Photonic Integrated Circuit Market Size, Share & Trends Analysis Report By Raw Material (Indium Phosphide, Gallium Arsenide, Lithium Niobate, Silicon, Silicon-on-Insulator, Others), By Integration Process (Hybrid, Monolithic, Module), By Application (Optical Fiber Communication, Optical Fiber Sensor, Biomedical, Quantum Computing), Global Economy Insights, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2023 - 2031

Region: Global | Format: Word, PPT, Excel | Report Status: Published

Market Overview:

The photonic integrated circuit market size was USD 1.3 Billion in 2022.Covid-19's impacts have been unprecedented and staggering on a global scale, with the pandemic leading to positive demand shocks for the photonic integrated circuit market across all domains and regions. Between 2023 and 2031, the market is projected to grow at a CAGR of 21.5% from USD 1.1 billion in 2021 to USD 9.6 billion in 2031. The sudden rise in CAGR is attributed to this market growth returning to the pre-pandemic level once the pandemic is over.

Comparatively speaking to electronics devices, optical technology provides high performance while also making the communication world more discrete and compact. During the forecast time, photonic integrated circuits are anticipated to become a new optical system technology. One of the key factors driving the demand for photonic integrated circuits is the expanding need to create and implement high-speed data transmissions. Another important factor that could lead to development opportunities for the photonic integrated circuit market is the ability to use mass manufacturing in conjunction with the creation of highly integrated circuits that can support hundreds of functions.

A photonic integrated circuit is a complicated integrated circuit that combines many optical devices, such as modulators, optical amplifiers, lasers, and multiplexers, to create a single photonic circuit. It offers functions for information signals imposed on optical wavelengths, usually in the visible or near-infrared ranges of 850 nm-1650 nm. In wavelength division multiplexed (WDM) fiber-optic communication systems, photonic integrated circuits are widely used as optical (de)multiplexers. As a result of the increasing demand for fiber-optic communication systems, photonic integrated circuit adoption is anticipated to increase during the forecast period.

Scope of Photonic Integrated Circuit Market Report:

A recent market research report added to repository of Intellectual Market Insights Research is an in-depth analysis of Global Photonic Integrated Circuit Market. On the basis of historic growth analysis and current scenario of Photonic Integrated Circuit market place, the report intends to offer actionable insights on global market growth projections. Authenticated data presented in report is based on findings of extensive primary and secondary research. Insights drawn from data serve as excellent tools that facilitate deeper understanding of multiple aspects of global Photonic Integrated Circuit market. This further helps users with their developmental strategy.

This report examines all the key factors influencing growth of global Photonic Integrated Circuit market, including demand-supply scenario, pricing structure, profit margins, production and value chain analysis. Regional assessment of global Photonic Integrated Circuit market unlocks a plethora of untapped opportunities in regional and domestic market places. Detailed company profiling enables users to evaluate company shares analysis, emerging product lines, pricing strategies, innovation possibilities and much more.

The report covers the all the aspects of industry with dedicated study of key players that includes market leaders, followers and new entrants by region. PORTER, SVOR, PESTEL analysis with the potential impact of micro-economic factors by region on the market have been presented in the report. External as well as internal factors that are supposed to affect the business positively or negatively have been analyzed, which will give clear futuristic view of the industry to the decision makers.

Photonic Integrated Circuit Market Drivers:

The Photonic integrated circuit market is being driven by several key factors, including:

The 5G technology testing phase is also anticipated to boost the photonic integrated circuit market:

Testing phase of 5G technology: The deployment of 5G technology requires high-speed communication systems with low latency and high bandwidth. Photonic integrated circuits (PIC) are emerging as a promising technology for 5G communication systems due to their ability to transmit data at high speeds with low power consumption. As the testing phase of 5G technology continues, the demand for PICs is expected to increase, driving the growth of the photonic integrated circuit market.

Numerous advancements in integrated circuitry and sensors.

High number of developments in integrated circuits and sensors: The increasing demand for integrated circuits and sensors is driving the development of photonic integrated circuits. The integration of photonic components on a single chip can provide high performance and reduce power consumption, making them ideal for a wide range of applications. The development of new materials and fabrication techniques is also driving the growth of the photonic integrated circuit market.

PIC is highly sought after in quantum computing and optical fiber detection applications.

PIC has high demand in quantum computing and optical fiber sensing applications: Photonic integrated circuits are widely used in quantum computing, where they are used to control and manipulate photons. They are also used in optical fiber sensing applications, where they provide high sensitivity and low noise. As the demand for quantum computing and optical fiber sensing continues to increase, the photonic integrated circuit market is expected to grow rapidly.

Photonic Integrated Circuit Market Trends:

High-speed communication: With the growing demand for high-speed internet and data transmission, telecommunication providers are increasingly using PICs to enable high-speed optical communication. PICs can integrate multiple optical components, such as modulators, detectors, and multiplexers, on a single chip, enabling high-speed data transmission with low power consumption.

Data centers: Data centers require high-speed and high-bandwidth interconnects to transfer data between servers and storage systems. PICs are emerging as a promising technology to meet these requirements by enabling high-speed optical interconnects between data center components. PICs can also be used to provide optical switching and routing, which can improve data center efficiency and reduce power consumption.

Photonic Integrated Circuit Market Restraining Factors:

The photonic integrated circuit market faces several restraining factors, including high assembly costs and thermal effects.

High assembly costs: Photonic integrated circuits require complex and precise manufacturing processes, which can lead to high assembly costs. The process of integrating different photonic components onto a single chip can be expensive, making it difficult to produce these circuits at a cost-effective price point.

Thermal effects: Photonic integrated circuits generate heat when in operation, which can cause thermal effects that affect their performance. These thermal effects can cause fluctuations in the output power of the circuits, which can result in a loss of efficiency or even failure. This makes it challenging to design and operate photonic integrated circuits that are reliable and effective over a wide range of temperatures.

Report Coverage:

The report will cover the qualitative and quantitative data on the photonic integrated circuit market. The qualitative data includes latest trends, market players analysis, market drivers, market opportunity, and many others. Also, the report quantitative data includes market size for every region, country, and segments according to your requirements. We can also provide customize report in every industry vertical.

Report Scope and Segmentations:

Study Period

2023-31

Base Year

2022

Estimated Forecast Year

2023-31

Growth Rate

CAGR of 21.5% from 2023 to 2031.

Segmentation

By Raw Material, By Integration Process, By Application, By Region

Unit

USD Million

By Raw Material

  • Indium Phosphide
  • Gallium Arsenide
  • Lithium Niobate
  • Silicon
  • Silicon-on-Insulator
  • Others

By Integration Process

  • Hybrid
  • Monolithic
  • Module

By Application

  • Optical Fiber Communication
  • Optical Fiber Sensor
  • Biomedical
  • Quantum Computing

By Region

  • North America (U.S., Canada, Mexico)
  • Europe (Germany, France, UK, Italy, Spain, Russia, Rest of Europe)
  • Asia-Pacific (China, India, Japan, ASEAN, Rest of Asia-Pacific)
  • LAMEA (Latin America, Middle East, Africa)

Photonic Integrated Circuit Market Players Analysis:

  • Viavi Solutions, Inc.
  • Broadcom Limited
  • Ciena Corporation
  • Emcore Corporation
  • Finisar Corporation
  • Kaiam Corp
  • Luxtera Inc.
  • Agilent Technologies
  • Enablence
  • II-VI Inc.
  • Hewlett Packard
  • Huawei Technologies Co., Ltd.
  • Infinera Corporation
  • Intel Corporation
  • Broadex Technologies Co., Ltd.
  • Cisco Systems, Inc.
  • MACOM
  • Mellanox Technologies
  • NeoPhotonics Corporation
  • Oclaro, Inc.
  • TE Connectivity
  • Uniphase Inc.
  • VLC Photonics S.L.

Photonic Integrated Circuit Market Players & Competitor Analysis: The report covers the key players of the industry including Company Profile, Product Specifications, Production Capacity/Sales, Revenue, Price and Gross Margin 2021-2028 & Sales with a thorough analysis of the market’s competitive landscape and detailed information on vendors and comprehensive details of factors that will challenge the growth of major market vendors.

Key Players Strategies in the Market:

Here are some of the strategies that these key players are implementing to gain a competitive advantage in the market:

Product Innovation: Key players in the PIC market are investing heavily in research and development to introduce new and innovative products to the market. This includes developing new materials, designs, and manufacturing techniques that can improve the performance and efficiency of PICs. Companies such as Intel, Infinera, and Cisco are known for their innovative PIC products.

Partnerships and Collaborations: Many key players are collaborating with other companies, research institutions, and academic organizations to develop new technologies and expand their market presence. For example, Infinera has partnered with academic institutions to develop new PIC technologies, while Cisco has collaborated with other companies to integrate PICs into their networking products.

Acquisitions and Mergers: Several key players in the PIC market have made strategic acquisitions and mergers to expand their product offerings and market reach. For instance, Intel acquired Luxtera in 2019, which helped it to enter the PIC market and expand its product portfolio.

Photonic Integrated Circuit Market Segmentation Analysis:

By Raw Material

The photonic integrated circuit (PIC) market can be segmented by raw material into the following categories:

Indium Phosphide (InP): This raw material is widely used in the PIC market due to its high electron mobility, good thermal conductivity, and high bandgap. InP-based PICs are commonly used in optical communications, such as fiber-optic networks.

Gallium Arsenide (GaAs): GaAs is another popular raw material used in the PIC market due to its high electron mobility, high saturation velocity, and low noise. GaAs-based PICs are commonly used in high-speed digital applications, such as 5G wireless networks.

Lithium Niobate (LiNbO3): LiNbO3 is a raw material that is commonly used in the PIC market due to its excellent electro-optic properties, making it useful for modulators and switches in optical communication systems.

Silicon (Si): Silicon is a widely used raw material in the semiconductor industry, but its use in the PIC market has been limited due to its poor optical properties. However, recent advances in silicon photonics have made it a viable option for PICs, particularly for data center and high-performance computing applications.

Silicon-on-Insulator (SOI): SOI is a silicon-based material that is commonly used in the PIC market due to its ability to confine light in small structures. SOI-based PICs are commonly used in telecommunication networks and data center applications.

Others: Other raw materials used in the PIC market include polymers, III-V nitrides, and quantum dots, among others. These materials offer unique properties that make them useful for specific applications in the PIC market.

By Integration Process

The integration processes are hybrid integration, monolithic integration, and module integration.

Hybrid Integration: In hybrid integration, the different photonic components are fabricated separately and then assembled onto the chip. This approach allows for more flexibility in the design and fabrication of the components, but it can be more challenging to achieve high levels of integration due to the need for precise alignment and bonding. Hybrid integration is often used in applications where a limited number of components are required or where specific components are needed that cannot be easily integrated using other methods.

Monolithic Integration: In monolithic integration, all of the components are fabricated on a single chip using the same manufacturing process. This approach allows for high levels of integration and can result in smaller and more efficient devices. However, the design and fabrication of each component can be more challenging, and it may be more difficult to incorporate certain components using this approach.

Module Integration: In module integration, different components are fabricated separately and then assembled into modules, which are then integrated onto the chip. This approach provides a balance between the flexibility of hybrid integration and the high levels of integration of monolithic integration. It can be used to integrate a larger number of components than hybrid integration while also allowing for more complex components than monolithic integration.

By Application

Here are some of the primary applications of PICs:

Optical Fiber Communication: One of the primary applications of PICs is in optical fiber communication systems. PICs can be used to integrate multiple optical components, such as lasers, modulators, and detectors, onto a single chip, resulting in more efficient and compact communication devices. PICs can also be used to increase the bandwidth of optical communication systems, which is essential for the increasing demand for high-speed data transmission.

Optical Fiber Sensor: PICs are also used in optical fiber sensing applications, where they can be used to detect and measure changes in temperature, pressure, strain, and other parameters. By integrating multiple sensing components onto a single chip, PICs can provide more accurate and reliable sensing capabilities.

Biomedical: PICs have also found applications in biomedical research and healthcare, where they can be used for imaging and diagnostic purposes. They can also be used to develop portable and low-cost medical devices, such as glucose monitors and drug delivery systems.

Quantum Computing: Another promising application of PICs is in the field of quantum computing, where they can be used to develop compact and efficient quantum circuits. By integrating multiple quantum components onto a single chip, PICs can help reduce the complexity and cost of quantum computing systems.

The report also helps in understanding Global Photonic Integrated Circuit Market dynamics, structure by analyzing the market segments, and project the Global Photonic Integrated Circuit Market size. Clear representation of competitive analysis of key players by type, price, financial position, product portfolio, growth strategies, and regional presence in the Global Photonic Integrated Circuit Market make the report investor’s guide.

Global Photonic Integrated Circuit Market Regional Analysis:

North America accounted for the highest xx% market share in terms of revenue in the Photonic Integrated Circuit market and is expected to expand at a CAGR of xx% during the forecast period. This growth can be attributed to the growing adoption of Photonic Integrated Circuit. The market in APAC is expected to witness significant growth and is expected to register a CAGR of xx% over upcoming years, because of the presence of key Photonic Integrated Circuit companies in economies such as Japan and China.

The objective of the report is to present comprehensive analysis of Global Photonic Integrated Circuit Market including all the stakeholders of the industry. The past and current status of the industry with forecasted market size and trends are presented in the report with the analysis of complicated data in simple language.

Regional Snapshots:

Here are some regional snapshots of the photonic integrated circuit market:

North America: North America is the largest market for photonic integrated circuits. The region is home to several major players in the industry, including Intel Corporation, Cisco Systems, and Broadcom, among others. The increasing demand for high-speed data transfer, coupled with the growing adoption of photonic integrated circuits in various applications such as data communication, sensing, and optical fiber communication, is driving the growth of the market in this region.

Europe: Europe is the second-largest market for photonic integrated circuits. The region is witnessing significant growth in the market, owing to the increasing adoption of photonic integrated circuits in various applications such as healthcare, aerospace, and defense. Moreover, the region is home to several prominent players, such as Philips and Alcatel-Lucent, among others, which are contributing to the growth of the market in this region.

Asia-Pacific: Asia-Pacific is expected to witness significant growth in the photonic integrated circuit market during the forecast period. The region is witnessing rapid growth in the adoption of photonic integrated circuits, owing to the increasing demand for high-speed data transfer and the growing popularity of the Internet of Things (IoT) devices. China, Japan, and South Korea are the major countries driving the growth of the market in this region.

Middle East and Africa: The Middle East and Africa region is witnessing steady growth in the photonic integrated circuit market. The growing demand for high-speed communication, coupled with the increasing adoption of photonic integrated circuits in various applications such as healthcare and aerospace, is driving the growth of the market in this region.

Latin America: The Latin America region is witnessing moderate growth in the photonic integrated circuit market. The increasing adoption of photonic integrated circuits in various applications such as telecommunications and sensing is driving the growth of the market in this region. Brazil and Mexico are the major countries driving the growth of the market in this region.

Photonic Integrated Circuit Market Report is also available for below Regions and Country Please Ask for that

North America

  • U.S.
  • Canada

Europe

  • Switzerland
  • Belgium
  • Germany
  • France
  • U.K.
  • Italy
  • Spain
  • Sweden
  • Netherland
  • Turkey
  • Rest of Europe

Asia-Pacific

  • India
  • Australia
  • Philippines
  • Singapore
  • South Korea
  • Japan
  • China
  • Malaysia
  • Thailand
  • Indonesia
  • Rest Of APAC

Latin America

  • Mexico
  • Argentina
  • Peru
  • Colombia
  • Brazil
  • Rest of South America

Middle East and Africa

  • Saudi Arabia
  • UAE
  • Egypt
  • South Africa
  • Rest Of MEA

Points Covered in the Report

The points that are discussed within the report are the major market players that are involved in the market such as market players, raw material suppliers, equipment suppliers, end users, traders, distributors and etc.

The complete profile of the companies is mentioned. And the capacity, production, price, revenue, cost, gross, gross margin, sales volume, sales revenue, consumption, growth rate, import, export, supply, future strategies, and the technological developments that they are making are also included within the report. This report analysed 12 years data history and forecast.

The growth factors of the market are discussed in detail wherein the different end users of the market are explained in detail.

Data and information by market player, by region, by type, by application and etc., and custom research can be added according to specific requirements.

The report contains the SWOT analysis of the market. Finally, the report contains the conclusion part where the opinions of the industrial experts are included.

Key Industry Developments:
  • In March 2022: EFFECT Photonics, a photonics semiconductor company, and Jabil Photonics, a manufacturing company declared an alliance to create a new generation of coherent optical modules. These modules present an exclusive solution for hyper-scalers and network operators looking for benefits from QSFP-high DD's performance, low power, small footprint, field replaceability, cost and consumption, and dealer interoperability for cloud DC's (Data Center Interconnects).
  • In March 2022: ColorChip Group, a manufacturer of optical sub-systems and components for the Datacom and Telecom markets, and Skorpios Technologies Inc., a heterogeneously integrated silicon photonics company, announced a strategic collaboration to develop and use Skorpios' disruptive optical technology to produce optical modules at new prices.
  • In March 2022: Source Photonics announced the sampling of its Silicon-Photonics 400G DR4 QSFP56-DD products at OFC 2022 from March 6-10. The Silicon-Photonic 400G DR4 transceivers are designed to work seamlessly with the company's pump laser chip. They exceed the specifications for IEEE 802.3bs 400GBASE-DR4 optical interface and 400GAUI-8 electrical client interface. They support links over 500m and 2km for a breakout into 100GBASE-DR1 and 100GBASE-FR1. They also leverage the 7nm DSP with 8W typical power consumption and are packaged into a type 2 QSFP-DD form factor with an MPO-12 connector.
  • In November 2021: Lumentum and NeoPhotonics Corporation announced a definitive agreement under which Lumentum will acquire NeoPhotonics for USD 16.00 per share in cash, representing a total equity value of approximately USD 918 million. The acquisition of NeoPhotonics expands Lumentum's opportunity in some of the fastest-growing areas of the more than USD 10 billion market for optical components used in cloud and telecom network infrastructure.
  • In October 2021: Cisco Systems collaborated with UC Santa Barbara researchers to develop new technological applications of quantum technologies. This collaboration is a part of Cisco's plan for quantum technology development.
Key Reasons to Purchase:

To gain insightful analyses of the Photonic Integrated Circuit market and have comprehensive understanding of the global market and its commercial landscape.

Assess the production processes, major issues, and solutions to mitigate the development risk.

To understand the most affecting driving and restraining forces in the market and its impact in the global market.

Learn about the Photonic Integrated Circuit market strategies that are being adopted by leading respective organizations.

To understand the future outlook and prospects for the Photonic Integrated Circuit market. Besides the standard structure reports, we also provide custom research according to specific requirements.

Research Scope of Photonic Integrated Circuit Market:

  • Historic year: 2017- 2021
  • Base year: 2022:
  • Forecast: 2023 to 2031
  • Representation of Market revenue in USD Million

Photonic Integrated Circuit Market Trends: Market key trends which include Increased Competition and Continuous Innovations Trends:

Frequently Asked Questions

  • What are the major players in the market?

    The major players covered in the photonic integrated circuit market report are NeoPhotonics Corporation, POET Technologies, Infinera Corporation., Intel Corporation, Luxtera, Lumentum Operations LLC, ColorChip, Finisar Corporation, Huawei Technologies Co., Ltd., II-VI Incorporated, VLC Photonics S.L., TE Connectivity., Hewlett Packard Enterprise Development LP, Enablence., Broadcom., LioniX International, Nokia, Aifotec Design & Development by Tatjana Glasauer, Hamamatsu Photonics K.K. and ALE International

  • Which is the leading segment in the global market?

    According to our report, the communication segment is currently the leading application segment in the global photonic integrated circuit (PIC) market. This is due to the increasing demand for high-speed data transfer and the growing adoption of PICs in optical communication systems.

  • What are the driving factors for the market?

    Proliferation of information and communication technology, reduction of telecommunication and network devices, and increasing demand for high bandwidth transmitting devices are major factors driving growth of global photonic integrated circuit market.

  • Which region has the largest share in 2021 for the global the photonic integrated circuit Market?

    North America photonic integrated circuit Market accounted for the highest revenue share in 2021 and it is poised to dominate the market over the period 2023-2031.

  • How much the global the photonic integrated circuit Market valued?

    The global photonic integrated circuit market size was valued at USD 1.3 billion in 2022 and is projected to expand at a CAGR of 21.5% from 2023 to 2031.

  • PUBLISHED ON : June, 2022
  • BASE YEAR : 2022
  • STUDY PERIOD : 2020-2032
  • COMPANIES COVERED : 20
  • COUNTRIES COVERED : 25
  • NO OF PAGES : 183

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