Terahertz Technology Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Terahertz Technology Market Size

Terahertz Technology Market Growth Drivers & Opportunities

Advancement in THz Technology Are Major Market Trends

• The market is witnessing various technological advancements, with technologists and researchers worldwide developing new ways to utilize Terahertz energy in developing advanced applications.
• For example, research institutes are investing knowledge using THz technology for the innovations like a credit card-sized system that emphasizes THz energy to produce high-resolution images.
• Similarly, the military application of THz radiation is increasing. Most 4th- and 5th-generation strike aircraft utilize a combination of EO/IR pod video feeds and SAR images for targeting objects on the ground.
• Thus, the defense and security sector has played a key part in the Terahertz technology market growth.
• Furthermore, countries are increasingly investing in defense to combat acts of terrorism and other threats.
• For instance, for FY2024, the U.S. Department of Defense received USD 2.9 trillion in federal funding.
• This fund is used to improve industrial non-destructive testing (NDT) devices, in which THz is one of the most promising technologies for security purposes.
• The trade administration has shown a higher to the aerospace industry and export sales, which drive the demand for THz technology, due to its surging application areas.

Rising Demand in Healthcare and NDT Applications Drive Market

• The healthcare industry witnessed rapid changes over time, globally.
• The COVID-19 outbreak and new diseases, population health management, and growth in advanced technologies are some key factors that augment the need for Terahertz technologies in the healthcare industry.
• Terahertz radiations are capable of visualizing the contents of sealed packages and can provide a clear and detailed analysis of the internal structure of objects (quality control of products) and becoming an integral part of the non-destructive testing industry.
• Terahertz technologies' potential applications lie in protecting government buildings and other public facilities. Several kinds of research are being conducted to utilize the THz technology.
• For instance, nine cooperation partners of Fab Microelectronics Germany (FMD) are working together with Fraunhofer ITWM to synergistically develop Terahertz technology for wireless radio transmission, non-destructive testing, spectroscopy, and non-contact inline measurement technology.

Expanding Opportunities from Telecommunications Sector

• The backbone of the communication networking infrastructural development is a high-speed network, which can transfer a huge amount of data from one end to another at a high speed.
• The development of the 5G infrastructure requires high-bandwidth-oriented networking.
• Therefore, in the expansion of communication infrastructure, Terahertz is being considered as a future technology for fast networking.
• Moreover, THz will also act as a key technology in future 6G wireless communications.
• The 6G network could satisfy the military’s growing requirements to gather, analyze, and share information rapidly to control an increasing number of automated devices.
• Furthermore, researchers are working on several projects utilizing the benefits of the technology such as building and evaluating 5G-and-beyond systems with the THz technology, which opens and boosts the communication sector in newer ways.

Terahertz Technology Market Analysis

Type Analysis

The imaging category holds the largest share in 2024, of 45%. The THz wavelength is used in both cameras and scanners to obtain detailed pictures of obscured objects. It easily penetrates animal skin, paper, clothing, cardboard, wood, masonry, ceramics, and plastics. This leads to a wide application area for THz imaging, from healthcare and construction to industrial inspection and body and baggage checking at high-security and high-footfall places, such as government premises, airports, and railway stations. Moreover, these waves are harmless, unlike conventional X-rays, which makes Terahertz imaging safer for medical diagnostics.

Communication systems are the fastest-growing category, with a CAGR of 11.5%. This is due to the increasing usage of this technology in 5G and 6G R&D, which is attracting increasing funding across the globe. This technology offers the ultra-high bandwidths that are critical for future communications. With the rising loads on telecom networks due to the growing usage of data-intensive applications, such as autonomous vehicles, big data analytics, AI and ML, connected healthcare, space and cyber warfare, and supercomputing, 6G will be a vital tool enabling digital transformation in the coming decades.

The following type have been analyzed:

• Imaging (Largest Category)
  • Active
  • Passive
• Communication Systems (Fastest-Growing Category)
  • Antennae
  • Emitters
  • Modulators
• Spectroscopy
• Others

End Use Analysis

The healthcare category holds the largest share, of 40%, in 2024. This is attributed to the increasing usage of this technologies in the diagnosis of cancer and other health issues, as well as in dentistry. Another key application of this technology in the healthcare industry is pharmaceutical quality control, which is vital for companies owing to the stringent quality and efficacy regulations around the world.

The defense & security category will grow the swiftest during this decade, with a CAGR of 11.3%. Border surveillance, baggage checking at airports, and threat detection are important purposes of employing equipment that work in the THz RF range. The ability of this technology to scan objects without damaging them makes it popular for use in detecting explosives, drugs, and other prohibited items that have been concealed from the naked eye.

The end use breakdown of the market is as follows:

• IT & Telecom
• Healthcare (Largest Category)
• Laboratory Research
• Defense & Security (Fastest-Growing Category)
• Semiconductor & Electronics
• Industrial NDT
• Others

Component Analysis

Detectors dominate the market with 65% share in 2024. They are used in a wide range of applications to trace and catch the Terahertz frequencies emitted by their sources. Additionally, these detectors are undergoing technological advancements to meet the evolving requirements of medical diagnostics, industrial non-destructive testing, and security screening.

Emitters will have the higher CAGR during the forecast period, of 11.4%. This is attributed to the growing need for powerful THz frequency sources for emerging applications, such as advanced imaging, 6G, and spectroscopy.

The report offers insights into the following components:

• Emitters (Faster-Growing Category)
• Detectors (Larger Category)

Geographical Analysis

• The North American market is the largest in 2024, with a share of 35%. This is due to the growing investments in defense, homeland security, and R&D, and the presence of major market players.
• Moreover, the government’s strict regulations regarding safety and the increasing security checks, along with the growing automotive and aerospace industries, are driving the market in the country.
• The evident actions by the government for the purpose of security and non-destructive testing show the increasing usage of investigating and security devices.
• Similarly, the surging trends for the adoption of advanced security technologies are expected to further boost the demand for Terahertz technologies for security purposes in the country.
• Moreover, the rising developments and government initiatives in the IT and healthcare sectors for advancing THz applications augment the Terahertz technology market growth.
• APAC is the fastest-growing market, with a CAGR of 11.8% during this decade. This is because of the increasing investment in R&D on this technology in China, South Korea, and Japan.
• These countries are also pioneers in 5G/6G communications, medical advancements, and semiconductor manufacturing. Additionally, to gain an edge in defense, regional countries are investing in advanced military surveillance and communication technologies.
• For instance, China’s 2023 defense budget, of USD 219.5 billion (RMB 1.55 trillion), was a 7.1% increase than its 2022 spending.
• This was also the 29th year on the trot when the spending rose.

The below-mention regions and countries are covered in the report:

• North America (Largest Regional Market)
  • U.S. (Larger and Faster-Growing Country)
  • Canada
• Europe
  • Germany (Largest and Fastest-Growing Country)
  • U.K.
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific (APAC) (Fastest-Growing Regional Market)
  • Japan
  • China (Largest and Fastest-Growing Country)
  • India
  • Australia
  • South Korea
  • Rest of APAC
• Latin America, Middle East, and Africa (LAMEA)
  • Brazil (Largest Country)
  • Mexico
  • Saudi Arabia (Fastest-Growing Country)
  • South Africa
  • U.A.E.
  • Rest of LAMEA

Terahertz Technology Market Share

The market is fragmented because of the wide-ranging applications of this technology, which leads to the development of varying equipment. Additionally, this technology is still evolving, with a huge scope for innovation, which is why no clear company holds a clear edge. Additionally, small and medium-sized enterprises are significant in the market and lead to further fragmentation.

Terahertz Technology Market News

• In August 2024, TeraView launched a new sensor technology to measure anode coatings in EV batteries.
• In July 2024, Advantest Corporation became a sponsor of VfB Stuttgart for the latter’s 2024 tour of Japan.
• In April 2024, TeraSense Group expanded its portfolio of tunable THz wave sources.
• In April 2024, Menlo Systems GmbH’s U.S. subsidiary relocated to a Boulder, Colorado, from Newtown, New Jersey.