Phototherapy Market Size, Share, Growth, and Industry Analysis, By Types (UV Light Phototherapy, Intense Pulsed Light Phototherapy, Blue Light Phototherapy, Red Light Phototherapy, Others), By Applications Covered, Regional Insights and Forecast to 2033

Phototherapy Market Size 

The phototherapy market was valued at USD 1,672.61 million in 2024 and is expected to reach USD 1,742.86 million in 2025. By 2033, the market is projected to decline to USD 625.63 million, reflecting a compound annual growth rate (CAGR) of 4.2% during the forecast period from 2025 to 2033. This decline is attributed to advancements in alternative treatment methods and technological innovations in healthcare, which are anticipated to alter the market dynamics significantly over the coming years. However, the growth in early-stage treatments and emerging markets could offset this trend.

The US phototherapy market is poised for steady growth, driven by increasing demand for advanced dermatological treatments and rising cases of neonatal jaundice. Technological advancements in phototherapy devices, including LED-based and UV solutions, are enhancing treatment efficacy and patient outcomes.

The phototherapy market has experienced substantial growth, driven by its widespread use in treating various skin conditions such as psoriasis, eczema, and vitiligo. The increasing prevalence of these conditions globally has contributed to an approximate 20% rise in demand for phototherapy devices. Additionally, advancements in light therapy technology have resulted in more efficient and targeted treatments with minimal side effects, leading to a 15% improvement in treatment efficacy. Home-use phototherapy devices are gaining popularity, accounting for about 25% of the overall market share, due to their convenience and ease of use. The market is also benefiting from the growing awareness of phototherapy's efficacy in managing neonatal jaundice, which has led to a 10% increase in demand across pediatric care segments. These factors together underscore the expanding role of phototherapy across various demographics and conditions.

Phototherapy Market Trends 

The phototherapy market has been witnessing notable trends driven by the rising awareness of its efficacy in treating various skin disorders, including psoriasis, eczema, and vitiligo, among others. The demand for non-invasive treatments continues to increase, accounting for nearly 70% of the market. Phototherapy is increasingly seen as a preferred alternative to traditional therapies due to its ability to target specific areas without affecting healthy skin. Among the most popular treatments, UVB phototherapy holds a dominant share, comprising approximately 60% of the global demand.

Another key factor driving the market is the growing inclination towards natural and non-pharmacological treatments. Approximately 55% of patients prefer light-based therapies due to their non-invasive nature. This preference has led to a 20% increase in market adoption in the last two years. Additionally, the increasing popularity of non-surgical cosmetic treatments, including anti-aging therapies, is contributing to the growing demand for phototherapy across all age groups. 

Phototherapy Market Dynamics

The phototherapy market is influenced by a range of dynamics contributing to its growth and adoption. Technological advancements have led to a 30% increase in the efficiency and effectiveness of phototherapy devices, which has played a significant role in the market's expansion. Changing consumer preferences, especially the shift towards non-invasive treatments, has seen home-based phototherapy therapies increase in popularity, accounting for nearly 25% of the market share. Additionally, the rising awareness of light-based treatments and their minimal side effects compared to traditional therapies has contributed to a 20% surge in market acceptance.

The growing preference for natural and non-pharmacological treatments has significantly contributed to the phototherapy market's growth, with an estimated 35% of patients opting for safer, non-invasive therapies due to fewer side effects. The integration of new light sources, such as LEDs and lasers, has improved treatment efficiency by 20%, allowing for higher precision and more effective outcomes. Additionally, increased healthcare access and awareness, particularly in developing regions like Asia-Pacific, has driven a 25% rise in demand for phototherapy equipment and services. 

Drivers of Market Growth

"Technological Advancements and Convenience"

Technological advancements in phototherapy equipment are significantly driving market growth. LED-based devices, offering enhanced energy efficiency and longer lifespan, now make up 35% of the market. Home-use devices are gaining traction due to their convenience, accounting for 40% of overall demand. Over 50% of users report preferring home-based phototherapy solutions due to their ease of use, affordability, and reduced need for frequent clinic visits. The ability to treat conditions like psoriasis and eczema from the comfort of one's home is appealing to a large section of the market, especially in developed regions. The increase in geriatric populations, who are more susceptible to skin conditions, further accelerates market demand.

RESTRAINT

"High Initial Cost of Equipment"

Despite the growing demand for phototherapy, one of the key restraints is the high initial cost of equipment, which can be a significant barrier to entry for smaller clinics and home users. Approximately 30% of the target demographic in developing regions are unable to afford advanced phototherapy devices, which limits adoption. Additionally, the high cost of specialized treatment units, such as UVB light sources, can discourage investment in the market, particularly for healthcare providers in price-sensitive regions. Maintenance and operational costs further exacerbate this challenge, making it harder for smaller players to thrive.

OPPORTUNITY

"Expanding Use in Cosmetics and Skin Rejuvenation"

An emerging opportunity in the phototherapy market lies in its expanding use for cosmetic treatments, including skin rejuvenation and anti-aging therapies. The cosmetic industry now accounts for 15% of the total phototherapy demand, with phototherapy being used to treat issues such as wrinkles, acne, and skin pigmentation. Non-invasive and natural skin treatments are becoming increasingly popular, with approximately 25% of people aged 25 to 45 showing interest in using phototherapy for anti-aging. This growing awareness opens the door for further product development and marketing targeted at this demographic, providing a significant growth opportunity for the industry.

CHALLENGE

"Regulatory and Safety Concerns"

Regulatory concerns and safety standards pose significant challenges in the phototherapy market. Approximately 35% of manufacturers face delays in getting their products approved by regulatory authorities, which can hinder market entry. Moreover, safety standards for home-use phototherapy devices are often not as stringent as those for medical-grade equipment, raising concerns about the effectiveness and safety of consumer-grade products. This lack of regulation for some devices could lead to complications or reduced market confidence. Despite these hurdles, manufacturers are working to improve product compliance with international standards, which will ultimately help mitigate these challenges.

Expanded Insights on Market Challenges 

The phototherapy market, while showing considerable promise, also faces multiple challenges that could impede its growth trajectory. One of the major challenges is the high initial costs of phototherapy devices. The price of advanced light-based therapy equipment, such as UVB phototherapy lamps and lasers, remains a significant hurdle for both healthcare providers and patients. For example, medical-grade devices for psoriasis treatment can cost thousands of dollars, which makes it difficult for clinics in low-income or emerging markets to adopt these treatments. 

The availability of light-based treatments for conditions like psoriasis and eczema has increased significantly, yet a large portion of the market remains untapped, particularly for cosmetic purposes. Currently, only around 40% of patients are aware of phototherapy’s potential benefits for acne treatment and skin rejuvenation. As a result, this segment, including the growing anti-aging market, remains underutilized. Public education and targeted marketing efforts by manufacturers could help address this knowledge gap.

Segmentation Analysis

The phototherapy market is segmented by type and application, each reflecting unique trends and consumer demands. By type, key categories include UV light phototherapy, intense pulsed light phototherapy, blue light phototherapy, red light phototherapy, and others. Among these, blue light phototherapy has seen a 25% increase in adoption, especially for acne treatment, while red light phototherapy is gaining traction in the anti-aging and skin rejuvenation sectors, contributing to a 20% rise in demand. UV light phototherapy continues to dominate the market with a 30% share, primarily for psoriasis and eczema treatments.

By Type 

• UV Light Phototherapy: UV light phototherapy remains one of the most common types used for skin conditions such as psoriasis, eczema, and vitiligo. Approximately 60% of phototherapy treatments globally use UVB phototherapy, including narrowband and broadband types. UV light phototherapy has been a go-to treatment due to its efficacy in managing chronic skin disorders by targeting the skin’s deeper layers without the need for systemic drugs. It’s highly favored by dermatology centers and hospitals, comprising 40% of the total phototherapy market share.

• Intense Pulsed Light Phototherapy: Intense pulsed light (IPL) phototherapy is often used for aesthetic and dermatological purposes. It represents around 15% of the market and is particularly popular for acne, rosacea, and anti-aging treatments. IPL is highly versatile, capable of treating a variety of skin conditions, and has grown in adoption due to its non-invasive nature. It is primarily used in dermatology centers and hospitals for targeted treatments. In recent years, IPL devices have also made their way into the homecare segment, capturing an increasing market share in cosmetic treatments.

• Blue Light Phototherapy: Blue light phototherapy, commonly used for acne and other inflammatory skin conditions, has gained significant market traction. Representing around 10% of the market, blue light therapy is frequently used for acne treatment as it targets and kills acne-causing bacteria. It is particularly popular in both homecare and dermatology centers. The growth of acne treatments, especially among younger populations, has contributed to the steady demand for blue light phototherapy, with its non-invasive, gentle approach appealing to consumers seeking minimal side effects.

• Red Light Phototherapy: Red light phototherapy is increasingly recognized for its ability to treat skin conditions related to aging, such as wrinkles and fine lines. The therapy, contributing about 8% to the market, is primarily used for anti-aging treatments and to accelerate wound healing. Its use in both medical and cosmetic fields is growing, especially among individuals seeking non-surgical solutions. It is effective at promoting collagen production, a factor driving the rise in its popularity. Red light phototherapy has become a staple in many clinics and dermatology centers, with increasing adoption in homecare devices.

• Others: Other forms of phototherapy include infrared and laser-based treatments, though they make up a smaller percentage of the overall market, around 7%. These therapies are typically used in wound healing, pain relief, and hair regrowth. Infrared and laser phototherapy are less common for general dermatological treatments but have niche applications in the medical and cosmetic industries. These devices are generally more expensive and require more specialized settings for use, limiting their adoption to certain therapeutic areas or high-end clinics.

By Application

• Hospitals & Clinics: The hospitals and clinics segment dominates the phototherapy market, contributing approximately 50% of overall demand. Phototherapy treatments in these settings are primarily used for severe skin conditions, such as psoriasis and eczema. Hospitals and dermatology clinics offer professional-grade UV and LED devices, ensuring accurate treatment protocols. This segment benefits from high patient trust in healthcare professionals, and advanced phototherapy devices remain a primary choice for chronic condition management.

• Dermatology Centers: Dermatology centers account for 25% of the market share, providing specialized care for various dermatological conditions. With a focus on treatments like acne, vitiligo, and pigmentation disorders, dermatology centers adopt cutting-edge phototherapy technology to cater to specific needs. These centers provide both medical and cosmetic treatments, making them key players in the market.

• Homecare: Homecare applications have gained momentum in recent years, accounting for 15% of the market. Home-based phototherapy devices, particularly for conditions like acne and mild psoriasis, are growing in popularity due to their affordability and convenience. With easy access to portable devices, patients now have the option of managing their conditions from the comfort of their homes.

• By Region: The regional split of the phototherapy market reveals North America, Europe, and Asia-Pacific as the largest contributors. North America holds around 35% of the market, driven by advanced healthcare infrastructure and a high demand for medical-grade devices. Europe follows closely, contributing approximately 30% to the overall market, with a strong focus on medical and cosmetic treatments. The Asia-Pacific region, led by countries like China and India, accounts for 20% of the market, with expanding healthcare access driving growth. Latin America and the Middle East & Africa have emerging markets, comprising around 15% of the total share.

Phototherapy Regional Outlook

The global phototherapy market’s regional outlook highlights varying growth rates across different parts of the world. North America, particularly the United States and Canada, leads the market, accounting for approximately 35% of the global share. This dominance is attributed to advanced healthcare infrastructure, a high number of dermatology centers, and growing consumer interest in homecare devices, which have seen a 30% increase in adoption.

Europe follows closely, with countries like the UK, Germany, and France contributing significantly to demand. The European market represents about 30% of the global market share, driven by both medical and cosmetic applications. Medical usage in Germany has grown by 20%, while the UK and France are seeing a 15% increase in the demand for anti-aging phototherapy treatments.

North America 

North America remains a dominant player in the phototherapy market, contributing nearly 35% of the overall market share. The region benefits from well-established healthcare systems, high awareness of skin conditions, and advanced medical technology. The United States, accounting for the largest share in North America, leads in both medical-grade phototherapy devices and homecare solutions. The growth in demand is largely driven by the increasing prevalence of chronic skin conditions such as psoriasis, eczema, and vitiligo, as well as rising cosmetic concerns, including acne and anti-aging treatments.

Europe

Europe represents a substantial share of the global phototherapy market, contributing approximately 30%. Key countries such as Germany, the UK, France, and Italy are witnessing robust demand for both medical and cosmetic phototherapy treatments. The presence of well-established healthcare infrastructure and a high standard of dermatological care have made Europe a significant hub for phototherapy adoption. In particular, countries like Germany are home to leading dermatology centers and hospitals that extensively utilize phototherapy for treating skin conditions like psoriasis, eczema, and vitiligo. Moreover, the demand for homecare devices in Europe is also growing, contributing to market expansion.

Asia-Pacific

Asia-Pacific is emerging as a rapidly growing region in the phototherapy market, accounting for approximately 20% of the global market share. With a large population base and increasing awareness of skin health, the demand for phototherapy treatments is on the rise. Countries such as China, India, and Japan are witnessing rapid adoption of both medical and homecare phototherapy devices. In particular, the demand for blue light phototherapy for acne treatment is high in Asia-Pacific, and rising disposable income in countries like India and China is driving greater consumer investment in skincare. The expansion of dermatology centers and clinics in these countries is also fueling growth.

Middle East & Africa

The Middle East & Africa phototherapy market is growing steadily, contributing around 10% to the global market share. Countries in the Middle East, such as Saudi Arabia, UAE, and Turkey, are witnessing increased adoption of phototherapy, driven by advancements in dermatological care. The demand for both medical and aesthetic phototherapy treatments is expanding, particularly in cosmetic dermatology, where light therapies are used for acne, anti-aging, and pigmentation treatments. Africa’s market is relatively smaller, but as access to healthcare improves, there is a growing interest in phototherapy devices for treating skin disorders, especially in countries like South Africa and Egypt.

List of Key Phototherapy Market Companies Profiled

1. Natus Medical
2. GE Healthcare
3. Herbert Waldmann
4. Draeger
5. Philips Lighting
6. National Biological
7. MTTS Asia
8. PhotoMedex
9. VIA Global Health
10. Beurer
11. Daavlin
12. Nice Neotech
13. Guangzhou Beautylife Electronic
14. Technology

Among these, Natus Medical and GE Healthcare are leading companies, with Natus Medical capturing the highest market share at 30%, followed by GE Healthcare at 25%. These companies dominate due to their advanced phototherapy equipment offerings and strong global distribution networks, which have helped establish their leadership in the medical-grade phototherapy sector.

Investment Analysis and Opportunities 

The phototherapy market presents significant investment opportunities, driven by technological advancements, rising consumer demand, and expanding healthcare access across emerging markets. As of 2023, around 45% of investments in the phototherapy sector have been directed toward product innovations and advancements, particularly in the homecare device segment. Investors are increasingly focusing on companies developing cost-effective, portable phototherapy devices for at-home use, which now accounts for about 20% of the market.

One of the main investment trends is the rise in homecare devices, which has garnered around 40% of overall market investment. With the increasing popularity of self-care and at-home treatments for conditions such as acne, psoriasis, and eczema, home-use phototherapy devices are becoming a top priority for manufacturers and investors. Companies that produce blue light and red light phototherapy devices are seeing strong growth, with investments in these areas reaching up to 25%. The cost-effectiveness, convenience, and growing awareness of phototherapy’s benefits in treating various skin conditions have driven investments toward this segment.

New Product Development

The phototherapy market is experiencing a surge in new product development, driven by advancements in technology and an increased demand for both medical and cosmetic solutions. In 2023 and 2024, around 40% of the market's growth can be attributed to innovative product launches that focus on portability, efficiency, and affordability. Companies have been keen to develop home-use phototherapy devices, with a significant focus on LED-based solutions that are more energy-efficient and less expensive than traditional systems. 

In particular, the introduction of portable blue light phototherapy devices has been a notable development, especially for treating acne and psoriasis. About 30% of new product launches are in the blue light category, aimed at consumers seeking non-invasive solutions. Additionally, the market is seeing the development of red light phototherapy devices designed for anti-aging treatments, which is anticipated to make up 25% of all new product offerings.

Five Recent Developments by Manufacturers in Phototherapy Market 

Several key developments have taken place in the phototherapy market in 2023 and 2024, reflecting the sector's rapid innovation and growing demand for advanced solutions.

1. GE Healthcare launched a new range of UVB phototherapy devices, which incorporate enhanced safety features and improved treatment efficacy for skin conditions such as psoriasis and vitiligo. This product is expected to cater to both hospital settings and homecare use.

2. Natus Medical introduced an upgraded version of its phototherapy units for neonatal care, with a focus on energy efficiency and improved safety standards. This product is designed to provide better support for the treatment of jaundice in newborns.

3. PhotoMedex unveiled a new portable red light phototherapy device aimed at anti-aging treatments. The device is compact, easy to use, and designed for both home and professional use.

4. Philips Lighting expanded its line of blue light phototherapy lamps for acne treatment, featuring adjustable intensity settings and a more comfortable design for users, responding to the growing demand for homecare solutions.

5. Daavlin launched an innovative, FDA-cleared handheld phototherapy device aimed at treating eczema and psoriasis. The device offers an improved patient experience by providing personalized treatment sessions based on individual skin needs.

Report Coverage of Phototherapy Market

The phototherapy market report provides comprehensive insights into the industry’s growth dynamics, segmentation, and competitive landscape. Key segments such as UV light phototherapy, blue light phototherapy, red light phototherapy, and intense pulsed light (IPL) therapies represent approximately 40%, 25%, 20%, and 15% of the market share, respectively. The market is divided into medical, cosmetic, and homecare applications, with medical applications leading at 50% of the market, followed by cosmetic applications at 30% and homecare at 20%.

The report also highlights the major players in the phototherapy market, including GE Healthcare, Philips Lighting, Natus Medical, Daavlin, and PhotoMedex. These companies are at the forefront of technological advancements, focusing on user-friendly, energy-efficient, and portable phototherapy devices to cater to growing demand in both medical and cosmetic applications. Companies like GE Healthcare and Philips Lighting account for nearly 35% of the total market share, dominating both the medical and cosmetic segments.