Optoelectronics Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2018-2028F

The global optoelectronics market is expected to expand in the upcoming years as a result of rising demand for optical solutions in the healthcare and automotive industries, rising demand for smart consumer electronics devices, and rising demand for long-lasting and low-power consuming components. However, high initial manufacturing and fabrication costs are expected to stifle market growth. Because of the proliferation of IIoT platforms, advancements in Li-Fi technology, and innovations in optoelectronic devices, the market is expected to see enormous growth opportunities.

Optoelectronics is the technology for light-emitting as well as light-detecting devices. The technology is widely considered a sub-discipline of photonics, basically applying the physical science of light. Optoelectronics is quickly becoming a fast-emerging technology field that involves using electronic devices to source, detect, and control light. These devices can be a part of numerous applications, including automatic access control systems, military services, medical equipment, and telecommunications. The optoelectronics field is widely broad ranged along with the variations in the devices that includes image pick-up devices, elements and LEDs, optical storage, information displays, remote sensing systems, and optical communication systems. The most common optoelectronic devices that directly converts the photons and electrons are LEDs, solar cells and photodiodes & laser-diodes.

Increased Demand for Miniaturized Electronic Devices is Fueling the Market Growth

The global optoelectronics market is escalating at a very high rate due to the growing demand for miniaturized semiconductor components such as ICs (Integrated Circuits). The consumer electronics industry is focusing on manufacturing miniaturized personal electronics using nanotechnology-based semiconductor chips, which have high efficiency and are less power-consuming. The semiconductor components manufactured from the photolithography equipment include ICs, semiconductor chips, sensors, and LED displays. Therefore, the growing demand for miniaturized electronic devices, is in turn anticipated to grow the adoption of high efficiency optoelectronics products for the forecast period.

Expansion of Semiconductor Industry is Driving the Market Growth

The emergence of advanced consumer products in the consumer electronics industry is expected to drive the global optoelectronics market during the forecast period. The transition of electronic goods from fully automated systems toward the emergence of a smart home that interconnects all the household devices to create a single controlling unit is expected to result in the high adoption of electronics products based on the light applications which, in turn, is expected to drive the growth of the global optoelectronics market.

Growing Strategic Partnerships are Driving the Market Growth

Strategic partnerships are happening in the market, shaping the optoelectronics market for the technologically developed population. Many companies operating in optoelectronics are undergoing partnerships to meet customer demands. For instance, in 2019, LITE-ON technology corporation, an optoelectronics components manufacturing company, signed a strategic partnership agreement with II-VI Incorporated, one of the lead manufacturers of optical materials and semiconductors in America. This partnership is expected to manufacture at high volume and commercialize packaged semiconductor lasers for capturing the mass market of light detection and ranging (LiDAR). Similarly, in 2021, Global Foundries, a semiconductor manufacturing company, improved and continued its strategic partnership with Raytheon, a commercial electronics manufacturing company, to develop a new gallium nitride on silicon.

Increasing Demand for Luxury and Ultra-Luxury Vehicles is Propelling the Market Growth

The increasing demand for luxury and ultra-luxury vehicles is expected to drive the growth of the optoelectronics market. Luxury vehicles refer to vehicles that provide comfort, luxury, and quality. The motivation to improve the safety and lighting of the vehicles and the continuous focus on the R&D activities is expected to lead to the growth of optoelectronics in luxury vehicles. Optoelectronics is used in new cars to automate the vehicle functions such as brake lights and headlights. As a result, increasing sales of luxury and ultra-luxury vehicles increase the demand for the optoelectronics market. According to FADA (Federation of Automobile Dealers Associations), a national body representing automobile dealers in India, in Dec 2021, retail luxury car sales increased by 19.7% due to high inventory and dealership growth with the OEMs. Therefore, the increasing sales of luxury and ultra-luxury vehicles drive the optoelectronics market.

Market Segmentation

Based on component, the market is fragmented into light-emitting diode (LED), laser diode, sensors, optocouplers, photovoltaic cells, and others. Based on material, the market is further split into gallium nitride, gallium arsenide, gallium phosphide, silicon germanium, silicon carbide and indium phosphide. Based on the end-user, the market is segmented into automotive, aerospace & defense, consumer electronics, information technology, healthcare and others. On the basis of region, the market is divided into North America, Europe, Asia-Pacific, South America, and Middle East & Africa.

Company Profiles

General Electric Company, Panasonic Corporation, Samsung Electronics, Omnivision Technologies Inc., Sony Corporation, Hamamatsu Photonics K.K., Osram Licht AG, ON Semiconductor, Texas Instruments, Micropac Industries, are among the major market players driving the growth of the global optoelectronics market.

Report Scope

In this report, the global optoelectronics market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Optoelectronics Market, by Component:

• Light-Emitting Diode (LED)
• Laser Diode
• Sensors
• Optocouplers
• Photovoltaic Cells
• Others

Optoelectronics Market, by Material:

• Gallium Nitride
• Gallium Arsenide
• Gallium Phosphide
• Silicon Germanium
• Silicon Carbide
• Indium Phosphide

Optoelectronics Market, by End User:

• Automotive
• Aerospace & Defense
• Consumer Electronics
• Information Technology
• Healthcare
• Others

Optoelectronics Market, by Region:

• Asia-Pacific
• North America
• Europe
• Middle East & Africa
• South America

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the global optoelectronics market.

Available Customizations

The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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