Global Photonic Integrated Circuit Market – Industry Trends and Forecast to 2030

Global Photonic Integrated Circuit Market, By Component (Optical Laser, Modulator, Detector, Transceivers, Attenuators, Multiplexer/ Demultiplexer (MUX/DEMUX) and Optical Amplifiers), Raw Material (III-V Material, Lithium Niobate, Indium Phosphide, Silica-on-Silicon, Gallium Arsenide, Silicon, Quantum Dots, Silicon-on-Insulator and Others), Integration (Hybrid, Monolithic and Module) Application (Optical Communications, Sensing, Optical Signal Processing and Bio Photonics), End Users (Telecommunications, Biomedical, Data Centres and Others) - Industry Trends and Forecast to 2030.

Photonic Integrated Circuit Market Analysis and Size

Photonic integrated circuits are the optical analogs of electronic integrated circuits, where photons (light particles) are manipulated and controlled instead of electrons. They offer advantages such as compactness, energy efficiency, and the ability to process and transmit large amounts of data at high speeds over optical fibers. The growth among segments helps you analyze niche pockets of growth and strategies to approach the market and determine your core application areas and the difference in your target markets.

Data Bridge Market Research analyses that the global photonic integrated circuit market which was USD 2,219.3 million in 2022, is expected to reach USD 50,965.8 million by 2030, and is expected to undergo a CAGR of 33.6% during the forecast period of 2023 to 2030. “Optical Laser” dominates the component segment of the global photonic integrated circuit market due to optical lasers are essential components in high-speed data communication systems, such as data centers and telecommunications networks. They enable the transmission of data at very high speeds over long distances with minimal loss. Photonic integrated circuits incorporating optical lasers can provide compact and efficient solutions for these applications. In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, geographically represented company-wise production and capacity, network layouts of distributors and partners, detailed and updated price trend analysis and deficit analysis of supply chain and demand.

Report Scope and Market Segmentation

Market Definition

Photonic integrated circuit refers to the collective industry that involves the research, development, production, and distribution of photonic integrated circuits. These circuits integrate various optical components such as lasers, modulators, detectors, waveguides, multiplexers, and others onto a single semiconductor substrate, enabling the manipulation and transmission of light signals for a wide range of applications. Photonic integrated circuits are the optical analogs of electronic integrated circuits, where photons (light particles) are manipulated and controlled instead of electrons. They offer advantages such as compactness, energy efficiency, and the ability to process and transmit large amounts of data at high speeds over optical fibers.

Global Photonic Integrated Circuit Market Dynamics

Drivers

• The Increasing Demand for High-Speed Data Communication

The increasing demand for high-speed data communication in telecommunications networks, data centers, and cloud computing drives the adoption of photonic integrated circuits. PICs enable efficient data transmission and processing at ultra-fast speeds, addressing the need for high bandwidth and low latency.

• Rising Data Center Expansion

The rapid growth of cloud computing, online services, and digital content has led to the expansion of data centers. Photonic integrated circuits offer solutions for interconnectivity within data centers, improving energy efficiency, reducing data transmission bottlenecks, and enhancing overall performance.

• The Rollout of 5G Networks and the Eventual Transition

The rollout of 5G networks and the eventual transition to future wireless communication technologies require robust and efficient optical communication solutions. Photonic integrated circuits play a vital role in enabling high-speed and low-latency connectivity for 5G networks and beyond.

Opportunity

• Continuous Growth Of Data Traffic And The Need For High-Speed Communication Solutions

The continuous growth of data traffic and the need for high-speed communication solutions create opportunities for photonic integrated circuits in data centers, where they can enable efficient data transmission, reduce latency, and improve overall network performance.

Restraints/Challenges

• High Initial Costs

The development and fabrication of photonic integrated circuits involve specialized processes and equipment, leading to high initial costs. This cost factor can be a barrier for smaller companies or startups entering the market.

• Complex Design and Fabrication

Designing and fabricating photonic integrated circuits can be complex due to the need for precise alignment of optical components. This complexity can increase the time and resources required for product development.

This global photonic integrated circuit market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, the impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the global photonic integrated circuit market contact the Data Bridge Market Research for an Analyst Brief, our team will help you make an informed market decision to achieve market growth.

Impact and Current Market Scenario of Raw Material Shortage and Shipping Delays

Data Bridge Market Research offers a high-level analysis of the market and delivers information by keeping in account the impact and current market environment of raw material shortage and shipping delays. This translates into assessing strategic possibilities, creating effective action plans, and assisting businesses in making important decisions.

Apart from the standard report, we also offer in-depth analysis of the procurement level from forecasted shipping delays, distributor mapping by region, commodity analysis, production analysis, price mapping trends, sourcing, category performance analysis, supply chain risk management solutions, advanced benchmarking, and other services for procurement and strategic support.

Expected Impact of Economic Slowdown on the Pricing and Availability of Products

When economic activity slows, industries begin to suffer. The forecasted effects of the economic downturn on the pricing and accessibility of the products are taken into account in the market insight reports and intelligence services provided by DBMR. With this, our clients can typically keep one step ahead of their competitors, project their sales and revenue, and estimate their profit and loss expenditures.

Recent Developments

• In March 2023, Intel Corporation launched a photonic integrated circuit (PIC) research center. The center is located at Intel's Santa Clara, California campus and will focus on developing new PIC technologies for data center interconnects
• In January 2023, Cisco Systems, Inc. launched a photonic integrated circuit (PIC) research center. The center is located at Cisco's San Jose, California campus and will focus on developing new PIC technologies for optical networking

Global Photonic Integrated Circuit Market Scope

The global photonic integrated circuit market is segmented on the basis of component, raw material, integration, application and end users. The growth amongst these segments will help you analyze meager growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Component

• Optical Laser
• Modulator
• Detector
• Transceivers
• Attenuators
• Multiplexer/ Demultiplexer (MUX/DEMUX)
• Optical Amplifiers

Raw Material

• III-V Material
• Lithium Niobate
• Indium Phosphide
• Silica-on-Silicon
• Gallium Arsenide
• Silicon
• Quantum Dots
• Silicon-on-Insulator
• Others

 Integration

• Hybrid
• Monolithic
• Module

Application

• Optical Communications
  • FTTX and Access Networks
  • Microwave/ RF Photonics
  • Long-Haul And Transport Networks
  • Optical Datacom
• Sensing
  • Structural Engineering
  • Chemical Sensors
  • Transport
  • Aerospace
  • Energy And Utilities
• Optical Signal Processing
  • Optical Metrology
  • Optical Instrumentation
  • Quantum Optics
  • Quantum Computing
• Bio Photonics
  • Medical Instrumentation
  • Photonic Lab-On-A-Chip
  • Analytics And Diagnostics
  • Optical Biosensors

End Users

• Telecommunications
• Biomedical
• Data Centres
• Others
  • Optical Sensors (LiDAR)
  • Metrology
  • Others

Global Photonic Integrated Circuit Market Region Analysis/Insights

The global photonic integrated circuit market is analyzed and market size insights and trends are provided by region, component, raw material, integration, application and end users, as referenced above.

The regions covered in the global photonic integrated circuit market are North America, South America, Europe, Asia-Pacific, and the Middle East and Africa. The countries covered in the global photonic integrated circuit market report are U.S., Canada, Mexico, Brazil, Argentina, the Rest of South America, Germany, Italy, U.K., France, Spain, Netherlands, Belgium, Switzerland, Turkey, Russia, Rest of Europe, Japan, China, India, South Korea, Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific, Saudi Arabia, U.A.E., South Africa, Egypt, Israel, Rest of the Middle East and Africa

North America dominates the global photonic integrated circuit market because North America is home to renowned research institutions, universities, and technology companies that conduct cutting-edge research in photonics and integrated circuit technologies. This strong R&D ecosystem fosters innovation and drives advancements in photonic integrated circuits.

Asia-Pacific is expected to be fastest-growing country in the global photonic integrated circuit market due to the Asia-Pacific region has a large and rapidly growing population, along with a significant increase in internet usage and data consumption. This drives the demand for high-speed and efficient communication networks, which can benefit from the use of photonic integrated circuits. PICs are capable of integrating multiple optical components on a single chip, making them well-suited for high-speed data transmission and communication applications.

The region section of the report also provides individual market-impacting factors and changes in regulation in the market domestically that impact the current and future trends of the market. Data points like downstream and upstream value chain analysis, technical trends, and Porter’s five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and the challenges faced due to large or scarce competition from local and domestic brands, the impact of domestic tariffs, and trade routes are considered while providing forecast analysis of the region data.   

Competitive Landscape and Global Photonic Integrated Circuit Market Share Analysis

The global photonic integrated circuit market competitive landscape provides details of competitors. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, and application dominance. The above data points provided are only related to the companies' focus related to the global photonic integrated circuit market.

Some of the major players operating in the global photonic integrated circuit market are:

• Intel Corporation (U.S.)
• Cisco Systems, Inc. (U.S.)
• Infinera Corporation (U.S.)
• Mellanox Technologies (U.S.)
• NeoPhotonics Corporation (U.S.)
• Lumentum Holdings Inc. (U.S.)
• Luxtera, Inc. (U.S.)
• Oclaro, Inc. (U.S.)
• Acacia Communications, Inc. ((U.S.)
• Kaiam Corporation (U.S.)
• M/A-COM Technology Solutions Holdings, Inc. (U.S.)
• Finisar Corporation (U.S.)
• Huawei Technologies Co., Ltd. (China)
• II-VI Incorporated (U.S.)
• POET Technologies Inc. (Canada)
• Aurrion, Inc. (U.S.)