Coherent Market Insights

Terahertz Technologies Market Estimated at US$ 4.37 Bn by 2031

Terahertz Technologies Market Estimated at US$ 4.37 Bn by 2031 - Coherent Market Insights

Publish In: Jul 01, 2022

The Terahertz Technologies Market is estimated to be valued at US$ 1.20 Bn in 2024, exhibiting a CAGR of 20.3% over the forecast period (2024-2031). Furthermore, increasing demand from homeland security applications is also accelerating the market growth.

Market Dynamics:

Growth in the terahertz technologies market is driven by expanding adoption across biomedical verticals as well as strengthening regulatory landscape. Terahertz technology allows for non-invasive and non-destructive analysis of pharmaceuticals and biological samples, which is propelling its adoption across the biomedical and life sciences sectors. Additionally, favorable regulations around terahertz spectroscopy for applications such as biomedical, quality assurance, and security inspection are creating new opportunities. Stringent quality control standards across industries will further bolster demand. For instance, regulatory bodies allowing terahertz imaging for screening of tablets and capsules to identify the material inside encourages pharmaceutical companies to incorporate these systems. Overall, the synergies of demand and supportive regulations will help sustain a high pace of growth over the coming years.

Market Drivers: Growing Demand for Non-destructive Testing and Quality Control

Terahertz technology is increasingly being adopted for non-destructive testing and quality control applications across various industries such as electronics, healthcare, aerospace, and automotive. Terahertz spectroscopy and imaging allows for detecting imperfections or foreign substances embedded within solid materials and packages without harming the sample. This drives the need for terahertz devices that can perform high-resolution and real-time quality inspections. The non-contact and non-ionizing properties of terahertz waves make them ideal for scanning packages on the move on production lines. As manufacturing complexity rises with new product designs, the demand for advanced quality control solutions using terahertz technology is expected to grow substantially.

Market Drivers: Advancements in Terahertz Sources and Detection Methods

Continuous research and development activities aimed at enhancing the generation and detection of terahertz waves have expanded the application scope of terahertz technology. Novel methods involving optoelectronic techniques, laser technology, and quantum cascade lasers have improved terahertz source power and wavelength tunability. Simultaneously, the development of high-speed and high-sensitivity detection mechanisms such as transistor-based detectors and charge-coupled devices has enhanced terahertz imaging capabilities. The commercial availability of compact and cost-effective terahertz sources and detectors is fueling wider adoption across various end-use industries. Steady performance improvements will further propel the terahertz technologies market over the coming years.

Market Restraints: High Component Costs

As terahertz technology is still in the nascent commercialization phase, components essential for generating and detecting terahertz radiation such as lasers, photoconductive antennas, and terahertz time-domain spectrometers are relatively expensive compared to other technologies. This high initial capital requirement poses affordability challenges, especially for small-scale end users. While costs are expected to decline with escalating production volumes, the current high component pricing remains a significant restraint for widespread terahertz adoption in the short to medium term.

Market Restraints: Lack of Standardized Communication Protocols

The lack of standardized protocols for terahertz wireless communication poses problems with interoperability and large-scale deployment of terahertz networking systems and devices. Different generations of terahertz systems employ diverse modulation schemes, signal coding techniques, and multiple access methods, thereby limiting connectivity between heterogeneous terahertz platforms. Considerable research is still needed to develop universally agreed-upon protocols that define standard operating bands, safe terahertz power levels, and media access mechanisms. This technical challenge delays the full-scale commercialization of terahertz wireless applications.

Market Opportunities: Emergence of Terahertz Imaging for Security Screening

With terahertz radiation capable of penetrating materials such as clothing, leather, paper, cardboard, plastics and ceramics, terahertz imaging holds enormous potential as a non-intrusive inspection solution across various security sectors including critical infrastructure protection, public safety screening at transportation hubs, and threat detection at ports of entry. Ongoing technical advancements to improve terahertz sources, detectors, and imaging systems could accelerate terahertz adoption for screening cargo containers for contraband, detecting concealed weapons at checkpoints, and ensuring perimeter security for government facilities and public venues in the coming years.

Market Opportunities: Growing Integration into Consumer Electronic Devices

Major consumer electronics manufacturers are exploring the integration of terahertz transceivers into smartphones, laptops, and Internet of Things devices to support applications such as high-speed multi-gigabit wireless connectivity, secure device pairing, and cross-device data transfers. This could open up new revenue streams for terahertz technology companies as consumer devices become a valuable commercialization avenue. Furthermore, continued miniaturization of terahertz semiconductor chips and antenna modules will be crucial to facilitating their widespread integration into portable consumer products across various price points.

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Key Developments:

  • In May 2023, The Volkswagen Group is a leading global automotive manufacturer. adopted das-Nano technology to measure car body coating thickness using terahertz waves, enhancing coating quality control
  • In August 2022, NASA collaborated with Longwave Photonics is a cutting-edge technology company specializing in the development of advanced photonics solutions. to develop a heterodyne spectrometer, enabling the detection of water sources on the Moon using a stable terahertz laser
  • In October 2021, Advantest Corp. is a leading global provider of advanced semiconductor test solutions. acquired Altanova is a company specializing in providing advanced testing and measurement solutions for the semiconductor industry., enhancing its capabilities in simulation, layout, design, fabrication, and assembly of test interfaces, particularly in advanced printed circuit board production

Key Players:

Ab millimetre, Advantest corp., Agiltron inc., Alpes lasers sa, Applied research & photonics inc., Becker photonik gmbh, Bridge12 technologies inc., Broadband inc., Bruker corp., Canon inc., Coherent corp., Emcore corp., Gentec electro-optics inc., Innovative photonic solutions inc., Insight product co., Longwave photonics llc., M squared lasers ltd., Macom technology solutions holdings inc., Menlo systems gmbh, Microtech instruments inc., and Northrop grumman

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