Europe Terahertz Technology Market Analysis and Forecast by Size, Share, Growth, Trends 2031

The Europe terahertz technology market size is expected to reach US$ 750.44 million by 2031 from US$ 217.82 million in 2024. The market is estimated to record a CAGR of 19.4% from 2025 to 2031.

Executive Summary and Europe Terahertz Technology Market Analysis:

The European continent comprises developed economies, including Germany, France, the UK, and Italy. The EU and other agencies have taken initiatives to bring terahertz technology into extensive space exploration. For instance, the EU-funded TERAOPTICS project seeks to train 15 new-generation early-stage researchers in THz photonics. The training program will provide inspiring research, intellectual, scientific, and technical transferable skills to develop an excellent, creative, internationally renowned, interdisciplinary, and intersectoral network of academic and non-academic partners in a professional setting. Terahertz technology has strong growth prospects in Europe due to increasing collaborations and developments. In May 2024, Sensormatic Solutions, a leading global retail solutions provider under Johnson Controls, collaborated with Thruvision, a global leader in walk-through security screening technology. This collaboration aims to make next-generation people screening more accessible to retailers worldwide by integrating Thruvision's advanced passive terahertz camera technology and scanning software into Sensormatic Solutions' comprehensive loss prevention portfolio. This innovative solution offers retailers a fast, respectful, and reliable people-screening option, particularly in distribution centers and logistics facilities, to effectively address and reduce internal shrink. With Thruvision's cutting-edge terahertz technology now available through Sensormatic Solutions, the partnership underscores the expanding adoption of terahertz-based solutions in Europe's retail and security sectors.

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Europe Terahertz Technology Market: Strategic Insights

Europe Terahertz Technology Market Segmentation Analysis:

Key segments that contributed to the derivation of the Europe terahertz technology market analysis are component, type, and application.

• By component, the Europe terahertz technology market is bifurcated into terahertz detectors and terahertz sources. The terahertz detectors segment held a larger share of the market in 2024.

• By type, the Europe terahertz technology market is segmented into terahertz imaging systems, terahertz spectroscopy systems, and terahertz communication systems. The terahertz imaging systems segment held the largest share of the market in 2024.

• By application, the Europe terahertz technology market is segmented into industrial, medical and healthcare, defense and security, semiconductor, food and agriculture, and others. The industrial segment held the largest share of the market in 2024.

Europe Terahertz Technology Market Players Density: Understanding Its Impact on Business Dynamics

The Europe Terahertz Technology Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Europe Terahertz Technology Market Outlook

The demand for terahertz technology is growing as it advances into new areas of application, driven by breakthroughs in product development and research. Terahertz radiation offers unique capabilities in communication, imaging, sensing, and data transmission, making it an invaluable tool across industries. For instance, on July 24, 2024, TicWave Solutions GmbH launched a new silicon-based terahertz product line, which includes Terahertz Cameras, Terahertz Sources, and Terahertz Imaging Systems, making the technology more accessible for applications in research and various industries such as healthcare, defense and security, and more. This development marks a key milestone in advancing the terahertz frequency band and its integration into commercial products. Similarly, on January 16, 2023, Canon Inc. unveiled a terahertz device with the world's highest output, leveraging its semiconductor manufacturing expertise. This compact yet powerful device is enhancing next-generation sensing and data transmission, expanding the scope of terahertz technology's applications. These innovations underscore the growing potential of terahertz technology, positioning it as a critical tool in fields such as sensing, communication, and imaging, fueling its adoption across diverse industries.

In February 2025, MIT engineers reported having created a compact chip-based terahertz (THz) wave generator with the highest ever reported radiating power. This scalable device uses state-of-the-art Intel transistors alongside a custom dielectric sheet to reach a peak radiation power of 11.1 dBm, a much greater value than those previously recorded. This innovative development eliminates massive silicon lenses and thus can be integrated into portable devices, thereby augmenting their applications in security screening, environmental monitoring, and high-speed communications. As companies push the boundaries of what's possible with terahertz devices, the technology is revolutionizing communication networks, security systems, and medical diagnostics. The advancements seen in recent years indicate that terahertz technology will play a central role in shaping the future of industries, ultimately leading to its widespread adoption. With its potential to enhance data transmission, improve non-invasive imaging, and enable more efficient sensing, the terahertz technology market is poised to witness substantial growth opportunities in the upcoming years.

Europe Terahertz Technology Market Country Insights

Based on country, the Europe terahertz technology market comprises Germany, the UK, France, Italy, Russia, and the Rest of Europe. The Rest of Europe held the largest share in 2024.

The Rest of Europe includes countries such as Switzerland, Poland, the Netherlands, Denmark, and Sweden. Renowned cancer institutes, including the Netherlands Cancer Institute, Spanish National Cancer Research Center, Vall D'Hebron Institute of Oncology, and Oslo Comprehensive Cancer Centre in European countries, propel the use of terahertz technology for the diagnosis of cancerous tissues. In the context of 6th generation mobile network growth, Nokia's Hexa-X project with Ericsson projects to develop and integrate Artificial Intelligence, network virtualization and disaggregation, radio access beyond 100 GHz, and other key technologies for the next generation's wireless networks by 2030. Such initiatives for developing the 6th-generation mobile network will help increase the adoption of terahertz technology. This development contributes to the expansion of the terahertz technology market across the rest of Europe, fostering innovation and positioning the region as a leader in this sector.

Europe Terahertz Technology Market Company Profiles

Some of the key players operating in the market include NTT Electric Co., Canon Inc., Horiba Ltd., Advantest Corporation, HÜBNER GmbH & Co. KG, Luna Innovations Inc., Menlo Systems GmbH, Microtech Instrument Inc., Das-Nano SL, Terasense Group Inc., Teraview Limited, and Toptica Photonics AG, among others. These players are adopting various strategies such as expansion, product innovation, and mergers and acquisitions to provide innovative products to their consumers and increase their market share.

Europe Terahertz Technology Market Research Methodology :

The following methodology has been followed for the collection and analysis of data presented in this report:

Secondary Research

The research process begins with comprehensive secondary research, utilizing both internal and external sources to gather qualitative and quantitative data for each market. Commonly referenced secondary research sources include, but are not limited to:

• Company websites, annual reports, financial statements, broker analyses, and investor presentations.

• Industry trade journals and other relevant publications.

• Government documents, statistical databases, and market reports.

• News articles, press releases, and webcasts specific to companies operating in the market.

Note:

All financial data included in the Company Profiles section has been standardized to USD. For companies reporting in other currencies, figures have been converted to USD using the relevant exchange rates for the corresponding year.

Primary Research

The Insight Partners conducts a significant number of primary interviews each year with industry stakeholders and experts to validate its data analysis and gain valuable insights. These research interviews are designed to:

• Validate and refine findings from secondary research.

• Enhance the expertise and market understanding of the analysis team.

• Gain insights into market size, trends, growth patterns, competitive dynamics, and future prospects.

Primary research is conducted via email interactions and telephone interviews, encompassing various markets, categories, segments, and sub-segments across different regions. Participants typically include:

• Industry stakeholders: Vice Presidents, business development managers, market intelligence managers, and national sales managers

• External experts: Valuation specialists, research analysts, and key opinion leaders with industry-specific expertise