The European optoelectronics market is projected to grow at a CAGR of 4.77% during the forecast period.
Introduction
Optoelectronics are semiconductor devices that can create or respond to light. The optoelectronics market encompasses the development, design, and production of hardware devices that turn electrical energy into light energy and light energy into energy via semiconductors. Optical communications display, solid-state lighting, optical storage, laser/optical processing, optical energy, and sensing/measuring are a few of the domains where the optoelectronics industry and technology have created new added values. Optoelectronics has several applications. Some of the leading applications are photodiodes, solar cells, light-emitting diodes, optical fibre, and laser diodes.
The need for optoelectronics in the region will expand in tandem with the demand for smartphones and consumer electronics. Furthermore, the market is expected to be influenced by the increasing deployment of driverless vehicles and electric vehicles.
Market Trend
Optoelectronics is a critical component in the development of telecommunication networks, and the devices are used to reduce the cost of high-speed network termination equipment. Furthermore, the future predicts increased use of optoelectronic devices in the telecommunications industry, resulting in several prospects in the optoelectronics market. With the adoption of laser transmitters for high-speed optical networks, Europe has modern telecommunication technologies. Furthermore, optoelectronic devices are widely used in the medical equipment industry, which is experiencing a surge in demand in the region. One of the main reasons why the optoelectronics industry is gaining traction in the region is that automobiles employ optoelectronic devices in their indicators and headlights.
Further, the growing consumer electronics and the automotive sector are anticipated to contribute significantly. In addition, due to COVID-19 stimulus packages, the manufacturing sector will be flourishing along with it. The Optoelectronics market will also grow in the forecast period.
Growth Factors
Optoelectronics is an important component of several modern technologies. The European market has a huge demand for consumer electronics. With ring technology and the high speed of the internet, the demand is further anticipated to increase. For instance, the launch of Metaverses has influenced the sales of VR headsets in the region. Recently, the Vatican announced the launch of a Metaverse art gallery. Further, the rising advent of work from home during the COVID-19 pandemic has promoted a remort of work culture. This has influenced the demand for consumer electronics like laptops, computers, tablets, etc. In addition, the rising gaming industry is also influencing the consumer electronic market. Moreover, the increasing adoption of e-commerce has significantly influenced the market in a positive sense.
Restraints
The optoelectronics industry has a high cost of investment in research and development, which costs a lot of money. Furthermore, the sophisticated lights, displays, and medical equipment with optoelectronics devices are expensive, further influencing the market. This is a major drawback influencing the market.
Impact of the COVID-19 Pandemic:
COVID-19 has negatively impacted the optoelectronics market in Europe. The severe outbreak of coronavirus led to a lockdown affecting the supply chain and international trade. This halted manufacturing and trade, across various sectors. Affected demand as well as supply of consumer electronics, automobiles, and other manufacturing industries.
Segmentation: