Terahertz Market Projected To Grow At A CAGR Of 27.44% During The Forecast Period 2020 To 2025

Increasing demand for the terahertz technology in the security systems is anticipated to boost the Terahertz market during the forecast period 2020-2025. The market for Terahertz is forecast to reach $1,382.66 million by 2025, growing at a CAGR of 27.44% from 2020 to 2025.

Terahertz (THz) represents the portion of the electromagnetic radiation between the microwave and the infrared region. It is within the frequency range of 0.1–10 THz, corresponding to wavelengths of radiation from 3000 to 30 µm. This technology is poised to be fast growing in the coming years owing to its properties such as high chemical sensitivity and non-ionizing property. 

Industrial NDT segment is the major segment by application for the Terahertz market. This is owing to the properties that this technology has that improve various industrial operations. Terahertz imaging is widely used in aircraft, spacecraft non-destructive testing applications. In aircrafts, exterior is coated with specialty chemicals that are particularly difficult to measure. Terahertz pulses can be used to measure coating thickness once the coating gets dried. Adoption of portable terahertz scanners in aircrafts in providing the necessary information to assemble the airframe in order to ensure that parts are properly aligned is set to drive the terahertz market. In 2019, Teratonics, a French based deep tech start-up 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 applications is set to provide opportunities for the market.

Americas dominated the terahertz market in 2019 majorly attributed to the Adoption of this technology, in initial stages. Also, there is high production and export of terahertz devices from this region for defence sector, further contributing to its dominance. However, Asia-Pacific region is estimated to be the fastest growing region and will witness a CAGR of 30.34% during the forecast period 2020-2025. Large amount of investments as well as the research are being performed in these countries are resulting in the rapid growth of terahertz technology in this region for the coming years. Due to the large presence of manufacturing companies in China, a moderate growth rate is expected in the terahertz technology market. China Unicom has begun research into Terahertz communication, one of the main 6 G technologies. The company, in collaboration with 20 other companies and research organizations, has formed a research organisation, the Millimeter Wave Terahertz Joint Innovation Centre. The research collaboration will create several demonstration projects and establish a dozen or more standards, helping to expand the terahertz market.

The Security concerns have been a major issue so, the number of security application has been increasing that are driving the growth of terahertz market. The government and private enterprises has invested a large amount of money owing to growing terrorist activity. Security checks and surveillance have been the areas of concern in airports and other security critical places where there is a risk of terrorist attack. So, these factors are driving the growth of market. Increasing adoption of terahertz technology in industries such as aerospace and defence and homeland security and increasing investment in R&D activities are some of the factors that are contributing the growth of market.

Increasing application of high-end terahertz devices in biology and medical science sectors and also high demand in research laboratory and process control monitoring processes are some factors driving the growth of market. Terahertz has shown a great potential in biomedical research owing to its unique features such as non-invasive and label-free identification of living cells 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.

The major companies in the Terahertz market include Advanced Photonix, Inc., Menlo Systems GmbH, Microtech Instruments, Inc., QMC Instruments Ltd., TeraView Limited, Toptica Photonics AG, Digital Barriers PLC, Advantest Corporation, Acal PLC, TeraSense Inc. among others.

In October 2019, Terasense Inc., has launched new terahertz sources for 104 GHz, 105 GHz, 108 GHz and 109 GHz added as a result of exploring manufacturing capabilities.