China Terahertz Technology Market Forecast and Scope by 2031
The China Terahertz (THZ) technology market size was valued at US$ 76.55 Million in 2023 and is expected to reach US$ 318.13 Million by 2031; it is estimated to record a CAGR of 19.5% from 2023 to 2031. The expansion of 6G wireless technology and the increasing use of terahertz technology in satellite communication are likely to remain key trends in the market.
China Terahertz Technology Market Analysis
Terahertz (THz) technology offers immense potential for various industries, including the field of Information and Communication Technologies (ICTs). It enables groundbreaking capabilities in wireless communication, high-speed data processing, and satellite communications. Satellites play a crucial role in numerous communication applications, and there has been a rising interest in satellite networks, opening up new opportunities for navigation, communication, and remote sensing missions. As a result, there is a growing need for innovative approaches to meet the escalating demand for high-speed wireless connections. Additionally, in November 2020, China made a significant achievement in space communication by launching "the world's first 6G experiment satellite." This experimental satellite was designed to verify the terahertz (THz) communication technology in space. The launch of this satellite marks a breakthrough in space communication and opens up new possibilities for future advancements in wireless technology.
China Terahertz Technology Market Industry Overview
Terahertz technology, which operates in the frequency range between microwaves and infrared, offers unique capabilities that make it a valuable technology for various applications. One of its key uses is in security, where it can detect hidden explosives and drugs, as well as identify substances flowing through pipes. Additionally, terahertz technology is effective in non-destructively monitoring layer thickness and detecting material flaws in ceramics and plastic. What sets terahertz technology apart is its low energy characteristics, making it safe for both animals and humans. It can also be integrated into scanning systems using active or passive methods. In the passive method, natural terahertz radiation emitted by the human body is used for scanning. Alternatively, the active method involves the use of artificial terahertz radiation from an external source to create an image by analyzing the wavelength discrepancies in the backscatter. Overall, terahertz technology offers significant potential for enhancing security measures and conducting nondestructive testing in various industries.
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China Terahertz Technology Market: Strategic Insights
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China Terahertz Technology Market Driver and Opportunities
Growing Use of Terahertz Technology in the Semiconductor Industry to Favor Market
The key players operating in the China terahertz technology market are also taking several strategic initiatives to expand their offerings. For instance, in 2023, leading semiconductor test equipment supplier Advantest Corporation announced two new products designed to deliver advanced handling capabilities essential for the fast-growing Artificial Intelligence (AI) And High-Performance Computing (HPC) markets: the HA1200 die-level handler and the active thermal control (ATC) 2-kilowatt (kW) option for the M487x handler series. AI/HPC ICs require 2.5D/3D advanced packaging technologies to provide the high computing power necessary to generate, train and run data-intensive AI models. These ICs generate massive heat due to their high computing power, creating unique testing challenges. The new Advantest products are designed to address these challenges and help contribute to the terahertz market growth. Thus, the rising utilization of terahertz systems in the semiconductor industry drives the China terahertz technology market.
Processing Applications of Terahertz Technology in the Food Industry
In the field of quality control and nondestructive testing, the use of ionizing radiation, such as X-rays, is becoming essential due to its ability to detect and eliminate biological agents effectively. Terahertz imaging offers significant advantages in various industries, including the food sector. Terahertz imaging allows for noninvasive inspection and quality assessment of food products without the need for X-ray machines. One notable application of terahertz imaging in the food industry is its use in food scanning systems. Instead of relying on X-ray machines, food manufacturers and packagers can utilize terahertz food scanners to ensure the accuracy and completeness of packaging processes. For instance, these scanners can verify whether a pick-and-place robotic arm has correctly placed all candy bars inside their respective cartons. The terahertz imagers can penetrate materials such as cardboard or PE packaging, enabling the detection and inspection of individually wrapped chocolate bars, even if they are encased in metal-containing foils that are impervious to terahertz rays. The presence of metal foil can enhance the contrast in the terahertz images, making the inspection process even more effective.
China Terahertz Technology Market Report Segmentation Analysis
The key segments that contributed to the derivation of terahertz technology market analysis are components, applications, and types.
- Based on components, the market is segmented into terahertz detectors and terahertz sources. The terahertz sources segment held the largest share in the China terahertz technology market in 2023.
- Based on application, the market is segmented into medical and healthcare, defense and security, food and agriculture, industrial, semiconductor, and others. The medical and healthcare segment held the largest share in the China terahertz technology market in 2023.
- Key players operating in the terahertz technology space are taking several strategic initiatives to enhance their product offerings. For instance, in August 2023, Luna Innovations Incorporated, a global leader in advanced fiber optic and Terahertz (THz)-based technology, announced that it had won a large, new purchase order for its THz sensing solution for application in automotive electric vehicle (EV) battery production.
China Terahertz Technology Market Share Analysis By Country
The growing focus of market players to increase their corporate presence in China, as well as the expanding focus on 6G infrastructure development, is likely to drive market expansion. For example, in 2023, Menlo System announced the establishment of a branch in China, Shanghai—Menlo Systems Quantum Laser Technology Co., Ltd. Menlo Systems' core product line is optical frequency combs. However, it also offers ultra-stable lasers, terahertz systems, and femtosecond lasers. With this, the company is intended to create a market foothold in the developing photonics market. Furthermore, in February 2024, China Mobile, China's largest telecom operator, launched the first satellite to test 6G architecture in space.
In January 2022, Chinese scientists demonstrated the next-generation terahertz technology that can be used to detect and track hypersonic vehicles, paving the way for new 6G communication applications for hypersonic weapons. The new method, detailed in the Journal of the National University of Defence method, may overcome a few blackout issues that arise when attempting to communicate with missiles or space objects flying at five times the speed of sound or faster. Thus, such innovations in terahertz technology are projected to drive the China terahertz technology market growth during the forecast period.
China Terahertz Technology Market Report Scope
China Terahertz Technology Market News and Recent Developments
The terahertz technology market has been evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the China terahertz technology market are listed below:
- Advantest Corporation has designed two new products to deliver advanced handling capabilities essential for the fast-growing artificial intelligence (AI) and high-performance computing (HPC) markets: the HA1200 die-level handler and the active thermal control (ATC) 2-kilowatt (kW) option for the M487x handler series. AI/HPC ICs require 2.5D/3D advanced packaging technologies to provide the high computing power necessary to generate, train and run data-intensive AI models. These ICs generate massive heat due to their high computing power, creating unique testing challenges. The new Advantest products are designed to address these challenges and help contribute to the AI/HPC market growth. (Source: HDI Global, Press Release, March 2024)
China Terahertz Technology Market Report Coverage & Deliverables
The terahertz technology market forecast is estimated based on various secondary and primary research findings, such as key company publications, association data, and databases. The market report "China Terahertz Technology Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering below areas-
- Terahertz technology market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Terahertz technology market trends, as well as market dynamics such as drivers, restraints, and key opportunities
- Detailed PEST/Porter's Five Forces and SWOT analysis
- Terahertz technology market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments in the terahertz technology market
- Detailed company profiles.
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
This text is related
to segments covered.
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
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to country scope.
Frequently Asked Questions
The China terahertz technology market is expected to reach US$ 318.13 million by 2031.
The terahertz sources segment led the China terahertz technology market with a significant share in 2023.
The integration of AI driven optimization is expected to drive the growth of the China terahertz technology market in the coming years.
The China terahertz technology market valued at US$ 76.55 million in 2023.
The rising application in the medical sector, along with the growing usage in the semiconductor industry, are driving factors in the China terahertz technology market.
The key players holding majority shares in the China terahertz technology market include Canon Inc., Luna Innovations Inc., Menlo Systems, Toptica Group, and Horiba.
1. Introduction
1.1 The Insight Partners Research Report Guidance
1.2 Market Segmentation
2. Executive Summary
2.1 Key Insights
3. Research Methodology
3.1 Secondary Research
3.2 Primary Research
3.2.1 Hypothesis formulation:
3.2.2 Macro-economic factor analysis:
3.2.3 Developing base number:
3.2.4 Data Triangulation:
3.2.5 Country level data:
4. China Terahertz Technology Market Landscape
4.1 Overview
4.2 PEST Analysis
4.3 Ecosystem Analysis
4.3.1 Solution and Service Providers:
4.3.2 End Users
4.3.3 List of Vendors in the Value Chain:
5. China Terahertz Technology Market – Key Market Dynamics
5.1 China Terahertz Technology Market – Key Market Dynamics
5.2 Market Drivers
5.2.1 Rising Application of Terahertz Technology in Medical Industry
5.2.2 Growing Use of Terahertz Technology in Semiconductor Industry
5.2.3 Growing Applications in Defense and Military
5.3 Market Restraints
5.3.1 Lack of Awareness and Unavailability of Skilled Professionals
5.4 Market Opportunities
5.4.1 Processing Applications of Terahertz Technology in Food Industry
5.4.2 Expansion of Next-Gen 6G Wireless Technology
5.5 Future Trends
5.5.1 Rising Use of Terahertz Technology for Satellite Communication
5.6 Impact of Drivers and Restraints:
6. China Terahertz Technology Market Analysis
6.1 China Terahertz Technology Market Revenue (US$ Million), 2021–2031
6.2 China Terahertz Technology Market Forecast and Analysis
7. China Terahertz Technology Market Analysis – by Component
7.1 Terahertz Detectors
7.1.1 Overview
7.1.2 Terahertz Detectors: China Terahertz Technology Market – Revenue and Forecast to 2031 (US$ Million)
7.2 Terahertz Sources
7.2.1 Overview
7.2.2 Terahertz Sources: China Terahertz Technology Market – Revenue and Forecast to 2031 (US$ Million)
8. China Terahertz Technology Market Analysis – by Application
8.1 Medical and Healthcare
8.1.1 Overview
8.1.2 Medical and Healthcare: China Terahertz Technology Market – Revenue and Forecast to 2031 (US$ Million)
8.2 Defense and Security
8.2.1 Overview
8.2.2 Defense and Security: China Terahertz Technology Market – Revenue and Forecast to 2031 (US$ Million)
8.3 Food and Agriculture
8.3.1 Overview
8.3.2 Food and Agriculture: China Terahertz Technology Market – Revenue and Forecast to 2031 (US$ Million)
8.4 Industrial
8.4.1 Overview
8.4.2 Industrial: China Terahertz Technology Market – Revenue and Forecast to 2031 (US$ Million)
8.5 Semiconductor
8.5.1 Overview
8.5.2 Semiconductor: China Terahertz Technology Market – Revenue and Forecast to 2031 (US$ Million)
8.6 Others
8.6.1 Overview
8.6.2 Others: China Terahertz Technology Market – Revenue and Forecast to 2031 (US$ Million)
9. China Terahertz Technology Market Analysis – by Type
9.1 Terahertz Imaging Systems
9.1.1 Overview
9.1.2 Terahertz Imaging Systems: China Terahertz Technology Market – Revenue and Forecast to 2031 (US$ Million)
9.2 Terahertz Spectroscopy Systems
9.2.1 Overview
9.2.2 Terahertz Spectroscopy Systems: China Terahertz Technology Market – Revenue and Forecast to 2031 (US$ Million)
9.3 Terahertz Communication Systems
9.3.1 Overview
9.3.2 Terahertz Communication Systems: China Terahertz Technology Market – Revenue and Forecast to 2031 (US$ Million)
10. Competitive Landscape
10.1 Heat Map Analysis By Key Players
10.2 Company Positioning & Concentration
11. Industry Landscape
11.1 Overview
11.2 Market Initiative
11.3 Product Development
11.4 Mergers and Acquisitions
11.5 Partnerships and Collaboration
12. Company Profiles
12.1 Advanced Photonix Inc
12.1.1 Key Facts
12.1.2 Business Description
12.1.3 Products and Services
12.1.4 Financial Overview
12.1.5 SWOT Analysis
12.1.6 Key Developments
12.2 Advantest Corp
12.2.1 Key Facts
12.2.2 Business Description
12.2.3 Products and Services
12.2.4 Financial Overview
12.2.5 SWOT Analysis
12.2.6 Key Developments
12.3 Luna Innovations Inc
12.3.1 Key Facts
12.3.2 Business Description
12.3.3 Products and Services
12.3.4 Financial Overview
12.3.5 SWOT Analysis
12.3.6 Key Developments
12.4 Menlo Systems GmbH
12.4.1 Key Facts
12.4.2 Business Description
12.4.3 Products and Services
12.4.4 Financial Overview
12.4.5 SWOT Analysis
12.4.6 Key Developments
12.5 Canon Inc
12.5.1 Key Facts
12.5.2 Business Description
12.5.3 Products and Services
12.5.4 Financial Overview
12.5.5 SWOT Analysis
12.5.6 Key Developments
12.6 Terasense Group Inc
12.6.1 Key Facts
12.6.2 Business Description
12.6.3 Products and Services
12.6.4 Financial Overview
12.6.5 SWOT Analysis
12.6.6 Key Developments
12.7 Nuctech Company Limited
12.7.1 Key Facts
12.7.2 Business Description
12.7.3 Products and Services
12.7.4 Financial Overview
12.7.5 SWOT Analysis
12.7.6 Key Developments
12.8 Toptica Photonics AG
12.8.1 Key Facts
12.8.2 Business Description
12.8.3 Products and Services
12.8.4 Financial Overview
12.8.5 SWOT Analysis
12.8.6 Key Developments
12.9 Horiba Ltd
12.9.1 Key Facts
12.9.2 Business Description
12.9.3 Products and Services
12.9.4 Financial Overview
12.9.5 SWOT Analysis
12.9.6 Key Developments
12.10 Quenda Terahertz Technology Co., Ltd.
12.10.1 Key Facts
12.10.2 Business Description
12.10.3 Products and Services
12.10.4 Financial Overview
12.10.5 SWOT Analysis
12.10.6 Key Developments
13. Appendix
13.1 Glossary
13.2 About The Insight Partners
List of Tables
Table 1. China Terahertz Technology Market Segmentation
Table 2. China Terahertz Technology Market – Revenue and Forecast to 2031 (US$ Million)
Table 3. China Terahertz Technology Market – Revenue and Forecast to 2031 (US$ Million) – by Component
Table 4. China Terahertz Technology Market – Revenue and Forecast to 2031 (US$ Million) – by Application
Table 5. China Terahertz Technology Market – Revenue and Forecast to 2031 (US$ Million) – by Type
Table 6. Company Positioning & Concentration
List of Figures
Figure 1. China Terahertz Technology Market Segmentation, by Country
Figure 2. PEST Analysis
Figure 3. Ecosystem: China Terahertz Technology Market
Figure 4. Impact Analysis of Drivers and Restraints
Figure 5. China Terahertz Technology Market Revenue (US$ Million), 2021–2031
Figure 6. China Terahertz Technology Market Share (%) – by Component, 2023 and 2031
Figure 7. Terahertz Detectors: China Terahertz Technology Market– Revenue and Forecast to 2031 (US$ Million)
Figure 8. Terahertz Sources: China Terahertz Technology Market– Revenue and Forecast to 2031 (US$ Million)
Figure 9. China Terahertz Technology Market Share (%) – by Application, 2023 and 2031
Figure 10. Medical and Healthcare: China Terahertz Technology Market– Revenue and Forecast to 2031 (US$ Million)
Figure 11. Defense and Security: China Terahertz Technology Market– Revenue and Forecast to 2031 (US$ Million)
Figure 12. Food and Agriculture: China Terahertz Technology Market– Revenue and Forecast to 2031 (US$ Million)
Figure 13. Industrial: China Terahertz Technology Market– Revenue and Forecast to 2031 (US$ Million)
Figure 14. Semiconductor: China Terahertz Technology Market– Revenue and Forecast to 2031 (US$ Million)
Figure 15. Others: China Terahertz Technology Market– Revenue and Forecast to 2031 (US$ Million)
Figure 16. China Terahertz Technology Market Share (%) – by Type, 2023 and 2031
Figure 17. Terahertz Imaging Systems: China Terahertz Technology Market– Revenue and Forecast to 2031 (US$ Million)
Figure 18. Terahertz Spectroscopy Systems: China Terahertz Technology Market– Revenue and Forecast to 2031 (US$ Million)
Figure 19. Terahertz Spectroscopy Systems: China Terahertz Technology Market– Revenue and Forecast to 2031 (US$ Million)
Figure 20. Heat Map Analysis by Key Players
The List of Companies - China Terahertz Technology Market
- Quenda Terahertz Technology Co., Ltd.
- Nuctech Company Ltd
- Advanced Photonics
- Advantest Corporation
- Luna Innovations Inc.
- Menlo Systems
- Canon Inc.
- Horiba
- Terasense Group
- Toptica Group
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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