Terahertz Technology Market is expected to reach US$ 2500.55 Million by 2031

Rising Use of Terahertz Systems in the Semiconductor Industry Fuels Terahertz Technology Market Growth

According to our latest study, “Terahertz Technology Market Size and Forecast (2021–2031), Global and Regional Share, Trend, and Growth Opportunity Analysis – by Component, Type, Application, And Geography," the market 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 report includes growth prospects owing to the current terahertz technology market trends and their foreseeable impact during the forecast period. 

The demand for self-driving cars and electronics is increasing, leading to a rise in semiconductor production and the use of advanced technologies such as terahertz. It is used in semiconductor packaging inspection, fault isolation, defect detection, wireless communication, and evaluating semiconductor chips, including mobile computing and transmitters/receivers. It is also applied in composite materials, solar cells, dielectric films, and polymer films. Terahertz technology offers significant growth potential for the semiconductor industry, particularly in evaluating wafers and interconnects in packaged chips.

Terahertz Technology Market Analysis — by Geography

Source: The Insight Partners Analysis

The terahertz waves can be used to non-destructively inspect semiconductor wafers for defects, including cracks, voids, and impurities; this can improve the yield of semiconductor manufacturing processes. In October 2022, das-Nano joined AESEMI to optimize the Spanish semiconductor sector. The company has developed the first terahertz-based system named Onyx. It is designed to provide non-destructive, contactless, full-area inspection of 2D materials, thin films, surfaces, and multilayer coatings, from sub-millimeter to m2 level, providing information on electrical parameters in a single measurement and improving the industrialization of research materials, such as graphene and other 2D materials. Such types of applications drive the adoption of terahertz technology in the semiconductor industry.  

NTT Electric Co., Advanced Photonix Inc., Advantest Corporation, HÜBNER GmbH & Co. KG, Luna Innovations Inc., Menlo Systems GmbH, Microtech Instrument Inc., Terasense Group Inc., Teraview Limited, and Toptica Photonics AG are among the key players profiled in the terahertz technology market report. Other major players were also studied and analyzed during the market study to get a holistic view of the market and its ecosystem.

The report includes the terahertz technology market forecast by component, type, and application. Based on component, the market is segmented into terahertz sources and terahertz detectors. In terms of revenue, the terahertz detectors segment held the largest terahertz technology market share and is expected to record the highest CAGR during the forecast period.

The scope of the terahertz technology market report focuses on North America (the US, Canada, and Mexico), Europe (Spain, the UK, Germany, France, Italy, and the Rest of Europe), Asia Pacific (South Korea, China, India, Japan, Australia, and the Rest of Asia Pacific), the Middle East & Africa (South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and the Rest of South & Central America). North America dominated the market in 2023, followed by Europe and APAC.

The Europe terahertz technology market is segmented into Germany, France, the UK, Italy, Russia, and the rest of Europe. In terms of revenue, Germany held the largest terahertz technology market share in Europe. Research and developments in terahertz technology propel the market growth in Germany. In July 2022, researchers in Scotland and Germany were experimenting with terahertz point-to-point free space optical (FSO) communications in conjunction with LiFi LED systems for 6G communications. Professor Harald Haas of Strathclyde’s LiFi Research and Development Centre was awarded a Humboldt Research Award to collaborate with Professor Robert Schober of Friedrich-Alexander-Universität Erlangen-Nürnberg (FAU) in Germany. The project will also investigate terahertz communications at frequencies ranging from 300 GHz to 10 THz and optical wireless communications at frequencies ranging from 10 THz to 1 PHz.

Terahertz technology will be developed “synergistically and for the first time” for the communication and sensor technology sectors in the recently formed joint project, T-KOS, led by the Berlin-based Research Fab Microelectronics Germany (FMD). According to project partner Fraunhofer HHI (Heinrich Hertz Institute), innovative system solutions in both sectors can contribute to the successful implementation of future issues such as digitalization, Industry 4.0, or resource efficiency, and thus strengthen Germany as a business location in the long run. In March 2022, the 10th International Workshop on Terahertz Technology and Applications was organized by Optence e.V. and DGZfP e.V. The TeraTec2022 workshop provides an opportunity for scientists and industry professionals to exchange knowledge and expertise in Terahertz technology. The technology’s potential for analysis, testing, and measurement activities has been impressively proven for various applications in recent years. However, a few issues must be addressed before the technology may be used in business.

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