Nanophotonics Market size was valued at USD 16.86 billion in 2024 and is projected to reach USD 52.94 billion in 2037, registering more than 9.2% CAGR during the forecast period i.e., between 2025-2037. In 2025, the industry size of automatic transfer switch is assessed at USD 18.41 billion.
A major driver of the nanophotonics market is the growing demand from end use industries such as solar power, telecommunications, defense, etc. The surge in demand for energy-efficient technologies in multiple sectors has ensured heightened demand for nanophotonics. In February 2024, the Los Alamos National Laboratory announced the development of nanometer-scale light-based systems that could deliver breakthroughs for ultrafast microelectronics, night vision, and other technological applications. The commercialization of nanometer-scale light-based systems is poised to benefit the market’s growth.
The nanophotonics market is set to benefit from growing investments by governments in nanotechnology. For instance, in March 2024, the National Nanotechnology Initiative (NNI) of the U.S. reported a record request of USD 2.16 billion from the President’s 2024 budget. The increasing budget is poised to assist R&D and increase the scope of commercial applications benefiting multiple sectors. Furthermore, the integration of nanophotonics in renewable energy systems improves the efficiency of solar energy conversion contributing to the global shift towards sustainable energy solutions. For instance, in November 2024, Rice University published a report that researchers have developed a quantum-inspired design for thermophotovoltaic (TPV) systems that boosts the efficiency of heat-to-electricity conversion. Around 20% to 50% of heat used to transform raw materials into consumer goods is wasted which costs the U.S. economy USD 200 billion annually as per the California Energy Commission and the research by Rice University is promising to curb these losses, and offer wider commercial applications of nanophotonics components.
Additionally, the continuous advancements in fabrication and nanomaterials are propelling the growth of the nanophotonics industry. The development of compact energy-efficient devices leveraging photonic crystals is beneficial for the sector’s growth. Furthermore, technological advancements open new revenue streams in fields such as quantum computing. For instance, in August 2024, the University of New Mexico and New Mexico State University announced USD 1 million worth of grants from the National Science Foundation to develop a photonic quantum computer capable of operating at room temperature. The global market is poised to leverage continuous innovations to heighten adoption across various sectors to maintain its robust growth by the end of the forecast period.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
9.2% |
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Base Year Market Size (2024) |
USD 16.86 billion |
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Forecast Year Market Size (2037) |
USD 52.94 billion |
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Regional Scope |
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End Use (Consumer Electronics & Entertainment, Telecommunications, Bio-Imaging, Digital Signage, Lighting, Others)
The consumer electronics & entertainment segment is likely to hold nanophotonics market share of more than 45.9% by 2037. A major driver of the segment’s growth is the improvement of device performance via nanophotonic materials. Furthermore, the consumer electronic industry trends indicate a surge toward smaller components and with the proliferation of smartphones, the requirement of tiny devices with enhanced efficiency is poised to drive the segment’s continued growth.
Furthermore, the demand for premium displays in the end user segment drives the demand for quantum dots which provides higher color accuracy creating profitable revenue streams in the nanophotonics market. In April 2024, NanoPattern announced the closing of a USD 1.5 million seed round to scale quantum dot ink production which enables the commercialization of next-generation displays. The increase in commercialization of quantum dots for next-generation displays is poised to assist the continued expansion of the global nanophotonics sector.
The telecommunications segment of the nanophotonics market is poised to expand during the forecast period. The rising demand for faster and more efficient communication systems is a major driver of the segment. The advent of next-generation telecom infrastructure and the proliferation of 5G networks have driven demand for solutions that enable lower latency which expand the scope of end use in the telecommunications segment. For instance, in August 2024, Chunghwa Telecom Co., Ltd, and NTT Corporation activated the International IOWN APN between Taiwan and Japan and achieved low latency, no jitter, and stable communication with approximately 17 msec on an approximately 1864.1 miles one-way network.
Furthermore, the advancements in photonic integrated circuits (PICs) have boosted the miniaturization of devices without affecting performance benefiting the adoption of nanophotonics in telecommunication. For instance, in November 2024, OKI announced the development of a PIC chip using silicon photonics technology with a broad range of potential applications, including optical fiber sensors.
Product Types (LED, OLED, Near Field Optics, Photovoltaic Cells, Optical Amplifiers, Optical Switches, Others)
The LED segment of the nanophotonics market is poised for profitable expansion during the forecast period. The demand for integrating nanostructure in LEDs for higher brightness is a significant driver of the segment. The widespread adoption in applications, from display technologies to general lighting solutions creates a sustained revenue stream for the stakeholders in the LED segment.
Furthermore, the worldwide trends indicate rising demand for energy-efficient LED solutions in consumer electronics which is poised to create opportunities for integration of nanophotonic materials. Key players in the photonic lighting solutions segment are expanding their product portfolio to leverage profitable opportunities. For instance, in October 2024, Luminus Devices launched the High CRI SFT-40 High Power Warm White LEDs which are engineered to elevate the standard in precision lighting, efficiency, and color accuracy.
Our in-depth analysis of the global nanophotonics market includes the following segments:
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End use |
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Product Types |
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Material |
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North America Market Forecast
By 2037, North America nanophotonics market is predicted to dominate over 45.4% revenue share. The substantial investments in nanotechnology in the region are a major driver of the sector. Furthermore, rising collaborations between academic institutions and industries are ensuring the development of high-speed data transmission and energy-efficient lighting solutions.
The commercial application of photonics processors in the region underscores the practical applications of nanophotonic technologies highlighting the potential to industry stakeholders. For instance, in November 2024, Q.Ant launched the first commercial photonic processor built on the company’s compute architecture LENA which is compatible with the existing computing ecosystem.
The U.S. nanophotonics market is poised to expand during the forecast period and register a dominant share in North America. The growth of the sector in the U.S. is propelled by rising applications across multiple sectors such as telecommunications, healthcare, and consumer electronics. The U.S. has been at the forefront of federal investments in nanotechnology benefiting the market’s growth. A key factor of the market’s growth is the increasing production of quantum photonics chips positioning the country as a leader in next-generation technologies. For instance, in September 2023, Quantum Computing Inc., selected ASU Research Park in Tempe, Arizona, as the location for its new quantum photonic chips manufacturing facility, where it will produce its Thin Film Lithium Niobate (TFLN) chips.
Canada nanophotonics market is poised to expand during the forecast period. A key driver of the market is attributed to the growing research into nanophotonic biosensors to expand commercial applications in medical diagnostics. Additionally, the integration of quantum computers with photonics-based integrated circuits presents significant opportunities for growth. The photonic integrated circuits (PIC) drive demand for nanophotonic components and the growing focus on leveraging quantum computing for AI boosts demand driving the sector’s growth.
Growing collaboration between research institutions and businesses is poised to advance nanoscale solutions in the country. For instance, in October 2023, NS Nanotech was awarded a USD 1 million grant from the Natural Sciences and Engineering Research Council of Canada (NSERC) for research into the development of nanoscale LEDs and lasers.
Europe Market Forecast
The Europe nanophotonics market is poised to register the fastest growth after North America in the global market. The market benefits from a substantial consumer base in the region and significant investments in research & development. The rising demand for high-speed data transmission across Europe further benefits the sector’s growth. In April 2024, the European Council adopted the Gigabit Infrastructure Act which aims to simplify and accelerate the roll-out of high-speed networks, such as fibre, and 5G. The act creates a favorable regulatory ecosystem in the region for manufacturers of nanophotonics.
The Germany nanophotonics market holds a major revenue share in Europe. The robust industrial base in the country drives demand and contributes to the advancement of nanophotonic technologies. The development of advanced sensors for end use in multiple industries creates profitable streams in the Germany market. For instance, in January 2024, ams OSRAM announced the decision to showcase its high-performance LEDs, lasers, sensors, and integrated circuits at SPIE Photonics. The advancements of the photonics portfolio by emerging players such as ams OSRAM are poised to benefit the market in Germany.
The France nanophotonics market is poised to expand during the forecast period. The growing adoption of nanophotonic solutions in medical imaging and diagnostics drives the market. Furthermore, France benefits from the European Union’s push to create high-speed transmission infrastructure which drives demand for nanophotonics solutions.
Major companies in the country are expanding partnerships in the healthcare sector to offer advanced imaging solutions. For instance, in October 2024, Siemens Healthineers and the University Hospital Nantes in France announced collaboration over a period of 12 years to make innovations in diagnostic and interventional imaging. Such long-term collaborations create lucrative opportunities for the nanophotonics market.
The nanophotonics market is poised to expand during the forecast period. Leading players in the market are heavily investing in high-performance optical chips, quantum dot applications, nanoscale lasers, etc., to cater to various use cases in diverse sectors. Major players are leveraging strategic collaborations to expand their revenue share and leverage demands in emerging markets. Leading players must diversify their portfolios to stand out in the competitive nanophotonics sector.
Here are some key players in the nanophotonics market:
Author Credits: Abhishek Verma
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