Newly released Photonic Integrated Circuits (PIC) Market analysis report by Future Market Insights shows that global sales of the Photonic Integrated Circuits (PIC) Market in 2021 was held at USD 1.1 Billion. With 21.5% projected growth, the market from 2022 to 2032 is expected to reach a valuation of USD 9.4 Billion. Optical Communications is expected to be the highest revenue-generating category, projected to register a projected CAGR of 21.5% from 2022 to 2032.
| Attributes | Details |
|---|---|
| Global Photonic Integrated Circuit Market Size (2022) | USD 1.3 Billion |
| Global Photonic Integrated Circuit Market Size (2032) | USD 9.4 Billion |
| Global Photonic Integrated Circuit Market CAGR (2022 to 2032) | 21.5% |
| USA Photonic Integrated Circuit Market Size (2032) | USD 2.8 Billion |
| Key Companies Covered | Agilent Technologies; Broadcom; Ciena Corporation; 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.; POET Technologies |
As per the Photonic Integrated Circuits (PIC) Market research by Future Market Insights - a market research and competitive intelligence provider, historically, from 2017 to 2021, the market value of the Photonic Integrated Circuits (PIC) Market increased at around 25.5% CAGR.
The factors driving the growth of the photonic integrated circuit market are the downsizing of gadgets and the increase in the level of integration. This circuit supports high-speed data transfer, making it suitable for a wide range of applications in the industrial, aerospace, communications, utilities, and energy sectors, all of which are the key drivers of the photonic IC industry.
Photonic integrated circuits are in high demand for quantum computing and optical fiber sensing applications. Photonic integrated circuit corporations provide advantages such as simple photonic integrated circuit design with reduced energy consumption, smaller and faster goods, and efficient and eco-friendly products. When compared to traditional ICs, photonic integrated circuits have lower costs due to downsizing, a smaller size due to merging a large number of components and functions on a single chip, and enhanced power efficiency.
Photonics and fiber optics market growth is being accelerated by sophisticated breakthroughs and innovations. The growing need for high-speed and efficient data transmission in data centers presents growth prospects to the market. The rising demand for enhanced communication and processing needs, as well as flexible, downsized, and power-efficient circuits, are factors that will drive the growth of the photonic IC industry.
Communication between the photonic integration industry and potential end consumers might be challenging at times. While telecom has traditionally been the largest market for PICs, and the background for such applications is well understood, this is not always the case when dealing with other photonic integration solutions, such as quantum, sensing, or medical optics, where the technical background and language of customers can vary largely.
The demand for Photonic Integrated Circuits is propelling due to a variety of factors like minimal cost, compact size, increased power optimization, and increased level of integration and functionality.
Photonic integrated circuits (ICs) make equipment design easier. The minimization of difficult production procedures aids in expanding manufacturing capacity and reduction in cost, making it attractive to users. Photonic integrated circuits allow a vast number of components and functionalities to be combined on a single chip. As a consequence, the number of components utilized is reduced, and the component's size is reduced as well.
When compared to photonic ICs, the number of functionalities packed into a single chip in electronic ICs is comparatively minimal. PICs acquire various advantages due to their high degree of integration, including size reduction, easy design, low cost, minimum heat dissipation, and power optimization. When compared to electrical ICs, photonic ICs have greater power efficiency. PICs generate significantly low heat during operation, thus resulting in increased power efficiency.
The use of Photonic Integrated Circuits (PIC) in optical communications is becoming more common, with a predicted CAGR of 21.5%. A rise in data traffic owing to increasing internet usage, an increase in the number of data centers, and an increase in the adoption of cloud-based and virtualization services are all driving the industry forward. The COVID-19 pandemic boosted demand for advanced networking equipment, propelling the market ahead during the forecast period.
Modern data center networks employ optical communication and networking equipment to meet their high bandwidth and extensible needs. Only optical communication technology has demonstrated capabilities of 40 GB/s, and greater across long distances. As a result, an increasing number of data centers throughout the world use interconnects to offer crucial communications connections between several servers, computing, and memory resources.
As more devices are being linked and new apps are developed, the volume of information going across the internet continues to expand. In 2021, IP data traffic is projected to witness 278,108 PB per month. Furthermore, with the growth in the number of smartphone users, internet usage will also grow, consequently leading to demand build-up for the PIC market.
North America is the most lucrative region with double-digit projected growth. In North America, demand for photonic integrated circuits (PIC)-based devices is being driven by data centers and internet applications of fiber optic communication. The growing demand for high-speed data transmission has raised cloud computing data traffic, and the increasing adoption of IoT has resulted in a potential boom in the photonic integrated circuit market in the region.
Mobile, video and cloud-based apps are increasing bandwidth usage, placing strain on service providers. Companies are expected to construct their optical networks around the PIC, propelling the sector ahead.
The requirement for high data transmission has raised cloud computing, and data traffic, and the increasing adoption of the Internet of Things has resulted in a potential boom in the photonic integrated circuit market in the region.
The United States is expected to have the highest market share of USD 2.8 Billion by the end of 2032 and account for approximately 30% of the global revenue. Increased demand for smart device integration and a favorable regulatory environment for the development of medium and small enterprises are expected to boost the US market.
Mobile, video and cloud-based applications are driving up bandwidth consumption, which is putting pressure on service providers. According to industry estimates, the number of Amazon Prime subscribers in the United States will exceed 153 Million in 2022, up from 142.5 Million in 2020. While this is a small proportion of the end–use market in the USA., the overall market in the USA. is significantly larger.
The Hybrid Integration segment is forecasted to grow at the highest CAGR of over 21.5% from 2022 to 2032. Hybrid integration provides a lot of revenue for companies in the photonic integrated circuits (PIC) industry. Most quantum applications require monolithic photonic systems to fulfill rigorous criteria. To circumvent the limitations of monolithic photonic circuits, companies are developing hybrid platforms that incorporate many photonic technologies into a single functional unit.
For product developers, hybrid integration provides yet another benefit. A complicated microsystem can be divided into several separate parts. After that, each unit is allocated to a different process engineer or group. Before integration, each unit may be designed and completely defined individually. To reduce fabrication costs, units of the same kind can be manufactured at the maximum spatial density on a single substrate.
Monolithic manufacturing provides advantages for devices with basic architectures, such as compact layouts and facile encapsulation. However, since several manufacturing procedures and materials are incompatible, microdevices with complicated functions or structures must be built using the hybrid integration of several components from various fabrication processes.
The leading PIC Market players are Agilent Technologies, Broadcom, Ciena Corporation, 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. and POET Technologies. To gain a competitive advantage in the industry, these players are investing in product launches, partnerships, mergers and acquisitions, and expansions.
Some of the key recent developments in the Global PIC Market are as follows:
In February 2022, Ayar Labs, a photonic chip provider with circuits that carry data between processors significantly faster than typical metal interconnects, announced a "multi-year strategic agreement" with Hewlett Packard Enterprise.
In October 2020, Sanan IC, the world's largest LED manufacturer announced that it has inked a USD 50 Million Joint Venture Agreement with POET Technologies. Super Photonics Xiamen Co., Ltd, the company's subsidiary, has also applied for registration. This is expected to offer transceiver module makers, systems vendors, data center operators, and network providers throughout the world a new generation of cost-effective, high-performance optical engines.
In May 2022, to increase reliability and performance across all operating scenarios, Cisco announced that it has combined new predictive technologies with its comprehensive portfolio of observability, visibility, and intelligence capabilities.
Similarly, recent developments related to companies in Photonic Integrated Circuits (PIC) services have been tracked by the team at Future Market Insights, which are available in the full report.
Table 1: Global Market Value (US$ Mn) Forecast by Region, 2017-2032
Table 2: Global Market Value (US$ Mn) Forecast by Integration Type, 2017-2032
Table 3: Global Market Value (US$ Mn) Forecast by Application, 2017-2032
Table 4: Global Market Value (US$ Mn) Forecast by Raw Material, 2017-2032
Table 5: Global Market Value (US$ Mn) Forecast by Component, 2017-2032
Table 6: North America Market Value (US$ Mn) Forecast by Country, 2017-2032
Table 7: North America Market Value (US$ Mn) Forecast by Integration Type, 2017-2032
Table 8: North America Market Value (US$ Mn) Forecast by Application, 2017-2032
Table 9: North America Market Value (US$ Mn) Forecast by Raw Material, 2017-2032
Table 10: North America Market Value (US$ Mn) Forecast by Component, 2017-2032
Table 11: Latin America Market Value (US$ Mn) Forecast by Country, 2017-2032
Table 12: Latin America Market Value (US$ Mn) Forecast by Integration Type, 2017-2032
Table 13: Latin America Market Value (US$ Mn) Forecast by Application, 2017-2032
Table 14: Latin America Market Value (US$ Mn) Forecast by Raw Material, 2017-2032
Table 15: Latin America Market Value (US$ Mn) Forecast by Component, 2017-2032
Table 16: Europe Market Value (US$ Mn) Forecast by Country, 2017-2032
Table 17: Europe Market Value (US$ Mn) Forecast by Integration Type, 2017-2032
Table 18: Europe Market Value (US$ Mn) Forecast by Application, 2017-2032
Table 19: Europe Market Value (US$ Mn) Forecast by Raw Material, 2017-2032
Table 20: Europe Market Value (US$ Mn) Forecast by Component, 2017-2032
Table 21: Asia Pacific Market Value (US$ Mn) Forecast by Country, 2017-2032
Table 22: Asia Pacific Market Value (US$ Mn) Forecast by Integration Type, 2017-2032
Table 23: Asia Pacific Market Value (US$ Mn) Forecast by Application, 2017-2032
Table 24: Asia Pacific Market Value (US$ Mn) Forecast by Raw Material, 2017-2032
Table 25: Asia Pacific Market Value (US$ Mn) Forecast by Component, 2017-2032
Table 26: MEA Market Value (US$ Mn) Forecast by Country, 2017-2032
Table 27: MEA Market Value (US$ Mn) Forecast by Integration Type, 2017-2032
Table 28: MEA Market Value (US$ Mn) Forecast by Application, 2017-2032
Table 29: MEA Market Value (US$ Mn) Forecast by Raw Material, 2017-2032
Table 30: MEA Market Value (US$ Mn) Forecast by Component, 2017-2032
Figure 1: Global Market Value (US$ Mn) by Integration Type, 2022-2032
Figure 2: Global Market Value (US$ Mn) by Application, 2022-2032
Figure 3: Global Market Value (US$ Mn) by Raw Material, 2022-2032
Figure 4: Global Market Value (US$ Mn) by Component, 2022-2032
Figure 5: Global Market Value (US$ Mn) by Region, 2022-2032
Figure 6: Global Market Value (US$ Mn) Analysis by Region, 2017-2032
Figure 7: Global Market Value Share (%) and BPS Analysis by Region, 2022-2032
Figure 8: Global Market Y-o-Y Growth (%) Projections by Region, 2022-2032
Figure 9: Global Market Value (US$ Mn) Analysis by Integration Type, 2017-2032
Figure 10: Global Market Value Share (%) and BPS Analysis by Integration Type, 2022-2032
Figure 11: Global Market Y-o-Y Growth (%) Projections by Integration Type, 2022-2032
Figure 12: Global Market Value (US$ Mn) Analysis by Application, 2017-2032
Figure 13: Global Market Value Share (%) and BPS Analysis by Application, 2022-2032
Figure 14: Global Market Y-o-Y Growth (%) Projections by Application, 2022-2032
Figure 15: Global Market Value (US$ Mn) Analysis by Raw Material, 2017-2032
Figure 16: Global Market Value Share (%) and BPS Analysis by Raw Material, 2022-2032
Figure 17: Global Market Y-o-Y Growth (%) Projections by Raw Material, 2022-2032
Figure 18: Global Market Value (US$ Mn) Analysis by Component, 2017-2032
Figure 19: Global Market Value Share (%) and BPS Analysis by Component, 2022-2032
Figure 20: Global Market Y-o-Y Growth (%) Projections by Component, 2022-2032
Figure 21: Global Market Attractiveness by Integration Type, 2022-2032
Figure 22: Global Market Attractiveness by Application, 2022-2032
Figure 23: Global Market Attractiveness by Raw Material, 2022-2032
Figure 24: Global Market Attractiveness by Component, 2022-2032
Figure 25: Global Market Attractiveness by Region, 2022-2032
Figure 26: North America Market Value (US$ Mn) by Integration Type, 2022-2032
Figure 27: North America Market Value (US$ Mn) by Application, 2022-2032
Figure 28: North America Market Value (US$ Mn) by Raw Material, 2022-2032
Figure 29: North America Market Value (US$ Mn) by Component, 2022-2032
Figure 30: North America Market Value (US$ Mn) by Country, 2022-2032
Figure 31: North America Market Value (US$ Mn) Analysis by Country, 2017-2032
Figure 32: North America Market Value Share (%) and BPS Analysis by Country, 2022-2032
Figure 33: North America Market Y-o-Y Growth (%) Projections by Country, 2022-2032
Figure 34: North America Market Value (US$ Mn) Analysis by Integration Type, 2017-2032
Figure 35: North America Market Value Share (%) and BPS Analysis by Integration Type, 2022-2032
Figure 36: North America Market Y-o-Y Growth (%) Projections by Integration Type, 2022-2032
Figure 37: North America Market Value (US$ Mn) Analysis by Application, 2017-2032
Figure 38: North America Market Value Share (%) and BPS Analysis by Application, 2022-2032
Figure 39: North America Market Y-o-Y Growth (%) Projections by Application, 2022-2032
Figure 40: North America Market Value (US$ Mn) Analysis by Raw Material, 2017-2032
Figure 41: North America Market Value Share (%) and BPS Analysis by Raw Material, 2022-2032
Figure 42: North America Market Y-o-Y Growth (%) Projections by Raw Material, 2022-2032
Figure 43: North America Market Value (US$ Mn) Analysis by Component, 2017-2032
Figure 44: North America Market Value Share (%) and BPS Analysis by Component, 2022-2032
Figure 45: North America Market Y-o-Y Growth (%) Projections by Component, 2022-2032
Figure 46: North America Market Attractiveness by Integration Type, 2022-2032
Figure 47: North America Market Attractiveness by Application, 2022-2032
Figure 48: North America Market Attractiveness by Raw Material, 2022-2032
Figure 49: North America Market Attractiveness by Component, 2022-2032
Figure 50: North America Market Attractiveness by Country, 2022-2032
Figure 51: Latin America Market Value (US$ Mn) by Integration Type, 2022-2032
Figure 52: Latin America Market Value (US$ Mn) by Application, 2022-2032
Figure 53: Latin America Market Value (US$ Mn) by Raw Material, 2022-2032
Figure 54: Latin America Market Value (US$ Mn) by Component, 2022-2032
Figure 55: Latin America Market Value (US$ Mn) by Country, 2022-2032
Figure 56: Latin America Market Value (US$ Mn) Analysis by Country, 2017-2032
Figure 57: Latin America Market Value Share (%) and BPS Analysis by Country, 2022-2032
Figure 58: Latin America Market Y-o-Y Growth (%) Projections by Country, 2022-2032
Figure 59: Latin America Market Value (US$ Mn) Analysis by Integration Type, 2017-2032
Figure 60: Latin America Market Value Share (%) and BPS Analysis by Integration Type, 2022-2032
Figure 61: Latin America Market Y-o-Y Growth (%) Projections by Integration Type, 2022-2032
Figure 62: Latin America Market Value (US$ Mn) Analysis by Application, 2017-2032
Figure 63: Latin America Market Value Share (%) and BPS Analysis by Application, 2022-2032
Figure 64: Latin America Market Y-o-Y Growth (%) Projections by Application, 2022-2032
Figure 65: Latin America Market Value (US$ Mn) Analysis by Raw Material, 2017-2032
Figure 66: Latin America Market Value Share (%) and BPS Analysis by Raw Material, 2022-2032
Figure 67: Latin America Market Y-o-Y Growth (%) Projections by Raw Material, 2022-2032
Figure 68: Latin America Market Value (US$ Mn) Analysis by Component, 2017-2032
Figure 69: Latin America Market Value Share (%) and BPS Analysis by Component, 2022-2032
Figure 70: Latin America Market Y-o-Y Growth (%) Projections by Component, 2022-2032
Figure 71: Latin America Market Attractiveness by Integration Type, 2022-2032
Figure 72: Latin America Market Attractiveness by Application, 2022-2032
Figure 73: Latin America Market Attractiveness by Raw Material, 2022-2032
Figure 74: Latin America Market Attractiveness by Component, 2022-2032
Figure 75: Latin America Market Attractiveness by Country, 2022-2032
Figure 76: Europe Market Value (US$ Mn) by Integration Type, 2022-2032
Figure 77: Europe Market Value (US$ Mn) by Application, 2022-2032
Figure 78: Europe Market Value (US$ Mn) by Raw Material, 2022-2032
Figure 79: Europe Market Value (US$ Mn) by Component, 2022-2032
Figure 80: Europe Market Value (US$ Mn) by Country, 2022-2032
Figure 81: Europe Market Value (US$ Mn) Analysis by Country, 2017-2032
Figure 82: Europe Market Value Share (%) and BPS Analysis by Country, 2022-2032
Figure 83: Europe Market Y-o-Y Growth (%) Projections by Country, 2022-2032
Figure 84: Europe Market Value (US$ Mn) Analysis by Integration Type, 2017-2032
Figure 85: Europe Market Value Share (%) and BPS Analysis by Integration Type, 2022-2032
Figure 86: Europe Market Y-o-Y Growth (%) Projections by Integration Type, 2022-2032
Figure 87: Europe Market Value (US$ Mn) Analysis by Application, 2017-2032
Figure 88: Europe Market Value Share (%) and BPS Analysis by Application, 2022-2032
Figure 89: Europe Market Y-o-Y Growth (%) Projections by Application, 2022-2032
Figure 90: Europe Market Value (US$ Mn) Analysis by Raw Material, 2017-2032
Figure 91: Europe Market Value Share (%) and BPS Analysis by Raw Material, 2022-2032
Figure 92: Europe Market Y-o-Y Growth (%) Projections by Raw Material, 2022-2032
Figure 93: Europe Market Value (US$ Mn) Analysis by Component, 2017-2032
Figure 94: Europe Market Value Share (%) and BPS Analysis by Component, 2022-2032
Figure 95: Europe Market Y-o-Y Growth (%) Projections by Component, 2022-2032
Figure 96: Europe Market Attractiveness by Integration Type, 2022-2032
Figure 97: Europe Market Attractiveness by Application, 2022-2032
Figure 98: Europe Market Attractiveness by Raw Material, 2022-2032
Figure 99: Europe Market Attractiveness by Component, 2022-2032
Figure 100: Europe Market Attractiveness by Country, 2022-2032
Figure 101: Asia Pacific Market Value (US$ Mn) by Integration Type, 2022-2032
Figure 102: Asia Pacific Market Value (US$ Mn) by Application, 2022-2032
Figure 103: Asia Pacific Market Value (US$ Mn) by Raw Material, 2022-2032
Figure 104: Asia Pacific Market Value (US$ Mn) by Component, 2022-2032
Figure 105: Asia Pacific Market Value (US$ Mn) by Country, 2022-2032
Figure 106: Asia Pacific Market Value (US$ Mn) Analysis by Country, 2017-2032
Figure 107: Asia Pacific Market Value Share (%) and BPS Analysis by Country, 2022-2032
Figure 108: Asia Pacific Market Y-o-Y Growth (%) Projections by Country, 2022-2032
Figure 109: Asia Pacific Market Value (US$ Mn) Analysis by Integration Type, 2017-2032
Figure 110: Asia Pacific Market Value Share (%) and BPS Analysis by Integration Type, 2022-2032
Figure 111: Asia Pacific Market Y-o-Y Growth (%) Projections by Integration Type, 2022-2032
Figure 112: Asia Pacific Market Value (US$ Mn) Analysis by Application, 2017-2032
Figure 113: Asia Pacific Market Value Share (%) and BPS Analysis by Application, 2022-2032
Figure 114: Asia Pacific Market Y-o-Y Growth (%) Projections by Application, 2022-2032
Figure 115: Asia Pacific Market Value (US$ Mn) Analysis by Raw Material, 2017-2032
Figure 116: Asia Pacific Market Value Share (%) and BPS Analysis by Raw Material, 2022-2032
Figure 117: Asia Pacific Market Y-o-Y Growth (%) Projections by Raw Material, 2022-2032
Figure 118: Asia Pacific Market Value (US$ Mn) Analysis by Component, 2017-2032
Figure 119: Asia Pacific Market Value Share (%) and BPS Analysis by Component, 2022-2032
Figure 120: Asia Pacific Market Y-o-Y Growth (%) Projections by Component, 2022-2032
Figure 121: Asia Pacific Market Attractiveness by Integration Type, 2022-2032
Figure 122: Asia Pacific Market Attractiveness by Application, 2022-2032
Figure 123: Asia Pacific Market Attractiveness by Raw Material, 2022-2032
Figure 124: Asia Pacific Market Attractiveness by Component, 2022-2032
Figure 125: Asia Pacific Market Attractiveness by Country, 2022-2032
Figure 126: MEA Market Value (US$ Mn) by Integration Type, 2022-2032
Figure 127: MEA Market Value (US$ Mn) by Application, 2022-2032
Figure 128: MEA Market Value (US$ Mn) by Raw Material, 2022-2032
Figure 129: MEA Market Value (US$ Mn) by Component, 2022-2032
Figure 130: MEA Market Value (US$ Mn) by Country, 2022-2032
Figure 131: MEA Market Value (US$ Mn) Analysis by Country, 2017-2032
Figure 132: MEA Market Value Share (%) and BPS Analysis by Country, 2022-2032
Figure 133: MEA Market Y-o-Y Growth (%) Projections by Country, 2022-2032
Figure 134: MEA Market Value (US$ Mn) Analysis by Integration Type, 2017-2032
Figure 135: MEA Market Value Share (%) and BPS Analysis by Integration Type, 2022-2032
Figure 136: MEA Market Y-o-Y Growth (%) Projections by Integration Type, 2022-2032
Figure 137: MEA Market Value (US$ Mn) Analysis by Application, 2017-2032
Figure 138: MEA Market Value Share (%) and BPS Analysis by Application, 2022-2032
Figure 139: MEA Market Y-o-Y Growth (%) Projections by Application, 2022-2032
Figure 140: MEA Market Value (US$ Mn) Analysis by Raw Material, 2017-2032
Figure 141: MEA Market Value Share (%) and BPS Analysis by Raw Material, 2022-2032
Figure 142: MEA Market Y-o-Y Growth (%) Projections by Raw Material, 2022-2032
Figure 143: MEA Market Value (US$ Mn) Analysis by Component, 2017-2032
Figure 144: MEA Market Value Share (%) and BPS Analysis by Component, 2022-2032
Figure 145: MEA Market Y-o-Y Growth (%) Projections by Component, 2022-2032
Figure 146: MEA Market Attractiveness by Integration Type, 2022-2032
Figure 147: MEA Market Attractiveness by Application, 2022-2032
Figure 148: MEA Market Attractiveness by Raw Material, 2022-2032
Figure 149: MEA Market Attractiveness by Component, 2022-2032
Figure 150: MEA Market Attractiveness by Country, 2022-2032
The global Photonic Integrated Circuits (PIC) Market is worth more than USD 1.1 Billion at present.
Value of Photonic Integrated Circuits (PIC) Market are projected to increase at a CAGR of around 21.5% during 2022 to 2032.
Value of Photonic Integrated Circuits (PIC) Market increased at a CAGR of around 25.5% during 2017 to 2021.
The Internet of Things (IoT), cloud, streaming video, 5G, and several other innovations are causing the Photonic Integrated Circuit Market to grow enormously in order to meet market demand.
The market for Photonic Integrated Circuits (PIC) Market in US is projected to expand at a CAGR of around 21.1% during 2022 to 2032.
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