Adaptive Optics Market Size, Share & Trends Analysis Report By Component (Wavefront Sensor, Wavefront Modulator, Control System, Others), By End-User Industry (Consumer devices, Astronomy, Biomedical Devices, Military and Defense, Industrial and Manufacturing, Communication, Others), By Application (Ophthalmology, Microscopy, Laser Application, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2022-2030

Market Overview

The global adaptive optics market size was valued at USD 281.42 million in 2021. It is projected to reach USD 3241 million by 2030, growing at a CAGR of 31.2% during the forecast period (2022-2030).

Adaptive optics (AO) is a technology integrated with optical systems for advanced imaging and microscopy. These technologies are used to enhance an optical system's output by reducing distortion effects by incoming wavefronts. The setup finds significant application in retinal imaging, laser communication, and biological research, among others. The application ecosystem contains three main components: wavefront sensors, control systems, and wavefront modulators. Furthermore, adaptive optics solutions support the user in obtaining the subject's finer details through magnified and advanced imaging.

Market Dynamics

Increasing Investment in the R&D Field for Integrating Adaptive Optics Is Expected to Boost the Market

In recent years, the application of adaptive optics to reduce optical aberrations in medical sciences, such as ophthalmology and retinal imaging, has increased market demand. Different companies such as Iris AO Inc., offer their AO systems designed explicitly for ophthalmology and retinal imaging with the increasing demand for adaptive optics. For example, Iris AO DMs are being used for retinal imaging by the U.S. National Institutes of Health. Owing to the various applications that AO finds in varied domains, companies have been sourcing significant R&D towards developing better and innovative products.

Besides, the use of AO systems in military and defense applications such as satellite imaging, optical free-space communication, and laser weapons, among others, has gained considerable popularity, which is also driving the market growth. Through collaborating with different defense agencies, companies such as Boston Micro Machine Corporation provide AO systems, which has given the market a significant boost.

Increased Government Funding Accelerates the Growth of the Global Adaptive Optics Market

Researchers have found adaptive optics systems' applications across many industries, including high-end manufacturing microscopes and various spectroscopy techniques. In May 2019, researchers at the U.S. National Eye Institute researched to capture mosaic patterns created by the retinal pigment epithelium (RPE) in humans using vivo fluorescence ophthalmoscopy coupled with adaptive optics (AO). This has fueled the demand for AO powered imaging ecosystems that would enable better research insights. This has driven the market to grow further.

Moreover, many government organizations have adopted these powerful techniques that have further boosted the global market. For instance, government organization, such as European Southern Observatory (ESO), has a dedicated AO department that provides adaptive optics observing capabilities to overcome atmospheric turbulence limitation in ordinary telescopes.

Regional Analysis

North America Dominates the Global Adaptive Optics Market

The North American region holds the largest share of the global market. Market dominance can be attributed to recognizing the extensive application scope of adaptive optics in various industries. The increasing demands for better technologies from the biomedical and astronomical applications have led to the growth of adaptive optics in the region. Due to continuous developments in optics and related technologies in North America, countries such as the US and Canada are taking the biggest market share. The early adopters of adaptive optics technologies in North America and internationally are believed to be these countries. Besides, the healthcare sector is progressing rapidly in the United States, and optics in healthcare applications have also increased.

Furthermore, policymakers and state and federal governments in these countries have recognized the need for effective optical solutions to support the different industrial verticals operating in this sector, which can be reasoned for the market dominance globally.

Europe to Experience Steady Growth during the Concerned Time Frame

In embracing adaptive optics technologies, Europe closely approaches North America.In Europe, several companies invest and collaborate with leading optics companies in order to provide an integrated solution with their product line-up.Adaptive optics offer future prospects for different European businesses, industries and governments. For instance, a number of advancements have been reported by the European Southern Observatory (ESO), which represents the government interest and on extension, numerous opportunity pockets for market key players in this region.

Segmental Analysis

Wavefront Sensors Hold the Largest Share of Market

The wavefront sensors segment held the largest chunk of the market by components. Moreover, the market for these sensors is expected to grow at the highest rate among others in the market during the forecast period. These sensors find usage in various adaptive optics applications across different domains. For example, wavefront sensors monitor laser beam shape and size for many laser applications, such as laser beam diagnostics and laser material processing, to improve precision. 

Similarly, wavefront sensing can be used in microscopic imaging of biological samples and tissues. The use of adaptive optics to correct light distortions aims to improve the image quality of dense biological tissues dramatically. As they are packed with optical inhomogeneities that degrade image quality, these sensors address an age-old issue of biological specimen imaging.

The Biomedical Imaging Segment Is Expected to Witness Steady Growth Owing to Various Research Activities

The Biological research and imaging sector have witnessed great advancements due to the advent of powerful imaging techniques. Besides, comprehensive research on adaptive optics applications in healthcare continues to be performed at universities and research laboratories worldwide. The Institute of Optics, University of Rochester (U.S.), for example, began by researching the potential for the application of adaptive optics in ophthalmology and correcting most of the aberrations of the eye to picture the living human eye at high resolution and a range of universities have come up with the trend of investing resources to research adaptive optics applications.

However, in the case of biological specimens, ' indirect means are used to measure aberrations since wavefront sensors cannot directly be inserted into the specimens. Thus, this fuels further research on the same contributing significantly to the steady growth rate.

Impact of covid-19

The outbreak of the COVID-19 pandemic has kept individuals quarantined in their homes worldwide for most of 2020. To stop the spread of the disease, governments have restricted movement and forbidden travel around the world. This has undoubtedly caused people to want to escape from isolation and to enjoy life as before. Governments also appear to lift travel bans and ease travel restrictions from 2021 due to the falling GDP and the disruption of big and small businesses. As individuals begin to travel again during this period, the tourism industry can expect to see a dramatic increase in bus ticketing, which was affected in terms of both income and employment rates earlier this year.

Recent Developments

• In January 2020, National Science Foundation (NSF) newest AO-based Telescope Inouye Solar 4-meter Telescope produced the first image that used adaptive optics to compensate for the blurring effect created by Earth's atmosphere.
• In July 2019, Imaging Optics company collaborated with the EU-funded VOXEL project, innovated means to produce 3D imaging without high doses of X-ray by adapting a plenoptic imaging technique is powered by adaptive optics systems.