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Nanophotonics Market

Nanophotonics Market Size, Share & Trends Analysis Report By Product Type (LED, OLED, Near Field Optics, Photovoltaic Cells, Optical Amplifiers, Optical Switches, Others), By Nanophotonic Material (Plasmonics, Photonic Crystals, Nanotubes, Nanoribbons, Quantum Dots, Others), By End-Use (Telecommunication, Consumer Electronics and Entertainment, Digital Signage, Lighting, Bio-Imaging, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Report Code: SRSE55671DR
Study Period 2019-2031 CAGR 9.3%
Historical Period 2019-2021 Forecast Period 2023-2031
Base Year 2022 Base Year Market Size USD 13.9 Billion
Forecast Year 2031 Forecast Year Market Size USD 30.9 Billion
Largest Market Asia Pacific Fastest Growing Market Europe
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Market Overview

The global nanophotonics market size was valued at USD 13.9 billion in 2022 and is projected to reach USD 30.9 billion by 2031, registering a CAGR of 9.3% during the forecast period (2023-2031). The growing use of nanophotonics in electronics, communication, biotechnology, defense, and solar power conversion applications drives the global nanophotonics market share.

Nanophotonics is a branch of science and technology concerned with manipulating and controlling light at the nanoscale. It blends nanotechnology and photonics principles to investigate and use the unique features of materials and structures at the nanoscale level for various applications. The rising use of nanophotonics in electronics, communication, biotechnology, defense, and solar power conversion applications propels the global Nanophotonics Market growth. The market is expanding due to the increasing use of LED in consumer electronics. Nanophotonics enables solid-state illumination with excellent thermal conductivity and modulation rate, improving device efficiency and light quality.

Additionally, manufacturers of nanophotonic devices are merging small-scale power electronics and transistors on a single chip to boost bandwidth and data transmission speed. This enables nanophotonic integrated circuits (I.C.s) to communicate directly with other devices via light.

Market Dynamics

Global Nanophotonics Market Drivers:

Demand for High-Speed Data Communication

High-speed data transmission is in high demand, particularly in data centers and telecommunications. Nanophotonics technology allows for speedier data transmission and processing. The demand for high-speed data connection in data centers is increasing constantly. Silicon photonics has facilitated the development of optical transceivers and interconnects, which use light to carry data between servers and network equipment. According to a Cisco study, annual global I.P. traffic will reach 4.8 ZB per year by 2022, or 396 Exabytes (E.B.) every month. The yearly run rate of worldwide I.P. traffic in 2017 was 1.5 ZB per year or 122 EB per month. Over the next five years, global I.P. traffic will triple.

Furthermore, photonics technologies are used for data transmission in high-speed fiber-optic networks that support internet connectivity. Nanophotonics components, such as waveguides and modulators, help to achieve faster data transfer rates. According to Statista, the global market for fiber-optic components will exceed USD 8.6 billion by 2025, showing the continuous expansion of high-speed data transmission networks. As data volumes increase, the requirement for quicker and more efficient data transmission methods will drive the development and usage of nanophotonics solutions even further. As a result, the nanophotonics market trend is influenced.

Global Nanophotonics Market Restraints:

Regulatory and Safety Concerns

Nanomaterials used in Nanophotonics may generate regulatory and safety problems. Governments and regulatory agencies may establish strict norms and regulations for manufacturing, handling, and disposing of nanophotonic materials. According to Tufts Center for the Study of Medicine Development research, the average cost in the United States to develop a new pharmaceutical medicine and obtain regulatory clearance can reach USD 2.5 billion. Cost considerations are similar for nanophotonic drug delivery technologies that require extensive safety testing.

Furthermore, the regulatory approval process for nanophotonic medical devices and treatments might cause significant delays in the commercialization of breakthrough technology. These delays may have an impact on patients' access to cutting-edge medicines. The Food and Drug Administration (FDA) of the United States maintains strict examination processes for medical devices, which might result in lengthy clearance schedules. Nanophotonic medical devices must meet the same safety and efficacy standards as conventional medical devices, thereby delaying commercialization.

Global Nanophotonics Market Opportunity:

Emerging Quantum Technologies

Quantum technology research and commercialization, such as quantum computing and quantum communication, present enormous prospects for nanophotonics. Nanophotonics can play a critical role in achieving the potential of quantum technology. Quantum computers can tackle complicated problems at speeds that traditional computers cannot. These systems rely on the exact control and manipulation of quantum bits (qubits), which nanophotonics can accomplish. According to IBM, quantum computing is quickly advancing. IBM's cloud-accessible quantum computers have attained a quantum volume of over 65,000, exhibiting quantum hardware advancement. This finding opens the door for nanophotonics to contribute to creating quantum computing hardware.

Furthermore, quantum sensors provided by nanophotonics provide incredibly precise measurements. These sensors are used in metrology, geophysics, and medical diagnostics. The European Space Agency (ESA) is actively investigating the use of quantum sensors for various applications, including gravitational wave detection. Quantum sensors have the promise of fundamental physics and applied sciences breakthroughs.

Regional Analysis

Asia-Pacific Dominates the Global Market

The global nanophotonics market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

Asia-Pacific is the most significant global Nanophotonics market shareholder and is estimated to grow at a CAGR of 9.8% over the forecast period.Asia-Pacific has already established itself as a manufacturing powerhouse for electronic and semiconductor devices. Furthermore, the regional industry is rapidly developing due to considerable improvements in the consumer electronics, healthcare, and automotive industries.

The market in Japan and South Korea is expanding rapidly due to these countries' strong emphasis on R&D. The Ministry of Education, Culture, Sports, Science, and Technology (MEXT) is primarily responsible for funding nanotechnology research in Japan. Japanese researchers, such as Noda's group at Kyoto University and Baba's group at Yokohama National University, have developed photonic crystal devices for low-loss waveguiding, low-threshold lasing, and other applications. Similarly, Tsukuba University in Japan studies high-speed switching applications using photonic crystal devices. The Ohtsu research group has established theories of optical near-field interactions with nanomaterials and is working on prototype nanophotonic devices based on these ideas.

Furthermore, due to its thriving consumer electronics and semiconductor sectors, which rely heavily on nanophotonics, China holds the highest share of the worldwide market. In conjunction with large government investments in nanotechnology and photonics research and development, this encourages new applications in industries such as telecommunications, healthcare, and energy.

Europe is anticipated to exhibit a CAGR of 9.9% over the forecast period. The European market is growing at the highest rate because of the region's large client base for nanophotonic products. As the number of nanophotonic application areas grows, the European Market benefits from significant investment in research and development. Germany's economy has benefited immensely from tremendous scientific research and development activities. Novel technology development, such as nanotechnology, has tremendous economic potential, and many German companies are focused on creating, selling, and implementing nanotechnology-based products.

In addition, the Nanophotonics Europe Association (NEA), a member of the E.U. Network of Excellence formed with PhOREMOST, promotes nanophotonics research, technology transfer, and innovation.

The North American market is rapidly expanding, according to nanophotonics market insights. the United States is fueling regional market growth because of increased investment in end-use industries such as telecommunications, consumer electronics, and solar power conversion systems. The expanding trend of smart homes and smart offices raises demand for consumer gadgets such as smart TVs, smart air conditioners, smart refrigerators, and more as technology advances. Furthermore, an increase in consumer electronics users' disposable money and their shifting tastes toward smart homes and smart working environments is propelling market growth in the United States.

Report Scope

Report Metric Details
Segmentations
By Product Type
  1. LED
  2. OLED
  3. Near Field Optics
  4. Photovoltaic Cells
  5. Optical Amplifiers
  6. Optical Switches
  7. Others
By Nanophotonic Material
  1. Plasmonics
  2. Photonic Crystals
  3. Nanotubes
  4. Nanoribbons
  5. Quantum Dots
  6. Others
By End-Use
  1. Telecommunication
  2. Consumer Electronics and Entertainment
  3. Digital Signage
  4. Lighting
  5. Bio-Imaging
  6. Others
Company Profiles Anders Electronics PLC Nanosys Inc. Cree Inc. Novaled GmbH (Samsung SDI Co.) Lumileds Holding B.V. Schott AG Sharp Corporation STMicroelectronics N.V. Veeco Instruments Inc OSRAM Opto Semiconductors GmbH WITec Wissenschaftliche Instrumente Technologie GmbH
Geographies Covered
North America U.S. Canada
Europe U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
APAC China Korea Japan India Australia Singapore Taiwan South East Asia Rest of Asia-Pacific
Middle East and Africa UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
LATAM Brazil Mexico Argentina Chile Colombia Rest of LATAM
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
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Segmental Analysis

The global nanophotonics market is segmented based on product type, nanophotonics materials, end-use, and region.

By Product type, the market is further segmented into LED, OLED, Near Field Optics, Photovoltaic Cells, Optical Amplifiers, and Optical Switches.

LED drives the market growth.

LEDs are semiconductor devices that emit light when a current is sent through them. LEDs may be tailored at the nanoscale to provide highly efficient and small light sources in nanophotonics. Displays, indicators, lights, and optical communication systems all use nanoscale LEDs. The high-beam LED has the largest market share in the nanophotonics LED industry, followed by the UV LED. 

OLEDs are thin-film devices that emit light when a current is applied. By boosting light extraction and color purity, nanophotonics can improve the efficiency and performance of OLEDs.

Based on nanophotonic materials, the market is sub-segmented into Plasmonics, Photonic Crystals, Nanotubes, Nanoribbons, and Quantum Dots.

Plasmonics holds the major market share.

Plasmonics studies how an electromagnetic field interacts with free electrons in a metal. Nanophotonics uses plasmonic materials to control and modify light at the nanoscale, allowing for improved sensing, imaging, and light confinement. Surface-enhanced Raman spectroscopy (SERS), biosensors, and subwavelength imaging use plasmonic materials.

Photonic crystals are periodic formations that form bandgaps for specific light wavelengths. Photonic crystals are used in nanophotonics to regulate the passage of light and produce unique optical devices with adjustable features.

By end-use, the segment can be further bifurcated into Telecom, Consumer Electronics and entertainment, Digital Signage, Lighting, and Bio-Imaging.

Consumer Electronics and entertainment occupy the largest share of the market.

Nanophotonics is used in displays, lighting, and sensors in consumer electronics. It improves the quality and efficiency of electronic gadgets while enabling new functionality. Examples of how nanophotonics affects this sector include OLED displays in smartphones and televisions, energy-efficient lighting solutions, and photodetectors for consumer products.

OLEDs and efficient light sources are among the latest display technologies used in digital signage. Nanophotonics improves digital signage displays' visual quality, durability, and energy efficiency.

Market Size By Product Type

Market Size By Product Type
  • LED
  • OLED
  • Near Field Optics
  • Photovoltaic Cells
  • Optical Amplifiers
  • Optical Switches
  • Others
  • Recent Developments

    • September 2023- Quantum Computing Inc., a pioneer in quantum optics and nanophotonics technology, officially announced the execution of a strategic sales and collaboration agreement with Assured Cyber Protection Ltd, a company specializing in AI-driven cybersecurity assessment, continuous detection, and mitigation solutions.
    • August 2023- North-Eastern Hill University (NEHU) and the Indian Institute of Technology Guwahati (IIT Guwahati) signed a Memorandum of Understanding (MoU) to begin a collaborative relationship aimed at advancing research in the field of nanotechnology. This broad field encompasses semiconductors, nanoelectronics, nanofabrication, and nanophotonics. The strategic collaboration also includes exchange programs for teachers, scholars, and students, allowing for comprehensive training and development in this rapidly growing sector.
    • September 2023- Shoei Chemical acquired Nanosys' Quantum Dot business.

    Top Key Players

    Nanophotonics Market Share of Key Players

    Nanophotonics Market Share of Key Players
    Anders Electronics PLC Nanosys Inc. Cree Inc. Novaled GmbH (Samsung SDI Co.) Lumileds Holding B.V. Schott AG Sharp Corporation STMicroelectronics N.V. Veeco Instruments Inc OSRAM Opto Semiconductors GmbH WITec Wissenschaftliche Instrumente Technologie GmbH Others

    Frequently Asked Questions (FAQs)

    How big is the Nanophotonics Market?
    The global nanophotonics market size was valued at USD 13.9 billion in 2022 and is projected to reach USD 30.9 billion by 2031, registering a CAGR of 9.3% during the forecast period (2023-2031).
    Asia Pacific dominates the Nanophotonics Market.
    The key players in the global market include Anders Electronics PLC , Nanosys Inc. , Cree Inc. , Novaled GmbH (Samsung SDI Co.) , Lumileds Holding B.V. , Schott AG , Sharp Corporation , STMicroelectronics N.V. , Veeco Instruments Inc , OSRAM Opto Semiconductors GmbH , WITec Wissenschaftliche Instrumente , Technologie GmbH.
    Emerging Quantum Technologies is a great opportunity in the market.
    The global market is segmented by product type, nanophotonic material and end use.


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