Optoelectronics Global Market Report 2025

Optoelectronics focuses on the application of electronic devices for the detection, generation, and control of light. This field involves the study of electronic and hardware devices that convert electricity into photon signals, with applications in medical equipment, telecommunications, and various scientific disciplines. Optoelectronics is prominently utilized in hospitals and telecommunications infrastructure, playing a crucial role in devices such as X-ray machines and fiber optic technology.

The primary types of optoelectronics include light-emitting diodes (LEDs), laser diodes, image sensors, optocouplers, photovoltaic cells, and other components. LEDs find applications in various devices such as indication lights, computer components, medical devices, watches, instrument panels, switches, fiber-optic communication, consumer electronics, household appliances, traffic signals, and automobile brake lights. Different materials are used in optoelectronics, including gallium nitride, gallium arsenide, gallium phosphide, silicon germanium, silicon carbide, and indium phosphide. Optoelectronic technologies cater to a wide range of industries, including automotive, aerospace and defense, consumer electronics, information technology, healthcare, residential and commercial sectors, industrial applications, and other end users.

The optoelectronics market research report is one of a series of new reports from The Business Research Company that provides optoelectronics market statistics, including optoelectronics industry global market size, regional shares, competitors with a optoelectronics market share, detailed optoelectronics market segments, market trends and opportunities, and any further data you may need to thrive in the optoelectronics industry. This optoelectronics 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 optoelectronics market size has grown rapidly in recent years. It will grow from $8.62 billion in 2024 to $10.15 billion in 2025 at a compound annual growth rate (CAGR) of 17.6%. The growth in the historic period can be attributed to telecommunications expansion, consumer electronics, medical devices, automotive lighting, energy efficiency.

The optoelectronics market size is expected to see rapid growth in the next few years. It will grow to $19.59 billion in 2029 at a compound annual growth rate (CAGR) of 17.9%. The growth in the forecast period can be attributed to semiconductor manufacturing, military and defense, autonomous vehicles, miniaturization, information technology revolution. Major trends in the forecast period include display technology advancements, optical sensors, 5g network expansion, optoelectronic materials, quantum technologies.

The increasing demand for luxury and ultraluxury vehicle models is expected to propel the growth of the optoelectronics market. Luxury vehicles, recognized for their focus on comfort, quality, and innovative features, are increasingly integrating optoelectronic technologies to improve safety and lighting. Ongoing research and development efforts related to vehicle automation, including features such as automated brake lights and headlights, further enhance the importance of optoelectronics in luxury automobiles. For example, in May 2024, Bayerische Motoren Werke AG, a Germany-based luxury vehicle manufacturer, announced that its fully electric vehicle deliveries grew by 34.1% in the first half of the year, with total BMW brand sales increasing by 2.3% globally, amounting to 1,213,359 units delivered worldwide. Thus, the rising sales of luxury and ultraluxury vehicles serve as a catalyst for the growth of the optoelectronics market.

The escalating demand for consumer electronics is poised to be a driving force behind the growth of the optoelectronics market. Consumer electronics encompass a wide array of personal-use electronic devices designed for communication, entertainment, productivity, and various everyday applications. Optoelectronic components like organic light-emitting diodes (OLEDs) and liquid crystal displays (LCDs) play a crucial role in electronic screens, such as those found in smartphones, televisions, laptops, and tablets, offering vibrant and high-resolution visuals. Data from the Japan Electronics and Information Technology Industries Association in May 2023 reveal a substantial production increase in electronic equipment, reaching $6,722 million (¥771,457 million), with consumer electronics production rising from $230.9 million (¥25,268 million) in May 2022 to $280 million (¥32,099 million) in May 2023. Therefore, the growing demand for consumer electronics is set to propel the optoelectronics market.

Major companies in the optoelectronics market are concentrating on developing innovative solutions, such as UVC LEDs mounted on starboards, to improve rapid prototyping capabilities for sensors and instruments while addressing a range of application requirements in sanitation and water quality monitoring. UVC LEDs mounted on starboards refer to ultraviolet C (UVC) light-emitting diodes securely attached to a starboard, a type of circuit board or substrate designed to enable easy integration and testing across various applications. For example, in May 2024, Marktech Optoelectronics, a manufacturing company based in the U.S., introduced advanced 235nm and 255nm UVC LEDs mounted on starboards, aimed at facilitating rapid prototyping for sensors, instruments, and sanitizers. These LEDs feature a dual-chip configuration for improved power output, are contained within a durable ATLAS hermetic SMD package, and provide lens options for different application needs. Ideal for various uses, including water quality sensors and surface sanitizing robots, these UVC LEDs allow engineers to quickly assess performance without the challenges associated with PCB design.

Major companies in the market are concentrating on developing advanced and innovative products such as rigid-flex boards and flex circuits to enhance their offerings. Rigid-flex boards and flex circuits are sophisticated electronic components that merge the flexibility of flexible circuits with the structural support of rigid boards, enabling versatile and space-efficient designs in electronic assemblies. For example, in May 2023, OSI Optoelectronics Ltd., a U.S.-based manufacturer of advanced optoelectronics and electronic assemblies, introduced a range of advanced products and services, including the design, manufacturing, and assembly of rigid-flex boards and flex circuits, while adhering to the strictest OEM specifications. OSI provides comprehensive solutions that include flexible printed circuits, high-quality prototyping, ultra-high-density designs, interconnects, long-length flex circuits, SMT, cable harnesses, multi-layered designs, and value-added assemblies. These scalable offerings aim to enhance value for original equipment manufacturers and prime contractors. Renowned for its diverse array of photodetectors utilized across various industries, OSI now delivers customized and highly reliable optoelectronic components, electronic modules, and complex assemblies to meet the growing demands of its OEM clientele.

In September 2024, Radiant Opto-Electronics Corporation, a Taiwan-based company primarily focused on manufacturing and selling backlight units, acquired NIL Technology for $273 million. This acquisition enables Radiant Opto to enhance its capabilities in advanced optics, specifically in meta-optics and nanoimprint lithography, thereby solidifying its position in high-growth markets such as imaging, 3D sensing, and augmented/virtual reality. It also aims to expand product offerings and improve the precision and versatility of its optical solutions. NIL Technology, a Denmark-based company, specializes in designing, developing, and manufacturing optoelectronics and components.

Major companies operating in the optoelectronics market include General Electric Company, Accelink Technologies Co. Ltd., Avago Technologies Limited, BetaLED Inc., Broadcom Inc., Broadex Technologies Co. Ltd., Browave Co. Ltd., Cree Inc., Finisar Corporation, Fujitsu Limited, Hamamatsu Photonics K.K., Micropac Industries Inc., NeoPhotonics Corporation., Omnivision Technologies Inc., ON Semiconductor Corporation, Oplink Communications LLC, OSRAM Licht AG, Panasonic Corporation, Koninklijke Philips N.V., Renesas Electronics Corporation, ROHM Co. Ltd., Samsung Electronics Co. Ltd., Sharp Corporation, Sony Corporation, Texas Instruments Incorporated, Toshiba Corporation, TT Electronics plc, Vishay Intertechnology Inc., Aixtron SE, ASML Holding N.V., Canon Inc., Coherent Inc., EMCORE Corporation

Asia-Pacific was the largest region in the optoelectronics market in 2024. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the optoelectronics market analysis report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The countries covered in the optoelectronics market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.

The optoelectronics market includes revenues earned by entities by providing optoelectronics solutions testing of Laser, LED and LED clusters, photo diode / transistor, opto coupler, and fiber optical cables to analysing wavelength, optical power, optical attenuation, and luminous Flu to offer sourcing, detection, and control of light in electronic devices and systems.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.

Optoelectronics 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 optoelectronics 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.

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Where is the largest and fastest growing market for optoelectronics ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The optoelectronics 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 market characteristics section of the report defines and explains the market.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include:

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.

• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.

Scope

• Markets Covered:1) By Component: Light-Emitting Diode (LED); Laser Diode; Image Sensors; Optocouplers; Photovoltaic Cells; Other Components
• 2) By Device Material: Gallium Nitride; Gallium Arsenide; Gallium Phosphide; Silicon Germanium; Silicon Carbide; Indium Phosphide
• 3) By End-User: Automotive; Aerospace And Defense; Consumer Electronics; Information Technology; Healthcare; Residential And Commercial; Industrial; Other End Users
• Subsegments:
• 1) By Light-Emitting Diode (LED): Standard LEDs; High-Power LEDs; Organic LEDs (OLEDs); Miniature and Micro LEDs
• 2) By Laser Diode: Infrared Laser Diodes; Red Laser Diodes; Blue Laser Diodes; Ultraviolet Laser Diodes
• 3) By Image Sensors: Charge-Coupled Device (CCD) Sensors; Complementary Metal-Oxide-Semiconductor (CMOS) Sensors; Hybrid Sensors
• 4) By Optocouplers: Phototransistor Optocouplers; Photodiode Optocouplers; High-Speed Optocouplers
• 5) By Photovoltaic Cells: Monocrystalline Silicon Cells; Polycrystalline Silicon Cells; Thin-Film Solar Cells; Bifacial Solar Cells
• 6) By Other Components: Fiber Optic Components; Optical Interconnects; Light Sensors; Photodetectors
• Companies Mentioned: General Electric Company; Accelink Technologies Co. Ltd.; Avago Technologies Limited; BetaLED Inc.; Broadcom Inc.
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
• Delivery format: PDF, Word and Excel Data Dashboard.