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Terahertz Market Size Forecast to Reach $ 1701.34 Million by 2026

(, October 01, 2021 ) The Global Terahertz market size is forecast to reach $ 1701.34 million by 2026, growing at a CAGR of 28% from 2021 to 2026. The growth of Terahertz market is attributed to applications of terahertz submillimeter radiation in fields such as spectroscopy, photovoltaic, medicine, pharmacy, quality assurance, dentistry, communication, and astronomy. Additionally, increasing applications of terahertz in cancer treatment and increasing adoption of terahertz spectroscopy in food inspection industries for quality check are also the contributing factors for the growth of the market. Furthermore, increasing adoption of terahertz imaging system technology in industries such as aerospace and defence & homeland security as well as rising investment in R&D activities are the major factors driving the growth of the market.

Terahertz Market Segment Analysis -By System Type

System based on imaging held the highest market share in 2020 with market revenue of around 130.5 million. This system includes imaging by Canning, incoherent imaging and others. Deployment of such systems in food& beverages, healthcare, biomedical and others uplifts the market growth. Terahertz radiation has characteristics that are similar to microwave and infrared radiation. The identification of moisture, foreign bodies, testing, and quality control in the food industry are some of the major uses of terahertz imaging by canning. It has been found to be a safe, fast, and non-destructive detection process in food products. In biomedical applications, terahertz incoherent imaging is commonly used. In January 2019, the National Center for Biotechnology Information (NCBI) suggested phaseless terahertz coded-aperture imaging (PTCAI) as an incoherent detection technique. The proposed approach tracks the strength responses of the echo signal in biomedical imaging applications using an incoherent detection array or a single incoherent detector.

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Terahertz Market Segment Analysis -By Application Type

Industrial NDT segment held the highest market share in 2020 with market revenue of around 128.9 million. Terahertz-based non-destructive quality inspection is becoming increasingly common, especially in the automotive and aviation industries. Terahertz waves is used for non-destructive testing to examine multi-layered systems and can help detect anomalies such as foreign material inclusions, heat injury, mechanical impact damage, and water or hydraulic fluid ingress. Increased use of terahertz technology in these sectors has propelled the market growth. In 2019, Teratonics, a French based deep tech startup with a proprietary technology for contactless non-destructive testing (NDT) and imaging had received a seed investment from Socomore Ventures. Growing funding activities for terahertz systems in NDT application is set to boost the growth of market. Moreover, Telecommunication segment is anticipated to witness significant market growth with CAGR 33.1% during the forecast period 2021-2026. Terahertz is a complementary wireless technology for communication networks, which allow high speed wireless extension of the optical fibres for beyond 5G networks. Terahertz technology provides demand for wireless communication in remote areas such as mountains, islands and others. Increasing adoption of wireless networks owing to its ease of use and low cost has been pushing the market growth. With the growing implementation of IOT and increasing investments on wireless networks, 5G and beyond networks, there is huge opportunities for terahertz technology in telecommunication sector which is poised to push the market during forecast period.

Terahertz Market Segment Analysis - Geography

The region of Americas held the highest market share in 2020 with market revenue of around 145.37 million. Market growth is attributed to significant R&D investments in this region within the sectors including military and defense, automotive and others. Rising investments in the military have created demand for sophisticated surveillance applications, including terahertz sensors, alarms, explosives detection imaging devices, bombs, biochemicals, and others. Consequently, increased deployment of terahertz technology in these sectors is set to enhance the growth of market. According to Stockholm international research peace research institute (SIPRI), the military expenditure in the U.S. has been increased from $669.44 billion in 2016 to $731.75 billion in 2019. Moreover, APAC region is anticipated to witness significant market growth with CAGR 30.9% during the forecast period 2021-2026. The market growth is attributable to factors including rapid industrialization, large presence of manufacturing companies, advances in the portable electronics industry, expanded Internet of Things (IoT) awareness and others. Additionally, increasing investment in research and development within telecommunication tends to foster the market growth. In November 2020, China launched world's first 6G experiment satellite. This marks China’s breakthrough in exploring terahertz communication technology in aerospace. In July 2020, China develops T-ray camera for non-invasive medical screening. The technique have refined a new type of camera to make it a hundred times faster than the previous state of the art through utilization of terahertz radiation. Such developments positively impacts the market growth during the forecast period.

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Terahertz Market Drivers

Rising demand from semiconductor industry

The key factor driving the market's growth is technical innovation in the emerging semiconductor industry. Semiconductors are the brains of contemporary electronics, allowing cutting-edge innovations in fields such as healthcare, networking, computing, and transportation, among many others. For instance, EOTPR, or electro-optical terahertz pulse reflectometry, is an ultra-fast laser source-driven electro-optical device that has successfully applied terahertz to microelectronics in fault isolation and defect detection. In February 2021, the Semiconductor Industry Association (SIA) announced the global semiconductor industry sales were $439.0 billion in 2020, an increase of 6.5% compared to the 2019 total of $412.3 billion. Thus the growth in the market of Semiconductor tends to drive the market of Terahertz owing to its applications.

Increasing Demand for Terahertz Technology in Medical Sector

High demand in research laboratories and process control monitoring processes, as well as growing application of high-end terahertz instruments in biology and medical science, are some of the factors driving market development. Terahertz has a lot of upside in biomedical research owing to its special features like non-invasive and label-free living cell recognition and medical imaging. Terahertz technology is widely used for blood cell detection, cancer cell characterization, bacterial identification, and biological tissue discrimination that are increasing the growth of terahertz market.

Terahertz Market Challenges

Increasing deployment of alternative technologies

Alternative technologies such as new-infrared (NIR) imaging have been developed for surveillance and defense applications. This alternative technique uses simple, low-cost electronics and is more compact and user-friendly than terahertz technology, which is restricting the terahertz market's expansion. Alternative terahertz technology requires transfer of terahertz images to higher frequency near IR light, which aims to minimize signal detection loss. As a result, the demand for alternative technologies is increasing, restricting the growth of the terahertz market.

Terahertz Market Landscape

Partnerships and acquisitions along with product launches are the key strategies adopted by the players in the Terahertz market. As of 2020, the market for Terahertz market is consolidated with the top players including Advanced Photonix, Inc., Menlo Systems GmbH, Microtech Instruments, Inc., TeraView Limited, Toptica Photonics AG, Digital Barriers PLC, Advantest Corporation, Acal PLC, TeraSense Inc., Applied Research & Photonics Inc. and among others.

Acquisitions/Technology Launches/Partnerships

In March 2020, Digital Barriers PLC launched remote fever screening solution to help safeguard frontline workers with a highly effective means of quickly identifying staff and customers who show sign of an infection,minimizing transmission securities.

In November 2019, TeraView, announced the launch of its latest high performance terahertz system, the TeraPulse Lx. The system is portable and positionable for imaging a variety of objects, and provides large area scanning (30 cm x 30 cm) with a unique auto-focus capability to ensure that contrast and resolution are maximised in images

Key Takeaways

Rising investments in the healthcare sector along with growing implementation of Terahertz for blood cell detection, cancer cell characterization, bacterial identification, biological tissue discrimination and others are anticipated to open up new opportunities for market growth.

In the U.S, increased adoption of terahertz technology has changed the manufacturing scenario in the America region, thus propelling the market growth.

Key companies such as RaySecur Inc. (U.S), Lumitron Technologies (U.S) and many others has developed a new advanced terahertz technology such as MailSecur, Micro-radar & algorithms for the security purpose that increases the demand for terahertz market.

Related Reports:

A. Bluetooth Low Energy Market

B. Infrared Detector Market

For more Electronics Market reports, please click here

About IndustryARC: IndustryARC primarily focuses on Cutting Edge Technologies and Newer Applications market research. Our Custom Research Services are designed to provide insights on the constant flux in the global supply-demand gap of markets. Our strong team of analysts enables us to meet the client research needs at a rapid speed, with a variety of options for your business. Any other custom requirements can be discussed with our team, drop an e-mail to to discuss more about our consulting services.


Venkat Reddy

(+1) 970-236-3677

Source: EmailWire.Com

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