The global photonics market is set to reach $766 billion by 2020, according to a new report from Transparency Market Research.

Expanding from 2013’s figure of $510 billion with a compound annual growth rate of 5.8 percent, the market’s growth is being driven by the demand for highly capable and efficient electronic products, as well as the rise in data transfer volume. However, limited commercialization of photonic devices is hampering the development of the global photonics market.

Based on products, the market for wavelength division multiplexer filters is the leading market in the global photonics industry. In 2013, it stood at $116 billion. The rising demand for high-speed communication is the key growth driver, with the market for amplifiers registering the fastest growth at a compound annual growth rate of 8.9 percent.

Based on application, the medical and health-care industry is the fastest developing market segment, expanding at a 7.4 percent compound annual growth rate through 2020. The escalating demand for early and accurate detection of diseases and minimally invasive surgeries is the key driving force behind this need.