According to The Insight Partners' research, the North America terahertz technology market was valued at US$ 263.00 million in 2024 and is expected to reach US$ 838.31 million by 2031, registering a CAGR of 18.1% from 2025 to 2031. Use of terahertz technology for satellite communication and expansion of the 6G technology are among the critical factors attributed to driving the North America terahertz technology market growth.
THz technology offers significant potential for ICT, wireless communication, high-speed data processing, and satellite communications. With growing interest in satellite networks for navigation, communication, and remote sensing, THz technology is key to meeting the demand for high-speed connections. It enables terabit-per-second wireless links thanks to its wide frequency band, high speed, and strong penetrability. Advances in THz technology, including III-V semiconductors and Quantum Cascade Lasers, support frequency generation from 0.34 THz to 1 THz. Thus, the trend of using terahertz technology for satellite communications reflects the ongoing evolution of the market. As per the Air Force Research Laboratory (AFRL) data released in April 2023, the U.S. is delving into terahertz (THz) communications to ease satellite communication. They have already conducted flight experiments with great success to measure propagation loss for frequencies higher than 300 GHz. In such experiments, which were done jointly with Northrop Grumman and Calspan Flight Research, the researchers were able to show that the use of THz communication is quite possible even at the specified altitudes and distances, which are typical of the operations conducted by the Air Force. These global efforts highlight the strategic importance of terahertz (THz) technology in revolutionizing satellite communications. As countries invest in THz research and infrastructure, the path toward ultra-fast, high-capacity global connectivity becomes increasingly attainable.
On the contrary, lack of awareness regarding terahertz technology and unavailability of skilled professionals hamper the growth of the North America terahertz technology market.
Based on component, the North America terahertz technology market is bifurcated into terahertz detectors and terahertz sources. The terahertz detectors segment held 78.7% share of North America terahertz technology market share in 2024, amassing US$ 206.86 million. It is projected to garner US$ 672.60 million by 2031 to register 18.4% CAGR during 2025-2031.
By type, the North America terahertz technology market is segmented into terahertz imaging systems, terahertz spectroscopy systems, and terahertz communication systems. The terahertz imaging systems segment held 60.9% share of North America terahertz technology market share in 2024, amassing US$ 160.07 million. It is projected to garner US$ 492.98 million by 2031 to register 17.5% CAGR during 2025-2031.
By application, the North America terahertz technology market is segmented into industrial, medical and healthcare, defense and security, semiconductor, food and agriculture, and others. The industrial segment held 33.8% share of North America terahertz technology market share in 2024, amassing US$ 89.01 million. It is projected to garner US$ 286.25 million by 2031 to register 18.2% CAGR during 2025-2031.
Based on country, the North America terahertz technology market is categorized into the US, Canada, and Mexico. Our regional analysis states that the US captured 79.7% share of North America terahertz technology market in 2024. It was assessed at US$ 209.60 million in 2024 and is likely to hit US$ 680.43 million by 2031, registering a CAGR of 18.4% during 2025-2031.
Key players operating in the terahertz technology market are NTT Electric Co., Advantest Corporation, HÜBNER GmbH & Co. KG, Luna Innovations Inc., Menlo Systems GmbH, Microtech Instrument Inc., Canon Inc., Horiba Ltd., Terasense Group Inc., Das-Nano SL, Teraview Limited, and Toptica Photonics AG, among others.
- In August 2023, Luna Innovations Incorporated announced that it had won a large, new purchase order for its THz sensing solution for application in automotive electric vehicle (EV) battery production. In efforts to keep pace with the growing demand for these solutions, Luna also announced the completion of the transfer of production of THz solutions to its Atlanta, Georgia, facility, where it expects to achieve four times greater capacity.
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