Terahertz Technology Market Size

Terahertz Technology Market Size

Terahertz Technology Market was valued at over USD 780 million in 2023 and is estimated to register a CAGR of over 15.5% between 2024 and 2032. The integration of terahertz technology into automotive and aerospace industries is a significant growth driver owing to its potential for enhancing safety & efficiency.

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In automotive applications, terahertz sensors can enable Advanced Driver Assistance Systems (ADAS) for collision avoidance and autonomous driving. In aerospace, terahertz technology offers non-destructive testing capabilities for composite materials, ensuring structural integrity and safety of aircraft components. The increasing reliance of industries on terahertz solutions drives innovations and market expansion, fostering collaborations between technology developers & manufacturers..

For instance, in February 2024, Montreal Metropolitan Airport (YHU) received a USD 90-million investment from the Canada Infrastructure Bank (CIB) for a new passenger terminal. The investment is expected to enable the development of a new domestic airport terminal to enhance mobility options for Canadians traveling to & from Montreal while supporting economic opportunities in the Montreal region. Such investments are likely to add opportunities for evolving technologies that are expected to promote the proper functioning of airport infrastructures including terahertz scanners.
 

The growing adoption of terahertz technology in security & surveillance is a significant growth driver owing to its ability to penetrate various materials, including clothing and packaging, enabling effective screening for concealed objects such as weapons or explosives. Terahertz imaging systems offer superior capabilities for detecting hidden threats without the use of ionizing radiation, making them suitable for security applications in airports, public venues, and border control. This increasing demand for enhanced security measures propels the expansion of the terahertz technology market.
 

Potential health concerns related to terahertz radiation exposure pose a significant pitfall for the market. While terahertz radiation is non-ionizing and generally considered safe at low power levels, prolonged or intense exposure may raise concerns about thermal effects and tissue heating. Lack of comprehensive studies on long-term effects and uncertainties regarding exposure limits could lead to regulatory hurdles and public skepticism, hindering widespread adoption across various applications such as security screening and medical imaging. Addressing these concerns through rigorous research and clear safety guidelines is essential for market growth.