic had a major impact on 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 globally, the demand for optoelectronics has decreased. Exports and Imports were severely hit as most raw materials are imported from other nations.

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