Quantum Dots Market Size, Share & Industry Analysis, By Material (Cadmium-based and Cadmium-free), By Product Type (Display and Others), By End-User (Consumer, Healthcare, Defense, Media and Entertainment, and Others), and Regional Forecast, 2024-2032

The global quantum dots market size was valued at USD 5.97 billion in 2023. The market is projected to grow from USD 6.94 billion in 2024 to USD 25.05 billion by 2032, exhibiting a CAGR of 17.4%. Asia Pacific dominated the global market with a share of 40.54% in 2023.

Quantum Dots (QDs) are solution-processable semiconductor nanoparticles that have unique electronic and optical characteristics. These properties include high resistance to photobleaching, superior brightness, and simultaneous excitation of multiple colors from a single light source, among others. These features help particles find promising potential in biotechnology, optoelectronics, and medicine.

Before 2022, the quantum technologies market was still at the proof of concept and principle stage. Several investments, research papers, patents, and government backing were the engagements witnessed in the quantum dot ecosystem. As the year 2023 progressed, several quantum dot products observed the commercialization phase. In the coming years, the industry is expected to witness a substantial growth rate owing to the industry’s developing and maturing phase.

At present, the display market captures the majority of the market’s use cases. The increasing inclination of end-users toward preferring cadmium-free QDs has propelled the market’s growth in recent years. Besides, the healthcare and defense sectors have showcased early adoption of QDs. However, in the coming years, the consumer electronics market is expected to showcase a heavy adoption rate.

To highlight the COVID-19 impact on the market, the initial phase did affect the market due to supply chain differences and halted projects. However, the market did pace up quickly due to a significant response from the healthcare sector. The sector showcased a rise in demand for quantum dots to be used with displays and medical imaging applications. A similar pace was then taken forward across all other end-use industries.

IMPACT OF GENERATIVE AI

Companies are Currently Testing the Integration of Generative AI into Quantum Technologies

Generative AI is expected to have a positive impact on the global market. Currently, several investments and projects are being set up to test the integration of gen AI with quantum technologies.

Quantum technologies are at an early stage; companies are still exploring the proof of concept and testing phase. In the coming years, the integration of generative AI capabilities in the market is expected to showcase huge potential. With the rise in the global quantum dot market, collaboration between emerging technologies and quantum dots is expected to rise simultaneously.

Moreover, a few instances that highlight the efforts of market players in harnessing the power of generative AI include:

Zapata Computing, Inc.’s collaboration with St. Jude Children’s Research Hospital and Insilico Medicine in February 2024, showcases the future of hybrid quantum gen AI for drug discovery using constantly advancing quantum devices. This collaboration showcases the successful running of the generative model on quantum hardware with the intent of developing viable cancer drug candidates.

Thus, as the industry progresses through its proof of concept stage, end-users will witness new quantum dot products that would have the capabilities of generative AI.

Quantum Dots (QDs) Market Trends

Increasing Inclination of End-Users toward Adopting Cadmium-free Quantum Dot Products to Fuel Market Growth

The earlier versions of photoluminescent quantum dots comprised cadmium and were coated with semiconducting nanocrystals with organic molecules. However, concerns related to them harming the environment raised questions about their production. For instance,

In 2017, the European Commission flagged concerns regarding banning the usage of Cadmium (Cd) in concentrations of over 100 ppm from display use cases in the next two years.

These concerns paved the way for developing cadmium-free quantum dots, which also became a regulatory necessity.

Several materials have been considered for producing cadmium-free QDs—for instance, the use of Indium phosphide, and copper indium sulfide, among others. However, there is still a debate over several concerns that these materials have over the environment. As the industry is still at its tipping point, the market is expected to witness the use of several metals until the best fit is found that has less impact on the market. Thus, several companies have been engaged in developing cadmium-free QDs, further accelerating the global quantum dots market growth.

Quantum Dots Market Growth Factors

Heavy R&D Investments and Funding to Contribute to the Major Driving Factor for the Market’s Growth

The key factor driving the market comprises heavy R&D investments and funding. The market has recently observed a rapid increase in commercial products. The market has been witnessing significant investments and funding projects. For instance, in July 2023, QDI Systems introduced a lab, leading to a substantial increase in commercial and production scaling. The company is expected to use the funding to leverage its quantum dots technology for the untapped and medical sector markets.

Furthermore, several instances indicate that companies are securing funding to make significant advancements toward enhancing product expertise and expanding global reach. For instance, in January 2023, Quantum Machines announced that the team made significant advancements in the quantum computing ecosystem. The company secured over USD 20 million in funding, which made the company’s total funding around USD 100 million. The funding round was a collaboration of several investors, including new and existing investors.

Besides, the increasing demand for quantum dots across the display markets in various end-user industries is also expected to drive industry expansion.

RESTRAINING FACTORS

High Costs and Environmental Concerns Related to the Manufacturing of Quantum Dots May Hinder Market Growth

The major restraining factor of QD LEDs is the toxicity related to them, as most of them comprise cadmium or other heavy metals. However, as the quantum dot industry progresses, companies are expected to prioritize the development of cadmium-free QDs.

In addition, the current ecosystem of the market includes several players, such as QD display developers, QD material developers, QD equipment developers, QD technology developers, and other QD-related developers. Thus, the intensely competitive landscape of the ecosystem poses a challenge for market players.

In addition, the current costs related to the manufacturing processes tend to hinder the quantum dots market growth.

Quantum Dots Market Segmentation Analysis

By Material Analysis

Recent Commercialization and Demand for Cadmium-Based Technology to Propel Segmental Growth

By material, the market is bifurcated into cadmium-based and cadmium-free.

In 2023, cadmium-based quantum dot products led the market with the largest quantum dots market share. There are several companies, such as NNCrystal US Corporation and Samsung Electronics Co Ltd., among others, that are providing cadmium-based quantum dot products that can be used across a diverse set of applications, including OLED color conversion and security tagging, among others. The segmental growth is attributed to the recent commercialization and demand for cadmium-based technology.

However, in the coming years, the cadmium-free quantum dots segment is expected to showcase a substantial growth rate as they are a more sustainable and safer option. Several companies, such as Nanoco and others, are engaged in initiatives and projects that help develop high-performing nanoparticles that can be used in electronic applications. These companies are focused on developing cadmium-free quantum with the intent to lower the negative impact on the environment due to the use of cadmium-based solutions.

By Product Type Analysis

Increasing Demand for High Quality and Energy-Efficient Display Products to Ensure Segmental Growth

By product type, the market is divided into display and others. The other category includes lasers, solar cells, and others.

In 2023, the display segment dominated the global market owing to the increasing demand for high-quality and energy efficient display solutions. Several companies in the market are engaging in making significant investments related to the market to develop enhanced display products.

For instance, in April 2024, NanoPattern Technologies secured over USD 1.5 million in a seed round with the objective of marketing its photo patternable quantum dot ink. This step is expected to help the company commercialize next-generation displays. The company’s ink product is marketed to display component manufacturers, which helps them to develop full-color microdisplays for virtual reality, augmented reality, smartphones, wearables, televisions, and tablets.

This recent development highlights that the display market currently captures the majority of the market share. Globally, there is an increasing demand for quantum dot displays.

The other segment is expected to grow with the highest CAGR as the market players are expected to tap into newer markets and expand their global reach. The untapped markets include developments of the market technology in lasers, solar cells, and others.

For instance, in August 2023, UbiQD, Inc. collaborated with First Solar, Inc. with the intent to intelligently integrate fluorescent quantum dot expertise in enhanced solar modules. The companies have been working on the exploratory work since early 2022 for the same.

By End-User Analysis

Early Adoption of the Technology across the Healthcare Sector to Drive Market Growth

By end-user, the market is categorized into consumer, healthcare, defense, media and entertainment, and others. The others include agriculture, energy, utilities, and others.

Owing to the early adoption of the technology across the healthcare sector, in 2023, the segment dominated the global market. The sector has witnessed several use cases cropping up and is still witnessing significant advancements in recent years.

Companies such as QDI systems are engaged in developing imaging devices for medical applications based on quantum dots. These use cases include X-rays and mammography screening. Increasing patents, research papers by companies, and innovative applications related to the market across the sector are the factors driving the segmental growth.

REGIONAL INSIGHTS

On a regional basis, the market is segmented into five key regions: Asia Pacific, Europe, North America, South America, and the Middle East and Africa.

In 2023, Asia Pacific held the largest market share and is expected to continue its dominance during the forecast period. The presence of key market players in growing economies such as China, Japan, and India and market leadership in the semiconductor market contribute to the regional dominance. Moreover, several companies are engaged in developing advanced materials for display panels that help them reduce dependency on other countries. For instance, in May 2023, Canon introduced a material for organic light-emitting diode panels that lack the use of rare metals. With this, the company aims to reduce its dependency on rare metal manufacturers. These instances indicate that the Asia Pacific quantum dot market will showcase a substantial growth rate during the forecast period.

Europe held the second-largest share of the global market in 2023. Strong government backing and investments have contributed to the accelerated market growth. Moreover, engagement of market players, such as partnerships with market-related players, has propelled regional growth in recent years. For instance,

• In September 2022: AIPIA member SICPA, specializing in providing security inks and secured identification, authentication, supply chain, and traceability solutions, has expanded its partnership with a nanotechnology firm, UbiQD. With this, the companies expect to accelerate the development of anti-counterfeit security inks based on UbiQD’s quantum dot technology.

Following these regions, the North American market showcases a healthy growth rate owing to the presence of key market players and substantial investments.

The Middle East & Africa, and South America hold a smaller share of the global market owing to the limited presence of major players across the regions. However, several countries across the regions have showcased engagements related to the use cases of the market across several industries, such as agriculture, energy, and utilities. These initiatives indicate a healthy and slower pace of growth for the regional markets.

List of Key Companies in Quantum Dots Market

Key Players are Engaged in Securing Funds to Expand Market Reach and Product Expertise

As the market is currently at its tipping point, companies operating in the market are heavily engaged in R&D investments. The companies are securing funds with the aim of expanding their product expertise and global reach. Along with this, companies expect to expand their employee size and tap into untapped markets. Key players are also leveraging other business strategies, such as strategic collaborations and relevant partnerships, with the objective of combining the best of both the company’s expertise. This strategy enhances the product expertise and expands the company’s customer reach. Moreover, the players in the market are continuously engaged in securing patents and investing in developing research papers related to the market.

List of Key Companies Profiled:

• Shoei Chemical, Inc. (Japan)


• Samsung Electronics Co Ltd. (South Korea)


• Nanoco Group plc (U.K.)


• Quantum Materials Corp. (U.S.)


• UbiQD, Inc. (U.S.)


• QDI Systems (Netherlands)


• Thermo Fisher Scientific Inc. (U.S.)


• Ocean Nanotech, LLC. (U.S.)


• QustomDot BV (Belgium)


• NNCrystal US Corporation (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• February 2024: Diraq, specializing in the quantum computing market, secured over USD 15 million in Series A-2 funding round. With this, the company expects to bolster its efforts in developing fault-tolerant quantum computing with silicon quantum dots.


• November 2023: Intel introduced a 12-qubit quantum-dot silicon chip to mark a significant step toward its goal of developing enhanced quantum computers.


• October 2023: A Quantum Technology Lab was set up by the team of Samsung Semiconductor India Research, together with the Indian Institute of Science. This was a step toward the company’s corporate social responsibility aim. It enabled training support and research opportunities for several students and faculty members in both IISc and other educational institutions.


• January 2022: Sony introduced the world's first QD-OLED TV, which incorporates new technology that lies between the MicroLED and OLED panels. The QD-OLED is the latest technology that enhances image quality while using less energy.


• July 2021: ams Osram introduced a new Quantum Dot LED. With this, the company aims to tap into the increasing demand for energy-efficient and high-quality solutions for general lighting.

REPORT COVERAGE

The report offers valuable insights about the market, such as leading market players, solutions, and key applications of products, among others. Along with this, the report also provides current trends and future opportunities for market players. It encompasses a complete overview of the global market, highlighting factors such as micro and macroeconomic factors, government investments, R&D initiatives, and research paper dominance of the companies.

Report Scope & Segmentation

ATTRIBUTE	DETAILS
Study Period	2019-2032
Base Year	2023
Estimated Year	2024
Forecast Period	2024-2032
Historical Period	2019-2022
Growth Rate	CAGR of 17.4% from 2024 to 2032
Unit	Value (USD Billion)
Segmentation	By Material Cadmium-based Cadmium-free By Product Type Display Others (Lasers, solar cells, and others) By End-User Consumer Healthcare Defense Media and Entertainment Others (Agriculture, Energy and Utilities, and others) By Region North America (By Material, Product Type, End-User, and Country) U.S. Canada Mexico South America (By Material, Product Type, End-User, and Country) Brazil Argentina Rest of South America Europe (By Material, Product Type, End-User, and Country) U.K. Germany France Italy Spain Russia Benelux Nordics Rest of Europe Middle East & Africa (By Material, Product Type, End-User, and Country) Turkey Israel GCC North Africa South Africa Rest of the Middle East & Africa Asia Pacific (By Material, Product Type, End-User, and Country) China Japan India South Korea ASEAN Oceania Rest of Asia Pacific