The terahertz technology market size was valued at USD 0.57 Billion in 2022 and is projected to reach USD 1.85 Billion by 2031 , expanding at a CAGR of around 14% during the forecast period, 2023 – 2031. The growth of the market is attributed to increasing deployment of terahertz system in semiconductor sector.
Terahertz waves are non-ionizing and can transfer through plastic, cardboard, skin, paper, and clothing, as well as ceramics and wood making them safe to use. They are also capable of penetrating fog and clouds, but not metal, concrete, or water. Terahertz waves exist somewhere between the optical and microwave spectrums, and they cannot be produced efficiently by scaling down optical sources like lasers or scaling up typical microwave sources like klystrons. Terahertz technology is used to identify explosives and drugs disguised in plastic pipes, as well as to recognize the unexpected flow of substances.
Terahertz Technology Market Trends, Drivers, Restraints, and Opportunities
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Increasing demand for small, energy-efficient transceivers is projected to drive the market during the forecast period.
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Increasing complexity of the network is expected to hinder the market growth.
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Fiber hacking has been a huge concern for the optical network community, which is estimated to hamper the market growth.
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Development of telecom infrastructure in developing nations is anticipated to create immense opportunities for the market players.
Scope of Terahertz Technology Market Report
The report on the global terahertz technology market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
Attributes
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Details
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Report Title
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Terahertz Technology Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023 – 2031
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Segmentation
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Types (Terahertz Communication System, Terahertz Spectroscopy Systems, and Terahertz Imaging Systems), Components (Terahertz Detectors and Terahertz Sources), and Applications (Semiconductor, Communication System Applications [Outdoor/Indoor Wireless Communication, Tactical/Military Communication, and Satellite Communication], Industrial, Food & Agriculture, Defense & Security, Medical & Healthcare, and Others)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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TeraVil Ltd.; QMC Instruments Ltd.; Gentec Electro-Optics; Terasense Group Inc.; Menlo Systems; HÜBNER GmbH & Co. KG; TOPTICA Photonics AG; TeraView Limited.; Luna Innovations; and ADVANTEST CORPORATION.
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Terahertz Technology Market Segment Insights
Type Segment Analysis
Based on types, the market is market is segregated into terahertz communication system, terahertz spectroscopy systems, and terahertz imaging systems. The terahertz imaging systems segment accounted for a major market share in 2021. Terahertz imaging is a scanning method that penetrates dense materials by using extremely high-frequency radiation. They can penetrate and clouds fog, as well as ceramics, plastics, brick, wood, cardboard, paper, and clothing. As a result, terahertz imaging is rapidly being used in medical and healthcare applications.
Components Segment Analysis
On the basis of components, the market is bifurcated into terahertz detectors and terahertz sources. The terahertz detectors segment accounted for a major market share. Terahertz radiation is found in the electromagnetic spectrum between microwaves and far infrared. Terahertz radiations are frequently used in whole body scanning devices for security applications at airports and other public areas.
Application Segment Analysis
In terms of applications, the market is fragmented into semiconductor, communication system applications, industrial, food & agriculture, defense & security, medical & healthcare, and others. The communication system applications segment is further segregated into outdoor/indoor wireless communication, tactical/military communication, and satellite communication.
The communication system applications segment is expected to expand at a robust CAGR during the forecast period. Satellite communications are driving up demand for terahertz communications systems, and market players are putting a lot of emphasis on organic growth to expand their terahertz communication portfolio.
Region Segment Analysis
On the basis of regions, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is anticipated to dominate the market during the forecast period. Growth of the market in the region is attributed to China's economic expansion, as the country intends to modernize its economic infrastructure and expand its number of industries. In addition, Chinese scientists are concentrating on inventing new terahertz-based technologies.
Segments
The global terahertz technology market has been segmented on the basis of
Types
- Terahertz Communication System
- Outdoor/Indoor Wireless Communication
- Tactical/Military Communication
- Satellite Communication
- Terahertz Spectroscopy Systems
- Terahertz Imaging Systems
Components
- Terahertz Detectors
- Terahertz Sources
Applications
- Semiconductor
- Communication System Applications
- Industrial
- Food & Agriculture
- Defense & Security
- Medical & Healthcare
- Others
Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- TeraVil Ltd.
- QMC Instruments Ltd.
- Gentec Electro-Optics
- Terasense Group Inc.
- Menlo Systems
- HÜBNER GmbH & Co. KG
- TOPTICA Photonics AG
- TeraView Limited.
- Luna Innovations
- ADVANTEST CORPORATION
Competitive Landscape
Key players competing in the terahertz technology market include TeraVil Ltd.; QMC Instruments Ltd.; Gentec Electro-Optics; Terasense Group Inc.; Menlo Systems; HÜBNER GmbH & Co. KG; TOPTICA Photonics AG; TeraView Limited.; Luna Innovations; and ADVANTEST CORPORATION. Some of these players are using several market strategies such as acquisitions, mergers, collaborations, partnerships, capacity expansion, and product launches to enhance their market shares, generate revenue, and raise their production line of business in the coming years. For instance,
- In November 2021, R&D Altanova, Inc. was acquired by ADVANTEST CORPORATION, with this acquisition R&D Altanova's manufacturing and engineering capabilities, client base, and first-rate experts’ team will help ADVANTEST expand its semiconductor test equipment business.
- In October 2021, VALO Innovations GmbH, a developer and producer of ultrafast fiber laser systems, was acquired by HÜBNER Photonics.