PHOTONICS MARKET ANALYSIS

Market Challenges And Opportunities

Global Photonics Market Restraints:

High cost of photonics-enabled devices to hinder the market growth

High initial cost associated with silicon-enabled devices and products compared to traditional products is hampering the use of this technology in multiple fields. The technology offers higher efficiency and performance, however, photonics-based devices are still inaccessible for a majority of small and medium sized end users in different sectors, owing to their limited budgets. Thus, this factor is expected to hamper growth of the global photonics market during the forecast period.

Stringent regulations regarding environmental impact to obstruct the efficiency of photonics products

Photonics products are normally environmentally-friendly; however, some of the chemicals used in the products to enhance its performance are hazardous to the environment. Chemicals like boron oxide and arsenic oxide are known to be toxic and regulatory bodies such as the RoHS and the REACH restrict use of these chemicals. Photonics products such as UV detectors and others make use of arsenic oxide. Thus, these regulations affected the performance of photonics products, which in turn is expected to impede growth of the global photonics market over the forecast period. However, market vendors are focused on finding completely eco-friendly solutions, which is likely to support the market growth.

Global Photonics Market Drivers:

Emerging silicon-based photonics applications to boost the market pace

Silicon photonics is a branch of photonics that is evolving continuously, as it offers a clear benefit over electric conductors utilized in semiconductors that are used in the high-speed transmission systems. This technology will boost the speed of transmission up to 100 Gbps, with companies such as Intel, IBM, and Kothura that are achieving advancement with the use of this technology. Furthermore, due to this technology, the semiconductor industry is witnessing revolution, as it enables transfer and processing of data with high speed. Thus, this factor is expected to fuel growth of the global photonics market during the forecast period.

Rise in focus on eco-friendly solutions and high performance to drive the market growth

In current times, modern technological developments are occurring rarely without taking environmental impacts into consideration. Saving the planet has become an important factor in forging the direction of innovations in photonics technology, and on the opposite, photonics is impacting the environment significantly. Thus, the focus on finding environmentally-friendly solutions with high performance is increasing in the industry. This in turn is expected to drive growth of the global photonics market during the forecast period.