Optoelectronic Components Market
Optoelectronic Components Market by Component (Sensor, LED, Laser Diode, Infrared Components), by Application (Measurement, Lighting, Communications, Security & Surveillance), by Material (Gallium Nitride, Gallium Arsenide, Silicon Carbide, Others), by Region (North America, Europe, Asia Pacific, Middle East & Africa) - Global Industry Assessment (2016 - 2021) & Forecast (2022 - 2028)
|Forecast Years for Optoelectronic Components Market:||2022 - 2028|
|Historical Years for Optoelectronic Components Market:||2016 - 2021|
|Revenue 2021 for Optoelectronic Components Market:||USD 42.32 Billion|
|Revenue 2028 for Optoelectronic Components:||USD 60.55 Billion|
|Revenue CAGR (2022 - 2028) for Optoelectronic Components Market :||4.9%|
|Fastest Growing Region (2022 - 2028) for Optoelectronic Components Market:||Asia Pacific|
|Largest Region (2021) for Optoelectronic Components Market:||Asia Pacific|
Optoelectronic Components Market: By Component, Material, Region
Global Optoelectronic Components market is valued at USD 42.32 Billion in 2021 and is projected to attain a value of USD 60.55 Billion by 2028 at a CAGR of 4.9% during the forecast period, 2022–2028. The rapid development of the electronics industry has led to strong demand for Optoelectronic Components, bringing about greater opportunities for optoelectronic device manufacturers. After many years of development, the optoelectronic device market has grown to a certain scale. Growth in the past was driven by large orders for major mobile phone handset and tablet PC suppliers, but increased competition among semiconductor companies for mobile orders will bring about lower growth prospects in the future. Mature mobile handset / tablet PC markets will also result in reduced demand for Optoelectronic Components.
Optoelectronic Component Demand will be Driven by the Traditional LED Lighting Market
Optoelectronic component demand will be driven by the traditional LED lighting market. Development of green and eco-friendly products, expansion of end-use applications, and increasing R&D investment in optoelectronic devices are driving growth in the optoelectronic component market. Currently, China is the world's largest LED lighting consumer market; however, Japan still dominates this area in light of its high energy-saving awareness among consumers and high penetration rate of existing LEDs. On April 1, 2014, new regulations banning sales of conventional incandescent bulbs finally came into effect in Japan. The government has also set a target to reduce greenhouse gas emissions by 26% from 2013 levels by 2020. With these regulations continuing to support demand for LEDs, Japan's LED lighting market is expected to account for a greater proportion of total optoelectronic component demand.
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High Raw Material Prices to Hamper Growth of Optoelectronic Components Market
Although demand for Optoelectronic Components is growing, price competition among manufacturers has become increasingly intense. Owing to such factors as high component prices and low profit margin, many optoelectronic component manufacturers have yet to break even. Demand growth cannot keep up with supply due to insufficient research and development efforts and production capacity limitations. Additionally, the cost of raw materials has increased, lowering the profitability of many companies.
On the basis of component, the market is segmented into sensor, LED, laser diode, Infrared Components. Based on application, measurement, lighting, communications, security & surveillance, others (geographical survey, scanning, and spectrometry). On the basis of material, the market is segmented into gallium nitride, gallium arsenide, silicon carbide, and others.
Gallium Nitride Key is Material Used for Production of Optoelectronic Components
Gallium Nitride (GaN) is a semiconductor alloy composed of gallium, nitrogen, aluminum, and hydrogen. It is the key material used to create Optoelectronic Components such as vertical transistors (FETs), light-emitting diodes (LEDs), blue laser diodes, photo detectors, ultraviolet LEDs, etc., which are growing in use across various end-use applications including mobile devices, smart home, automotive lighting systems, healthcare, etc. Gallium Nitride (GaN) wafer technology is the key material and production technology for Optoelectronic Components. High purity gallium nitride crystal material with low dislocation density and uniformity are required for high-power light-emitting diodes (LEDs) and photo detectors, whereas low resistivity epitaxial gallium nitride films are essential for fabrication of vertical transistors (FETs).
Asia Pacific to Continue Holding Dominance over Global Optoelectronic Components Market
In the next seven years, demand for Optoelectronic Components will likely increase due to growth in various end-use applications such as mobile devices and automotive lighting systems. In particular, GaNS technology is expected to show strong growth through use of its higher efficiency conversion rate compared with SiC-FETs. Moreover, semiconductor companies are expanding their production capacity both domestically and abroad. As a result, high growth is not expected except in China over the next five years.
Demand growth cannot keep up with supply due to insufficient research and development efforts and production capacity limitations. Additionally, the cost of raw materials has with increased, lowering the profitability of many companies. There is also a risk of oversupply due to rapid expansion of semiconductor production and an increase in market entrants
Due to increasing production capacity, more Chinese players are expected to enter the optoelectronic component market; however, many small-sized players still lag behind larger competitors owing to low brand recognition, lack of research and development funding, sub-par production facilities, or slow product development cycles. Such deficiencies are expected to limit the ability of smaller players to expand their market share.
Osram (Germany), Hamamatsu (Japan), TT Electronics (UK), ON Semiconductor (US), Vishay (US), SICK AG (Germany), Cree (US), Trumpf (Germany), Samsung (South Korea), Broadcom (US), and Sony (Japan) are of the major players in the global Optoelectronic Components market.
The Optoelectronic Components is Segmented as Follows:
Regions & Countries Covered
Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST
analysis, value chain analysis, regulatory landscape, technology landscape, patent analysis, market
attractiveness analysis by segments and North America, company market share analysis, and COVID-19
Frequently Asked Questions
the global demand for Optoelectronic Components
in terms of revenue?
The global Optoelectronic Components valued at USD 42.32 Billion in 2020 and is expected to reach USD 60.55 Billion in 2028 growing at a CAGR of 4.9%
are the prominent players
in the market?
The prominent players in the market are Osram (Germany), Hamamatsu (Japan), TT Electronics (UK), ON Semiconductor (US), Vishay (US), SICK AG (Germany), Cree (US), Trumpf (Germany), Samsung (South Korea), Broadcom (US), and Sony (Japan) .
At what CAGR is the market projected to grow within the forecast period?
The market is project to grow at a CAGR of 4.9% between 2021 and 2028.
the driving factors
fueling the growth of the market.
The driving factors of the Optoelectronic Components include
- Optoelectronic Component Demand will be Driven by the Traditional LED Lighting Market
region accounted for the
largest share in the market?
Asia Pacific was the leading regional segment of the Optoelectronic Components in 2020.