PUBLISHER: BIS Research | PRODUCT CODE: 1223642
PUBLISHER: BIS Research | PRODUCT CODE: 1223642
Global Precision Optics Market to Reach $60,033.6 Million by 2031
Precision Optics Market: Industry Overview
The rise in demand for precision optical components for consumer electronics and biomedical devices is among the major driving factors for the precision optics market and has created a significant demand for precision optical components such as lenses, mirrors, windows, and filters. According to the Consumer Electronics Association, across various consumer electronics sales categories, computers sale went up by 34%, television sets sale was up by 12%, and smartphones sale were up by 1% from 2019 to 2021 globally, likely due to COVID-19 restrictions and more time spent at home for working and learning. For instance, the next largest consumer electronics sales category is tablet computers which recorded nearly $60 billion in sales in 2020. According to the World Health Organization (WHO), the adoption of smart medical devices is increasing rapidly, and in the year 2021, it reached to approximately two million different kinds of medical devices categorized into more than 7000 generic device groups. Therefore, the rising sales of consumer electronics and biomedical devices are leading to the rising need for precision optical components for continuous operation with high precision.
Market Lifecycle Stage
The precision optics market has been in its growth stage, and much has been attributed to the technological advancements in this field. The ecosystem of the precision optics market comprises raw material suppliers, including glass, polymers, and other suppliers, precision optics producers, photonic manufacturers, and end users. The market is still developing, with China at the forefront, followed by other regions such as North America, Europe, Asia-Pacific, Rest-of-the-World, and the U.K.
Industrial Impact
Impact of COVID-19
The COVID-19 pandemic-related global lockdown led to production halts, disruptions in supply chains, and manufacturing activity, all of which had a detrimental effect on the market for precision optics in 2020. For instance, the Panasonic Corporation mentioned that the company's sales decreased by around 11% in the fiscal year 2021 as compared to the fiscal year 2020. The key reasons for declining sales revenue were the impact of the spread of COVID-19 and deconsolidation in housing-related businesses. Further, the revenue of Nikon Corporation for the fiscal year ending March 2021 was 23.7% lower as compared to the fiscal year ending March 2020. Business segments of the company, such as imaging products business, precision equipment business, and industrial metrology and others, have shown several adverse impacts. However, the healthcare business segment witnessed a slight revenue growth as compared to the fiscal year 2020.
Market Segmentation:
Segmentation 1: by End User
Based on end users, the precision optics market is estimated to be led by the consumer electronics segment during the forecast period, 2022-2031.
Segmentation 2: by Component
Based on components, the precision optics market is estimated to be led by the transmissive segment during the forecast period, 2022-2031.
Segmentation 3: by Region
In the global precision optics market, China and North America are anticipated to gain traction in terms of precision optics production, owing to the continuous growth in consumer electronics and biomedical equipment and the presence of the world's largest manufacturers in those regions.
Recent Developments in Precision Optics Market
Demand - Drivers and Limitations
The following are the demand drivers for the precision optics market:
The market is expected to face some limitations due to the following challenges:
How can this report add value to an organization?
Product/Innovation Strategy: The product segment helps the reader understand the different components involved in the precision optics market. The component segment has been segmented into transmissive (filters, prisms, lenses, windows, polarizers, beamsplitters, and others) and reflective (mirrors, retroreflectors, and others). Moreover, the study provides the reader with a detailed understanding of the precision optics market based on end users, including consumer electronics, aerospace and defense, semiconductor, automotive, biomedical, industrial, and others. The increasing adoption of precision optics in advanced manufacturing technology is fuelling the growth of the market.
Growth/Marketing Strategy: The precision optics market has seen major development by key players operating in the market, such as business expansions, partnerships, collaborations, mergers and acquisitions, and joint ventures. The favoured strategy for the companies has been business acquisition to strengthen their position in the precision optics market. For instance, in July 2019, Precision Optics Corporation completed the acquisition of Ross Optical Industries, Inc., a privately held company based in El Paso, Texas. With this acquisition, the company would extend its precision optics product offering to include a wider range of lens and optical system sizes and expand its presence in the U.S. defense sector.
Competitive Strategy: Key players in the precision optics market analyzed and profiled in the study involve precision optics manufacturers and the overall ecosystem. Moreover, a detailed competitive benchmarking of the players operating in the precision optics market has been done to help the reader understand how players stack against each other, presenting a clear market landscape. Additionally, comprehensive competitive strategies such as partnerships, agreements, acquisitions, and collaborations will aid the reader in understanding the untapped revenue pockets in the market.
Key Market Players and Competition Synopsis
Precision optics comprises transmissive and reflective components used in optoelectronics, electro-optics, and optomechanical systems for light imaging, sensing, detection, and transmission applications in different wavelength bands. These are used in applications including consumer electronics, aerospace and defense, semiconductors, biomedical, and industrial, among others. Precision optics are passive optical components that are made precise with respect to the wavelength and accuracy needed for the applications. Based on end users, the transmissive segment is expected to dominate the market on the back of its wide range of applications in consumer electronics, biomedical, and semiconductors and accounted for around 78.7% of the total market, while the reflective segment accounted for a 21.3% share of the market in 2021.
Some of the prominent manufacturers of precision optics are:
Company Type 1 (by Component): Filters
Company Type 2 (by Component): Prisms
Company Type 3 (by Component): Lenses
Company Type 4 (by Component): Windows
Company Type 5 (by Component): Polarizers
Company Type 6 (by Component): Beamsplitters
Company Type 7 (by Component): Mirrors
Company Type 8 (by Component): Retroreflectors
Various players are involved in the market, which has been covered in different sections of the report. Most of the players are also involved in providing custom solutions to customers.