Opto Semiconductors Market Expected to Reach $130.7 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Opto Semiconductors Market," The opto semiconductors market was valued at $43.6 billion in 2021, and is estimated to reach $130.7 billion by 2031, growing at a CAGR of 11.8% from 2022 to 2031.

Opto semiconductor applications such as LED, solar cells, photodiodes, and semiconductor lasers are enhanced electric devices designed to work by absorption and emission of light. In terms of conversion efficiency, the Opto-semiconductor devices outperform other semiconductors solutions. In addition, the Opto-semiconductors, such as semiconductor devices, are made of a p-n junction. They have a light-sensitive surface that generates charge carriers. The quantum mechanical effects of light on electronic materials, particularly semiconductors, underpin optoelectronics.

The growth of the global opto semiconductors market size is majorly driven by the advancement of the electronic sector and laser-powered 3D display technology paired with the surge in demand for smart consumer electronics and next-generation technologies. Further, an increase in the use of optoelectronic devices in communications and data storage applications is anticipated to drive the growth of the opto semiconductors market. However, the heating and energy loss in devices act as a prime restraint of the global market. On the contrary, the rise in demand for electric vehicles is anticipated to provide lucrative opportunities for the opto semiconductors industry during the forecast period.

According to opto semiconductors market analysis, the LED segment was the highest contributor to the market in 2021. The automotive and consumer electronics segment collectively accounted for around 53.3 % opto semiconductors market share in 2021. The surge in adoption of smart infrastructure solution-based LED and image sensors solution have led to the growth of the automotive and consumer electronics segments; thereby, enhancing the opto semiconductors market growth.

The outbreak of COVID-19 significantly impacted the growth of the opto semiconductors market, owing to a significant impact on prime market players. Conversely, a rise in demand for LED lighting solutions in consumer electronics sectors is anticipated to drive the market growth post-pandemic. However, the lack of availability of a professional workforce due to partial and complete lockdowns implemented by governments restrained the growth of the opto semiconductors market. On the contrary, the emerging economies significantly witnessed the need for smart infrastructure solutions that is expected to boost the opto semiconductors market expansion.

Region-wise, Asia-Pacific holds a significant share in the global opto semiconductors market, owing to the presence of prime players in this region. The adoption of next-generation LEDE lighting and laser diode solution paired with solutions across the industrial and consumer electronics sector is expected to propel the growth of the opto semiconductors industry in this region. Moreover, the surge in demand for 3D display solutions in Asia-Pacific countries such as India, South Korea, and Japan is anticipated to drive the opto semiconductors market trends in this region.

The key players profiled in the report include OSRAM, Littelfuse, Inc., ROHM Semiconductor, TT Electronics plc, IPG Photonics Corporation, JENOPTIK, Fairchild Semiconductor International, Avago Corp, Broadcom Inc., Coherent, Inc., Epistar Corporation, Toshiba Corporation, Vishay Intertechnology Inc, Ushio America, Inc., Sharp Corporation, Mitsubishi Electric Corporation, and LITE-ON Technology Corporation. Market players have adopted various strategies, such as product launch, collaboration & partnership, joint venture, and acquisition, to expand their foothold in the opto semiconductors market.