The global Phototherapy market was valued at USD 638.66 million in 2024 and is projected to grow from USD 669.32 million in 2025 to USD 973.92 million by 2033, expanding at a CAGR of 4.8% during the forecast period (2025–2033). Increasing cases of neonatal jaundice, growing prevalence of chronic skin disorders, and technological advancements in LED-based phototherapy devices are key factors driving market growth.

Phototherapy devices are widely used to treat conditions such as Neonatal Jaundice, where light therapy helps break down excess bilirubin in newborns’ blood. These devices protect infants from the neurotoxic effects of high bilirubin levels and significantly reduce the need for exchange transfusions. In addition, phototherapy has become an effective treatment option for several skin disorders, offering clinically proven results with minimal side effects.

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Market Drivers

Rising Prevalence of Chronic Skin Disorders

The increasing prevalence of severe skin diseases is a major driver of the global phototherapy market. According to global disease burden studies, skin disorders remain among the leading causes of non-fatal health conditions worldwide.

Phototherapy is widely used to treat conditions such as Psoriasis, Vitiligo, and Cutaneous T‑cell lymphoma. For example, vitiligo is an autoimmune disorder that destroys melanocytes, leading to skin depigmentation. Phototherapy remains one of the most widely recommended treatments due to its proven efficacy and relatively mild side-effect profile.

Additionally, the increasing incidence of premature births and neonatal jaundice worldwide is driving demand for phototherapy devices in hospitals and neonatal care units.

Market Challenges

Uneven Technology Access and Awareness Across Regions

Despite the growing adoption of phototherapy technologies, disparities in healthcare infrastructure, awareness, and technology accessibility across countries may limit market growth.

Developed nations such as the United States typically adopt advanced medical technologies faster due to stronger healthcare spending and favorable reimbursement policies. In contrast, developing countries may face challenges related to limited healthcare resources, lack of awareness, and slower regulatory approvals for innovative treatment technologies.

These disparities can hinder the widespread adoption of advanced phototherapy equipment across emerging markets.

Market Opportunities

Increasing Adoption of Home-Based Phototherapy Solutions

Home phototherapy is emerging as a promising opportunity in the phototherapy market. Traditionally, patients receiving phototherapy for skin diseases are required to visit hospitals multiple times per week for treatment sessions.

Home-based phototherapy devices allow patients to undergo treatment conveniently without frequent hospital visits, improving adherence to therapy and enhancing patient satisfaction. Studies have shown that home phototherapy for conditions such as psoriasis can be as effective and safe as hospital-based treatments while significantly reducing treatment costs.

The rising availability of portable and LED-based phototherapy devices is expected to accelerate the adoption of home-based treatment solutions during the forecast period.

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Regional Insights

North America

North America dominates the global phototherapy market and is expected to grow at a CAGR of 4.40% during the forecast period. The region’s growth is primarily driven by the rising prevalence of acne and other skin disorders, increasing adoption of technologically advanced skincare treatments, and widespread use of LED-based phototherapy equipment.

Strong healthcare infrastructure and high awareness regarding neonatal care further contribute to the region’s market leadership.

Asia-Pacific

The Asia-Pacific region is projected to be the fastest-growing market for phototherapy devices. Rising awareness of advanced treatment technologies, expanding healthcare infrastructure, and increasing cases of neonatal jaundice are major factors driving regional growth.

According to global health statistics, Asia accounts for a significant proportion of the world’s 15 million annual preterm births, increasing the demand for neonatal phototherapy equipment. Additionally, the high prevalence of acne and other dermatological conditions across Asian populations is expected to boost demand for phototherapy devices in the region.

Market Segmentation

By Product

The phototherapy market is segmented into conventional phototherapy equipment, LED phototherapy equipment, fiberoptic phototherapy devices, and germicidal lamps.

The conventional phototherapy equipment segment currently holds the largest market share and is projected to grow at a CAGR of 4.05%. These devices typically use fluorescent lamps to deliver therapeutic light to specific body areas or the entire body.

However, LED phototherapy devices are gaining popularity due to their energy efficiency, portability, and lower operational costs, making them increasingly suitable for home-based treatments.

By Application

The skin disease treatment segment represents the largest application area and is expected to grow at a CAGR of 4.40%. Phototherapy devices are widely used to treat dermatological conditions such as psoriasis, eczema, vitiligo, and acne.

In addition, neonatal phototherapy applications continue to expand due to increasing awareness regarding early treatment of newborn jaundice.

By End User

The market is segmented into hospitals & clinics and homecare settings. Hospitals and clinics currently dominate the market, accounting for the largest share due to the widespread availability of neonatal intensive care units and dermatology departments.

However, the homecare segment is expected to witness significant growth as portable phototherapy devices become more accessible and convenient for patients.

Competitive Landscape

The global phototherapy market is characterized by the presence of several established medical device manufacturers and technology providers focusing on innovation and product development. Key players include:

• Signify Holding
• GE Healthcare
• Natus Medical Incorporated
• Herbert Waldmann GmbH & Co. KG
• Phoenix Medical Systems (P) Ltd
• Atom Medical Corporation

These companies are investing in advanced LED phototherapy devices, portable treatment systems, and innovative dermatology solutions to strengthen their market presence.

Recent Developments

In February 2022, STRATA Skin Sciences announced the commercial launch of XTRAC Momentum 1.0, a next-generation excimer laser technology designed to deliver targeted UVB therapy for inflammatory skin conditions such as psoriasis, vitiligo, and atopic dermatitis.

In March 2023, AbbVie released late-breaking results from a clinical study evaluating the long-term efficacy and safety of Skyrizi for treating plaque psoriasis in patients with prior inadequate responses to IL-17 inhibitor therapies.