Optoelectronic Components Market to Reach Valuation of USD 60.55 Billion by 2028 - Increasing use of Infrared Components in Consumer Electronics and Automobile is Driving the Market

In terms of revenue, the global Optoelectronic Components Market is expected to reach USD 60.55 Billion by 2028, growing at a CAGR of 4.80% from 2022 to 2028. The key factor driving the Optoelectronic Components Market is its ability to work and perform in extreme climates and the rising use of infrared components in consumer electronics and automotive applications.

Key Findings

• Under the component segment sensor, sub-segment is anticipated to dominate the segment for Optoelectronic Components Market owing to the increasing use of sensors in various applications.
• The communication sub-segment held a significant market share in 2021 as the majority of the components is required in the manufacturing of communication devices.
• Asia Pacific is expected to grow at the fastest CAGR from 2022 to 2028. This region is growing at a rapid phase due to rising industrialization and urbanization along with the low cost of production.

Some of the key players dominating the Optoelectronic Components Market include - Osram (Germany), Hamamatsu (Japan), TT Electronics (UK), ON Semiconductor (US), Vishay (US), SICK AG (Germany), Cree (US), Trumpf (Germany), Samsung (South Korea), Broadcom (US), and Sony (Japan).

Optoelectronic components (or as often referred to photo-electronic components) are electronic components that produce light or react to it. Some components among them are LEDs (Light Emitting Diodes), phototransistors, photodiodes, photoresistors (or LDR – Light Dependent Resistors), different visual indicators, light emitters and detectors, optocouplers, various others. Many of those components can be recognized easily recognized because of the “window” on the component's case which is used to pass the light. Sometimes, instead of a window, there is a small lens, which directs light to some predestined location inside of the component. Emitting diodes are a special kind of photo-diodes. One of them is the LED, and some of them include infra-red or ultra-violet emitting for different wireless communication purposes. Most common area of application of IR-LEDs (Infra-Red) is remote controllers for TVs and other devices. Photodiodes are usually housed in round metallic or square plastic cases with a glass window or a lens that focuses on the incoming light. Photo-transistor's internal parts are similar to the internals of a regular transistor.

Asia Pacific is expected to grow at the fastest CAGR in the coming years due to the high demand for electronic components and their accessories due to increasing industrialization and urbanization. Major Key players are investing in the production of optoelectronic components manufacturing plants. China to be the epic center for manufacturing, the huge potential is predicted for Optoelectronic Components Market in recent years. Low cost of production and high demand is expected to flourish the Optoelectronic Components Market. For instance, despite widening automation in manufacturing, the electronics industry still requires some labor-intensive production. And labor costs in China have been rising. Between 2011 and 2016 they went up more than 60%, by some estimates. There is much cheaper labor to be found elsewhere in Asia. However, China’s infrastructure is getting better all the time. Numerous local firms are now on hand to provide ancillary services, such as logistics and prototyping.