Nanophotonics Market

Nanophotonics Market Outlook (2023 to 2033)

The global nanophotonics market is valued at US$ 25 billion in 2023 and is predicted to reach US$ 200 billion by 2033, increasing at a stupendous CAGR of 23.1% during the forecast period (2023 to 2033).

Nanophotonics is a branch of nanophysics that investigates photon interactions with nanostructures. It typically includes metallic elements capable of focusing and transporting light via surface plasmon polaritons (SPPs), such as plasmonics, quantum dots, nanotubes, photonic crystals, and nanoribbons. These elements are utilized in the production of light-emitting diodes (LEDs), organic light-emitting diodes (OLEDs), photovoltaic (PV) cells, near-field optics, and optical components.

The outbreak of COVID-19 had an adverse impact on the global nanophotonics market in 2020. Governments around the world enacted harsh lockdowns and other restrictions of varied durations to curb the spread of coronavirus. The lockdowns disrupted the activities of end-user industries. Many industries were forced to halt operations as a result of government rules that negatively impacted their revenues. In addition, due to the pandemic, several emerging startups in the worldwide market were forced to close due to volatile economic conditions.

A decline in demand from end-user industries had an influence on the global nanophotonics industry. The nanophotonics business relies on research and development operations to create breakthrough products and fuel market growth. The pandemic had a significant impact on research and development activities. Nevertheless, research into nanophotonics for coronavirus detection tests cropped up. The EU-funded CONVAT study investigated a nanophotonics-centered biosensor test for fast coronavirus detection.

The COVID-19 pandemic also disrupted the supply chain. The market has a diverse worldwide supply chain with component manufacturers, suppliers, programmers, and distributors from numerous nations.

Long lead times are necessary for manufacturing, testing, and shipping nanophotonic applications. Raw material supply issues and shipping delays due to the outbreak resulted in a decline in nanophotonic production and extended production periods. Even when demand progressively returned to pre-pandemic levels in the first half of 2021, output remained behind. However, the global market bounced back in the second half of 2021.

Applications of nanophotonics are expanding due to the ability to develop and build products at the nanometer scale efficiently. Moreover, increasing digital transformation across multiple industries, a major increase in internet penetration, and substantial big data output have accelerated cloud computing usage.

Furthermore, technological breakthroughs are opening up new and inventive paths, broadening the scope of nanophotonics. Displays, photodetectors, green nanophotonics, photovoltaics, sensors, and imaging are examples of technological advancements.

Report Attributes	Details
Nanophotonics Market Size in 2023	US$ 25 Billion
Projected Market Value (2033)	US$ 200 Billion
Global Market Growth Rate (2023 to 2033)	23.1% CAGR
Asia Pacific Market Share (2022)	47%
Leading Application Segment	Consumer Electronics
Key Companies Profiled	BuckyUSA Nanocyl SA Cambrios Technologies Corporation Catalytic Materials LLC Cree, Inc nanoPHAB B.V IBM Corporation Carbon Solutions, Inc LG Display Co., Ltd

Why is Nanophotonics Gaining High Prominence Worldwide?

“Ongoing Developments in Telecommunications Industry”

In the last decade, the world has witnessed remarkable development in the telecommunications industry. Advancements and developments in telecommunication infrastructure have provided connectivity to the world's most remote areas. In 2010, the average worldwide internet traffic was 240 exabytes. Over a decade later, worldwide internet traffic surpassed 2810 exabytes in 2020.

The steady rollout of 5G mobile internet services, which are up to 20 times faster than 4G, is predicted to be a breakthrough for Internet of Things (IoT) connectivity applications in everyday life. Fiber optic internet, in which light pulses are used to carry data over cables, is gaining popularity due to lower costs and more availability. Li-Fi, a wireless communication system that uses light to transport data and is far more adaptable than Wi-Fi, is projected to enter the commercial market this decade.

Nanophotonics is utilized in telecommunications equipment for a variety of optical switching applications. The ongoing developments in the telecommunications industry are a significant factor driving global market growth.

Which Factor Can Hamper Demand Growth for Nanophotonics to Some Extent?

“Exorbitant Costs of Related Research and Development”

Nanophotonics is considered one of the most advanced engineering fields that have experienced increased use in a variety of industries in recent years due to its multiple benefits. The nanophotonics market is value-driven, and new creative solutions must be produced and marketed to generate additional growth and grab new markets. Research and development are extremely specialized processes that involve numerous important players and take years to provide results.

For research operations, certain high instruments and laboratories are necessary. Likewise, highly competent human resources with years of experience in the sector are necessary to carry out the research. The machinery and laboratories are costly to establish. Moreover, higher salaries are paid to attract the finest talent for research operations.

Many companies set aside millions of dollars for research and development every year. The exorbitant costs of research and development limit more extensive research and innovation in the field, restricting expansion and posing a significant challenge to the industry.

Country-wise Insights

Why is This Market Witnessing Significant Growth in Japan and South Korea?

“Strong Emphasis on Research and Development”

Asia Pacific is ruling the worldwide market. The region held 47% share of the global market in 2022. Asia Pacific is already a manufacturing powerhouse for electronic and semiconductor devices. Moreover, the regional market is expanding at a rapid pace as a result of significant advancements in the consumer electronics, healthcare, and automotive industries.

The market in Japan and South Korea is growing significantly as a result of these countrie's strong emphasis on research and development.

• Nanotechnology research in Japan is predominantly funded by the Ministry of Education, Culture, Sports, Science, and Technology (MEXT). Photonic crystal devices for low-loss waveguiding, low-threshold lasing, and other applications have been created by Japanese researchers, such as Noda's group at Kyoto University and Baba's group at Yokohama National University.
• Likewise, researchers at Japan's Tsukuba University are investigating high-speed switching applications utilizing photonic crystal devices.
• The Ohtsu research group has also developed theories of optical near-field interactions with nanomaterials and is developing prototype nanophotonic devices based on these ideas.

How is the United States Propelling North American Market Growth?

“Increasing Investments in End-Use Industries”

The North American market is experiencing considerable expansion. The United States is propelling regional market growth due to growing investment in end-use industries such as telecommunications, consumer electronics, and solar power conversion systems. As technology progresses, the growing trend of smart homes and smart offices increases demand for consumer devices such as smart TVs, smart air conditioners, smart refrigerators, and more.

Moreover, the increase in the disposable income of consumer electronics users and their shifting preferences toward smart homes and smart working environments is accelerating market growth in the United States.

What Makes Germany a Lucrative Market for Nanophotonics in Europe?

“Heavy Focus on Development of Nanotech-based Products”

The European market is rising steadily. Germany is making substantial contributions to the European market. The tremendous scientific research and development efforts have greatly helped Germany's economy. The development of novel technologies, such as nanotechnology, has significant economic potential, and many German companies are focused on developing, marketing, and implementing nanotech-based products.

Category-wise Insights

Why is Nanophotonics So Popular in the Consumer Electronics Sector?

“Widespread Usage of Smartphones Driving Product Demand”

Nanophotonics is garnering attention in consumer electronics due to increased demand in signal processing applications for fast switching speed of photonic integrated circuits. Moreover, component size reduction and integration have been a trend in the electronics industry for over a decade.

Due to the growth and widespread usage of smartphones, the desire to achieve greater efficiency from the tiniest devices has received more stimulation and given momentum to the global market.

Why is Quantum Dots Gaining Popularity?

“Unique Properties of Quantum Dots”

Due to their unique properties, quantum dots can be used in a wide range of applications, such as solar cells, single-electron transistors, LEDs, cell biology research, second-harmonic generation, lasers, quantum computing, single-photon sources, medical imaging, and microscopy.

These nanometer-sized semiconductor particles are made of lead, indium, cadmium, and other materials, and when provided energy, they emit light of specific wavelengths. Quantum dots are appealing due to their size.

Nanomaterials such as quantum dots are gaining popularity in nanophotonics. Quantum dots are utilized in a variety of applications, including data transfer, surveys and detection, medical equipment, image capture and display, instrumentation, illumination, and research.

Quantum dots are well-known for their low-noise photodetectors for imaging, sensing, and photovoltaic applications and their efficiency as a light source for interconnects, optical, datacom/telecom, lighting, and data storage.

Competitive Landscape

Key players in the nanophotonics market are aggressively pursuing marketing tactics such as collaborations, new developments, investments, and R&D activities to gain market share.

• Hamamatsu Photonics created the 'MiNYTM PL micro-LED PL' inspection system in March 2021. This inspection device can inspect micro-LEDs for next-gen displays at 100% speed. The newly created display is utilized to identify anomalies in their appearance, wavelength, and light emission strength. The MiNYTM PL micro-LED PL inspection technology is used to make quick fail/pass judgments. This new addition improves micro-LED R&D effectiveness while also increasing product efficiency for display applications.
• Thorlabs Inc launched the SPDC810 product line in January 2021, which is intended to serve the rapidly increasing quantum photonics area. Quantum photonics necessitates high-intensity photon sources for a wide range of applications, from fundamental photon-matter reactions to device characterization. Designers use a completely integrated 405 nm pump source that is controllable at the front end of a spontaneous parametric down-conversion (SPDC) device to produce photon combinations over 450 kHz at 810 nm.
• Jenoptik absorbed Trioptics in January 2021. This acquisition is anticipated to improve the company's position in the photonics sector. Trioptics manufactures measurement and testing equipment for optical sensors and components.

Key Segments of Nanophotonics Industry Research

• By Product :

  • LEDs
  • OLEDs
  • Near Field Optics
  • Photovoltaic Cells
  • Optical Amplifiers
  • Optical Switches
  • Other Products

• By Material :

  • Plasmonics
  • Photonic Crystals
  • Nanotubes
  • Nanoribbons
  • Quantum Dots
  • Others

• By Application :

  • Consumer Electronics
  • Material Science
  • Nonvisible Wavelength Instruments
  • Nonvisual Applications
  • Indicators
  • Other Applications

• By Region :

  • North America
  • Latin America
  • Europe
  • Asia Pacific & China
  • Middle East & Africa