Optical Measurement Market

Market Overview

The global optical measurement market size was valued at USD 5.65 billion in 2022. It is projected to reach USD 9.75 billion by 2031, registering a CAGR of 6.25% during the forecast period (2023-2031). The current demographic trend of an older population, coupled with escalating healthcare expenditures, has resulted in an expanding need for optical measurement devices and technology.

Optical measurement is the application of optical principles and technologies to determine objects or substances' physical properties, dimensions, and characteristics. It requires the interaction of light, typically visible or non-visible electromagnetic radiation, with the object of interest to obtain data for precise and accurate measurements. Optical measurement techniques are widely employed in various fields and applications because of their non-contact nature, high accuracy, and versatility.

Market Dynamics

Global Optical Measurement Market Drivers:

Quality Control and Assurance

Ensuring product quality holds significant importance across various industries, encompassing manufacturing, automotive, aerospace, and electronics. Primarily, the presence of product flaws or substandard quality can give rise to safety risks, expensive recalls, and damage to a company's brand. Compliance with strict quality standards and regulations is required in highly regulated industries like aerospace and automotive to guarantee end-users safety and meet legal requirements.

Optical measurement systems are essential to this pursuit of excellence because they offer a nondestructive and highly accurate method for inspecting and measuring products, components, and materials. These systems can use sophisticated optics and sensors to catch even the tiniest flaws, deviations from specifications, or quality inconsistencies. Hence, the increasing quality control and assurance measures are propelling the growth of the optical measurement market.

Rising Healthcare Application

Optical measurement technology plays a crucial role in the healthcare industry, highlighting its importance as a growth driver for the optical measurement market. As the global population ages, there is a rising demand for advanced medical imaging, diagnostics, and research instruments. Optical measurement techniques, such as optical coherence tomography (OCT), fluorescence microscopy, and various types of spectroscopy, are indispensable for comprehensively understanding biological tissues and structures. These technologies allow healthcare professionals to visualize, diagnose, and monitor disorders and conditions with high precision and minimal invasiveness, enhancing patient care.

In addition, the rising cost of healthcare, particularly in developed countries, is driving the adoption of cutting-edge medical technologies, such as optical measurement instruments. Healthcare providers and research institutions are investing significantly in diagnostic and treatment options-enhancing technologies and solutions. Consequently, the optical measurement market is experiencing a rise in demand for optical imaging systems, endoscopic instruments, and noninvasive monitoring devices.

Global Optical Measurement Market Restraint:

High Initial Cost and Ongoing Expenses

The high initial cost and ongoing expenses associated with implementing advanced optical measurement systems hamper the market's growth. These systems often require substantial capital investments in purchasing the equipment and software and training personnel to operate and maintain them effectively. In addition to the upfront costs, there are ongoing costs related to calibration, maintenance, and software updates, which can be substantial over the equipment's lifecycle.

This cost barrier can be especially difficult for smaller businesses and organizations with limited budgets, hindering their ability to implement and fully utilize optical measurement technology. It can also prolong the replacement cycle for older, less efficient measurement equipment, as businesses may be unwilling to make the substantial financial investment required to upgrade to the most advanced optical measurement systems. Such factors hinder market growth.

Global Optical Measurement Market Opportunities:

Miniaturization and Portability

The trend toward miniaturization and portability in optical measurement devices is reshaping industries by presenting abundant opportunities. There is a growing demand for miniature and transportable optical sensors and measurement instruments in numerous industries, such as healthcare, manufacturing, environmental monitoring, and research. These miniature devices are particularly advantageous for field applications in which mobility and accessibility are essential. For instance, Point-of-care diagnostics in healthcare can benefit from portable or wearable optical measurement instruments that can provide rapid and accurate results at the patient's bedside, thereby reducing the need for centralized testing facilities and accelerating diagnosis and treatment.

In manufacturing and research, miniaturized optical sensors enable on-site measurements in remote or challenging environments, eliminating the necessity to transport samples to a laboratory for real-time data collection and analysis. Hence, the trend toward miniaturization and portability in optical measurement devices is expected to provide a key opportunity for the optical measurement market's growth over the forecast period.

Regional Analysis

Asia Pacific Dominates the Global Market

Based on regions, the global optical measurement market analysis is conducted across North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

Asia-Pacific is the most significant global market shareholder and is anticipated to expand substantially during the forecast period. Asia-Pacific stands out as a major manufacturing hub, particularly for electronic products, capitalizing on the increased adoption of the Internet of Things, wearable technology, and advancements in battery technology. This surge in electronic manufacturing and the proliferation of IoT devices and wearables drive the demand for precise optical measurement systems.

Moreover, Asia-Pacific's expansion in the automotive industry, healthcare sector, and infrastructure development further solidifies its supremacy in the optical measurement market. A case in point is India, where the healthcare market is projected to reach USD 372 billion by 2022, driven by factors like heightened health awareness, rising incomes, lifestyle diseases, and improved access to insurance. Consequently, the thriving healthcare sector fuels the region's growth of optical measurement technologies.

North America is predicted to expand significantly over the forecast period. This region boasts a global reputation as a technology and innovation hub. It is home to numerous tech companies and startups that drive innovation across various industries, including electronics. This culture of innovation fosters the development of cutting-edge devices and applications, many of which rely on optical measurement for precise data collection. As a result, North America stands as a dynamic market for optical measurement technologies.

Segmental Analysis

The global optical measurement market is segmented into material, letter code2, and application.

Based on the offering, the global optical measurement market is segmented into hardware, software, and services.

The hardware segment is the highest contributor to the market and is expected to grow significantly over the forecast period. Hardware includes cameras, lenses, sensors, and light sources. These hardware components are fundamental to optical measurement systems, as they capture and process optical data. Advancements in camera technology, sensors, and light sources contribute to the accuracy and versatility of optical measurement setups.

Optical measurement systems rely on software to process and analyze captured data. This software enables users to interpret measurement results, generate reports, and perform data-driven tasks. Software for calibrating optical instruments and ensuring measurement accuracy is crucial for maintaining the reliability of optical measurement systems

Calibration, maintenance, and technical support services are essential for ensuring the accuracy and reliability of optical measurement systems over time. Regular calibration and maintenance help prevent measurement errors. Professional installation services are crucial for correctly setting up complex optical measurement equipment to ensure optimal performance. Training programs help users understand how to operate and maximize the capabilities of optical measurement systems effectively.

Additionally, outsourcing part programming and inspection tasks to service providers can offer cost-effective solutions, particularly for customized measurements. Businesses may seek third-party services for measurement and inspection, especially when they lack in-house expertise or require specialized measurements.

Based on equipment, the global optical measurement market is segmented into autocollimators, measuring microscopes, profile projectors, optical digitizers and scanners (ODSs), 3Dlaser scanners, structured light scanners, laser trackers, coordinate measuring machines (CMMs), and video measuring machines.

The coordinate measuring machines (CMMs) segment dominates the global market and is expected to expand significantly over the forecast period. Autocollimators play a critical role in angle measurement and alignment applications, and their demand is likely to persist in industries requiring precision.

Measuring microscopes are indispensable for detailed measurements of small objects and features, making them valuable in industries with intricate components.

Profile projectors are used for magnified projection and measurement of object profiles, and they find applications in quality control and inspection.

ODSs capture 2D and 3D data from physical objects for various applications, and their versatility makes them suitable for various industries.

The demand for 3D laser scanners is rising, as they provide highly accurate 3D surface data for reverse engineering, construction, and quality control applications.

Structured light scanners, known for their 3D scanning capabilities, find use in industries requiring detailed surface measurements.

Laser trackers are essential for precise 3D measurements over large distances, and their applications in fields like aerospace and construction are expected to drive demand.

Coordinate Measuring Machines (CMMs) offer accurate dimensional measurements of complex parts, and their role in quality control remains critical across industries.

Video Measuring Machines (VMMs) utilizing video cameras for non-contact measurements of 2D and 3D features are well-suited for precision measurements in various sectors.

Based on the end-user industry, the global optical measurement market is fragmented into automotive, aerospace and defense, energy and power, electronics manufacturing, consumer goods, power generation, medical, and others.

The automotive industry segment owns the highest market share and is expected to expand substantially during the forecast period. The automotive industry strongly emphasizes quality control and precision manufacturing to ensure that vehicles meet strict safety and performance standards. Optical measurement systems are crucial for inspecting and verifying the quality of components, such as engine parts, body panels, and electronic systems. Moreover, automotive manufacturers use optical measurement for design validation, reverse engineering, and prototyping. Accurate measurements are essential during product development to ensure that components fit together correctly and perform as intended. Therefore, the above-mentioned reasons are collectively responsible for the segment growth.

Recent Developments

• January 2023- ZEISS announced the acquisition of LENSO, a prominent 3D optical systems partner based in Poland. This strategic acquisition is geared toward enhancing ZEISS's footprint in Poland, further strengthening its market presence.
• November 2022- AMETEK, Inc. successfully concluded its acquisition of RTDS Technologies Inc. and Navitar, a transaction valued at USD 430 million. This acquisition bolsters AMETEK's position in rapidly growing sectors and adds significant depth to its product portfolio.
• May 2022- Nikon Corporation announced the launch of an updated range of measurement stands and counters for its DIGIMICRO digital length measuring system. The revamped lineup emphasizes compatibility with Personal Computers, addressing the growing demand to gather and analyze measurement data on personal computer platforms.