The terahertz technologies market registered a CAGR of over 30.47% during the forecast period, 2022-2027. The growing number of applications of the technology in security applications has been the primary driving force for the growth of the market in the recent past. There has been a significant rise in the number of manufacturing companies in the developing countries, creating a huge demand for precise security systems, thus driving the growth of the terahertz technologies market.
- Security concerns have been a major issue across the entire world. The governments and private enterprises, as a whole, have invested massive amounts of money, owing to growing terrorist activity around the world. Security checks and surveillance have been the areas of concern in airports and other security critical places where there is a potential risk of terrorist attacks.
- The cost complications associated with the installation of the technology in the different applications has been another major factor influencing the decision-making process of the end users. Disruptive technologies in some sectors can face the barriers of customer skepticism and resistance from incumbents already selling into these areas.
Key Market Trends
Defense and Security is Expected to Register a Significant Growth
Companies are currently collaborating with this defense and security industry to develop sophisticated devices to detect threats. The ability to detect different types of materials, including non-metallic substances, is helping the security sector handle threats. Handheld scanners are being deployed in airports and other public spaces for security screening. The technology is also being deployed for package scanning in airports. Growing terrorist threats around the world and increasing criminal activities are driving investments in many countries to establish security infrastructure. This is expected to aid the growth of terahertz technology in the coming years.
With increasing innovations and better imaging capabilities, security organizations are investing in upgraded devices for better performance. Increasing utilization of plastic and new chemical & biological weapons by criminals is creating the need to use terahertz devices. Also, increased safety provided by the technology gives it a considerable advantage over existing X-ray scanners and detectors. The cost of the technology is expected to fall over the coming years, owing to the high demand from the market. Thus, the adoption is expected to further grow due to emerging countries looking to upgrade security. Overall, the technology is expected to see a huge demand in the coming years, in turn, driving the market’s growth.
North America is Expected to have the Largest Market Share
North America, being the largest market for technology-based solutions, is expected to be a strong player in the global economy, especially in the development and implementation of new technologies. Owing to terahertz being a new technology and North America being one of the earliest adopters, the market for this technology is the largest in the region. Increase in the production of helicopters and commercial aircrafts in the United States is also expected to drive the market for terahertz technology in this region. The huge aerospace industry of the United States exports more than 60% of all aerospace production.
The terahertz technology market is highly competitive and consists of several major players. In terms of market share, few of the major players currently dominate the market. These major players with prominent shares in the market are focusing on expanding their customer base across foreign countries. These companies are leveraging on strategic collaborative initiatives to increase their market shares and profitability. The companies operating in the market are also acquiring start-ups working on terahertz technologies to strengthen their product capabilities. In March 2017, Luna Innovations Incorporated announced its Picometrix division, which entered into a Vendor Managed Inventory Agreement with the Chinese leading telecommunications equipment and network solutions provider. The agreement integrated Picometrix closely into the customer’s supply chain and manufacturing processes. Under the agreement, Picometrix is expected to maintain a dedicated inventory of 100G integrated coherent receivers and other future approved products, which its customer can draw into manufacturing on a “just-in-time” basis in Hong Kong.
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1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Introduction to Market Drivers and Restraints
4.3 Market Drivers
4.3.1 Increased Demand in the Medical Sector, and Non Destructive Testing Applications
4.3.2 Holistic Approach to Security through the Usage of Terahertz Technology
4.4 Market Restraints
4.4.1 Lack of Awareness of the Technology in the Market
4.4.2 Lacking the Device Infrastructure to Support the Adoption of Terahertz Technology
4.5 Value Chain / Supply Chain Analysis
4.6 Industry Attractiveness - Porter's Five Forces Analysis
4.6.1 Threat of New Entrants
4.6.2 Bargaining Power of Buyers/Consumers
4.6.3 Bargaining Power of Suppliers
4.6.4 Threat of Substitute Products
4.6.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
5.1.1 North America
184.108.40.206 United States
220.127.116.11 United Kingdom
18.104.22.168 Rest of Europe
5.1.3 Asia Pacific
22.214.171.124 South Korea
126.96.36.199 Rest of Asia-Pacific
5.1.4 Rest of the World
188.8.131.52 Latin America
184.108.40.206 Middle-East & Africa
5.2 By Type Of Technology
5.2.1 Terahertz Imaging Systems
220.127.116.11 Active System
18.104.22.168 Passive System
5.2.2 Terahertz Spectroscopy Systems
22.214.171.124 Time Domain
126.96.36.199 Frequency Domain
5.2.3 Communication Systems
5.3 By End User
5.3.2 Defense and Security
5.3.5 Food and Agriculture
5.3.7 Other End Users
6 COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Luna Innovations
6.1.2 Digital Barriers PLC
6.1.3 TeraView Limited
6.1.4 TOPTICA Photonics AG
6.1.5 HÃBNER GmbH & Co. KG
6.1.6 Advantest Corporation
6.1.7 Traycer Diagnostics Systems Inc.
6.1.8 Terasense Group Inc.
6.1.9 Microtech Instrument Inc.
6.1.10 Menlo Systems GmbH
6.1.11 Gentec Electro-optics Inc.
6.1.12 Bakman Technologies
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS
Secondary Research Information is collected from a number of publicly available as well as paid databases. Public sources involve publications by different associations and governments, annual reports and statements of companies, white papers and research publications by recognized industry experts and renowned academia etc. Paid data sources include third party authentic industry databases.
Once data collection is done through secondary research, primary interviews are conducted with different stakeholders across the value chain like manufacturers, distributors, ingredient/input suppliers, end customers and other key opinion leaders of the industry. Primary research is used both to validate the data points obtained from secondary research and to fill in the data gaps after secondary research.
The market engineering phase involves analyzing the data collected, market breakdown and forecasting. Macroeconomic indicators and bottom-up and top-down approaches are used to arrive at a complete set of data points that give way to valuable qualitative and quantitative insights. Each data point is verified by the process of data triangulation to validate the numbers and arrive at close estimates.
The market engineered data is verified and validated by a number of experts, both in-house and external.
REPORT WRITING/ PRESENTATION
After the data is curated by the mentioned highly sophisticated process, the analysts begin to write the report. Garnering insights from data and forecasts, insights are drawn to visualize the entire ecosystem in a single report.