Optoelectronics Industry Enjoying Steady Growth

Michael A. Greenwood

The optoelectonics industry enjoyed robust growth in 2006, and a market report projects that steady expansion will continue over the next decade.

The report, compiled by the Optoelectronics Industry Development Association (OIDA) of Washington, states that the market for optoelectronic components and enabled technologies reached $565 billion in 2006, a sales increase of 14.5 percent over the previous year.

The $565 billion market for optoelectronic components and enabled technologies will grow to $1.2 trillion by 2017, according to a report prepared by OIDA. Courtesy of OIDA.

The association predicts that overall industry growth between 2007 and 2017 will more than double to $1.2 trillion. The ninth annual report will be published and distributed to OIDA members in October.

LCD displays are anticipated to drive much of the growth by enabling consumer products such as televisions, mobile phones and digital assistants. Other optoelectronics-enabled technology that is likely to fuel growth includes solar, computing/processing and consumer displays/television.

Some other key findings of the report include:

• Revenue for flat panel displays will grow to nearly $200 billion over the next decade.

• White high-brightness LEDs will spur growth in the LED markets to more than $14 billion by 2017. This will be driven by the automobile industry and signs/displays.

• Solid-state lighting will dominate 30 percent of the lighting market by 2017, providing increased competition for incandescent and fluorescent lighting.

• Sales of optoelectronic transceivers are expected to grow from slightly more than $1 billion in sales in 2006 to more than $6 billion in 2017.

• The optical communications market is forecast to reach nearly $40 billion.

Data for the report was collected from OIDA members, nonmembers, market research company partners and members of the International Optoelectronics Association.