PUBLISHER: The Business Research Company | PRODUCT CODE: 1668473
PUBLISHER: The Business Research Company | PRODUCT CODE: 1668473
Opto-semiconductors are electronic devices functioning through the absorption and emission of light. Featuring a light-sensitive surface capable of both emitting and absorbing light, these devices generate charge upon light interaction with their p-n junction-an integral component. Common applications include automobile lighting, room illumination, and pulsed laser power mechanisms.
The primary types of opto-semiconductors encompass optocouplers, LEDs, image sensors, infrared components, and laser diodes. Optocouplers facilitate the transmission of electrical signals between isolated circuits using light. Crafted from materials such as silicon, gallium arsenide, gallium phosphide, and indium gallium arsenide, these components find diverse applications across residential, commercial, automotive, consumer electronics, telecommunications, healthcare, and energy sectors.
The opto semiconductors market research report is one of a series of new reports from The Business Research Company that provides opto semiconductors market statistics, including opto semiconductors industry global market size, regional shares, competitors with a opto semiconductors market share, detailed opto semiconductors market segments, market trends and opportunities, and any further data you may need to thrive in the opto semiconductors industry. This opto semiconductors market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The opto semiconductors market size has grown rapidly in recent years. It will grow from$59.03 billion in 2024 to $65.87 billion in 2025 at a compound annual growth rate (CAGR) of 11.6%. The growth in the historic period can be attributed to infrared technology development, early led innovations, semiconductor laser origins, optical communication beginnings, photodetector improvements
The opto semiconductors market size is expected to see rapid growth in the next few years. It will grow to $104.1 billion in 2029 at a compound annual growth rate (CAGR) of 12.1%. The growth in the forecast period can be attributed to environmental sensing and monitoring, aerospace and defense applications, smart lighting and displays, augmented and virtual reality adoption, and renewable energy expansion. Major trends in the forecast period include a rise in optical sensing solutions, advances in display technologies, hyperspectral imaging development, biomedical optics and imaging, smart cities, and IoT expansion.
The increasing demand for fiber-optic communication is anticipated to drive the growth of the opto semiconductors market. Fiber-optic communication involves transmitting data from one location to another using light instead of electricity. Light modulators facilitate the transport of data in fiber-optic systems. The rising adoption of optoelectronic semiconductors is linked to the growth of fiber-optic communication, as this technology allows data to be transmitted over long distances without the need for intermediate processing stages, leading to faster data communication. For example, in April 2022, BT-PON, a China-based company specializing in fiber-optical equipment and FTTX solutions, reported that the revenue of fiber-optic cable manufacturers reached $40.118 billion in the first half of 2021, with expectations of reaching $43.02 billion by 2032. Thus, the growing demand for fiber-optic communication is fueling the expansion of the opto semiconductors market.
The upward trajectory of internet traffic is anticipated to fuel growth in the opto semiconductor market. Internet traffic denotes data packet movement among internet-connected devices. This surge, propelled by increased online users and the need for high-speed data transmission, amplifies the deployment of fiber-optic communication networks. Optoelectronic semiconductors such as LEDs and photodetectors are pivotal in these systems. Notably, mobile devices account for over 55% of website traffic, with 92.3% of internet users accessing it via mobile devices, totaling around 4.32 billion users, driving demand for opto semiconductors.
Technological advancements are a prevailing trend shaping the optoelectronic semiconductor market. Key industry players are adopting novel technologies to maintain their market position. For instance, in April 2023, Ams Osram unveiled the TOPLED D5140, SFH 2202, a superior photodiode catering to wearable health trackers and medical diagnostic devices. This advancement showcases enhanced sensitivity to green visible light and superior performance in the infrared spectrum, notably improving heart rate assessment accuracy.
Market leaders in the opto semiconductor arena focus on innovation, exemplified by products such as the LM10 chip, aimed at boosting profitability. The LM10 chip, a monolithic linear integrated circuit, consolidates operational and reference amplifiers onto a single chip. For instance, Lumotive Inc. launched the LM10 chip in August 2023, offering advanced scanning capabilities and dynamic region adjustment for 3D sensing applications in robotics, smart infrastructure, and automotive sectors. Its compact size and reliability enable digital beam steering, overcoming limitations of conventional lidar sensors.
In January 2022, II-VI Incorporated, a U.S.-based manufacturer of optical materials and semiconductors, acquired Coherent Inc. for an undisclosed amount. This acquisition enables the newly combined company, Coherent, to operate more extensively across the value chain, encompassing everything from raw materials to parts, systems, subsystems, and services. Coherent Inc. is also a U.S.-based company in the opto-semiconductor industry, specializing in engineered materials and optoelectronic components.
Major companies operating in the opto semiconductors market include Jenoptik AG, Epistar Corp., Vishay Intertechnology Inc., Osram Opto Semiconductors GmbH, Renesas Electronics Corporation, Nichia Corporation, Toshiba Electronic Devices & Storage Corporation, Mitsubishi Electric Corporation, Rohm Co. Ltd., Broadcom Inc., LITE-ON Technology Corporation, TT Electronics PLC, Littelfuse Inc., Ushio America Inc., Sharp Corporation, Lumileds Holding B.V., General Electric Company, Panasonic Corporation, Omnivision Technologies Inc., Sony Corporation, Koninklijke Philips N.V., Texas Instruments Inc., Stanley Electric Co., Everlight Electronics Co.Ltd., Cree Inc., Finisar Corporation, Lumentum Holdings Inc., Applied Optoelectronics Inc., II-VI Incorporated, NeoPhotonics Corporation, Accelink Technologies Co.Ltd., Kingbright Electronic Co. Ltd., Inphi Corporation, Oclaro Inc., Emcore Corporation
Asia-Pacific was the largest region in the opto semiconductors market in 2024. The regions covered in the opto semiconductors market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the opto semiconductors market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain
The opto semiconductor market consists of sales of photodiodes, laser diodes, and solar cells. Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Opto Semiconductors Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on opto semiconductors market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for opto semiconductors ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The opto semiconductors market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.