According to The Insight Partners' research, the Asia Pacific terahertz technology market was valued at US$ 198.76 million in 2024 and is expected to reach US$ 744.29 million by 2031, registering a CAGR of 20.9% from 2025 to 2031. Growing use of terahertz systems in the semiconductor industry and expansion of the 6G technology are among the critical factors attributed to driving the Asia Pacific terahertz technology market growth.
As the demand for industrial, self-driving vehicles, and consumer electronics is growing, semiconductor production is booming, driving the adoption of advanced technologies such as terahertz. It is used in semiconductor packaging inspection, fault isolation, defect detection, wireless communication, and evaluating semiconductor chips, including mobile computing and transmitters/receivers. It's also applied in composite materials, solar cells, dielectric films, and polymer films. Terahertz technology offers significant growth potential for the semiconductor industry, particularly in evaluating wafers and interconnects in packaged chips. The terahertz waves can be used to non-destructively inspect semiconductor wafers for defects, including cracks, voids, and impurities; this can improve the yield of semiconductor manufacturing processes. In 2025, TeraView Ltd., a UK-based company specializing in terahertz imaging systems, received preliminary approval for a listing on South Korea's stock exchange (KRX), aiming to expand its reach in the region and collaborate closely with South Korea's leading chipmakers, like Samsung and SK Hynix, for semiconductor inspection systems. Furthermore, South Korean firms are actively investing in THz-based security and inspection systems tailored for airport security and military applications, emphasizing non-destructive testing and flaw detection in semiconductors and electronics. China and Japan are also making substantial investments in THz research, with China focusing on communication and security innovations, supported by government initiatives like China's "Made in China 2025." Japan is advancing in high-resolution imaging and testing solutions for semiconductor manufacturing, driven by a strong high-tech industry and infrastructure projects. Such types of applications drive the adoption of terahertz technology in the semiconductor industry.
On the contrary, lack of awareness regarding terahertz technology and unavailability of skilled professionals hamper the growth of the Asia Pacific terahertz technology market.
Based on component, the Asia Pacific terahertz technology market is bifurcated into terahertz detectors and terahertz sources. The terahertz detectors segment held 74.7% share of Asia Pacific terahertz technology market share in 2024, amassing US$ 148.47 million. It is projected to garner US$ 573.39 million by 2031 to register 21.4% CAGR during 2025-2031.
By type, the Asia Pacific terahertz technology market is segmented into terahertz imaging systems, terahertz spectroscopy systems, and terahertz communication systems. The terahertz imaging systems segment held 56.3% share of Asia Pacific terahertz technology market share in 2024, amassing US$ 111.91 million. It is projected to garner US$ 400.83 million by 2031 to register 20.1% CAGR during 2025-2031.
By application, the Asia Pacific terahertz technology market is segmented into industrial, medical and healthcare, defense and security, semiconductor, food and agriculture, and others. The industrial segment held 26.2% share of Asia Pacific terahertz technology market share in 2024, amassing US$ 52.04 million. It is projected to garner US$ 194.33 million by 2031 to register 20.8% CAGR during 2025-2031.
Based on country, the Asia Pacific terahertz technology market is categorized into China, Japan, India, South Korea, Australia, and the Rest of Asia Pacific. Our regional analysis states that China captured 34.5% share of Asia Pacific terahertz technology market in 2024. It was assessed at US$ 68.63 million in 2024 and is likely to hit US$ 292.56 million by 2031, registering a CAGR of 23.1% during 2025-2031.
Key players operating in the terahertz technology market are NTT Electric Co., Canon Inc., Advantest Corporation, HÜBNER GmbH & Co. KG, Luna Innovations Inc., Das-Nano SL, Horiba Ltd., Menlo Systems GmbH, Microtech Instrument Inc., Terasense Group Inc., Teraview Limited, and Toptica Photonics AG, among others.
- In February 2025, Advantest Corporation announced that it had entered into a partnership agreement with Micronics Japan Co., Ltd. ("MJC"). As semiconductors are expected to become increasingly advanced and complex, close collaboration within the semiconductor supply chain is essential to meet future market demands. Under this agreement, MJC and Advantest will leverage their respective expertise to provide innovative semiconductor test solutions, contributing to the optimization of customers' test processes and test costs. Additionally, Advantest plans to acquire a minority stake in MJC as part of this agreement.
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