Optical Waveguide Market - Forecasts from 2023 to 2028

The global optical waveguide market is expected to grow at a CAGR of 13.29% during the forecast period

A waveguide is a tool or substance that can be used to direct waves in a certain direction. Waveguides minimize wave intensity loss while assisting wave propagation from a source to a different specified place. During this procedure, the wave is constrained to a specific dimensional path, preventing it from spreading in all directions. Waveguides are essential parts of a lot of current technologies. They are utilized in the fiberoptic cables that provide broadband internet, microwave ovens to direct microwaves, and the sophisticated scientific apparatus used in the physical sciences and medicine.

Market Drivers:

Technological development in photonic integrated circuits

A chip with photonic components is known as a photonic integrated circuit (PIC), and it operates on the idea of data transmission using photons or light. In PICS, photons go via optical elements that are comparable to resistors, transistors, capacitors, and electrical wires, such as waveguides, polarizers, and phase shifters. High-end PICS features include small form factors, low transmission loss, wide bandwidth, immunity to electric short circuits, and independence from electromagnetic radiation. Emerging use cases include data center interconnect, communication, high-performance computing, and optical computing have a high adoption rate for these PICS. To meet the needs of increasing use cases in the market, some companies emphasize creating technically sophisticated PIC solutions.

Increasing investments in the augmented/mixed reality

Over the past few years, investments in the augmented/mixed reality (AR/MR) business have grown significantly. The optical waveguides market is receiving significant investment from businesses The optical waveguides in near-eye devices (NEDs) assist in the bending and combining of light to route it into the eye and produce virtual images that may be seen by the wearer and are superimposed on the surrounding environment. For instance, Dispelix Oy, ColorChip, and Maradin collaborated to advance Laser Beam Scan technology for use with augmented reality (AR) glasses in October 2022. The partnership combines Colour Chip PLC (Planar Light Circuit) beam combining, Dispelix diffractive waveguide displays, and Maradin MEMS projection technology for laser beam scanning (LBS).

Rising use in the telecom sector

The segment is expanding because of the rising subscription rates for various fixed-point and wireless communication systems, the accessibility of low-cost communication equipment, the affordable services provided by telecom service providers, and the expanding global Internet user base. The International Telecommunication Union (ITU) reported in July 2022 that approximately 5.9 billion people, or 66% of the world's population, were accessing Internet services. Between 2019 and 2022, a 24% growth in online users was expected to have reached over 1.1 billion Increasing the optical waveguide market share.

Market Restraints:

Issues with design and fabrication

The main obstacle to the widespread use of optical waveguides is the difficulty in designing and manufacturing them. Since optical waveguides are made to meet certain needs and primarily rely on a particular set of waveguide transmission protocols, designing them demands physics and engineering skills. Optical waveguides are expensive, prone to transmission losses, and are also fragile. Additional design and fabrication costs are incurred since such components must be robust and miniaturized without sacrificing performance qualities. As a result, the long manufacturing and deployment times and high cost of optical waveguides prove to be a market growth inhibitor.

Asia Pacific is projected to have the highest share in the optical waveguide market

Asia Pacific holds the biggest optical waveguide market share due to positive government actions to assist the expansion of the photonics and semiconductor sectors in the area which are driving the market growth. In September 2022, the Indian government offered financial assistance worth 50% of CAPEX for businesses establishing semiconductor, display, and silicon photonics manufacturing facilities there. Such encouraging government measures will accelerate the optical waveguide market size during the projected period.

Market Key Developments:

• In December 2022, OpenLight (US) created a new 800G DR8 photonic integrated circuit (PIC) with applications for data center interconnect (DCI) in mind. The recently created PIC has undergone comprehensive validation for use in transceivers for DCI applications. The market for optical waveguides will expand faster as a result of these technological developments.
• In December 2022, Microsoft purchased Lumenisity® Limited, a leader in next-generation hollowe Large, worldwide, enterprise, and corporate companies can quickly, reliably, and securely network thanks to Lumenisity's cutting-edge and market-leading HCF product. With the acquisition, Microsoft will greatly improve its global cloud infrastructure and be better able to satisfy the demanding latency and security requirements of its Cloud Platform and Services clients. Technology can be advantageous to a wide number of industries, including government, manufacturing, financial services, healthcare, and retail.
• In April 2022, the purchase of Saint-Gobain's Shielding and Optics business unit, which comprises the Saint-Gobain Sovis shielding, and optics business headquartered in Jouarre, France, and Hot Cell Solutions in Kent, Washington, United States, was announced by Corning Incorporated. With this acquisition, Corning can now manufacture and provide solutions for nuclear power, medical shielding, and optical components, as well as expand its current radiation shielding business and open new market opportunities.

Segmentation:

By Type

• Planar Waveguide
• Channel Waveguide

By Material

• Glass
• Polymer
• Semiconductor

By Interconnect Level

• Metro and Long-haul Optical Interconnect
• Board-to-board and Rack-level Optical Interconnect
• Chip and Board-level Optical Interconnect

By Industry Vertical

• Telecommunication
• Medical
• Metrology
• Aerospace & Defense
• Consumer Electronics
• Industrial
• Others

By Geography

• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• United Kingdom
• Germany
• France
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Israel
• Others
• Asia Pacific
• China
• Japan
• India
• South Korea
• Indonesia
• Thailand
• Others