Market Trends of Photonic Integrated Circuit Industry
Data Center Segment Dominates Market
Data center applications are leading the Photonic Integrated Circuit (PIC) market, accounting for 67.88% of the market share in 2021. This dominance is driven by the need for high-speed data transmission and the rapid expansion of cloud computing infrastructure.
- Traffic surge: Cisco’s Cloud Index forecasts North America generating 7.7 ZB of cloud traffic annually by 2021, highlighting the growing need for efficient data processing.
- Data center concentration: The U.S. has about 2,600 data centers, representing 33% of the global total, creating a sizable market for PIC solutions.
- Collaborative innovation: Companies like IBM, Intel, and Cisco are developing PIC-based solutions in collaboration with academia and government.
- Growth forecast: The segment is projected to grow from USD 5,429.64 million in 2021 to USD 17,485.97 million by 2027, with a CAGR of 19.96%.
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Asia-Pacific Witness Major Growth
Asia-Pacific is the fastest-growing region in the PIC market, expected to achieve a CAGR of 23.36% between 2022 and 2027, driven by technological advancements and increasing investment.
- Market surge: The Asia-Pacific PIC market is forecasted to grow from USD 1,615.15 million in 2021 to USD 6,150.74 million by 2027.
- Innovative breakthroughs: In November 2021, researchers at the University of Illinois created a miniature photonic circuit using sound waves to isolate and regulate light.
- Strategic partnerships: Collaborations like the one between Ansys and GF in 2022 are driving advancements in photonic design for data centers and supercomputing in the region.
- Government support: Public-private initiatives, such as the Ontario Photonics Industry Network, are boosting PIC innovation in the region.
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