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Photonics Market worth $1,481.80 billion by 2030 - Exclusive Report by MarketsandMarkets™

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MarketsandMarkets

01 Sep, 2025, 10:15 GMT

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DELRAY BEACH, Fla., Sept. 1, 2025 /PRNewswire/ -- The report "Photonics Market by Product Type (LED), Wavelength (Infrared, Visible), Material (Silicon, Glass), Application (Information & Communication Technology), End-use Industry (Industrial, Media & Telecommunication), & Region - Global Forecast to 2030", the photonics market size is projected to grow from USD 1,093.96 billion in 2025 to USD 1,481.80 billion by 2030, at a CAGR of 6.3% during the forecast period.

Browse in-depth TOC on "Photonics Market"

153 - Tables
61 - Figures
227 - Pages

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Photonics is the science of photons that enables the development of new technologies such as LEDs, lasers, optical communication systems, sensors, and photonic integrated circuits. Photonic technology has led to advancements in data transmission, imaging, sensing, and energy-efficient solutions across various sectors—examples include telecommunications, healthcare, manufacturing, and consumer electronics. The photonics market remains strong, driven by global demand for high-speed data transmission due to progress in 5G, cloud computing, and IoT applications, all of which rely on optical communication systems like fiber optics and silicon photonics. The rise of Artificial Intelligence and Machine Learning has increased the need for photonic interconnects that allow processors to perform data processing faster and more energy efficiently in data centers. In medicine, this technology enables noninvasive diagnostics and imaging through spectroscopy and endoscopes, which will become increasingly vital as the population ages. Industrial applications showcase how laser-based manufacturing and optical sensors support automation and precision manufacturing in Industry 4.0.

Light sources account for the largest share of the photonics market, by product type, during the forecast period.

Light sources, particularly LEDs (light-emitting diodes), dominate the photonics market due to their widespread applications, energy efficiency, and technological advancements. LEDs have become essential in consumer electronics, powering displays in devices like smartphones, televisions, and laptops. They enable high-resolution applications such as mini-LED and micro-LED technologies, which are being developed for Augmented Reality (AR) and Virtual Reality (VR) experiences, as well as for automotive displays. The impressive energy efficiency of LEDs has made them the preferred choice for general lighting in residential, commercial, and industrial settings, replacing incandescent and fluorescent lamps. This shift aligns with a global movement toward sustainability, as LEDs consume less energy and help reduce carbon footprints. In the automotive industry, there is also a significant demand for LEDs, which are replacing traditional halogen light sources in headlamps, interior cabin lighting, instrument panel displays, and integrated advanced driver-assistance systems (ADAS). Additionally, OLEDs (organic LEDs) are emerging as a promising alternative for flexible displays in wearable devices due to their lightweight, thinner materials and operation at lower voltages, which yield better color output. The demand for LED technologies is expected to grow in niche applications as well, such as UV LED technologies for sterilization, water purification, and medical disinfection, particularly in response to health safety concerns arising from the recent pandemic.

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Silicon is anticipated to be the largest segment in the photonics market during the forecast period.

Silicon holds the largest share in the photonics industry due to its crucial role in developing photonic technologies, particularly silicon photonics. This technology integrates photonic and electronic components into a single chip. Silicon's widespread use is facilitated by its compatibility with existing semiconductor manufacturing processes, leveraging the established infrastructure of the microelectronics industry. This compatibility allows for low-cost, high-volume production of photonic devices, such as static modulators, waveguides, and photodetectors, which are essential for enabling high-speed optical communication in data centers and telecommunications. Moreover, silicon is transparent in the infrared (IR) spectrum, particularly in the wavelength ranges of 1.3 to 1.55 µm, making it ideal for optical transceivers and fiber-optic systems. This capability meets the growing demand for bandwidth driven by advancements in 5G and cloud computing. Additionally, silicon can be integrated with complementary metal-oxide-semiconductor (CMOS) technology, which enables the development of low-profile, high-performance photonic integrated circuits (PICs). These circuits are increasingly common in computing applications and sensors. Silicon has reached a pivotal point in various emerging areas, including silicon-based LiDAR systems for autonomous vehicles, which rely on precise IR sensing to enhance navigation.

Infrared to be the largest segment in the photonics market during the forecast period. 

The infrared (IR) segment, which includes shortwave infrared (SWIR, 1.0–3.0 µm) and mid-infrared (mid-IR, 2–20 µm), represents the largest segment of the photonics market by wavelength due to its extensive applications across various fields and its unique imaging capabilities. These capabilities allow IR to penetrate mediums such as fog, smoke, and biological tissue more effectively than optical devices. The IR portion of the photonic spectrum can detect targets even when they are partially concealed, which is particularly important in defense and security markets where high-resolution imaging is necessary, especially in obscured conditions. While IR imaging can present higher-resolution images, targeted detection systems have specific time frames for IR hit recognition. In the industrial sector, IR technology is widely utilized in non-destructive testing (NDT) systems and quality control for semiconductors. Here, SWIR is especially effective in identifying defects in silicon materials, which aids in improving calibration and overall production efficiency. Mid-IR spectroscopy has advanced significantly, enabling the analysis of human tissue without the need for a biopsy. This technology is also used for glucose monitoring devices to detect blood sugar levels in diabetic patients, as well as for cancer diagnostics. Additionally, the telecommunication sector leverages IR wavelengths for applications in Time Domain Reflectometry, making IR-based lasers essential for communications technologies.

Information & communication technology to be the largest segment in the photonics market during the forecast period. 

Information and communication technology (ICT) holds the largest share in the photonics market because it relies heavily on photonics for high-speed and high-capacity data transmission and processing. This demand is closely linked to the ongoing excitement of global digitalization. Key components of ICT infrastructure include photonics technologies such as optical fibers, transceivers, and photonic integrated circuits (PICs). These technologies enable the creation of 5G networks, cloud computing, and the development of data centers necessary to meet rising data consumption levels. Optical fibers typically use infrared wavelengths to transmit light over long distances, allowing for data transfer with minimal loss and providing the capacity for high-bandwidth transfer. This capability is crucial for internet access requirements and streaming services. Silicon photonics employs innovative methods to integrate photonic components with standard CMOS technology, resulting in small, energy-efficient, and effective transceivers. These advancements are powering hyperscale data centers, facilitating cloud computing, and enabling innovative applications such as video conferencing, artificial intelligence (AI), and the Internet of Things (IoT). For ICT to function effectively, particularly with the full rollout of 5G networks, which offer ultra-low latency performance, optical communication systems like wavelength division multiplexers (WDM) and erbium-doped fiber amplifiers (EDFAs) are essential for optimizing network functions.

Industrial segment to account for the largest share of the photonics market during the forecast period.

The industrial segment accounts for the largest share of the photonics market, as industries have adopted photonics technologies to enhance the accuracy, efficiency, and automation of manufacturing and processing. In critical industrial applications, photonics technologies, including laser systems and optical sensors, improve high-precision material processing methods such as cutting, welding, and micromachining. These advancements are particularly prominent in the automotive, aerospace, and electronics sectors. Fiber lasers are highly valued for their precision and efficiency; they are commonly used in metal fabrication and additive manufacturing (3D printing) applications, where they help minimize waste and accelerate time to market. Various types of optical sensors, including infrared and hyperspectral imaging, play a crucial role in ensuring quality and consistency by detecting defects and variations in manufacturing processes. This is especially important in the semiconductor industry, where maintaining real-time consistency of products is vital, particularly during high-volume production. The rise of Industry 4.0 and a greater emphasis on smart factories and automation enhance the value of traditional labor. These advancements address some of the limitations of machine vision in automation. By leveraging photonic components such as CMOS, solid-state devices, and lasers, manufacturers can monitor processes in real time and efficiently guide industrial robots.

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Key Players

To enable an in-depth understanding of the competitive landscape, the report includes the profiles of some of the top players in the photonics market, such as Thorlabs, Inc. (US), IPG Photonics Corporation (US), Lumentum Operations LLC (US) ams-OSRAM AG (Austria), Hamamatsu Photonics K.K. (Japan), Corning Incorporated (US), Coherent Corp (US), OFS Fitel, LLC (US), ON SEMICONDUCTOR CORPORATION (US), and Signify Holding (Netherlands).

Get access to the latest updates on Photonics Companies and Photonics Market Size

Browse Adjacent Market: Advanced Materials Research Reports & Consulting

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About MarketsandMarkets™

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MarketsandMarkets™ is a blue ocean alternative in growth consulting and program management, leveraging a man-machine offering to drive supernormal growth for progressive organizations in the B2B space. We have the widest lens on emerging technologies, making us proficient in co-creating supernormal growth for clients.

Earlier this year, we made a formal transformation into one of America's best management consulting firms as per a survey conducted by Forbes.

The B2B economy is witnessing the emergence of $25 trillion of new revenue streams that are substituting existing revenue streams in this decade alone. We work with clients on growth programs, helping them monetize this $25 trillion opportunity through our service lines - TAM Expansion, Go-to-Market (GTM) Strategy to Execution, Market Share Gain, Account Enablement, and Thought Leadership Marketing.

Built on the 'GIVE Growth' principle, we work with several Forbes Global 2000 B2B companies - helping them stay relevant in a disruptive ecosystem. Our insights and strategies are molded by our industry experts, cutting-edge AI-powered Market Intelligence Cloud, and years of research. The KnowledgeStore™ (our Market Intelligence Cloud) integrates our research, facilitates an analysis of interconnections through a set of applications, helping clients look at the entire ecosystem and understand the revenue shifts happening in their industry.

To find out more, visit www.MarketsandMarkets™.com or follow us on Twitter, LinkedIn and Facebook.

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