Product Code: 66479
The acousto optic devices market is expected to register a CAGR of 7.24% during the forecast period (2021 - 2026). Acousto-optic devices are gaining traction due to the growing demand for laser applications in the manufacturing, life science, and scientific research verticals. There is an increase in the need for acousto- optic modulators in these applications, which is expected to drive the market's growth.
- The growing adoption of optical technologies for the mass production of consumer electronics is mainly driving the growth of the market studied. The increase in consumer electronics applications, like micro sensing, flat panel display, and LiDar, has also propelled the demand for acousto-optic devices in semiconductor and materials processing applications.
- Laser-based systems widely manufacture stents. Bio-absorbable stents (made of a polymer extremely sensitive to thermal effects) are gaining traction across high healthcare-spending regions, like Europe. Manufacturers find the need for lasers, as they cannot be machined with the required quality by long pulse lasers. With this need for laser-based systems, the demand for acousto-optic modulators, deflectors, and tunable filters increases.
- Moreover, medical device manufacturers are also finding the need to install the lasers for fabrication. They are high-added-value components with stringent quality requirements, and the manufacturing process is often challenging. Metal marking (CE and UDI) mandates further scope for lasers.
- However, the high cost of the devices and increasing requirement-specific R & D expenses on this technology may hinder the market's growth.
- The outbreak of the COVID-19 virus across the globe is anticipated to aid the adoption of acousto-optic devices as the coronavirus pandemic has heightened worries about global supply chains. Further, various governments are concerned regarding the growing dependency on China- and Taiwan-based firms for electronic components. To overcome this, they are seeking to establish manufacturing facilities in their respective countries. For instance, the US officials are particularly concerned about the growing reliance on Taiwan, the self-ruled island claimed by China.
Key Market Trends
Laser Processing to Drive the Market Growth
- Laser-based manufacturing is increasingly being used in the semiconductor and the automotive industries. With the increase in demand for semiconductor wafers and discrete semiconductor components, various semiconductor companies increased their manufacturing capacities.
- According to SEMI Silicon Manufacturers Group (SMG), the global silicon wafer area shipments increased by 2.7% to 2,920 million square inches in the first quarter of 2020, compared to the fourth quarter of 2019, with shipments of 2,844 million square inches, but dropped by 4.3% year-over-year. The increase in the number of shipments indicates the rise in demand for expanding manufacturing capacities, necessitating the use of laser-based machines, thereby augmenting the market's growth.
- For instance, in May 2020, Taiwan Semiconductor Manufacturing Co. announced its plans to spend USD 12 billion on building a chip plant in Arizona, a decision designed to allay US national security concerns regarding protecting global supply chains amid the coronavirus pandemic and shift more high-tech manufacturing to America.
- Also, the growing trend toward laser-based fiber optic sensing systems for robotics applications, as they offer maximum precision and repeatability needed to control and measure very fine movement, is anticipated to augment the demand in the market studied. The market for acousto-optic devices is expected to benefit from the growing need for laser devices in the healthcare vertical for LASIK surgery, hair removal, tattoo removal, skin resurfacing, wrinkle reduction, optical coherence tomography, body contouring, etc.
Asia-Pacific Expected to Witness Significant Growth
- The Asia-Pacific region is expected to witness significant growth in the upcoming years. The region is fast picking up pace in the acousto-optic devices market owing to the growing industrialization and adoption of optical technologies to provide accurate solutions by developing countries. Countries like China, Japan, India, and South Korea are some of the major markets.
- The increasing construction of electronics, manufacturing facilities, massive growth in the semiconductor industry, and emerging applications of acousto-optic devices are some of the reasons for the growth of the overall market.
- China's semiconductor companies are shoring up investment for expansion, as their customers look to secure supply in response to US restrictions on Chinese suppliers.
- For instance, in June 2020, Yangtze Memory, a subsidiary of Tsinghua Unigroup, started the second phase of construction of its National Storage Base project to scale up its flash memory production to meet the demand for 5G and data center applications. The company plans to boost its output to 50,000-100,000 units by the end of the year from 20,000 with the first phase of the project, increasing to 300,000 in the second phase.
- In the same month, China-based electric vehicle (EV) producer BYD secured a second round of financing for its BYD Semiconductor subsidiary, to increase its production of insulated gate bipolar transistors (IGBTs). IGBTs are silicon-based power semiconductors that increase the efficiency of electric motors in EVs. With such initiatives expected to improve the manufacturing capacities in the region, the demand for acousto-optic devices is expected to increase.
- Further, in the healthcare sector, the region has been witnessing an increase in the need for laser-based surgeries. Also, the decreasing cost of laser-based surgeries such as LASIK surgery in the developing economies in the region is anticipated to support the growth of the market.
The acousto optic devices market is fragmented and is a highly competitive market without dominant players present in the market. The key players are focusing on innovation in production technologies to improve efficiency. Some of the key developments in the market are:
- February 2019 - Gooch and Housego PLC partners on a new European project on miniature lasercom transceivers. This project aims to develop the next generation miniature lasercom transceivers enabling greater than 50 Gb/s satellite constellation interconnectivity.
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TABLE OF CONTENTS
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET INSIGHTS
- 4.1 Market Overview
- 4.2 Industry Attractiveness - Porter's Five Force Analysis
- 4.2.1 Threat of New Entrants
- 4.2.2 Bargaining Power of Buyers/Consumers
- 4.2.3 Bargaining Power of Suppliers
- 4.2.4 Threat of Substitute Products
- 4.2.5 Intensity of Competitive Rivalry
- 4.3 Impact of COVID-19
5 MARKET DYNAMICS
- 5.1 Market Drivers
- 5.1.1 Increasing Demand for Laser-based Applications in Manufacturing and Healthcare Sectors
- 5.2 Market Challenges
- 5.2.1 High Cost of Devices
6 MARKET SEGMENTATION
- 6.1 Device Type
- 6.1.1 Modulators
- 6.1.2 Deflectors
- 6.1.3 Frequency Shifter
- 6.1.4 Q-Switches
- 6.1.5 Tunable Filters
- 6.1.6 Other Device Types
- 6.2 Application
- 6.2.1 Material Processing
- 6.2.2 Laser Processing
- 6.2.3 Other Applications
- 6.3 Geography
- 6.3.1 North America
- 6.3.2 Europe
- 6.3.3 Asia Pacific
- 6.3.4 Rest of the world
7 COMPETITIVE LANDSCAPE
- 7.1 Company Profiles
- 7.1.1 Gooch and Housego PLC
- 7.1.2 Brimrose Corporation Of America
- 7.1.3 Hudson Robotics Inc.
- 7.1.4 L3Harris Technologies Inc.
- 7.1.5 AMS Technologies AG
- 7.1.6 AA Opto Electronics Ltd.
- 7.1.7 IntraAction Corporation
- 7.1.8 Lightcomm Technology Co. Ltd.
- 7.1.9 Coherent Inc.
8 INVESTMENT ANALYSIS
9 MARKET OPPORTUNITIES AND FUTURE TRENDS