Europe Terahertz Technology Market Size and Forecast (2021-2031), Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Component (Terahertz Detectors and Terahertz Sources), Type (Terahertz Imaging Systems, Terahertz Spectroscopy Sys

The Europe terahertz technology market is projected to grow significantly, reaching an estimated US$ 750.44 million by 2031, up from US$ 217.82 million in 2024. This growth represents a compound annual growth rate (CAGR) of 19.4% from 2025 to 2031, indicating a robust expansion in this innovative sector.

Executive Summary and Market Analysis

Europe is home to several developed economies, including Germany, France, the UK, and Italy, which are at the forefront of adopting and advancing terahertz technology. The European Union and various organizations are actively promoting the integration of terahertz technology into diverse applications, including space exploration. A notable initiative is the EU-funded TERAOPTICS project, which aims to train 15 early-stage researchers in terahertz photonics. This program is designed to equip participants with essential research skills and foster a collaborative network among academic and non-academic partners.

The growth potential for terahertz technology in Europe is bolstered by increasing collaborations and technological advancements. For example, in May 2024, Sensormatic Solutions, a prominent global provider of retail solutions, partnered with Thruvision, a leader in security screening technology. This collaboration focuses on enhancing people screening capabilities for retailers by integrating Thruvision's advanced passive terahertz camera technology into Sensormatic's loss prevention solutions. This innovative approach offers retailers a fast, respectful, and reliable method for screening individuals, particularly in logistics and distribution centers, thereby addressing internal shrinkage effectively. The partnership highlights the growing acceptance and application of terahertz technology in the retail and security sectors across Europe.

Strategic Insights

Market Segmentation Analysis

The Europe terahertz technology market can be segmented based on components, types, and applications:

By Component: The market is divided into terahertz detectors and terahertz sources. In 2024, the terahertz detectors segment held a larger market share, indicating a strong demand for detection technologies.
By Type: The market is categorized into terahertz imaging systems, terahertz spectroscopy systems, and terahertz communication systems. The terahertz imaging systems segment was the largest in 2024, reflecting the technology's critical role in imaging applications.
By Application: The applications of terahertz technology include industrial, medical and healthcare, defense and security, semiconductor, food and agriculture, among others. The industrial segment dominated the market in 2024, showcasing the technology's versatility across various sectors.

Market Outlook

The demand for terahertz technology is on the rise as it penetrates new application areas, driven by advancements in product development and research. Terahertz radiation is recognized for its unique capabilities in communication, imaging, sensing, and data transmission, making it an invaluable asset across multiple industries. For instance, on July 24, 2024, TicWave Solutions GmbH launched a new line of silicon-based terahertz products, including terahertz cameras and imaging systems, which enhance accessibility for research and various industrial applications. This launch marks a significant step in advancing terahertz technology into commercial products.

Additionally, on January 16, 2023, Canon Inc. introduced a terahertz device with the highest output to date, leveraging its semiconductor manufacturing expertise. This compact device is set to enhance next-generation sensing and data transmission capabilities, further expanding the applications of terahertz technology. Such innovations underscore the growing potential of terahertz technology, positioning it as a critical tool in fields like sensing, communication, and imaging, and driving its adoption across diverse industries.

In February 2025, engineers at MIT reported the development of a compact chip-based terahertz wave generator with unprecedented radiating power. This scalable device utilizes advanced Intel transistors and a custom dielectric sheet to achieve peak radiation power of 11.1 dBm, surpassing previous records. This breakthrough eliminates the need for large silicon lenses, allowing for integration into portable devices, thereby broadening applications in security screening, environmental monitoring, and high-speed communications. As companies continue to innovate in terahertz technology, it is set to revolutionize communication networks, security systems, and medical diagnostics, indicating a bright future for the industry.

Country Insights

The Europe terahertz technology market includes key countries such as Germany, the UK, France, Italy, Russia, and the Rest of Europe. Notably, the Rest of Europe, which encompasses countries like Switzerland, Poland, the Netherlands, Denmark, and Sweden, held the largest market share in 2024. Renowned cancer research institutes in these countries are increasingly utilizing terahertz technology for cancer diagnosis, further driving market growth.

Moreover, initiatives like Nokia's Hexa-X project, in collaboration with Ericsson, aim to develop the 6th generation mobile network by integrating artificial intelligence and advanced radio access technologies. Such projects are expected to enhance the adoption of terahertz technology, contributing to the market's expansion across Europe.

Company Profiles

Key players in the Europe terahertz technology 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. These companies are employing various strategies, including expansion, product innovation, and mergers and acquisitions, to enhance their market presence and deliver innovative solutions to consumers. Show more