PUBLISHER: The Business Research Company | PRODUCT CODE: 1923947
PUBLISHER: The Business Research Company | PRODUCT CODE: 1923947
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.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
Tariffs have influenced the opto-semiconductor market by increasing costs for imported wafers, LEDs, photodiodes, infrared components, and laser diode assemblies used across automotive, consumer electronics, telecom, and industrial applications. Asia-Pacific, North America, and Europe have experienced cost pressures and longer supply timelines due to dependence on cross-border semiconductor supply chains. Nevertheless, tariffs are boosting domestic fabrication, encouraging local sourcing of optoelectronic materials, and fostering innovation in cost-optimized, high-performance optical devices to strengthen long-term market stability.
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 $64.68 billion in 2025 to $72.02 billion in 2026 at a compound annual growth rate (CAGR) of 11.3%. The growth in the historic period can be attributed to early use in automotive lighting systems, reliance on leds for residential illumination, adoption in consumer electronics, growth in infrared sensing applications, expansion of laser diode deployment.
The opto semiconductors market size is expected to see rapid growth in the next few years. It will grow to $112.02 billion in 2030 at a compound annual growth rate (CAGR) of 11.7%. The growth in the forecast period can be attributed to increasing demand for high-power leds, rising adoption of photonic sensors in smart devices, expansion of optical components in telecom networks, development of energy-efficient light-based devices, growth in medical and industrial laser applications. Major trends in the forecast period include adoption of cloud-connected opto-semiconductor systems, expansion of electric mobility lighting components, integration of IoT-driven optical devices, advancement of AI-enabled photonic sensing, development of intelligent manufacturing-ready opto components.
The rising Internet traffic is expected to drive the growth of the opto semiconductors market going forward. Internet traffic refers to the flow of data packets between devices connected to the Internet. The surge in Internet traffic, fueled by the increasing number of online users and the growing demand for high-speed data transmission, is promoting the deployment of fiber-optic communication networks. Optoelectronic semiconductors, including light-emitting diodes (LEDs) and photodetectors, are essential components in fiber-optic communication systems. For instance, in 2025, according to Telefonaktiebolaget LM Ericsson, a Sweden-based telecommunication company, global mobile network data traffic increased by 5% quarter-on-quarter between Q1 2025 and Q2 2025, reaching a total of 180 EB per month. Therefore, the rising Internet traffic is fueling the growth of the opto semiconductors market.
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 September 2023, indie Semiconductor, a US-based company specializing in automotive semiconductors, acquired EXALOS AG for an undisclosed consideration. This acquisition is intended to strengthen indie Semiconductor's ADAS and in-car user experience portfolio by integrating EXALOS's advanced optical semiconductor technologies to increase design-wins with Tier 1 suppliers and automotive OEMs worldwide. EXALOS AG is a Switzerland-based photonics firm that offers opto-semiconductors.
Major companies operating in the opto semiconductors market are 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., 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., Oclaro Inc., Emcore Corporation
Asia-Pacific was the largest region in the opto semiconductors market in 2025. The regions covered in the opto semiconductors market report are Asia-Pacific, South East Asia, 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, Taiwan, 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 Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses 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, including technological disruption, regulatory shifts, and changing consumer preferences? 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, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
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