Photodiode Market

Photodiode Market Outlook (2022-2032)

The global photodiode market has reached a valuation of US$ 410.1 million in 2022 and is expected to progress at a CAGR of 8.3% to reach US$ 916.3 million by the end of 2032.

Photoconductive mode of photodiode accounts for around 55% of the global photodiode market by the end of 2022.

Report Attributes	Details
Photodiode Market Size (2021A)	US$ 392.8 Million
Estimated Market Value (2022E)	US$ 410.1 Million
Forecasted Market Value (2032F)	US$ 916.3 Million
Global Market Growth Rate (2022-2032)	8.3% CAGR
North America Market Share (2022)	~32.0%
North America Market Value (2022)	US$ 131.0 Million
Europe Market Share (2022)	~8.6%
Europe Market Value (2022)	US$ 35.1 Million
China Market Share (2022)	~18.4%
China Market Value (2022)	US$ 75.5 Million
Top 3 country Market Share	~50.4%
Key Companies Profiled	OSRAM Optoelectronics First-sensor AG Excelitas Technologies Corp Hamamatsu Photonics Deutschland Kyosemi Corporation OSI optoelectronics Edmund Optics II-VI Incorporated Rohm Semiconductor Thorlabs, Inc. Everlight ON Semiconductor Luxnet Corporation Global Communication Semiconductor LLC

Sales Analysis of Photodiode (2017-2021) Vs. Market Outlook (2022-2032)

Photodiodes market is anticipated to showcase significant growth over the forecast period owing to the widening horizons of photodiodes application. Photodiodes come under the umbrella of the optoelectronics segment which itself is showcasing massive potential over the past half-decade and is expected to remain strong over the coming years.

Moreover, photodiodes are used in smartphone camera systems which are further burgeoning the market with its increasing penetration. Rapid advancement in photodiodes manufacturing technology and increasing miniaturization in semiconductors is poised to corroborate the growth of the market over the forecast period.

Photodiodes are increasingly being adopted in camera systems for hyperspectral imaging applications. Due to the excellent quantum efficiency of InGaAs photodiodes, they are replacing other material photodiodes in camera applications.

Organic photodiodes consisting of different natural polymer-primarily based on merchandise made with the usage of processing and inkjet printing techniques. Owing to their inherent properties, those diodes may be lined onto quite a few surfaces, which include sun cells and displays. All these factors are burgeoning the demand for photodiodes.

• Short Term (2022 Q2 to 2025): Growing necessity for advanced technology will positively impact photodiode market growth.
• Medium Term (2025-2028): China and U.S. projected to witness comparatively high demand for photodiode due to presence of many chip manufacturers and their shifted focus for efficient devices.
• Long Term (2028-2032): The photodiodes, when integrated in IoT enabled detection devices such as sensors, barcodes, and others which have high demand in the late future will provide lucrative opportunities for various types of photodiodes.

From 2017 to 2021, the global market for photodiode registered a CAGR of 3.4%. Fact.MR, a market research and competitive intelligence provider, reveals that the market will exhibit growth at 8.3% CAGR between 2022 and 2032.

Market share analysis of photodiode based on type and region is provided in the above image. Under the type segment, the avalanche photodiode sub-segment dominates with 61.2 % market share in 2022.

What’s Driving High Demand for Photodiode across Regions?

“Heavy investments in Miniaturization of Semiconductors”

Compound semiconductors are gaining momentum. The advantages of compound semiconductors include high quantum efficiency, a wide range of stopping power, low noise, high sensitivity range, etc.

Miniaturization is a growing trend across a multitude of industries, with semiconductors leading the revolution. Manufacturers and government bodies are pouring in heavy investments for the companies to come out with miniature products which could benefit both the manufacturer and the end users.

Tablets, laptops, and smartphones are all advancing at a rapid pace and require more work capacity in smaller spaces. Further, this is pushing manufacturers to invest heavily in production shifts and come up with products that are small and effective. Moreover, the use of photodiodes in smart wearables is increasing which requires manufacturers to come up with solutions that can perform the same functions as big devices.

“Increasing shift towards R&D integration for Developing Next-generation Products”

Research and development are one of the most vital aspects of the photodiode market. Manufacturers continuously strive for innovations in the manufacturing process which is heralded by tactical spending on research and development. On an average, manufacturers dedicate around 10% of the total workforce to R&D activities for the development of their products.

Trends are being followed by key manufacturers across the globe with companies prioritizing innovations in photodiodes. Rapid innovations and changes are indispensable in today’s market and consumers of the present generation demand more products in less time. As fashion trends keep changing, it seemingly makes the new products obsolete in a short amount of time.

This shift is crucial for the manufacturers to bank on and come out with revolutionary products in a short time. Therefore, increasing spending on R&D for next-generation products is poised to support the growth of the market.

What Do Photodiode Manufacturers Need to Watch Out For?

“High Cost of Integration and Poor Temperature Stability Hinder the Market Growth”

Global photodiodes market growth is restricted by various factors, amongst which their high cost of integration is critical. The cost of photodiodes is high as compared to alternatives including silicon, GaN, etc. Some industries may require advanced photodiodes which cost more than basic units. Moreover, the packaging of the semiconductor also adds up to the total cost of photodiodes.

There are other factors responsible for increased costs, including the incapability to exceed the working temperature required by the manufacturers and fabrication difficulties due to the intricate structure.

Depending upon the operating temperature range and the surrounding atmosphere, photodiodes need different packaging systems. There are a few inhibiting factors of photodiodes, such las dark current temperature dependence and poor temperature stability, which are restraining the growth of the market.

Country-wise Insights

“Why is the U.S Photodiode Market expected to be Lucrative?”

In the historical period from 2017 to 2021, the US photodiode market expanded by a CAGR of 3.1%. The United States has been a strength in photodiodes and semiconductors for a long time. Due to the presence of a large number of semiconductor manufacturers and suppliers in the country and also the presence of top companies, the photodiode market in the country has always boomed.

The top companies that dominate the market are Intel Corporation, Micron Technology, Inc., NVIDIA Corporation, NXP Semiconductors N.V., and many others.

And for some past decades, American companies have led the world in making the minute chips that power the latest technologies. The US has been at the forefront of developing 5G technology and seems to have developed all the advanced chips needed for the entire semiconductor industry. The United States is therefore poised to play an important role in the market in the coming years.

“Will Increasing Semiconductor Industry in the China Drive Photodiode Demand?”

China is best known as the world's manufacturing hub. It is poised to dominate the market in the next decade due to the wide presence of domestic semiconductor foundries. Some major semiconductor companies to be mentioned are LONGi Green Energy Technology, Jiangsu Changjing Electronics Technology, Will Semiconductor Co, and others.

China, supported by Taiwan, has the largest number of wafer fabs in the world. Moreover, the strong push in the Chinese market to mobilize advanced technology solutions in photodiode manufacturing has made China a leader in wafer production.

Therefore, China is an unparalleled country in the field of photodiodes and is expected to contribute significantly to market growth in the coming years. China is poised for stellar growth during the forecast period and is expected to achieve a market share of 18.4% in 2022.

Category-wise Insights

“Growth of Market for Avalanche Photodiode?”

Avalanche photodiodes (APDs) are highly sensitive semiconductor photodiode detectors that utilize the photoelectric effect. Common applications of avalanche photodiodes include ranging, imaging, fiber optic communications, laser microscopes, high-speed laser scanners, and optical time domain reflectometer (OTDR) receivers.

High silicon APDs excels at low-light detection. The internal photomultiplier is highly sensitive to light and can detect weak optical signals. Geiger-mode avalanche photodiodes have been developed to be used as an option instead of photomultiplier tubes. Their market is expected to account for approximately 61.2% share of the photodiode market in 2022

Due to some disadvantages such as large noise, a high operating voltage of avalanche photodiodes, PIN type of photodiodes have now been started to be used widely.

“How Telecommunications End-Use is leading the Sales of Photodiode”

Telecommunications has been an evergreen market for photodiodes. Further, in telecommunications sector the photodiodes are now finding extensive use of photodiodes in data communications, optical communications, long-range detection, etc.

The world is on the cusp of 5G, with the infrastructure currently in the testing and approval phase. Leading telecom companies along with the governments of key countries including the United States, China, South Korea, and India are investing in 5G implementation.

5G implementation will need photodiodes that achieve outstanding electro-optical performance across varied temperature ranges and provide improved reliability for various end uses. 5G will further require lasers and receivers for wireless communication, which would further amp up the demand for cutting-edge photodiodes in the market

Consumer electronics are expected to offer the market vast opportunities because they are employed in items like smoke detectors, CD players, and receivers, among others. The market for consumer electronics is expected to expand rapidly in the future since photodiodes are used in cameras, TVs, detectors, and other electronic devices for sensing, and image functions.

Competitive Landscape

The players of photodiodes are OSRAM Optoelectronics, First-sensor AG, Excelitas Technologies Corp, Hamamatsu Photonics Deutschland, Kyosemi Corporation, OSI optoelectronics, Edmund Optics, II-VI Incorporated, Rohm Semiconductor, Thorlabs, Inc., Everlight, ON Semiconductor, Luxnet Corporation, Global Communication Semiconductor LLC

One of the major focuses for manufacturers in the photodiode industry is the introduction of unique devices with cutting-edge connection methods. Despite this, there are a lot of small and large enterprises to pick from in the extremely fragmented market for photodiodes.

To target the enormous potential that the companies can offer, prominent market participants in the photodiodes industry are concentrating on strategic mergers and acquisitions.

• In 2022, Photodiode Photop™ Amplifier Hybrid was introduced. Advanced Photonix launched this device which is a package of integration of photodiode and operational amplifier.
• In 2021, ROHM Semiconductor introduced a new product RPMD-0132 Photo Diode. This device is specifically for pulse wave sensing as it is sensitive to green wavelengths.
• Albis Optoelectronics in 2020, launched a new 400G photodiode array

Fact.MR has provided detailed information about the price points of key manufacturers of photodiode positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of Photodiode Industry Research

• By Type :

  • PN Photodiode
  • PIN Photodiode
  • Avalanche Photodiode
  • Schottky Photodiode

• By Material :

  • Silicon
  • Germanium
  • Gallium Phosphide
  • Indium Gallium Arsenide
  • Others

• By Mode of Operation :

  • Photovoltaic Mode
  • Photoconductive Mode

• By End Use Industry :

  • Consumer Electronics
  • Telecommunications
  • Healthcare
  • Aerospace & Defense
  • Automotive
  • Others

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia &Oceania
  • Middle East & Africa