Etched Grating in China Trends and Forecast
The future of the etched grating market in China looks promising with opportunities in the measuring instrument and machine tool markets. The global etched grating market is expected to grow with a CAGR of 5.0% from 2025 to 2031. The etched grating market in China is also forecasted to witness strong growth over the forecast period. The major drivers for this market are the increasing demand for high-resolution displays in consumer electronics, the growing applications of etched gratings in spectroscopy and telecommunications, and the advancements in nanofabrication techniques.
• Lucintel forecasts that, within the type category, transmission grating is expected to witness the higher growth over the forecast period.
• Within the application category, the measuring instrument is expected to witness higher growth.
Emerging Trends in the Etched Grating Market in China
China‘s etched grating market is advancing rapidly as the country prioritizes domestic photonics innovation, semiconductor self-reliance, and green manufacturing. With increasing demand across telecommunications, LiDAR, quantum computing, and medical diagnostics, etched gratings have become integral to emerging technologies. China‘s investments in R&D, fabrication infrastructure, and optical system design are accelerating its transition to a leading global supplier. The growing complexity and precision requirements of photonic applications are pushing local companies to innovate, while strong policy support and international decoupling trends further strengthen the nation‘s strategic focus on etched grating technologies.
• Expansion of advanced plasma and DUV etching techniques: China is scaling its domestic etching capabilities with a focus on deep-ultraviolet and plasma etching methods. These techniques are enabling the mass production of nano-scale gratings used in telecom and semiconductor applications. Manufacturers are achieving higher aspect ratios and finer resolutions, critical for next-generation optical performance. The increase in throughput and localized tool production supports greater independence from foreign suppliers and reduces lead times for key photonics components.
• Integration of gratings in high-speed telecom networks: Etched gratings are playing a vital role in fiber-optic communications, particularly in wavelength-division multiplexing and optical signal routing. As China upgrades its 5G and data infrastructure, the need for compact, efficient grating-based solutions is surging. These components help minimize signal loss and enable higher bandwidth transmission, making them essential in backbone networks and data centers. Domestic suppliers are now meeting more of this demand with locally designed and manufactured gratings.
• Rising demand from automotive and LiDAR applications: China‘s smart mobility push is increasing demand for compact and reliable LiDAR systems, where etched gratings serve as critical beam steering and filtering components. Gratings are now integrated into solid-state LiDAR modules, enhancing spatial resolution and sensor miniaturization. This trend aligns with the broader adoption of autonomous vehicle technologies and urban robotics. It is also prompting localized R&D in photonic chips that incorporate grating elements directly on silicon.
• Growth in quantum and precision sensing sectors: Etched gratings are becoming more prevalent in China‘s quantum optics and precision sensing sectors. They are used to manipulate light paths in experiments and commercial systems requiring extreme sensitivity and spectral accuracy. Their integration into photonic integrated circuits supports scalable quantum communication setups and advanced metrology devices. As China expands national-level quantum infrastructure, demand for custom grating designs tailored to specific use cases is expected to rise.
• Customization for healthcare and biophotonics: Biophotonics applications such as portable spectrometers, DNA analysis tools, and optical diagnostic platforms are driving demand for etched gratings with specialized profiles. These gratings enable precise light filtering in compact devices suited for point-of-care diagnostics. China‘s expanding medical device manufacturing and digital healthcare ecosystems are incorporating such gratings to improve diagnostic accuracy and lower costs. Local players are responding with application-specific grating solutions customized for healthcare markets.
The etched grating market in China is undergoing a dynamic transformation, shaped by innovations in etching techniques, telecommunications expansion, autonomous systems, quantum technologies, and healthcare applications. These trends reflect China‘s strategic aim to lead in photonics and reduce reliance on imported components. As grating technologies become increasingly application-specific and production capacities grow, China is well-positioned to become a dominant force in the global etched grating ecosystem.
Recent Developments in the Etched Grating Market in China
China‘s etched grating industry is experiencing a wave of technical and commercial developments. These include capacity expansions in fabrication, design improvements in couplers and polarization diversity, and breakthroughs in integrating gratings with emerging materials. The developments support China‘s ambition to become a self-reliant and globally competitive photonics hub.
• Ramp-up in domestic etching tool manufacturing: Chinese manufacturers have significantly increased their production of plasma and DUV etching tools, improving accessibility for local etched grating fabricators. This ramp-up supports high-resolution, deep-etch grating production and reduces dependence on foreign suppliers. It also shortens production cycles and boosts responsiveness to customized demands in sectors like telecom and quantum optics.
• Miniaturization through metamaterial grating couplers: Ultra-compact grating couplers using metamaterials have been developed to achieve high coupling efficiency in a much smaller footprint. These designs reduce the physical size of optical interfaces and support more scalable and lightweight photonic devices. Their simplicity and cost-effectiveness make them suitable for use in mass-produced sensors and chip-level integrations.
• Improved polarization diversity in grating designs: New dual-axis etched gratings provide enhanced polarization control and uniformity in photonic systems. These developments improve optical coupling efficiency and reduce signal degradation, which is particularly beneficial for telecom and precision instrumentation. The technology is now being adopted in commercial devices requiring high reliability under varying light conditions.
• Introduction of gratings on lithium niobate platforms: Etched gratings are being integrated into lithium niobate-based photonic platforms, offering better electro-optic modulation capabilities and thermal stability. These innovations are expanding the range of photonic functions achievable in a single chip and enabling more advanced optical systems for telecom, defense, and sensing markets.
• Rise in customized grating solutions for OEMs: Chinese grating manufacturers are increasingly offering customized designs tailored to the needs of optical equipment makers. This includes adjustments in period, depth, and structure to match specific application needs. The trend is fostering closer collaboration between grating producers and system integrators, resulting in more efficient and competitive solutions.
China’s etched grating market is benefiting from a combination of expanded manufacturing capabilities, miniaturized and polarization-sensitive designs, and material integration. These developments are strengthening local supply chains, enabling innovation in key sectors, and reinforcing China’s trajectory as a global center for advanced photonic component manufacturing.
Strategic Growth Opportunities for Etched Grating Market in China
China’s etched grating market is expanding under national initiatives in photonics, 5G, new energy vehicles, medical device innovation, and defense. Etched gratings are key components in laser systems, spectrometry, fiber optics, and lidar solutions. The push for localization and export competitiveness is fueling demand for domestic fabrication of high-precision optical elements. The following five applications represent strategic sectors where etched grating production can deliver technical advantage, enable industrial upgrades, and reduce import reliance.
• Fiber‑Optic Telecommunications and 5G Networks: With the rapid roll‑out of 5G and dense fiber‑to‑the‑home (FTTH) networks, China’s telecom sector requires etched fiber Bragg gratings for multiplexing, dispersion compensation, and signal integrity. Local production of these components reduces lead time and enhances supply assurance amid geopolitical tensions. The domestic capacity allows customization for regional climate conditions and temperature variations. Carrier and OEM collaboration supports high-volume demand. This opportunity enables China to control critical telecom component supply, supporting the national digital infrastructure strategy and export potential in Asian markets.
• Automotive LIDAR and Advanced Driver Assistance Systems: China’s new energy vehicle (NEV) and autonomous vehicle sectors are growing rapidly. Etched gratings are critical in LIDAR modules for beam steering, filtering, and spectral separation. Domestic grating fabrication supports automotive supply chains by ensuring consistent quality and faster development cycles. Local sourcing aligns with government incentives promoting NEV localization. This strengthens China’s leadership in automotive sensing and reduces dependency on foreign optics, enhancing the competitiveness of chip and sensor-integrated vehicle platforms.
• Biomedical Diagnostics and Spectroscopy: China’s healthcare modernization and decentralized testing ecosystem drive demand for portable diagnostic devices and spectrometers. Etched gratings are essential for high-resolution detection in medical imaging, blood analysis, and point‑of‑care systems. Local production lowers costs, accelerating adoption in rural and urban environments. Collaboration with hospitals and medical device firms supports regulatory approval and rapid prototyping. This opportunity enhances China’s capabilities in digital health technology and fosters export-grade diagnostic equipment.
• Environmental Monitoring and Industrial Process Control: China’s emphasis on ecosystem protection and emissions reduction fuels demand for real‑time air and water quality monitoring equipment. Spectrometers fitted with etched gratings enable continuous pollutant detection in industrial zones. On-site chemical analysis in manufacturing processes also requires compact spectral sensors. Domestic fabrication supports scale‑out of sensing networks and strengthens supply chains for environmental tech. This application aligns with policy goals and creates market opportunities for instrumentation providers.
• High‑Power Laser Systems and Semiconductor Manufacturing: China’s semiconductor and photonics industries require etched gratings for laser beam shaping, spectral filtering, and photolithography systems. Country-level investment in chip fabrication increases demand for precision optics in tool manufacturing. Etched gratings ensure stable laser performance and high resolution. Domestic capacity supports advanced packaging tools, inspection systems, and light sources. This opportunity helps secure optical supply chains for strategic industries and supports semiconductor autonomy and scaling goals.
China’s etched grating market is being driven by telecom, automotive sensing, medical diagnostics, environmental monitoring, and semiconductor needs. Local production of these components supports national aims for technology sovereignty, supply chain resilience, and export growth while reducing dependency on foreign optics.
Etched Grating Market in China Driver and Challenges
China’s etched grating market is advancing amid strong industrial modernization, innovation-driven policy, and infrastructure development. Critical enablers include national innovation initiatives, NEV incentives, digital health campaigns, smart city deployment, and semiconductor self-sufficiency drives. However, barriers such as high-capital fabrication costs, skilled labor shortages, and global competitiveness constraints remain. Addressing these dynamics is essential to build a sustainable domestic precision-optics ecosystem with global reach.
The factors responsible for driving the etched grating market in China include:
• Government Support for Photonics and NEV Industries: China’s national strategies like Made in China 2025 and NEV subsidy frameworks encourage local production of high-tech components. Etched gratings for LIDAR and telecom align well with these policies. Grants and tax incentives help optical manufacturers expand photolithography-equipped fabs. This funding accelerates market growth and strengthens China’s ability to meet domestic demand while competing internationally.
• Expansion of 5G/FTTH Infrastructure: Rapid deployment of 5G and fiber networks across urban and rural China drives telecom component demand. Etched gratings are essential for maintaining optical signal quality. Carriers and network equipment vendors are investing in local supply chains to mitigate geopolitical uncertainties. This ensures a reliable channel for domestic grating producers scaling capacity and capability.
• Growth in Medtech and Environmental Sensing: China’s healthcare sector is emphasizing accessibility and digital innovation, while air/water quality are national priorities. Etched gratings in diagnostic and environmental sensing devices benefit from these policy directions. Local fabrication reduces equipment costs and strengthens supply-stars alignment with national goals. This nurtures domestic innovation in spectroscopy and field-deployable sensors.
• Semiconductor and Laser Tool Development: China is investing heavily in semiconductor fabs and chip technology. Manufacturing tools require precision optics—laser modules using gratings for photolithography, wafer inspection, and packaging. Domestic grating production supports supply chain security and speeds tool OEMs development. This driver bolsters semiconductor ecosystem resilience and enables advanced manufacturing independence.
• Skilled Talent and Production Technology Edge: Chinese universities and research institutes are producing optics and photonics engineers. Technical expertise in lithography, metrology, and precision assembly supports high-quality grating fabrication. This driver underpins sustainable domestic production and helps China move up the value chain in optical manufacturing.
Challenges in the etched grating market in China are:
• High Capex and Equipment Scaling Burden: Etched grating fabrication requires cleanrooms, photolithography and etching equipment. Scaling to mass production demands significant investment. Without economies of scale, unit costs remain high. This barrier may limit SMEs and restrict production growth in lower-demand regions.
• Global Price Pressure and Export Competition: Chinese producers face low-cost competition from Southeast Asia and global exporters. Without technical differentiation or economies of scale, grating products may lack export competitiveness. Investment in R&D and innovation-driven products will be essential.
• Regulatory and IP Protection Complexity: Applications in NEV, telecom, defense, or medtech must meet strict standards and handle IP constraints. Navigating patents and certifications domestically and abroad adds cost and complexity for newcomers. Robust IP frameworks and standards compliance support is needed.
China’s etched grating market is propelled by infrastructure buildout, technology autonomy efforts, and sectoral innovation in telecom, automotive, healthcare, environment, and semiconductors. Yet challenges in scaling cost, talent capacity, and international competitiveness remain. Strategic investment in shared fabs, talent training, R&D, and export strategies is essential to realizing China’s vision of precision optics leadership.
List of Etched Grating Market in China Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies, etched grating companies cater to increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the etched grating companies profiled in this report include:
• Company 1
• Company 2
• Company 3
• Company 4
• Company 5
• Company 6
• Company 7
Etched Grating Market in China by Segment
The study includes a forecast for the etched grating market in China by type and application.
Etched Grating Market in China by Type [Analysis by Value from 2019 to 2031]:
• Transmission Grating
• Reflection Grating
Etched Grating Market in China by Application [Analysis by Value from 2019 to 2031]:
• Measuring Instrument
• Machine Tool
• Others
Features of the Etched Grating Market in China
Market Size Estimates: Etched grating in China market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends and forecasts by various segments.
Segmentation Analysis: Etched grating in China market size by type and application in terms of value ($B).
Growth Opportunities: Analysis of growth opportunities in different type and application for the etched grating in China.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the etched grating in China.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
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FAQ
Q1. What are the major drivers influencing the growth of the etched grating market in China?
Answer: The major drivers for this market are the increasing demand for high-resolution displays in consumer electronics, the growing applications of etched gratings in spectroscopy and telecommunications, and the advancements in nanofabrication techniques.
Q2. What are the major segments for etched grating market in China?
Answer: The future of the etched grating market in China looks promising with opportunities in the measuring instrument and machine tool markets.
Q3. Which etched grating market segment in China will be the largest in future?
Answer: Lucintel forecasts that, with in the type category, transmission grating is expected to witness the higher growth over the forecast period.
Q4. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 10 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the etched grating market in China by type (transmission grating and reflection grating), and application (measuring instrument, machine tool, and others)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.4. What are the business risks and competitive threats in this market?
Q.5. What are the emerging trends in this market and the reasons behind them?
Q.6. What are some of the changing demands of customers in the market?
Q.7. What are the new developments in the market? Which companies are leading these developments?
Q.8. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.9. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.10. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
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