Terahertz Technology Market Size, Share & COVID-19 Impact Analysis, By Type (Imaging Systems, Communication Systems, and Spectroscopy Systems), By Application (Imaging Scanner, Imaging Cameras, Antennas, Spectrometer, and Body Scanner), By End-use (Telecommunication, Medical & Healthcare, Laboratory Research, Defense & Security, Semiconductor Testing, and Others), and Regional Forecast, 2023-2030

The terahertz technology market size was valued at USD 813.2 million in 2022 and is projected to grow from USD 939.0 million in 2023 to USD 2890.4 million by 2030, exhibiting a CAGR of 17.4% during the forecast (2023-2030). North America accounted for a market value of USD 269.8 million in 2022. Terahertz technology focuses on the electromagnetic waves in the terahertz frequency. The terahertz frequency falls between infrared and microwave frequencies on the electromagnetic spectrum. The terahertz radiation is used in numerous and diverse applications, including communications, security, materials, science, and medicine. The number of terahertz applications is increasingly growing due to interest in THz technology and products presented by industrial clients, researchers, and OEM manufacturers.

Terahertz technology is non-ionizing, which means its radiation does not affect the human body. It penetrates non-conducting materials such as paper, clothing, cardboard, wood, plastic, and ceramics. The growing technological advancements and demand for THz technology across various industries are creating growth opportunities for the market.

Moreover, various researchers and research organizations across the globe are focusing on implementing terahertz technology in networking infrastructure development to enable the transfer of a large amount of data in medical and research laboratories and satellite communications devices.

The report provides a study of the solutions offered by market players such as TeraSense Group, TeraView Limited, Lytid, HÜBNER GmbH & Co. KG, Advantest Corporation, BATOP GmbH, and others.

COVID-19 IMPACT

Increasing Biological Research and Security Concerns amid COVID-19 Pandemic Fueled Market Growth

The pandemic completely changed the market due to the growing demand and widespread product use in healthcare, biological research, and security applications. The rising demand for technology during the pandemic encouraged healthcare businesses and governments to adopt the required measures for developing terahertz gadgets. For instance,

• In May 2020, the Defense Research Development Organization (DRDO), in collaboration with North Eastern Hill University, developed an artificial intelligence-based Terahertz radiation scanning unit to detect coronavirus patients through infrared thermal scanners accurately.

Furthermore, the pandemic changed security strategies through the integration of terahertz technology. In security surroundings, detecting threats such as explosives and hidden weapons was a robust operational need. This technology helped to discover and identify hidden objects. The terahertz technology recorded a surge due to the growing importance of imaging concealed explosives.

In addition, the pandemic generated numerous scenarios for infrared spectroscopy to undertake skin temperature tests of people within checkpoints and other high-traffic locations while following social distance rules.

Thus, the COVID-19 pandemic positively influenced the demand for terahertz components and systems across the globe.

Terahertz Technology Market Trends

Rising Deployment of Terahertz Technology in Research and Development across Various Industries to Propel Market Growth

The advancements in research and development are creating the adoption of terahertz frequency with еxіstіng test frequency into sеmіcоnductоr tеchnоlоgy. The frеquеncіеs are being utіlіzеd in new аpplіcаtіоns for sеmіcоnductоr mаtеrіаls, cоmmunіcаtіоn bandwidths, mіlіtаry and аеrоspаcе, mеdіcаl іmаgіng, аutоmоtіvе, and оthеr еmеrgіng tеchnоlоgіеs.

In addition, cоmmеrcіаl аpplіcаtіоns and аdvаncеd physics rеsеаrch has prоvіdеd new and higher power sources. Thе terahertz tеchnоlоgy is creating аttrаctіvе rеsеаrch opportunities with іntеrеst from dіvеrsе sectors of thе market and sеvеrаl tеchnіcаl аdvаncеs have еxtеndеd thе pоtеntіаl of terahertz systems. For instance,

• In May 2023, The Volkswagen Group selected das-Nano technology to use and measure the layer thickness of car body coatings. The das-Nano would integrate a non-contact system using terahertz waves and proprietary algorithms to measure the thickness of the coating layer of a car body.

Thus, the increasing research and advancements in technology are expected to propel the market demand.

Terahertz Technology Market Growth Factors

Replacement of X-rays and Infrared Rays with Terahertz Rays Aids Market Growth

X-rays and terahertz rays allow us to see through matter. However, the resolution of images produced by THz is inferior to that created by X-rays. Nevertheless, the non-invasive and non-ionizing properties of terahertz waves provide an advantage over X-rays, whose radiation is harmful to health with repeated exposure.

Unlike X-ray machines, terahertz waves are harmless for humans and do not have ionizing radiation, as they can penetrate clothes and other fields. These properties make THz-based screening solutions suitable for applications where human safety and health are of the highest significance. For instance,

• In July 2023, RIKEN researchers designed a handheld device that efficiently uses the terahertz band of the electromagnetic spectrum without harmful radiation. The technology can be used in numerous applications, including quantum research and non-destructive imaging, with industrial collaborations.

Thus, the replacement of conventional X-rays and infrared rays with terahertz rays is slated to accelerate the growth of the global terahertz technology market.

RESTRAINING FACTORS

Lack of Technological Knowledge and Network Complexity Hamper the Growth of the Market

The existence of ICs and Internet of Things (IoT) devices for compact networks creates more complex connectivity. Similarly, the installation of dynamic fiber dampers and input energy analyzers in a single compact unit for network monitoring and control has resulted in the increased complexity of the network.

Furthermore, lack of knowledge and awareness regarding the applications of terahertz technology and the unavailability of skilled professionals with technical knowledge to install, monitor, and manage terahertz technology solutions are other factors impeding the expansion of this market.  

Thus, the lack of knowledge and complex networking is a major restraining factor for adopting global markets.

Terahertz Technology Market Segmentation Analysis

By Type Analysis

Implementation of Imaging Systems across Various Industries to Drive Market Growth

Based on type, the market is divided into imaging systems, communication systems, and spectroscopy systems.

The imaging systems segment held the highest market share in 2022 due to developments in imaging systems that have increased imaging quality and brought impending terahertz radiation from research laboratories in real-time applications. The terahertz images create images of the internal structure of materials that are visible to light and other forms of electromagnetic radiation. Various industries, such as the food industry, defense, and healthcare are adopting terahertz imaging for detecting foreign bodies, moisture, testing, and quality control. For instance,

• In April 2023, a University of Hyderabad (UoH) research team designed and developed an original Terahertz (THz) pulsed imaging system. This system would detect and identify concealed metallic, explosives, and drug samples within a paper covering.

The communication systems segment is expected to grow at the highest CAGR during the forecast period due to the utilization of emerging wireless technologies with enhanced frequencies of signal interference than at low-frequency communications. Various companies are implementing communication systems as a critical technology for 6G to meet the increasing need for higher data-rate communication. These factors create a lucrative opportunity for market expansion.

By Application Analysis

Increasing Development of Imaging Cameras into Various Applications Drives Market Growth

Based on application, the market is segmented into imaging scanner, imaging cameras, antennas, spectrometer, and body scanner.

 

The imaging cameras segment held the highest market share in 2022. Terahertz imaging cameras activate an external terahertz source to detect devices. These cameras offer imaging based on terahertz radiation that can penetrate clothes and other objects. Various research institutions and companies are collaborating to develop advanced imaging cameras to detect terahertz pulses with high sensitivity and at room temperature and pressure, thus creating growth for the market. For instance,

• In November 2022, MIT engineers, Samsung and the University of Minnesota developed a low-cost terahertz camera device that provides good sensitivity, speed, and could be used for airport security, industrial inspection, and communications.

The antennas segment is expected to grow at the highest CAGR during the forecast period. The terahertz antennas have features of small size, wide frequency bandwidth, and high data rate, which help transmit and receive THz electromagnetic waves in emerging THz systems. Moreover, with transmission and reception of 5G/6G, terahertz communication systems control technologies, artificial intelligence (AI), and other system technologies to derive valuable information from sensing data and optimize control. Thus, the advancements in internet communication drive the market. For instance,

• In January 2022, Chinese scientists developed 6G technology for hypersonic weapon communication to track blackout problems.

Thus, the integration of antennas into communication systems creates the ability to communicate globally and generates market opportunities for the players.

By End-use Analysis

Development of Terahertz Frequency across Telecommunication Propels Market Growth

Based on end-use, the market is categorized into telecommunication, medical & healthcare, laboratory research, defense & security, semiconductor testing, and others (agriculture, education).

The telecommunication segment is expected to depict the highest CAGR over the study period. The terahertz technology has become increasingly secure through major advancements in photonic, electronic, and plasmatic technologies. Various organizations are expanding terahertz research by shifting toward the development of custom-made communication and networking solutions by extending common practices at lower frequency bands and capturing the real abilities of terahertz devices. For instance,

• In November 2022, the Department of Telecommunications (DoT) opened up spectrum in the 95 GHz to 3 THz frequency range for free distribution to develop new technologies similar to 6G-driven solutions and products.

The implementation of terahertz technologies in telecommunications for improving the network and smooth frequency for businesses fuels the terahertz technology market growth.

Moreover, laboratory research displays prominent growth due to the rapid development of terahertz science and technology. Several institutions and researchers have been engaged in relevant technological research with the aim of promoting the broad use of terahertz electromagnetic waves in academia and industries.

REGIONAL INSIGHTS 

Geographically, the market is categorized into five key regions: North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

North America holds the highest terahertz technology market share. This is due to the rising number of research & development initiatives, homeland security issues, and high investments focused on defense. Moreover, various regulations toward the production and safety of aerospace technologies are significantly driving the market growth in the region. Moreover, along with increasing their consumer base and demands across numerous applications, major companies are investing in merger agreements with other enterprises. For instance,

• In November 2023, the Air Force Research Laboratory (AFRL) partnered with Keysight Technologies, Inc., an industry provider in design, emulation, and test solutions through a Cooperative Research and Development Agreement (CRADA). The CRADA would enable AFRL to leverage new technologies associated with wireless communications across the electromagnetic spectrum, including the terahertz band for strategic and tactical networks.

Europe is expected to grow substantially during the forecast period due to support and investments by governments, and companies are focusing on advancing new technologies in the market and expanding their footprints in emerging markets. In addition, there is a growing interest in communication satellites and innovative technologies across the region to create a favorable environment for terahertz technologies. For instance,

• In April 2023, Keysight Technologies collaborated with the National Physical Laboratory (NPL) to implement the primary 6G connection at speeds over 100 Gbps over sub-terahertz (THz) frequencies in the U.K.

Asia Pacific is expected to hold the highest CAGR over the study period. This is due to the wide application of technologies in several end-uses, such as telecom, lab research, and healthcare and medical industries, in developing countries such as India, South Korea, China, and Indonesia. In addition, the increase in semiconductor production and adoption of advanced technologies boosts the terahertz technology market expansion in the region.

The growing communications infrastructure such as 6G and the implementation of technologies drive the market in the Middle East & Africa and South America regions. With the increasing security concerns and internet connectivity, various players are strengthening their presence through investments in the regions. Therefore, this helps accelerate the adoption of terahertz technologies.

List of Key Terahertz Technology Market Companies

Market Leaders Focus on Expanding their Product Offerings to Gain Competitive Edge

Key players in the market, such as TeraSense Group, TeraView Limited, Lytid, HÜBNER GmbH & Co. KG, Advantest Corporation, BATOP GmbH, and others, are focused on expanding their geographical boundaries. These players are upgrading their existing products and focusing on technological advancements through investment in research and development. Moreover, with the surge of new tools enabled by the key players created momentum in various applications such as imaging, communication, spectroscopy, and other fields.

• In January 2023 – TeraView opened its business operations in Delaware. The company will scale business development and customer support personnel, allowing the company to increase support for customers throughout North America.

List of the Key Companies Profiled:

• TeraSense Group (U.S.)


• Teravil Ltd. (China)


• TeraView Limited (U.K.)


• Lytid (France)


• HÜBNER GmbH & Co. KG (Germany)


• Advantest Corporation (Japan)


• BATOP GmbH (Germany)


• Menlo Systems (Germany)


• Gentec Electro-optics Inc. (Canada)


• Bakman Technologies LLC (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• June 2023: HÜBNER Photonics launched a higher-power product, Cobolt Jive 561 nm. The Cobolt JiveM is suited for demanding applications in microscopy for super-resolution microscopy as well as interferometric-based techniques such as particle flow analysis.


• June 2023: Keysight Technologies, Inc., launched PathWave ADS (Advanced Design System), an EDA (electronic design automation) software suite. The software provides chip designers with new millimeter wave and sub-THz (subterahertz) frequency abilities to accelerate 5G mmWave and requirements for the development of 6G wireless communications.


• February 2023: ACE Solution, a customized test solutions provider, launched the TZ6000, a non-destructive quality measurement tool for the compound semiconductor sector. The product is combined with TeraView’s TeraPulse Lx technologies to achieve non-destructive quality measurements of thickness at selected positions.


• June 2022: Advantest Corporation acquired CREA, a semiconductor system testing company, to strengthen the portfolio of its core business solutions and enable the organization to capture the future expansion of the power semiconductor tester sector.


• February 2022: Menlo Systems introduced YLMO Mid-IR, a powerful and compact mid-IR fiber laser that is used for broadband spectroscopy applications and time-resolving measurements.

REPORT COVERAGE

The research report includes prominent regions across the globe to gain a better understanding of the market scenario. Furthermore, it provides insights into the most recent industry and market trends and developments associated with terahertz systems. It also emphasizes some of the growth-stimulating factors and restraints, allowing the reader to obtain a thorough understanding of the industry.

REPORT SCOPE & SEGMENTATION

ATTRIBUTE	DETAILS
Study Period	2017-2030
Base Year	2022
Estimated Year	2023
Forecast Period	2023-2030
Historical Period	2017-2021
Growth Rate	CAGR of 17.4% from 2023 to 2030
Unit	Value (USD Million)
Segmentation	By Type Imaging Systems Communication Systems Spectroscopy Systems By Application Imaging Scanner Imaging Cameras Antennas Spectrometer Body Scanner By End-use Telecommunication Medical & Healthcare Laboratory Research Defense & Security Semiconductor Testing Other (Agriculture, Education) By Region North America (By Type, Application, End-use, and Country) U.S. Canada Mexico Europe (By Type, Application, End-use, and Country) U.K. Germany France Italy Spain Russia Benelux Nordics Rest of Europe Asia Pacific (By Type, Application, End-use, and Country) China India Japan South Korea ASEAN Oceania Rest of Asia Pacific Middle East & Africa (By Type, Application, End-use, and Country) Turkey Israel GCC North Africa South Africa Rest of the Middle East & Africa South America (By Type, Application, End-use, and Country) Brazil Argentina Rest of South America