In the electronics industry, miniaturization of components and their integration has been trending for over a decade. With the advent and drastic ubiquity of smartphones, the drive to achieve greater efficiency from the smallest devices has further gained stimulus and provided momentum to the nanophotonic device market around the globe. According to the United Nations Industrial Development Organization (UNIDO), global production has been growing significantly for the last few years, thereby leading to an increase in the global share of manufacturing value added (MVA) in GDP (Gross Domestic Product) from 15.1% to 16.5% during 2009-2018. The MVA growth rate which indicates the development of manufacturing industries fuels growth of the nanophotonic equipment market. Nanophotonic devices are widely employed in industries, such as telecommunication, healthcare, semiconductors, aerospace and defense, consumer electronics, and automotive.
Due to the higher switching speeds of the photonic integrated circuits, nanophotonic equipment has a higher demand within signal processing applications. Nanophotonics bring new capabilities in the instrumentation for nanoscale, information and communication technologies, chemical and biomedical sensing, enhanced solar cells and lighting, environmental remediation and disease treatment.Upsurge in the nanophotonic equipment market is mostly driven by product enhancements and a rising number of cybercrime activities worldwide. Endpoint security is set to be the bright spot from the coming years with increasing usage and adoption owing to the growing cybercrimes by adoption of mobile devices to access to corporate network. According to the “World Economic Forum” 2 billion data records are compromised in 2017, and more than 4.5 billion records were breached in the first half of 2018. The rampant growth of cyber-crime activities across many sectors is the key factor augmenting the growth of the nanophotonic equipment industry. Nanophotonic chips are gaining prominence in fiber optics cables of large data centers to prevent cyber-attacks. The data carried through optical fibers are encoded enabling strong breakthrough in cybersecurity. The nanophotonic equipment market value is anticipated to reach $1.5 billion by 2023, growing at a CAGR of 21.23% over the forecast period of 2018-2023.
Surging Nanophotonic Equipment Market in APAC
APACwill holdthe largest share in the nanophotonic equipment market with a share value of $614 million by 2023, growing at a CAGR 21.23% during the forecast period. The nanophotonic equipment market is earning tremendous revenue due to huge developments in healthcare, consumer electronics, and automotive industries. Countries such as India, China and Japan are leading the market owing to remarkable growth in the industrial sector. Furthermore, the APAC region comprises approximately half of the global nanophotonic equipment market and it is also experiencing growth due to a rise in the demand for supportive investments in research and development field. Hence, these growth drivers are triggering demand for the nanophotonic equipment market in this region.
The growing telecommunications industry and increase in solar energy generation are considered as the major end use verticals for the nanophotonics equipment market in India. Moreover, high data transmission and signal processing rates provided by nanophotonic equipment are boosting the penetration of nanaophotonics in telecom and optical interconnects.
The growing concern towards usage of optical networks which is commonly used in the various applications such as provisioning of light paths, and protection switching,in turn,is driving the optical switches segment as the leading one in the nanophotonic equipment market. Optical switches are the key application for nanophotonic equipment,with the revenue estimated to reach$27 million by 2023 growing at a CAGR of 30.71% over the forecast period.
Nanophotonic Equipment Market Growth Drivers
- Miniaturization of semiconductor integrated circuits
Technological advancements in semiconductor ICs is mainly associated with miniaturization of semiconductor components, owing to increasing demand for compact electronic devices in the healthcare, automotive, and consumer electronics industries which in turn leads to increased demand in the nanophotonic equipment market globally. Moreover, integration of nanophotonic silicon components into complementary metal oxide semiconductor (CMOS) ICs reduces typical circuit line widths to the order of 10nm which, in turn, leads to faster data transfer.
Utilization of plasmonics in the fabrication of nanoscale memory such as carbon nanotube-based memory used for high-density memory applications such as data visualization and optimization of financial algorithms are increasing demand in the nanophotonic equipment market globally. The benefits of a lower IC feature size such as high performance,increased speed and cost efficiency attained by allowing high packaging density is increasing demand for the nanophotonic equipment industry around the globe.
- Adoption of nanophotonic concepts and devices in solar harvesting
Growth of the solar energy sector contributes to growth of the nanophotonic equipment market. The need for increasing solar power capacity to produce electricity owing to depletion of non-renewable energy sources across the globe is escalating adoption of the nanophotonic technology in photovoltaic (PV) cell manufacturing industries.
The adoption of nanophotonics is constantly growing in solar energy conversion and harvesting due to the modest efficiency gains of silicon-based solar technologies. The capability to maintain a high absorption rate in PV wafers of reduced thickness has made nanophotonic a key enabling technology for solar energy generation. Improved efficiencies in solar thermophotovoltaic energy conversion through integration of nanophotonic equipment is also boosting market growth.
- The massive data transmission rates offered by photonic integrated circuits
Photonics technology provides high-speed data processing in various industries such as information and communication technologysectorwith average speed in the order of terabits per second. The higher capability and performance offered by photonics integrated circuits due to their high switching speeds is one of the major factors driving adoption of photonics technology in signal processing applications which in turn increases demand in the nanophotonic equipment market.
Moreover, research intophotonics technology for miniaturization of photonic integrated circuits is likely to boost the nanophotonic equipment market across the globe.
The major players in the Nanophotonic Equipment Market:
Prominent players in the nanophotonic equipment market include Novaled GmbH, OSRAM GmbH, Samsung Sdi Co., Ltd., Seiko Epson Corporation, Sharp Corporation, NEC Display Solutions Ltd., IBM Corporation, General Electric Company, Hitachi, Ltd., and Alcatel Lucent. These companies are continuously focusing on R&D investments, mergers and acquisitions, and partnership strategies to gain ground in the global market.
General Electric Company is an U.S.A based digital industrial company, focused mainly on research and developmentof leading edge technologies such as X-ray optics, nanophotonics, integrated (on-chip) photonics for sensing applications, and new devices using plasmonics and metamaterials, which in turn, led the nanophotonic equipment market growth in the global scenario.
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