Terahertz Technology Market Outlook and Strategic Insights by 2030

[Research Report] The terahertz technology market was valued at US$ 461.9 million in 2022 and is expected to reach US$ 3,003.1 million by 2030; it is expected to grow at a CAGR of 26.4% from 2023 to 2030.

 

Terahertz Technology Market - Analyst Perspective:

With the growing technological advancement across various industries, the demand for the implementation of terahertz technology across military & defense, as well as the medical & healthcare sector, is also boosting. The focus of the manufacturers on the development of THz sources, transmission, or reflection, as well as detector technologies, is growing due to the increasing exploration of the “THz gap,” which lies between photonics and electronics. This technology is constantly being utilized in various 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 that can stimulate low-frequency molecular vibrations, which include van der Waals or other non-bonded interactions and hydrogen bonds.

Terahertz Technology Market Overview:

The terahertz ranges in the electromagnetic spectrum ranges between the microwaves and infrared spectrum, which comprises a frequency of one million oscillations per second. Due to terahertz technology's exceptional properties, terahertz radiation can be adopted in the coming years as it is a crucial technology. This technology is usually used to detect hidden explosives and drugs, as well as can recognize which substances are 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 nondestructive manner. Owing to its low energy characteristics, the terahertz radiation is nonhazardous for animals as well as 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.

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Terahertz Technology Market: Strategic Insights

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Terahertz Technology Market Driver:

Growing use of terahertz system in semiconductor industry

The semiconductor is one of the prominent industries in all types of industries. With the growing industrial sector, self-driving vehicles, and consumer electronics, the production of semiconductors is also booming at an exponential rate. With increasing semiconductor production, the adoption of advanced technologies such as terahertz also holds a significant position. Semiconductor packaging inspection; non-destructive fault isolation of packaging systems, fault isolation & defect detection for the microelectronics; wireless communication; semiconductor chips used in communications and mobile computing; transmitters & receivers; and wiring quality of semiconductor packages including wafer-level packages, Flip Chip BGA, and 2.5D/3D ICs are some of the application areas where terahertz is utilized. Also, the application of the terahertz system in semiconductor manufacturing is becoming appealing to composite materials, solar cells, dielectric film, and polymer films. The semiconductor industry using terahertz provides a large potential market for growth; this technology and system is ideal to evaluate epitaxial wafers and interconnects in the packaged chips.

The terahertz waves can be used to non-destructively inspect semiconductor wafers for defects, such as cracks, voids, and impurities. This can help to improve the yield of semiconductor manufacturing processes. In October 2022, das-Nano joined AESEMI to optimize the Spanish semiconductor sector. das-Nano 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 a range of electrical parameters in a single measurement and improving the industrialization of research materials, such as graphene and other 2D materials. Such types of applications are driving the adoption of terahertz technology in the semiconductor industry.

Segmental Analysis:

The market for terahertz technology is segmented into component, type, application, and geography. Based on component, the terahertz technology market is segmented into terahertz sources and terahertz detectors. Based on type, the terahertz technology market is divided into terahertz imaging systems, terahertz spectroscopy systems, and terahertz communication system. Based on application, the terahertz technology market is segmented into medical and healthcare, defense and security, food & agriculture, industrial and other. Geographically, the terahertz technology market is segmented into five major regions—North America, Europe, Asia Pacific (APAC), the Middle East and Africa (MEA), and South America (SAM).

Regional Analysis:

The terahertz technology market is broadly segmented into five major regions—North America, Europe, APAC, MEA, and SAM. Presently, North America held the largest share of global terahertz technology market owing to growing number of government regulations favoring the terahertz technology in the region. In 2022, the region contributed ~36% to the overall terahertz technology market. In terms of market share, Europe and APAC held the second and third position respectively in 2022. Europe is crucial market for the future growth of terahertz technology market over the forecast period. The region is characterized with the presence of well-developed nations such as Germany, the UK, and France which drives the adoption of advanced safety solutions based on terahertz technology. In addition to this, the presence of a large number of terahertz technology manufacturers in this region is further contributing to the increased penetration of terahertz technology in this region.

Key Player Analysis:

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 that were profiled during this market study. In addition to these players, several other important market players were studied and analyzed during the course of this market research study to get a holistic view of the global terahertz technology market and its ecosystem.

Terahertz Technology Market Regional Insights

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.

Terahertz Technology Market Report Scope

Terahertz Technology Market Players Density: Understanding Its Impact on Business Dynamics

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:

1. Acal BFi UK Ltd
2. Advanced Photonix Inc.
3. Advantest Corporation
4. HBNER GmbH & Co. KG
5. Luna Innovations Inc.
6. Menlo Systems GmbH

Disclaimer: The companies listed above are not ranked in any particular order.

 

Recent Developments:

 

Inorganic and organic strategies such as mergers and acquisitions are highly adopted by companies in the terahertz technology market. A few recent key market developments are listed below:

• In 2023, Das-Nano technology was chosen by the Volkswagen Group to measure the layer thickness of its car body coverings. The automobile industry is highly competitive, necessitating the most stringent in-line quality control methods. However, the existing globally utilized quality control methods for measuring automobile body coating thickness have significant shortcomings that have been rectified with modern technology.
• In 2022, Advantest Corporation announced that its TAS7500 terahertz spectroscopic imaging system received a Laser Industry Award for Excellent Product at the Laser Society of Japan's 14th Industry Awards.
• In Nov-2021, A collaborative team of scientists from Vienna University of Technology (TU Wien) in Austria, the Institute of Solid State Physics in Russia, and Terasense Group, Inc. in the United States continued their R&D efforts aimed at developing THz Phase waveplates to support the ability to control and shaping terahertz beams.
• In May-2022, TeraView is thrilled to announce the release of the EOTPR 4500, a purpose-built integrated circuit package inspection machine. The auto prober technology developed by EOTPR 4500 will address the demands of the most modern IC packaging technology by accommodating substrate sizes of up to 150mmx150mm while enhancing probe tip positioning precision to +/- 0.5 m. Using the new auto prober, customers can probe very large chip-let devices with landing contact sizes of less than 5 m, such as copper pillars and TSV tips.