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[September 2000]
Market for Non-Linear Optical Materials to Grow at Stupendous Rate
NLO (non-linear optical) materials utilize the non-linear dependence of the refraction index on an applied electric field to produce other frequencies. This is done by either harmonic generation (frequency doubling, tripling, mixing etc.) or by frequency shifting (such as optical parametric oscillation). The development of the field was enhanced in parallel with the introduction of lasers, because laser beams posses the energy density necessary to produce non-linear effects.
According to a soon-to-be-released study from BUSINESS COMMUNICATIONS CO., INC. (www.bccresearch.com) RGB-117R Non-Linear Optical Materials/Applications, the total market for NLO materials for the year 2000 is estimated to be $425.3 million. By the year 2005, BCC estimates that this market will reach the level of $11.2 billion. This level reflects in turn a very impressive AAGR (average annual growth rate) of 92.4% for the 5-year forecast period, which is mainly a result of the projected demand for LiNbO3 (lithium niobate) for telecommunications from a very low base.
Consequently LiNbO3 which at present accounts for about 75% of the NLO materials at a level of $316.1 million in 2000, will account for about 88% by 2005, when a $9.9 billion sales level is expected to be reached. Most of the LiNbO3 (94%) is presently used for telecommunications applications with an accelerating AAGR of about 100% during the period of 2000-2005. Rotators and isolators belong to a class of NLO materials also used for telecommunications. This class of materials represent 8% of the market in 2000 at a market level of $34 million, and BCC predicts AAGR of about 100% for 2000-2005, thus leading to a volume of $1,100 million by that time.
The next most important NLO material is KTP (titanyl phosphate), which accounts for about 8% of the total NLO materials in 2000 at a market level of only $34.9 million. BCC estimates that by 2005 the market share of KTP will account for only 1% of the total NLO materials market, although the market volume will be at $110 million. KTP crystal is used solely for laser and electro-optic applications.
Other NLO materials used in lasers and electro-optics such as KDP, KD*P, BBO, LBO, chalcopyrites and their isomorphs, and other single crystals account for about 9% of the total NLO materials in 2000 at a market level of $40.3 million. With the increased demand for NLO materials for telecommunications, the demand for other applications will exhibit very small growth rates., of about 12.9%. Consequently by the year 2005 the market share of other NLO materials as defined above, will be reduced to about 0.7% of the total market of NLO materials, at sales of $74 million.
ENDS