Global Terahertz Components and Systems Market - 2021-2028
The Global Terahertz Components and Systems Market is expected to grow at a high CAGR of 24.04% during the forecasting period (2021-2028).
Terahertz Components and systems are electromagnetic systems which are used to manage high frequency, measure high speed, range, and bandwidth in various applications. It is widely used in medical devices, research laboratories, industrial process monitoring for accurate and precise measurement.
Terahertz Components and systems have a wide range of applications, including testing and measuring the electronics components, materials, and semiconductors used in research laboratories & medical imaging in healthcare, which is one of the factors due to which the market has potential to grow further and encourage companies to enter or invest in it.
There is a rise in the adoption of digital technology with the help of terahertz components and systems for evaluating advanced memory devices used for the 5G applications to gain high-speed and core testing. For instance, in 2020, the Advantest Company launched a new IC memory tester for integrated core testing in lab environments. This memory tester is used in 5G Product Development to enhance testing efficiency. In 2021, it was announced that scientists will investigate the potential of terahertz radiation to diagnose skin cancers and improve accuracy of cancer surgery using robots. It will have a funding of 8 million euros and the collaboration is led by University of Warwick and involves University Hospitals of Coventry and Warwickshire, University of Leeds and University of Exeter. This is positive news for the market as innovations and experiments are the signs of a healthy and growing market.
The limited penetration of terahertz radiation is one of the restraining factors on the growth of global terahertz components and systems market. Another factor which is causing a hindrance to the market is the bulkiness of the terahertz devices and the expensive rate of available terahertz devices, which is expected to restrict the adoption of terahertz components and systems.
The COVID-19 pandemic has profoundly impacted the global terahertz components and systems market. The supply chain management was disrupted and the manufacturing production was put on hold due to the worsening situations in almost all the countries due to which there was a steep decline in the supply of terahertz components. The demand for terahertz components and systems also fell drastically which negatively affected the growth of the market.
Although the market was hit by the COVID-19 pandemic, the market is projected to recover and grow with high CAGR of 24.04% during the forecasting period (2021-2028). This is due to the fact that number of mobile and internet users is growing continuously. Also, technologies such as IoT and 5G which make use of terahertz components and systems is also being implemented In many countries which has boosted the global terahertz components and systems market.
The global Terahertz components and systems market is segmented based on systems, applications, components and regions.
Among these, the spectroscopy segment had the highest share in 2020. This is primarily due to rising activities for identification, structure analysis of materials, semiconductors in the research laboratory for the pharmaceutical and healthcare industry. For instance, in 2019, TeraView invented a terahertz imaging and spectroscopy technology device named 3D Terahertz Pulsed Imaging (TPI) for pharmaceutical product and process understanding. This cutting-edge technology device has been substantially used in non-destructive testing of pharmaceutical products to determine thickness, crystalline structure, and chemical composition.
Furthermore, the radar and sensing segments are also growing faster due to rising investment for the development of new products and the rising need for advanced packaging techniques in various industry verticals. For example, in 2020, TeraView Company received around USD 6 Million from existing and new investors, including, Ingenious, Pathfinder H and Wonik Investments. This investment has been made for implementing advanced 2.5 and 3D packaging technologies for integrated circuits.
The Medical imaging segment has the highest share in 2020 due to the increasing demand for X-ray imaging and medical diagnostic equipment with a growing prevalence of accidents and injuries worldwide. According to the World Bank Organization, the global medical diagnostic imaging equipment market was valued at around 24.7 billion in 2015 and is growing at 6% annually.
Similarly, Non-destructive testing, Research Laboratory, and industrial process monitoring segments are also growing faster due to the increasing industrial revolution and raising the new materials developments that require non-destructive testing. For example, on 10th July 2020, researchers at Harvard University developed novel multifunctional material from nanofibers, which comes into use for military purposes. This multifunctional nanofiber material has been passed through non-destructive testing, which has shown that it can protect wearers from both ballistic threats and extreme temperatures.
The detectors segment has the highest market share in 2020 due to increasing demand in the aviation sector with raising the passengers worldwide. According to the International Civil Aviation Organization (ICAO), the globally total number of aviation passengers has been increased to around 4.5 billion in 2019.
Similarly, the sources segment is also growing faster due to increasing microwave technology, free-electron lasers, and photoconductive antenna due to a surge in the advent of 5G technology.
North America is the dominant region for the global terahertz components and systems terahertz components and systems market and expected to grow at the highest CAGR during the forecasted period due to growing healthcare expenditure rising X-ray imaging utilizes terahertz components and system. According to the World Bank Organization, in 2020, the global medical diagnostics imaging market was valued at around USD 33.42 billion, including ultrasound systems, MRI systems, and CT systems.
The Asia Pacific is also growing faster for the terahertz components and systems market, owing to rising electronics consumer spending with a growing population in this region. According to the India Brand Equity Foundation (IBEF), India has growing electronics hardware production in 2014 USD 31.13 billion increased to USD 65.53 billion in 2019. India's First Terahertz Company TeraLumen Solutions Pvt. Ltd. is the first Terahertz technology-based company in India. It was founded in 2019. The Asia Pacific countries, especially India and China, provide an immense opportunity for companies to invest and innovate, which will drive the growth of the market in this region.
The global Terahertz components and systems market is highly competitive with several international and local markets. Product diversification, revenue generation, and opportunities intensify the market competition. Menlo Systems GmbH, Bruker Corporation, Bridge12 Technologies, EMCORE Corp, Techcomp Group Ltd. Advantest Corp, M Squared Lasers Ltd., NEC Corporation, Digital Barriers PLC, Applied Research & Photonics, and TeraView are the leading market players with significant market share.
Companies are entering into collaborations, acquisitions, mergers, and licensing for increasing their market penetration. For instance, on 29th Jan 2020, Advantest Leading semiconductor test equipment supplier was acquired by Essai Company, a semiconductor supplier. This has been expanded test and measurement solutions related to system-level test sockets and thermal control units with a continuously evolving semiconductor value chain. Furthermore, on 14th Feb 2019, Advantest has completed the acquisition of Astronics Corporation, a semiconductor System Level Test Business. In 2019, Bruker bought Alicona, known for production of metrology equipment based on focus variation, to extend its analytics business in the industrial market.
*The global Terahertz components and systems market report will provide access to approximately 53 market data tables, 44 figures, and 180 pages.