Nanophotonics Market Size

Nanophotonics Market Size

The global nanophotonics market was valued at USD 20.5 billion in 2024 and is estimated to grow at a CAGR of 16% to reach USD 88.8 billion by 2034. The expansion of the nanophotonics industry is attributed to factors such as increasing demand for high-speed data transmission, communication networks, energy efficiency, and quantum computing.

The increasing need for high-speed data transmission is fuelling the adoption of nanophotonics technologies. Nanophotonic materials such as plasmonic and silicon enable ultra-fast data transmission, which significantly increases bandwidth and reduces latency. 5G networks highly depend on high-speed optical communications where nanophotonics components such as plasmonic and PIC (photonic integrated circuits) play essential roles in enabling faster and more consistent data transmission.
 

The increasing demand for 5G networks is expected to drive the demand for the nanophotonic market. For instance, according to GSMA, in 2023 the number of 5G connections surpassed 1,500 million making it the growing fastest-growing network to date. This makes nanophotonics essential for 5G networks, fiber optics, communication, and data centers, hence driving the demand for the nanophotonics market.
 

Additionally, Nanophotonics is gaining high traction in consumer electronics applications. The demand for large bandwidth and energy-efficient devices is driving the adoption of nanophotonic components. Nanophotonics components are increasingly being used in electronics such as optic cables, wearables, smartphones, AR/VR headsets, tablets, and laptops which is driving the demand of nanophotonics. For instance, according to Statista, the revenue of global consumer electronics is expected to exceed USD 1 Trillion with a volume of 9 billion by 2029. This growth of consumer electronics is mainly driven by increasing smartphone penetration. Moreover, with the advancements driving down costs and integration into consumer products, nanophotonic technologies are primed for increased adoption across diverse sectors.
 

Companies should invest in the development of advanced plasmonic and PICs due to the increasing demand for high-speed data transmission. As 5G network is rapidly growing, nanophotonics will be demanded more to enable faster and reliable transmission. Moreover, companies can also make alliances through partnerships with telecom providers to provide customized solutions for 5G networks and fiber optics infrastructure.