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17 September 2007


Opto-enabled product and component market to grow at 7.7% annually to 2017

The market for optoelectronic components and optoelectronic -enabled products rose 14.5% from $494bn in 2005 to a record $565bn in 2006, according to the Washington DC-based Optoelectronics Industry Development Association (OIDA) in its 9th annual global optoelectronics market summary and forecast (presented at its forum ‘Perspectives on the Optoelectronics Industry’ in San Jose, CA, USA last week).

The OIDA defines optoelectronic-enabled products as products and systems that contain optoelectronic components, while optoelectronic components are considered up to the module level.

For optoelectronics-enabled products, annual growth ranged from 8% to 43%, led by environment/sensing (43.1%) and medical care/welfare (28.6%). The two biggest segments, consumer display/TV and computing/processing, demonstrated growth of 20.4% and 8.1%, respectively.

The OIDA also forecasts steady growth at a compound annual growth rate (CAGR) of 7.7% over the next decade to more than $1.2 trillion by 2017, driven mainly by LCD displays (which will enable consumer-based products ranging from TVs to mobile phones and digital assistants).

For optoelectronics-enabled products, growth drivers will be solar, computing/processing and consumer displays/TVs, with CAGRs of 17.3%, 5.6% and 6.3%, respectively. Their combined total revenue in 2017 should top $425bn (compared to $198bn in 2006).

Forecasts for growth from 2006 to 2017 include:

  • Flat-panel display (FPD) revenues will grow to nearly $200bn, driven mainly by a-Si (amorphous silicon) TFT LCDs for consumer products such as TVs.
  • White high-brightness LEDs (HB-LEDs) will fuel growth of the LED market to more than $14bn, driven by solid-state lighting, automotive and signs/displays.
  • The laser market should grow steadily from slightly over $6bn in 2006 to nearly double that. The non-diode market is expected to surpass the diode market in the 2011 timeframe, fueled by materials process, industrial and medical applications.
  • The optical communications market should grow at a CAGR of 7% from $19bn to nearly $40bn, led by strong growth in optical networking equipment that evolves the network architecture to be more efficient through the use of dynamic optoelectronic components.
  • Optoelectronic transceivers are expected to grow rapidly from slightly over $1bn to more than $6bn. Key drivers will be Ethernet/Fiber Channel 10Gb/s technology. The emergence of 40Gb/s modules over the next decade will offer new growth opportunities.
  • Solid-state lighting devices (mainly HB-LEDs) will grow to more than $60bn (over 30% of the lighting market), giving competition to incumbent incandescent and fluorescent luminaires. Organic LEDs (OLEDs) will penetrate this market slowly due to their high cost structure.

The 9th annual global optoelectronics market summary and forecast is due to be distributed to OIDA members in October.

See related item:

OIDA launches Silicon Photonics Alliance, led by Luxtera