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Terahertz Market Overview
The Terahertz market size is forecast
to reach $940Million by 2030, growing at a CAGR of 18% from 2024 to 2030. The
Terahertz market is experiencing robust growth driven by its diverse
applications across various industries. One prominent trend is the increasing
utilization of terahertz submillimeter radiation in critical sectors such as
medicine, pharmacy, and dentistry. Terahertz technology's ability to penetrate
non-conductive materials like plastics and ceramics with high resolution makes
it invaluable for medical imaging, pharmaceutical analysis, and dental
diagnostics. Moreover, its non-invasive nature and low ionizing radiation
levels make it particularly appealing for sensitive medical procedures, thus
fueling its adoption in cancer treatment applications. Another notable trend is
the rising prominence of terahertz spectroscopy in food inspection industries. With
stringent regulations and consumer demands for food safety and quality,
terahertz spectroscopy emerges as a powerful tool for non-destructive and rapid
quality assessment of food products. Its ability to detect contaminants,
measure moisture content, and assess structural integrity without altering the
product's properties makes it indispensable for ensuring food safety and
compliance with regulatory standards. Furthermore, the market is witnessing
increased deployment of terahertz imaging systems in aerospace, defense, and
homeland security sectors. Terahertz imaging offers unparalleled capabilities
in detecting concealed objects, identifying materials, and performing security
screenings with enhanced precision and efficiency. As governments and industries
prioritize security measures, the demand for advanced terahertz imaging
solutions continues to surge, driving the growth of the market.
Report Coverage
The report: “Terahertz market – Forecast (2024-2030)”, by IndustryARC
covers an in-depth analysis of the following segments of the Terahertz market.
By Source type: Natural, Artificial
(Gyrotron, Backward wave oscillators (BWO), Far infrared laser (fir laser),
Quantum cascade laser, Free electron laser (Fel), Synchrotron light sources,
Photo-mixing sources, Others)
By Sensor Type: Schottky barrier diode,
Golay cell, Microbolometer, Pyroelectric detector, Broadband antennas, High
electron mobility transistor (HEMT), Superconductive hot-spot air-bridge
bolometer
By System Type: Systems based on
spectroscopy (Time domain spectroscopy, Frequency domain spectroscopy), Systems
based on imaging (Imaging by canning, Incoherent imaging), Terahertz radar,
Terahertz sensing, Emerging systems, Antennas
By Device Type: Portable terahertz
imaging systems, Cameras, Terahertz detectors, Generators, Terahertz sources,
Spectroscopes, Communication devices, Computing devices, other sensors
By Application Type: Industrial NDT, Defence
and homeland security, Food and Beverages, Biomedical, Telecommunications,
Banking and financial security, others
By Geography: North America (U.S,
Canada, Mexico, Rest of Americas), Europe (France, U.K., Germany, Spain, Italy,
Netherlands, Russia, Rest of Europe), APAC (China, Japan, India, South Korea,
Australia, Indonesia, Malaysia, Rest of Asia-Pacific), South America (Brazil, Argentina,
Chile, Colombia, Rest of South America) and ROW (Middle East and Africa)
Key Takeaways
- Rising investments in the healthcare sector along with growing implementation of Terahertz for blood cell detection, cancer cell characterization, bacterial identification, biological tissue discrimination and others are anticipated to open up new opportunities for market growth.
- In the U.S, increased adoption of terahertz technology has changed the manufacturing scenario in the America region, thus propelling the market growth.
- Key companies such as RaySecur Inc. (U.S), Lumitron Technologies (U.S) and many others has developed a new advanced terahertz technology such as MailSecur, Micro-radar & algorithms for the security purpose that increases the demand for terahertz market.
Terahertz Market Segment Analysis -By System Type
System based on imaging held segment
dominating the market share in 2023. This system includes imaging by Canning,
incoherent imaging and others. Deployment of such systems in food&
beverages, healthcare, biomedical and others uplifts the market growth.
Terahertz radiation has characteristics that are similar to microwave and
infrared radiation. The identification of moisture, foreign bodies, testing,
and quality control in the food industry are some of the major uses of
terahertz imaging by canning. It has been found to be a safe, fast, and
non-destructive detection process in food products. In biomedical applications,
terahertz incoherent imaging is commonly used. In January 2023, the National
Center for Biotechnology Information (NCBI) suggested, THz pulse imaging (TPI)
employs femtosecond pulsed lasers, offering detailed sample analysis with
recorded intensity and phase information despite longer scanning times. The
proposed approach tracks the strength responses of the echo signal in
biomedical imaging applications using an incoherent detection array or a single
incoherent detector.
Terahertz Market Segment Analysis -By Application Type
The industrial NDT segment held the
highest market share in 2023. Terahertz-based non-destructive quality
inspection is becoming increasingly common, especially in the automotive and
aviation industries. Terahertz waves is used for non-destructive testing to
examine multi-layered systems and can help detect anomalies such as foreign
material inclusions, heat injury, mechanical impact damage, and water or
hydraulic fluid ingress. Increased use of terahertz technology in these sectors
has propelled the market growth. Also growing funding activities for terahertz
systems in NDT application is set to boost the growth of the market. Moreover, the
Telecommunication segment is anticipated to witness significant market growth
with a CAGR of 33.1% during the forecast period 2024-2030. Terahertz is a
complementary wireless technology for communication networks, which allows high-speed
wireless extension of the optical fibers for beyond 5G networks. Terahertz
technology provides demand for wireless communication in remote areas such as
mountains, islands, and others. Increasing adoption of wireless networks owing
to its ease of use and low cost has been pushing the market growth. With the
growing implementation of IOT and increasing investments in wireless networks,
5G, and beyond networks, there is huge opportunities for terahertz technology
in the telecommunication sector which is poised to push the market during the forecast
period.
Terahertz Market Segment Analysis - Geography
The region of Americas held the
highest market share in 2023 with market share of around 42%. Market growth is
attributed to significant R&D investments in this region within the sectors
including military and defense, automotive and others. Rising investments in
the military have created demand for sophisticated surveillance applications,
including terahertz sensors, alarms, explosives detection imaging devices,
bombs, biochemicals, and others. Consequently, increased deployment of
terahertz technology in these sectors is set to enhance the growth of the market.
According to the Stockholm international research peace research institute
(SIPRI), In 2022, the United States maintained its position as the largest
global military spender, allocating $877 billion, comprising 39% of the world's
total expenditure. This marked a 0.7% real-terms rise from the previous year,
overshadowing China's spending by threefold. Moreover, the APAC region is
anticipated to witness significant market growth with a CAGR 30.9% during the
forecast period 2024-2030. The market growth is attributable to factors
including rapid industrialization, the large presence of manufacturing
companies, advances in the portable electronics industry, expanded Internet of
Things (IoT) awareness, and others. Additionally, increasing investment in
research and development within telecommunication tends to foster market
growth. In November 2020, China launched the world's first 6G experiment
satellite. This marks China’s breakthrough in exploring terahertz communication
technology in aerospace. In September 2023, Chinese researchers unveiled
groundbreaking terahertz technology for underwater detection, with applications
on drones. Such developments positively impact the market growth during the
forecast period.
Terahertz Market Drivers
Rising demand from the semiconductor industry
The key factor driving the market's
growth is technical innovation in the emerging semiconductor industry.
Semiconductors are the brains of contemporary electronics, allowing
cutting-edge innovations in fields such as healthcare, networking, computing, and
transportation, among many others. For instance, EOTPR, or electro-optical
terahertz pulse reflectometry, is an ultra-fast laser source-driven
electro-optical device that has successfully applied terahertz to
microelectronics in fault isolation and defect detection. The Semiconductor
Industry Association reported that global semiconductor sales reached $526.8
billion in 2023, indicating robust growth. Thus, the growth in the market of
Semiconductor tends to drive the market of Terahertz owing to its applications.
Increasing Demand for Terahertz Technology in Medical Sector
High demand in research laboratories
and process control monitoring processes, as well as growing application of
high-end terahertz instruments in biology and medical science, are some of the
factors driving market development. Terahertz has a lot of upside in biomedical
research owing to its special features like non-invasive and label-free living
cell recognition and medical imaging. Terahertz technology is widely used for
blood cell detection, cancer cell characterization, bacterial identification,
and biological tissue discrimination that are increasing the growth of
terahertz market.
Terahertz Market Challenges
Increasing deployment of alternative technologies
Alternative technologies such as
new-infrared (NIR) imaging have been developed for surveillance and defense
applications. This alternative technique uses simple, low-cost electronics and
is more compact and user-friendly than terahertz technology, which is
restricting the terahertz market's expansion. Alternative terahertz technology
requires transfer of terahertz images to higher frequency near IR light, which
aims to minimize signal detection loss. As a result, the demand for alternative
technologies is increasing, restricting the growth of the terahertz market.
Terahertz Market Landscape
Partnerships and acquisitions along
with product launches are the key strategies adopted by the players in the
Terahertz market. As of 2024, the market for Terahertz market is consolidated
with the top players including Advanced Photonix, Inc, Menlo Systems GmbH,
Toptica Photonics AG, Advantest Corporation, Acal PLC, TeraSense Inc, Luna
Innovations, TeraView Limited, BATOP GmbH, Microtech Instrument Inc.. and among
others.
Acquisitions/Technology Launches/Partnerships
Ø In June 2022, Advantest
Corporation has finalized the acquisition of CREA -
CollaudiElettroniciAutomatizzatiS.r.l., an Italy-based company renowned for its
power semiconductor test equipment. This strategic move enhances Advantest's position
as a leading provider of semiconductor testing solutions, catering to global
semiconductor firms.
Ø In February 2023, ACE
Solution introduced the TZ6000, a non-destructive wafer quality measurement
tool for the compound semiconductor industry. Powered by TeraView’sTeraPulse Lx
technologies, it accurately measures thickness, refractive index, resistivity, and
dielectric constant, and detects surface/subsurface defects, offering precise
whole wafer scanning maps.
Ø In January 2023, Menlo
Systems introduces the YLMO Mid-IR, a compact, powerful, and tunable mid-IR
fiber laser delivering femtosecond pulses in the 3 – 5 µm range. With automated
wavelength tuning and over 100 mW average power, it meets diverse mid-IR
application needs with pulse durations down to 140 fs.