Market Overview
The global terahertz technologies market size was valued at USD 420 million in 2021 and is anticipated to generate USD 2,879 million by 2030, growing at a CAGR of 23.8% during the forecast period (2022–2030).
A new and expanding sector, terahertz technology has the potential to be used for a wide range of applications, from airport passenger scanning to massive digital data transfers. On the scientific front, it has been reflecting essential developments. Three distinct qualities of terahertz (THz) radiation are present, and they act as catalysts for the growth of the terahertz industry. Between the infrared bands (100 GHz–10 THz) and mm-wave, the Terahertz area of the spectrum is where optics and electronics meet.
Ultra-broadband signals could be handled by the THz wave (having a significant water absorption rate and are transparent through many resources such as plastic, paper, cloth, and oil, which are opaque in visible and infrared light). In the spectrum range, various materials have fingerprint spectrums.
Terahertz waves are anticipated to be helpful in various applications such as hazardous materials scanning systems, high-speed wireless communications, and medical analysis devices. They're also used in multi-residue analysis for medical diagnostics, agrochemicals, environmental assessment, biometric security process monitoring systems, and industrial products.
Market Dynamics
Market Drivers
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Increasing Demand in Medical Sector
Terahertz technology is increasingly being used in healthcare, including biomedical imaging, terahertz imaging, and spectroscopy for cancer detection, among other applications. Furthermore, due to its precision and accuracy, terahertz technology aids in real-time confirmation of removal of all cancer tissues simultaneously, reducing the number of surgeries and facilitating earlier and more precise diagnosis.
Furthermore, the ability to generate high-quality spectroscopic imaging by terahertz radiation has made the diagnosis of many chronic and associated disorders much easier. The initial stage in making considerable advances toward establishing the technology in the healthcare business has been the substitution of conventional x-rays and infrared rays with terahertz rays, which is driving market expansion in the forecast period. THz imaging can perform 3D analysis on tablets, such as determining coating integrity and thickness, detecting and identifying localized chemical or physical structures within a core, such as cracks or chemical agglomeration, and interrogating embedded layers for delamination and integrity.
The emergence of new diseases, such as COVID-19, the expansion of regulatory norms around the world, the focus on population health management, inventions, better-informed customers, and the evolution of advanced technologies are all factors that are increasing the demand for terahertz technologies in the healthcare industry. Furthermore, terahertz technology is rapidly being used in non-destructive testing since it has various advantages over other non-destructive testing methods. Unlike X-ray or UV radiation, Terahertz waves do not cause a change in the chemical structure of the material under research and are not dangerous to people due to their low energy. Terahertz technology is, therefore, an intriguing tool for industrial quality control.
Terahertz rays may also visualize the contents of sealed packages and provide a clear and complete examination of the interior structure of items (product quality control), making them an indispensable part of the non-destructive testing industry. The possible applications of terahertz technologies include the protection of government buildings and other public facilities.
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Widescale Security Applications
Security concerns have been a huge issue all around the world. Due to an increase in terrorist activities worldwide, governments and private businesses have invested large sums of money. Security checks and surveillance have been a source of concern in airports and other security-sensitive locations where terrorist attacks could occur. Furthermore, because of its many capacities for detecting metallic and non-metallic compounds, the employment of terahertz technology has been advocated in these regions. Terahertz technology can penetrate some opaque materials for the structure of objects in a sealed package, making it an ideal replacement for the present scanning technologies used at security terminals.
Additionally, Terahertz technology can identify dangerous elements from afar because most materials have unique spectral identities in the terahertz range and can be easily recognized by authorities. Terahertz's expertise may be shown when spectrum identification is combined with imaging to describe the object in question fully. It can be employed for maximum security at important security sites. Furthermore, the ability to undertake complete or partial body scanning and other relevant security screening without exposing essential organs to radiation has been a significant driver in the security industry's embrace of terahertz technology. Plastic, ceramics, and polymers are standard opaque components that are transparent in the terahertz region and can thus be detected using terahertz technology.
In general, the growing use of terahertz technology in various security applications is likely to propel market expansion over the forecast period.
Market Restraints
A significant barrier to terahertz technology adoption in the market has been a lack of understanding of the technology. The research community has made substantial progress toward realizing the technology's promise by identifying key positives capable of generating a different market. However, a lack of understanding of the topic, particularly in emerging nations, has been a key stumbling block to the market's expansion. Another critical aspect affecting end-user decision-making is the financial complications of installing the technology in various applications. In some industries, disruptive technologies may confront customer skepticism and opposition from incumbents currently selling in these markets.
Terahertz imaging is a newer technology. As a result, it is difficult to replace the incumbent technologies that now dominate the market. Validating the utility and distinctiveness of terahertz technology as a service to end-users has taken some time. Therefore, upgrading industrial equipment, such as X-rays and MRIs, is a complex and time-consuming task that could cost customers dearly. Since end-users are not entirely convinced of the benefits of terahertz technology, these expenses significantly impact its acceptance. Overall, a lack of understanding about terahertz technology is expected to impede market expansion throughout the projected future.
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Primitive Device Infrastructure
Terahertz technology has become commercially available, with numerous applications and advantages over conventional technologies. Technology integration in devices for security or other purposes, on the other hand, needs equipment that can function in the terahertz frequency range. Furthermore, firms have made numerous efforts toward building such instruments, with companies designing diverse circuits and antennas on a single chip significantly smaller than the present size of commercial products. The small size of the chip has made integrating a device to create a practical level of power extremely difficult for instrument inventors, which is a key stumbling block to the widespread use of technology.
The big businesses are investing a lot of money and resources to take advantage of the terahertz technology's promise to produce accurate and robust models capable of assessing and calculating device design and functioning at the operating frequency. The device infrastructure is still in its infancy, but it has evolved significantly in preparation for the large-scale use of terahertz technology in the worldwide market. Overall, in the foreseeable period, the absence of device infrastructure to enable the deployment of terahertz technology is expected to impede the market growth.
Market Opportunities
Terahertz technology is quickly gaining traction in 6G connectivity. Several efforts and research projects around the world have achieved milestones in favor of 6G development, particularly in the Terahertz (THz) band, since 2019. For example, at the IEEE International Conference on Communications (ICC 2021) in June 2020, researchers from Samsung Research, Samsung Research America, and the University of California, Santa Barbara (UCSB) demonstrated an end-to-end 140GHz wireless link using a fully-digital beamforming solution, demonstrating the potential impact of THz on 6G technology.
Additionally, in September 2020, researchers at the Karlsruhe Institute of Technology (KIT) developed a new concept of low-cost terahertz receivers made up of a single diode and a dedicated signal processing technique for future wireless networks of the sixth generation (6G), which will be made up of a slew of small radio cells connected by broadband communication links. Various countries are putting terahertz technology to the test in newer fields, such as space and astronomy, which will pave the way for commercialization.
As plastics continue to expand steadily around the world, replacing expensive materials like ceramics and metals, demand for a plastic component connecting technology is gradually increasing. Plastic welding, in particular, is supposed to produce a stable physical link between polymers if done correctly. Delamination and inclusions were not detected using ultrasonic waves or X-rays. On the other hand, THz waves expose both destructive and non-destructive fault types between polymers. THz technologies, such as THz time-domain spectroscopy, are also predicted to drive food quality control and applications in domains such as security scanning, material characterization, and historical and archaeological research.
Sediments containing various soil minerals were recovered in December 2020 from an archaeological site in Pingabayanan, Batangas, Philippines. Each soil sample was inspected and profiled from different layers or sampling depths. In terms of detection of trace metals and minerals, terahertz transmission spectroscopy was also used, which demonstrated good agreement with the conventional characterization results. Overall, different industries can benefit from the distinctive advantages of THz technology due to its diverse uses. THz systems will likely become even more competitive as system resilience, measuring speed, and cost-efficiency increase.
Regional Analysis
Based on region, the blow terahertz technologies market share is segmented into North America, Europe, Asia-Pacific, and the Rest of the World.
North America to Be the Largest Revenue Holder in Global Market
North America is anticipated to hold the largest market share, accounting for USD 1,029 million by 2030 at a CAGR of 21.6%, primarily due to the rising homeland security issues, investments in defense, and increasing R&D. Furthermore, the region's demand for terahertz technology is being driven by stringent government requirements surrounding the safety and manufacturing of aerospace technologies in the United States and the rapidly developing automotive and aerospace industries.
Europe is the second contributor to the terahertz technologies market, with revenue of USD 102 million in 2021. The United Kingdom has one of the most sophisticated healthcare industries globally. It is an early adopter of modern technology, which has fueled the rise of advanced technologies in healthcare. Furthermore, government initiatives related to national security, counter-terrorism, and the need to protect against the growing threat of crime are propelling the industry.
Terahertz technologies market in Asia-Pacific is expected to witness steady growth with a value of USD 95 million in 2021. The market for terahertz technology-based equipment is being driven by an expansion in the number of manufacturing firms in countries like China and Japan and increased demand for explicit security measures in the medical and defense sectors. The rising adoption of terahertz technology due to its capacity to penetrate barriers without causing damage and the use of terahertz systems in R&D are driving market expansion.
The rest of the World has the lowest market. In 2021, the market revenue was valued at USD 45.6 million. Increased terrorist and criminal activities are also motivating government institutions in various nations across the area to build more robust security infrastructure, which is driving the market growth.
Segmental Analysis
The global terahertz technologies market share is categorized by technology and end-use application.
Based on the technology used, terahertz imaging is the major shareholder in the global market.
The global market for terahertz imaging is projected to generate USD 1,808 million in 2030, growing at a CAGR of 23.1%. The development of all-electronic scanners for standoff threat detection requires extensive study to ensure quick sensors and camera imaging systems for high frame-rate imaging. With the advancement of imaging technology and the advancement of basic terahertz wave theory, terahertz imaging applications are becoming increasingly popular.
In terahertz spectroscopy, electromagnetic waves with frequencies ranging from a few hundred gigahertz to several terahertz are used to detect and manipulate the characteristics of matter (abbreviated as THz). Terahertz spectroscopy is anticipated to increase rapidly during the forecast period. Material characteristics are monitored and controlled via terahertz spectroscopy. Terahertz spectroscopy technology provides information about food samples in both quantitative and qualitative forms. Terahertz spectrometers are increasingly used in the food and processing industry for inspection, quality control, and moisture detection, which is attributed to the market's expansion.
End-use application-wise, defense and security is the largest market holder. THz advances in defense and security, such as secure terahertz communication, chemical and biological agent detection, and anti-stealth THz ultra-wideband radar, are likely to drive the market significantly over the forecast period. The global market for the defense and security industry is projected to generate USD 983 million in 2030, growing at a CAGR of 22.6%.
Top Key Players
Luna Innovations
Travel
TeraView Limited
TOPTICA Photonics AG
HÜBNER GmbH & Co. KG
Advantest Corporation
Batop GmbH
Terasense Group Inc.
Microtech Instrument Inc.
Menlo Systems GmbH
Gentec Electro-optics Inc.
Bakman Technologies.
Others
