Photonic Integrated Circuit Market Size (2024 - 2029)

The photonic integrated circuit market is experiencing significant growth, driven by the superior performance characteristics of photonic ICs compared to traditional integrated circuits. These circuits offer enhanced speed, higher bandwidth, and improved energy efficiency, addressing key limitations of conventional ICs. The market's expansion is further fueled by the increasing demand for cost-effective photonic devices, particularly in data-driven ecosystems and applications such as data centers, which are responding to the surge in network traffic. Despite their advantages, hybrid photonic ICs have not yet achieved the same level of market penetration as traditional ICs.

Market Size of Photonic Integrated Circuit Industry

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Photonic Integrated Circuit Market Summary
Study Period 2019 - 2029
Market Size (2024) USD 15.11 Billion
Market Size (2029) USD 38.35 Billion
CAGR (2024 - 2029) 20.47 %
Fastest Growing Market Asia Pacific
Largest Market Asia Pacific

Major Players

Photonic Integrated Circuit Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Photonic Integrated Circuit Market Analysis

The Photonic Integrated Circuit Market size is estimated at USD 15.11 billion in 2024, and is expected to reach USD 38.35 billion by 2029, growing at a CAGR of 20.47% during the forecast period (2024-2029).

  • As soon as a single chip is attached, different components of the photonics, like waveguides, lasers, modulators, and detectors, become known as photonic integrated circuits. Photonic integrated circuits are extremely fast, accommodate higher bandwidth, and have high energy efficiency compared to traditional ICs. These features have dealt with some of the fundamental drawbacks associated with traditional ICs.
  • In the case of photonic ICs, the power consumed in such critical applications could be reduced by at least 50%. The frequencies that could be covered with photons are about 1,000-10,000 times higher than the spectrum covered with microelectronics, implying that by using photonic ICs, end users can achieve much higher frequencies that are far more energy-efficient than traditional ICs.
  • These low costs of photonics devices manufactured through the hybrid monolithic approach are growing exponentially every year as a result of DataDriven Ecosystems, finding great demand from end users' applications.
  • In addition, several market participants are working to take advantage of PIC's active developments as part of a highly integrated photonic technology and in order to meet the growing volume of network traffic driven by COVID-19 pandemic responses, particularly within data centers.
  • While hybrid photonic ICs are highly efficient and have a number of advantages compared to previous generations of conventional ICs, they do not achieve the level of market penetration found in traditional ICs.
  • The surveillance market is growing with threats and scenarios like COVID-19. Many public places worldwide are deploying optical and photonic sensors that enable high-sensitivity night vision sensors, cameras, and systems combined with semiconductor photocathode technology with silicon-based digital video technology.

Photonic Integrated Circuit Industry Segmentation

A microchip contains two or more optical components forming a working circuit, which is sometimes referred to as an Integrated Photonics Circuit. This system is capable of detecting, generating, transporting, and processing.

The scope of the study covers photonic ICs, their growth and restricting factors, and the increased demand across various applications. The study also briefly analyzes the impact of macroeconomic trends on the market. The concept of the photonic integrated circuit is similar to electronic integrated circuits.

The report offers global photonic IC market growth, and the market is segmented by type of raw material (iii-v material, lithium niobate, silica-on-silicon, and other raw materials), integration process (hybrid and monolithic), application (telecommunications, biomedical, data centers, and other applications like optical sensors, LiDAR, and metrology), and geography (North America, Europe, Asia Pacific and the Rest of the World). The market sizes and forecasts are provided in terms of value in USD for all the above segments.

By Type of Raw Material
III-V Material
Lithium Niobate
Silica-on-silicon
Other Raw Materials
By Integration Process
Hybrid
Monolithic
By Application
Telecommunications
Biomedical
Data Centers
Other Applications (Optical Sensors (LiDAR), Metrology)
By Geography
North America
Europe
Asia Pacific
Rest of the World
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Photonic Integrated Circuit Market Size Summary

The photonic integrated circuit (PIC) market is poised for significant growth, driven by the increasing demand for high-speed data transmission and energy-efficient solutions across various industries. PICs, which integrate multiple photonic components such as waveguides, lasers, modulators, and detectors onto a single chip, offer superior performance compared to traditional integrated circuits. They are particularly advantageous in applications requiring high bandwidth and low power consumption, making them ideal for telecommunications, data centers, and emerging technologies like 5G and quantum computing. The market is characterized by a moderate level of competition, with major players like Neophotonics Corporation, Poet Technologies, and Cisco Systems Inc. leading the charge in innovation and market expansion.

The adoption of PICs is further fueled by the growing need for advanced data transfer devices in cloud computing and the rapid expansion of data centers, particularly in regions like North America. The increasing shift towards cloud services and the need for higher data rates are driving the demand for hybrid PICs, which are becoming integral to the infrastructure of modern telecommunications networks. Collaborative efforts between industry leaders and academic institutions, along with strategic partnerships, are enhancing the development and deployment of PIC technologies. These advancements are expected to bolster the market's growth trajectory, as companies continue to innovate and meet the evolving demands of high-capacity networks and data-intensive applications.

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Photonic Integrated Circuit Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.2.1 Bargaining Power of Suppliers

      2. 1.2.2 Bargaining Power of Consumers

      3. 1.2.3 Threat of New Entrants

      4. 1.2.4 Intensity of Competitive Rivalry

      5. 1.2.5 Threat of Substitute Products

    3. 1.3 Assessment of the Impact of Key Macroeconomic Factors on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type of Raw Material

      1. 2.1.1 III-V Material

      2. 2.1.2 Lithium Niobate

      3. 2.1.3 Silica-on-silicon

      4. 2.1.4 Other Raw Materials

    2. 2.2 By Integration Process

      1. 2.2.1 Hybrid

      2. 2.2.2 Monolithic

    3. 2.3 By Application

      1. 2.3.1 Telecommunications

      2. 2.3.2 Biomedical

      3. 2.3.3 Data Centers

      4. 2.3.4 Other Applications (Optical Sensors (LiDAR), Metrology)

    4. 2.4 By Geography

      1. 2.4.1 North America

      2. 2.4.2 Europe

      3. 2.4.3 Asia Pacific

      4. 2.4.4 Rest of the World

Photonic Integrated Circuit Market Size FAQs

The Photonic Integrated Circuit Market size is expected to reach USD 15.11 billion in 2024 and grow at a CAGR of 20.47% to reach USD 38.35 billion by 2029.

In 2024, the Photonic Integrated Circuit Market size is expected to reach USD 15.11 billion.

Photonic Integrated Circuit Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)