Terahertz technology is an emerging and a highly popular field of research that finds usage in various applications such as terahertz imaging, terahertz spectroscopy, and terahertz communication. Terahertz range lies between the frequency bands of microwaves and infrared radiation. The energy in the radiation is low enough so as not to pose any risk to the subject or object under examination. It has become more accessible over the past two decades, thanks to the technological developments and innovations, thereby calling for more demand from various sectors such as defense & homeland security and medical & healthcare.
The worldwide terahertz technology market is projected to be valued at USD 489.8 Million by the end of 2022, growing at a high CAGR of 31.83% during the forecast period from 2016 to 2022.
Which region is expected to be the largest market and why?
Currently, North America holds the highest market share for terahertz technology. Increasing demand for terahertz technology-based products for the industrial and medical & healthcare sectors is contributing to the growth of the terahertz technology market in this region. North America has a huge demand for terahertz technology-based products for industrial applications such as paints and coatings defect identification, structure analysis of ceramics and composites, semiconductor and electronics wafer thickness measurement, electronic circuit inspection, and food quality inspection, thus boosting the growth of this market.
Apart from this, Asia-Pacific is expected to grow at the highest CAGR between 2016 and 2022, mainly owing to the increased number of manufacturing companies, especially in developing nations such as China, India, and Japan.
Current and Future Market Trends
The terahertz technology systems are broadly categorized as terahertz imaging, terahertz spectroscopy, and terahertz communication. Terahertz imaging systems market was valued as USD 48.1 million in 2015 and it is expected to reach USD 302.2 million by 2022, at a CAGR of 30.23% between 2016 and 2022. The terahertz imaging systems are being used in the applications areas such as healthcare and passenger screening. Medical imaging is a key application, which is driving the growth of the terahertz imaging market.
Among applications, the terahertz technology market for laboratory research applications is poised to grow at the highest CAGR during the forecast period, owing to the continuous developments and advancements in technology and frequent R&D activities.
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What does the competitive landscape of this market look like?
The terahertz technology market is dominated by the presence of players such as TeraView (U.K.), Advantest Corporation (Japan), Menlo Systems GmbH (Germany), Acal Plc (U.K.), and Microtech Instrument, Inc. (U.S.). As of now, TeraView (U.K.) holds the leading position in the terahertz technology market. The company focuses on product innovations and technological advancements to capture the untapped market. In June 2014, the company has established its presence in Asia by setting up a new office at Seoul, South Korea to enhance its service, technical support, and application-specific expertise for its customers and commercial partners in the region.
New product launches was among the key strategies adopted by the leading market players to gain competitive advantage over a period from 2012 to 2015. The companies have also adopted the strategies of partnerships & collaborations in order to improve their product offerings, product facilities, and product coverage in the terahertz technology market.
What factors are driving the market towards this impressive growth?
The demand for terahertz technology-based systems from the defense, homeland security, and medical sectors is the major driving factor of the market. The applications such as airport passenger screening and baggage screening are attracting demand for the terahertz products. Also, the demand from medical applications such as cancer detection, dental caries, among others is expected to get prominent demand during the forecast period.
What are the limitations and challenges faced by this market and how can we overcome them?
Currently, development of efficient terahertz sources and detectors for accuracy and reliability is the major challenge faced by the manufacturers involved in this market. The companies are working with their research and development facilities to overcome this challenge in the near future.