The global photonics market size was estimated at USD 979.90 billion in 2024 and is projected to reach USD 1301.49 billion by 2030, growing at a CAGR of 4.8% from 2025 to 2030. The surge in technological advancements across sectors such as telecommunications, healthcare, and manufacturing has notably increased the adoption of photonic applications.

Innovative technologies like laser systems and optical sensors are now critical components in improving system efficiency and performance across various industries. The growing requirement for high-speed data transmission—fueled by the widespread use of cloud services and the expansion of internet-connected devices—is significantly driving market growth.

The evolution of laser and sensor technologies is further expected to broaden their application scope, especially in autonomous vehicles and renewable energy systems. An example of this is the development of microelectromechanical systems (MEMS) for optical beam steering by researchers at CEA-LETI, which enhances scanning precision and speed—crucial for autonomous vehicle safety and navigation. Additionally, increasing government support for research and development is expected to foster further innovation in photonics, especially in high-performance computing and quantum technology domains.

The global rollout of 5G infrastructure also underscores the rising need for robust communication networks, particularly in developing regions experiencing rapid telecom investments. The integration of photonic solutions to meet these demands is anticipated to unlock new avenues for market expansion. Industries across the board are recognizing photonics as a strategic enabler for operational efficiency and energy conservation, which is expected to contribute to sustained demand growth.

Order a free sample PDF of the Photonics Market Intelligence Study, published by Grand View Research.

Key Market Trends & Insights

• North America held the largest share of the global photonics market in 2024, with a 35.5% revenue share.

• The U.S. emerged as the dominant market within North America.

• Among product segments, photo detectors led with an 18.8% revenue share in 2024.

• By application, the display segment was the most significant contributor to market revenue in 2024.

Market Size & Forecast

• 2024 Market Size: USD 979.90 Billion
• 2030 Projected Market Size: USD 1301.49 Billion
• CAGR (2025–2030): 4.8%
• North America: Largest market in 2024
• Asia Pacific: Fastest-growing region

Key Photonics Company Insights

Prominent companies are playing a vital role in shaping the future of the photonics market.

• 3SP TECHNOLOGIES S.A.S. leads with advanced semiconductor lasers, primarily serving the telecom and industrial domains.

• Coherent Corp. delivers a wide array of laser-based solutions for applications in materials processing, telecommunications, and life sciences, focusing on enhancing photonic system performance and efficiency.

• Hamamatsu Photonics K.K. is well-known for its optical sensors and imaging technologies, which support advancements in medical diagnostics, scientific research, and environmental monitoring.

• Other key players include TRUMPF, Lumentum Operations LLC, Infinera Corporation, INNOLUME, IPG Photonics Corporation, Cisco Systems, Inc., and Luna Innovations Incorporated. Together, these firms significantly influence innovation trends and technological progress in the photonics industry.

Explore Horizon Databook – The world's most expansive market intelligence platform developed by Grand View Research.

Conclusion

The global photonics market is set for steady growth, driven by the increasing penetration of advanced optical technologies across diverse industries. With applications ranging from high-speed communication and autonomous systems to medical diagnostics and energy-efficient solutions, photonics is becoming integral to future-ready infrastructure. Strategic investments in R&D and technological integration are expected to enhance market potential, while rising global demand for data-driven, energy-efficient, and intelligent systems continues to push the market toward significant transformation and expansion.