Phototherapy Equipment Market Set to Reach USD 0.62 Billion by 2031: Rising Demand for Neonatal Care and Dermatology Treatments Fuels Growth

The global Phototherapy Equipment Market is witnessing steady expansion as healthcare providers increasingly adopt light-based therapies to treat neonatal jaundice and chronic skin disorders. According to MarketsandMarkets™, the market is projected to grow from USD 0.47 billion in 2026 to USD 0.62 billion by 2031, registering a CAGR of 5.5% during the forecast period.

The growing prevalence of neonatal jaundice, psoriasis, vitiligo, eczema, and other chronic skin diseases, coupled with technological advancements in phototherapy systems and expanding healthcare infrastructure, is creating significant opportunities for manufacturers worldwide. Hospitals, neonatal intensive care units (NICUs), and dermatology clinics are increasingly investing in advanced phototherapy solutions that deliver effective, non-invasive treatment with improved patient safety.

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Market Overview

Phototherapy equipment uses controlled wavelengths of ultraviolet (UV) or blue light to treat various medical conditions. In neonatal care, phototherapy is the standard treatment for hyperbilirubinemia (newborn jaundice), while in dermatology it plays a critical role in managing psoriasis, vitiligo, eczema, atopic dermatitis, and other chronic skin disorders.

As healthcare systems prioritize early diagnosis, minimally invasive treatment options, and improved patient outcomes, phototherapy continues to gain acceptance across developed and emerging economies.

Market Highlights

  • Market Size (2026): USD 0.47 Billion
  • Projected Market Size (2031): USD 0.62 Billion
  • CAGR (2026–2031): 5.5%
  • Forecast Period: 2026–2031

Rising Burden of Skin Disorders Expanding Market Opportunities

One of the strongest growth drivers for the phototherapy equipment market is the increasing prevalence of chronic dermatological diseases worldwide. Conditions such as psoriasis, eczema, vitiligo, and atopic dermatitis affect millions of individuals and often require long-term treatment.

Phototherapy has emerged as one of the preferred treatment options because it offers several advantages over systemic medications, including:

  • Non-invasive treatment
  • Proven clinical effectiveness
  • Lower risk of systemic side effects
  • Improved patient compliance
  • Long-term disease management

Among various treatment modalities, narrowband UVB phototherapy has become particularly popular due to its excellent safety profile and effectiveness. Dermatologists increasingly recommend phototherapy as either a standalone treatment or in combination with topical therapies to reduce inflammation, regulate abnormal skin cell growth, and restore pigmentation.

Growing awareness about skin health, rising healthcare spending, and increasing availability of specialized dermatology clinics are further strengthening demand for phototherapy equipment worldwide.

Neonatal Jaundice Continues to Drive Equipment Adoption

Neonatal jaundice remains the largest application segment for phototherapy equipment.

Approximately a majority of newborn infants develop some degree of jaundice during the first week of life due to elevated bilirubin levels. Without timely treatment, severe hyperbilirubinemia can lead to neurological complications, making early intervention essential.

Phototherapy is considered the global standard of care for neonatal jaundice because it effectively reduces bilirubin levels without requiring invasive procedures.

Several factors continue to support strong demand in neonatal applications:

  • Increasing global birth rates
  • Rising incidence of preterm births
  • Improved neonatal survival rates
  • Expansion of NICUs worldwide
  • Greater awareness of newborn screening programs

Healthcare providers across Asia Pacific, Africa, and Latin America are expanding neonatal care facilities, creating sustained demand for advanced phototherapy systems.

Conventional Phototherapy Equipment Maintains Market Leadership

By product type, conventional phototherapy equipment accounted for approximately 80% of the market in 2026, making it the largest revenue-generating segment.

Despite the introduction of LED-based and technologically advanced phototherapy systems, conventional equipment continues to dominate due to several practical advantages.

These systems offer:

  • Lower acquisition costs
  • Simple installation
  • Easy maintenance
  • Reliable clinical performance
  • Minimal infrastructure requirements

Their affordability makes them particularly attractive for public hospitals, community healthcare centers, and government-funded neonatal programs in emerging economies.

Countries such as India, China, and several African nations continue to rely heavily on conventional phototherapy systems because they provide effective treatment while remaining economically accessible.

In addition, local manufacturing capabilities have helped reduce production costs, improving equipment accessibility in resource-constrained healthcare settings.

Hospitals Emerging as the Fastest-Growing End Users

Hospitals are expected to register the highest CAGR during the forecast period as they continue expanding neonatal and dermatology treatment services.

Modern hospitals are increasingly investing in phototherapy equipment due to:

  • Rising patient admissions
  • Growing NICU capacity
  • Expansion of dermatology departments
  • Increasing preference for non-invasive therapies
  • Government investments in maternal and child healthcare

Many healthcare institutions are also replacing aging equipment with newer systems featuring LED technology, enhanced safety features, digital controls, and improved energy efficiency.

As healthcare quality standards improve globally, hospitals will remain the largest purchasers of phototherapy equipment.

Asia Pacific Expected to Record the Highest Growth

The Asia Pacific region is projected to experience the fastest market growth through 2031.

Several factors contribute to this rapid expansion.

Large Neonatal Population

India and China together account for a significant proportion of annual global births, creating a consistently large patient pool requiring neonatal phototherapy.

Rising Healthcare Investments

Governments across Asia Pacific are investing heavily in maternal and child healthcare infrastructure, expanding NICUs and improving access to essential neonatal equipment.

Increasing Awareness

Healthcare professionals are emphasizing early diagnosis and treatment of neonatal jaundice, resulting in higher diagnosis and treatment rates.

Growing Burden of Skin Diseases

Urbanization, pollution, changing lifestyles, and environmental factors have contributed to increasing incidences of chronic skin disorders throughout the region.

Expanding Domestic Manufacturing

Countries including India and China have become important manufacturing hubs for cost-effective phototherapy systems, increasing affordability while supporting domestic healthcare demand.

Collectively, these factors position Asia Pacific as the fastest-growing regional market, with India expected to register an impressive CAGR of approximately 8.0% during the forecast period.

Technology Advancements Enhancing Clinical Outcomes

Manufacturers are increasingly introducing technologically advanced phototherapy systems designed to improve treatment effectiveness while enhancing patient comfort.

Recent innovations include:

  • High-intensity LED phototherapy systems
  • Portable home-care phototherapy devices
  • Fiber-optic phototherapy solutions
  • Smart monitoring capabilities
  • Energy-efficient lighting technologies
  • Digital control interfaces

LED-based systems are particularly gaining attention due to their longer operational lifespan, reduced heat generation, lower maintenance costs, and improved energy efficiency compared to conventional fluorescent lamps.

These innovations are expected to further accelerate equipment replacement cycles in hospitals and specialty clinics.

Competitive Landscape

The global phototherapy equipment market remains highly competitive, with manufacturers focusing on product innovation, geographic expansion, strategic partnerships, and regulatory approvals to strengthen their market positions.

Leading companies operating in the market include:

  • Drägerwerk AG & Co. KGaA (Germany)
  • GE HealthCare (US)
  • Natus Medical (US)
  • Atom Medical (Japan)
  • Bistos (South Korea)
  • Ningbo David (China)
  • Phothera (US)
  • STRATA Skin Sciences (US)
  • Xuzhou Kernel Medical (China)
  • Shanghai SIGMA High-tech (China)
  • Ultralite Enterprises, Inc. (US)
  • Hoenle Medical GmbH (Germany)
  • Weyer (Germany)
  • NeoLight (US)
  • Fanem (Brazil)
  • Phoenix Medical Systems (India)
  • Shenzhen Comen Medical Instruments Co., Ltd. (China)
  • Theralight, Inc. (US)
  • UV Technologies (UK)
  • Curelight (Sweden)
  • Photo Therapeutics Ltd (UK)
  • Tiny Hearts Technology (Nigeria)
  • Lifetrons Inno Equipments Pvt. Ltd. (India)
  • Ibis Medical Equipment and Systems Pvt. Ltd. (India)
  • Sci Health (India)

These companies continue investing in research and development to deliver innovative phototherapy solutions that improve treatment efficiency while addressing the evolving needs of neonatal and dermatology care.

Conclusion

The global phototherapy equipment market is poised for sustained growth as healthcare providers increasingly adopt light-based therapies for neonatal jaundice and chronic skin conditions. Rising birth rates, increasing incidences of skin diseases, expanding hospital infrastructure, and continuous technological innovation are collectively driving market expansion.

With conventional phototherapy systems maintaining strong demand, hospitals emerging as key end users, and Asia Pacific leading regional growth, the market presents significant opportunities for equipment manufacturers and healthcare providers alike. As awareness of safe, non-invasive treatment options continues to rise, phototherapy equipment will remain an essential component of modern neonatal and dermatological care, supporting improved patient outcomes worldwide.

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