Global Terahertz Technology Market Overview
The key drivers impacting the terahertz technology market are the growing applications of terahertz technology in various medical, automotive, and aerospace, and defense applications. For instance, Terahertz radiation can penetrate fabrics and plastics, so it is utilized in surveillance, such as security screening, to expose hidden weapons on a person distantly. The medical sector is used in medical imaging as terahertz radiation is not ionizing radiation, and its low photon energies do not injure living tissues and DNA. Some frequencies of terahertz radiation can penetrate several millimeters of tissue with fatty tissue and reflect. Moreover, an increase in demand from the homeland security, defense, and medical sectors contributes to terahertz technology market demand in the later years.
According to Value Market Research, the global terahertz technology market size was valued at about USD 281.2 million in 2020 and is estimated to grow at a CAGR of around 32% during the forecast period 2021 to 2027.
The growing investment by governments and private enterprises due to growing terrorist activity worldwide will likely augment the need for terahertz technology in the forecast period. However, the slow adoption rate of terahertz technology due to the lack of awareness hampers the market in the long run. In addition, the high cost of R&D impedes market growth. Nevertheless, the market trends, such as processing applications of terahertz technology in the food industry and the rising use of terahertz technology for satellite communication and computing, might provide huge opportunities to the market's leading players.
The terahertz technology market is widespread, with many local and international players. The market leaders follow diverse strategies to strengthen their market, such as amalgamation, extending product portfolio, acquisitions, contracts, product upgrades to raise their market share globally. The key players in the report are Terasense, Advantest Corporation, Digital Barriers Plc, Menlo Systems GmbH, Teraview, Advanced Photonix Inc., Microtech Instrument Inc., Traycer, Acal Plc, Gentec Electro-Optics, and Toptica Photonics AG.
In this research report, the terahertz technology market is segmented by type, application, and region.
Analysis by Type:
By type, the report is segmented into terahertz imaging, terahertz spectroscopy, and terahertz communication systems. The Terahertz imaging segment dominates with the highest market share in the forecast period. It is because the low photon energy of terahertz electromagnetic waves makes them harmless and non-ionizing even after excessive exposure to them contributes to the growth of Terahertz imaging in the forecast period.
Analysis by Application:
By End-user application, the report is divided into Healthcare, food & agriculture, defense & security, and others. The defense & security segment dominates the end-use segment with a market share in 2020. It is due to the growing innovations and better imaging capabilities and rising investment by security organizations in upgraded devices for enhanced performance. Moreover, the rising utilization of plastic and new chemical & biological weapons by criminals creates the need to use terahertz devices, contributing to the high market demand from the defense sector.
Analysis by Region:
In the regional outlook of the global terahertz technology market, the North America region dominates with the largest market share in 2020. It is due to the growing number of government regulations favoring the adoption of terahertz technology in the region. Moreover, the high implementation of advanced technology and rise in the production of helicopters and commercial aircraft in the United States contribute to the tremendous market growth across North America.
Market Segmentation covered in the Report:
- Terahertz imaging
- Terahertz spectroscopy
- Terahertz communication systems
- Food & Agriculture
- Defense & Security
- North America
- Asia Pacific
- Latin America
- Middle East and Africa
This market research report has been produced by gathering information on the basis of primary and secondary research. Secondary research has been done by using various sources which include (but not limited to) Company Websites, Paid Data Sources, Technical Journals, Financial Reports, SEC Filings, and other different industry publications.
If specific information is required which is not currently within the scope of the report, it can be provided as a part of customization