The terahertz technology market size was valued at US$ 736.01 million in 2024 and is expected to reach US$ 2500.55 million by 2031; it is estimated to record a CAGR of 19.2% from 2025 to 2031. The use of terahertz technology for satellite communication and the integration of artificial intelligence in terahertz systems is likely to emerge as a key market trend.
Factors such as rising demand for terahertz technology from the defense, homeland security, and medical sectors, soaring use of terahertz systems in the semiconductor industry, and technological advancements are driving market growth. Similarly, processing applications of terahertz technology in the food industry and expansion of the 6G technology are likely to present future growth opportunities for the market. The use of terahertz technology for satellite communication and the integration of artificial intelligence in terahertz systems is a key trend in the market.
In the electromagnetic spectrum, the terahertz ranges between the microwaves and infrared spectrum, which comprises the frequency of one million oscillations per second. Due to terahertz radiation's exceptional properties, the technology is likely to be adopted in the future. This technology is used to detect hidden explosives and drugs as well as recognize substances flowing from the plastic pipe. The terahertz technology is proficient enough to monitor the layer thickness by visualizing material flaws in ceramics or plastic in a non-destructive manner. Owing to its low energy characteristics, the terahertz radiation is non-hazardous for animals and humans. The terahertz technology is usually integrated with scanners based on active and passive methods. In a passive method, the scanning is constrained to the natural terahertz radiation, which is emitted through the human body. Similarly, the active method integrates an additional artificial radiation source through terahertz radiation. Thus, the system uses the discrepancy in the wavelength from the backscatter to recreate an image.
With the soaring technological advancements across industries, the demand for the implementation of terahertz (THz) technology across military & defense, as well as the medical and healthcare sector, is rising. The focus of manufacturers on the development of THz sources, transmission, or reflection, as well as detector technologies, is due to an increasing exploration of the “THz gap” that lies between photonics and electronics. This technology is constantly being utilized in applications such as chemistry, biomedicine, materials science, security screening, and communication. The exclusive properties of THz radiation are well-suited for medical and healthcare applications, particularly those that can stimulate low-frequency molecular vibrations, which include van der Waals or other non-bonded interactions and hydrogen bonds. The propagation of THz radiation from biomolecules that produce spectral vibrational signatures along the THz range is an essential feature of terahertz technology. THz imaging offers crucial advantages for tissue detection and for distinguishing pathological and normal tissues. Thus, terahertz technology has wide applications across the medical and healthcare sectors. The terahertz spectrum ranges are highly dependent on characteristics of generating and detecting methods of long wave’s side and infrared on the short wave edge range. The THz frequency range lies on the margin of the electronic world, where microwaves, as well as radio radiations, are easily generated from the photonic world and electron-based devices, where the applications of optical techniques are easy. The in-built potential advantages of the THz phenomenon, encompassing aspects, including THz imaging, sensing, as well as investigating material properties with the help of THz radiation, are boosting its application in the defense and security sector. The incorporation of terahertz technology in handheld scanners, which are deployed majorly in airports and other public spaces for security screening, is increasing, especially for package scanning in airports. Further, the rising terrorist activities globally and mounting criminal activities are driving government investments across countries to establish enhanced security infrastructure.
The use of ionizing radiation (i.e., X-rays) is critical for quality control and non-destructive testing because of its detrimental effect on biological agents. It is here that the terahertz imaging technology is beneficial, and there are examples of the application of THz imaging in the food industry. Instead of using X-ray machines, food manufacturers and packagers can use terahertz food scanners to check, for example, whether a pick-and-place robotic arm has placed all candy bars inside the carton. The THz imagers have no problem seeing through cardboard or PE packaging. For instance, chocolate bars can be wrapped in any material, even metal-containing foil, that is impervious to the THz rays. Metal foil in the THz images would create better contrast. Also, reports of insects and other foreign objects found in food are a severe cause of concern to consumers, food producers, and retailers. Unwrapping a chocolate bar could reveal an unpleasant surprise, including an insect, pieces of metal or glass, or clots of dirt; this can kill the appetite of the consumer and cause a broken tooth or poisoning. Also, a producer or retailer in a country may get sued, leading to fines and lawsuits worth millions of dollars. The market players have developed tests specifically for the food industry to demonstrate the ability to identify foreign objects (e.g., insects, pieces of plastic, metal, stones, or soil) inside food products. For example, TeraSense Group’s THz imaging systems can easily detect a common housefly via multiple polyethylene bags, even if the total thickness of such PET coating exceeds 20 mm. TeraSense imaging systems reveal carcinogenic mycotoxin fungus contaminating peanuts, corn, hazelnuts, other grain crops, and oil plants. Industrial customers can detect any signs of infections, including Aspergillus flavus and Aspergillus parasiticus, which exude the hazardous carcinogen Aflatoxins B1, with the aid of THz imagers. Thus, the increased use of terahertz technology in the food industry is expected to offer significant growth opportunities for the market during the forecast period.
Key segments that contributed to the derivation of the terahertz technology market analysis are component, type, and application.
The regional trends and factors influencing the Terahertz Technology Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Terahertz Technology Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2024 | US$ 736.01 Million |
| Market Size by 2031 | US$ 2500.55 Million |
| Global CAGR (2025 - 2031) | 19.2% |
| Historical Data | 2021-2023 |
| Forecast period | 2025-2031 |
| Segments Covered |
By Component
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Terahertz Technology Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Terahertz Technology Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The terahertz technology market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. Key developments in the terahertz technology market are listed below:
(Source: Advantest Corporation, Press Release, February 2025)
(Source: Luna Innovations Incorporated, Press Release, August 2023)
The "Terahertz Technology Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering the areas mentioned below:
The List of Companies - Terahertz Technology Market
Rising demand for terahertz technology from the defense, homeland security, and medical sectors, growing use of terahertz systems in the semiconductor industry, and technological advancements are driving the market growth.
The use of terahertz technology for satellite communication and the integration of artificial intelligence in terahertz systems is a key trend in the market.
TeraSense Group, ADVANTEST CORPORATION, Menlo Systems, TOPTICA Photonics AG, and Luna Innovations Incorporated are major players in the market.
The market is expected to reach a value of US$ 2.5 billion by 2031.
North America is anticipated to dominate the terahertz technology market in 2024.
The market is anticipated to expand at a CAGR of 19.2% during 2025-2031.