Phototherapy Equipment Market Analysis & Forecast: 2025-2032

Phototherapy Equipment Market Size and Forecast – 2025 – 2032

The Global Phototherapy Equipment Market size is estimated to be valued at USD 1.2 billion in 2025 and is expected to reach USD 2.1 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 8.1% from 2025 to 2032. This upward trajectory highlights dynamic market trends and evolving market dynamics that influence market revenue and market share across regions and segments.

Global Phototherapy Equipment Market Overview

Phototherapy equipment is designed to treat medical and cosmetic conditions using specific wavelengths of light. It is commonly used in neonatal care for managing jaundice, where blue light helps break down excess bilirubin in infants. In dermatology, these devices are applied for treating psoriasis, vitiligo, eczema, acne, and other skin disorders by targeting affected skin cells while minimizing damage to surrounding tissue.

The equipment comes in various forms, including full-body cabins, handheld devices, LED-based systems, fiber-optic blankets, and lamps. Modern systems are equipped with precise wavelength controls, energy-efficient light sources, and safety features to enhance treatment effectiveness and patient comfort. These advancements enable non-invasive, targeted therapy with reduced side effects and improved convenience for both patients and healthcare providers.

Key Takeaways

• In terms of device type, LED phototherapy equipment continues to dominate the market share, driven by technological advances and cost-effectiveness, representing over 45% of market revenue.

• Regarding applications, psoriasis treatment constitutes the largest share, supported by rising prevalence rates globally audited by dermatological societies. Hospitals remain the largest end-user segment, accounting for half of the market demand due to rising investments in neonatal and dermatological care infrastructure.

• Regionally, North America dominates the market, holding approximately 38% market share, supported by high healthcare expenditure and presence of leading market companies.

• Meanwhile, the Asia Pacific region exhibits the fastest market growth, with a CAGR exceeding 9% from 2025 to 2032, propelled by expanding healthcare infrastructure and rising awareness of phototherapy benefits.

Phototherapy Equipment Market Segmentation Analysis

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Phototherapy Equipment Market Insights, By Device Type

The LED Phototherapy Equipment dominate the market share with approximately 45% of the total share. LED devices gain prominence due to superior energy efficiency, longer lifespan, and minimal heat emission, fuelling their adoption in both hospital and homecare settings. The fastest growing subsegment is Fluorescent Lamps driven by ongoing refinements that improve output and customization for dermatological applications.

Phototherapy Equipment Market Insights, By Application

Psoriasis Treatment is dominating the market share at around 38%. This dominance is substantiated by the increasing global psoriasis prevalence and the effectiveness of phototherapy in managing chronic skin inflammation. Neonatal jaundice treatment, although critical, shows steady growth aligned with birth rates and healthcare infrastructure improvements.

Phototherapy Equipment Market Insights, By End-User

In terms of end-user the Hospital & Clinic segment is dominating the market share at 50%. Hospitals retain dominance due to high patient throughput and investment capacity for phototherapy equipment, especially for neonatal and dermatological indications. The fastest growing subsegment is Homecare, which benefits from rising patient preference for decentralized treatment models and proliferation of portable devices. Specialty Clinics maintain steady demand, focusing on dermatology and cosmetic treatment centers.

Phototherapy Equipment Market Trends

• Recent trends shows strong transition towards LED-based devices due to their enhanced efficiency and minimal environmental impact compared to conventional fluorescent systems.

• For example, in 2024, LED devices accounted for nearly 48% of total phototherapy equipment unit shipments globally.

• Additionally, integration of digital health technologies such as IoT-enabled phototherapy systems is creating opportunities for remote patient monitoring and data analytics, thereby improving treatment personalization.

• The trend toward portable and home-based phototherapy units is gaining momentum, driven by patient preference for convenience and reducing hospital visit frequency.

• Furthermore, market shift is evidenced by the expanding use of phototherapy in greater therapeutic areas, including veterinary and cosmetic applications, broadening the product landscape and diversifying revenue streams.

Phototherapy Equipment Market Insights, By Geography

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North America Phototherapy Equipment Market Analysis and Trends

Currently, North America is leading the market due to its advanced healthcare infrastructure, substantial public and private healthcare expenditure, and the presence of key market players. The U.S., accounting for the largest share within the region, benefits from widespread hospital adoption and favorable reimbursement frameworks that encourage phototherapy device purchase and use. Robust R&D activities by companies headquartered in this region contribute significantly to technological innovations, maintaining leadership in market revenue and market share.

Asia Pacific Phototherapy Equipment Market Analysis and Trends

The Asia Pacific exhibits the fastest growth, driven by the rapid expansion of healthcare infrastructure, increased incidences of neonatal disorders, rising disposable incomes, and government initiatives to improve healthcare access drive this growth. Emerging markets like India and China are witnessing escalating demand for cost-effective phototherapy equipment, reinforced by growing awareness and increasing adoption in urban hospitals and rural clinics.

Phototherapy Equipment Market Outlook for Key Countries

USA Phototherapy Equipment Market Analysis and Trends

The United States Phototherapy Equipment market is characterized by high adoption of advanced LED and IoT-enabled devices. In 2024, approximately 55% of all phototherapy devices shipped in North America were sourced from the U.S., led by companies like Philips Lighting and Daavlin. Favorable reimbursement policies and increasing neonatal jaundice cases, reported by the CDC at a prevalence of nearly 10% among newborns, actively drive hospital procurement and homecare device adoption. The U.S. market landscape is noted for competitive innovation, with key players investing heavily in R&D activities to maintain technological superiority.

India Phototherapy Equipment Market Analysis and Trends

India represents the fastest-growing country in Asia Pacific. Increasing government healthcare spending, expansion in neonatal intensive care units, and rising awareness about skin disorders propel demand significantly. For instance, India’s Ministry of Health reported a 12% annual growth in neonatal healthcare infrastructure, and local manufacturers are scaling up production of affordable phototherapy devices to cater to rising domestic needs. Strategic collaborations between Indian companies and multinational corporations have enhanced product availability and market penetration, making India a pivotal market in Asia Pacific’s overall growth.

Analyst Opinion

• Rising demand for LED-based phototherapy devices is a critical supply-side indicator accelerating market growth. The shift from traditional fluorescent lamps to LEDs offers enhanced energy efficiency and prolonged device lifespan, demonstrated by a 25% increase in LED devices shipped in 2024 compared to 2023.

• On the demand side, neonatal care units have significantly expanded their procurement of phototherapy equipment. For example, the U.S. reported a 15% rise in neonatal jaundice cases treated with phototherapy in 2025, boosting imports of advanced phototherapy systems by medical institutions.

• Micro-indicators reveal that outpatient dermatology clinics are adopting portable phototherapy devices increasingly due to convenience and cost-effectiveness. Sales of portable units surged 30% in North America in early 2025, pointing to a shifting usage pattern within end-user segments.

• Nano-level insights show emerging use cases in veterinary dermatology and cosmetic applications are beginning to influence market dynamics. In 2024, multiple veterinary hospitals in Europe reported integrating phototherapy to treat animal skin conditions, indicating diversification in market use.

Phototherapy Equipment Market Growth Factors

Several key growth drivers are shaping market revenue and market share within the Phototherapy Equipment industry. Rapid technological innovation in LED phototherapy devices is reducing energy consumption and improving clinical outcomes, directly influencing increasing adoption rates. Moreover, rising incidences of neonatal jaundice, as reported by the WHO with over 15 million annual cases worldwide, drive hospital investments in phototherapy equipment. Expanding applications beyond traditional uses, such as psoriasis and vitiligo, widen the market scope and present lucrative business growth opportunities. Additionally, favorable government healthcare policies supporting neonatal care immunization and increasing reimbursement options in regions like North America have further enhanced market dynamics contributing to sustained market growth.

Market Scope

Phototherapy Equipment Market Development

In July 2025, Japan-based Gunze Medical, in collaboration with Lameditech, launched CAREVEAM, a 308 nm excimer UV-B phototherapy device designed for treating psoriasis, vitiligo, atopic dermatitis, and alopecia areata. The table-mounted system features adjustable irradiance and a lightweight handpiece, making it suitable for clinical settings.

In May 2025, TheraLight, LLC unveiled the TheraLight 360i, a whole-body therapy bed that combines photobiomodulation (light therapy), Pulsed Electromagnetic Field (PEMF) therapy, and Acoustic Resonance Therapy.

Key Players

Leading Companies of the Market

• Philips Lighting

• Koninklijke Philips N.V.

• Daavlin

• Ushio Inc.

• National Biological Corporation

• Photo Therapeutics Ltd.

• Curelight Ltd.

• Wolff Medical

• UV Technologies Inc.

• Hanovia Limited

• Natus Medical Incorporated

• NextPhotonics

• Theralight Inc.

??? Several leading companies have demonstrated strategic growth via product innovation and global expansion. For instance, Philips Lighting’s introduction of compact LED phototherapy units resulted in a 20% revenue increase in 2024. Daavlin expanded its presence in Asia Pacific by establishing distribution partnerships in India and China, boosting regional market penetration by 18% in 2025.

Phototherapy Equipment Market Future Outlook

The Future of the phototherapy equipment industry growth is expected to remain robust due to increasing prevalence of skin conditions such as psoriasis, eczema, and vitiligo, as well as growing neonatal care needs. Innovations in portable and wearable phototherapy devices, along with advancements in light wavelength precision, will likely improve treatment outcomes and accessibility. Additionally, rising awareness about non-invasive treatment alternatives and growing investments in healthcare infrastructure, particularly in emerging regions, are anticipated to further propel market growth. However, challenges such as device costs and regulatory compliance may influence the pace of adoption.

Phototherapy Equipment Market Historical Analysis

The market has witnessed consistent growth over the past years, driven by rising awareness of skin and neonatal disorders that benefit from light-based treatments. Technological advancements in light sources and devices have improved treatment efficacy and patient comfort. Additionally, increasing adoption of phototherapy in dermatology and neonatal care settings has expanded the market’s reach globally. Growth was also supported by enhanced healthcare infrastructure and a growing number of healthcare providers integrating phototherapy as a standard treatment option.

Sources

• Primary Research interviews:

• Dermatologists

• Neonatologists

• Medical Device Manufacturers

• Databases:

• National Center for Biotechnology Information (NCBI)

• World Health Organization (WHO) Database

• U.S. Food and Drug Administration (FDA) Database

• Magazines:

• Dermatology Times

• MedTech Outlook

• Medical Device and Diagnostic Industry (MD+DI)

• HealthTech Magazine

• Journals:

• Journal of Photochemistry and Photobiology

• Photodermatology, Photoimmunology & Photomedicine

• Journal of the American Academy of Dermatology

• Lasers in Medical Science

• Newspapers:

• The Guardian (Health & Science)

• The New York Times (Health Section)

• Economic Times (Healthcare & Medical Devices)

• Associations:

• American Academy of Dermatology (AAD)

• International Phototherapy Association

• Neonatal Nurses Association