Photonic Integrated Circuit Market - Forecast(2024 - 2030)

Report Code: ESR 0644 Report Format: PDF + Excel

Photonic Integrated Circuit Market Overview

The Photonic Integrated Circuit Market is estimated to surpass $29.1 billion by 2026 growing at a rapid CAGR of 32.7% during 2021-2026. The explosive growth of internet users across the globe is set to surge the demand in high speed internet connectivity thereby driving the Photonic Integrated Circuit components in the telecommunication sector. Apart from this, the growing establishment of data centers is also analyzed to be one of the major market drivers for Photonic Integrated Circuit Market. The high investments by the governments, increasing demand for higher level of integration, growing number of data centers, the benefits of PICs, and technological advancements related to Power splitters, Microwave filters, Optical transistor, Optical transmitters are some of the key attributes that have rendered North America with a maximum share in the global photonic integrated circuit market. 

Photonic Integrated Circuit Market

Report Coverage

The report: Photonic Integrated Circuit Market – Forecast (2021-2026)”, by IndustryARC covers an in-depth analysis of the following segments of the Photonic Integrated Circuit Market. 

By Integration: Hybrid, Monolithic.
By Component: Laser, Modulator, Photo Detectors, Interconnects, MUX/ DEMUX, Optical Amplifiers, Others.
By Raw Materials: Lithium Niobate(LiNbO3), Silicon Photonics, Gallium Arsenide(GaAs),Indium phosphide(InP),Others(Glass, Polymer, SiN).
By Application: Telecommunication, Data Centers, Medical, Industrial, Others.
By Geography: North America (U.S., Canada and Mexico); South America (Brazil, Argentina, Rest of Americas); Europe (U.K., Germany, Italy, France, Rest of Europe); APAC (China, Japan, South Korea, India, Rest of APAC); RoW (Middle East & Africa). 

    Key Takeaways

    • Implementation of new technology such as 3D-based hybrid laser integration is likely to bring new opportunities for hybrid Photonic Integrated Circuit.
    • Growing digitalization and IoT applications increase the demand for higher bandwidth and storage requirement which in turn open market opportunities for Photonic Integrated Circuit.
    • The APAC holds 29.2% of the share in the photonics IC market in 2020. The growing number of telecom connections, supported by the growing penetration of 4G in developing economies and the upcoming launch of 5G, will play a pivotal role in the growth of Photonic Integrated Circuit(IC) market in the APAC region during 2021-2026.

      Photonic Integrated Circuit Market, By Integration, 2020 (%)

      Photonic Integrated Circuit Market

    For More Details on This Report - Request for Sample

    Photonic Integrated Circuit Market Segment Analysis - By Component

    Laser component holds a major share in the Photonic Integrated Circuit Market in the year 2020 at 26.4%. Researchers are now trying to develop a type of laser that uses both light and sound to create optical amplification. A Brillouin laser is integrated in Photonic Integrated Circuit which can use both light and sound for optical amplification. Researchers are in the process of developing a new laser design that is able to harness a new type of forward Brillouin interaction. The invention of the new laser which is integrated in the PICs are expected to drive the laser component market during the forecast period 2021-2026. 

    Photonic Integrated Circuit Market Segment Analysis - By Application

    Telecom sector holds a major share for the Photonic Integrated Circuit Market globally in the year 2020. The telecommunication Photonic Integrated Circuit Market is poised to grow at a CAGR of 39.1% during the forecast period 2021-2026. The number of internet users across globe is increasing widely. According to Internet World Stats, Asia houses around 2.1 billion internet users. The increasing internet penetration rate requires the photonics that can ensure uninterrupted service to the users, is driving the growth of the photonics IC market.

    Photonic Integrated Circuit Market Segment Analysis - By Geography

    North America dominates the photonic integrated circuit market, accounting for 43.1% share of the global revenue generation in 2020. APAC region was one of the biggest markets for Photonic Integrated Circuit Market in 2020 at 29.2%. Some of the countries in APAC region such as China, Japan, South Korea and Malaysia are having major production hub of Photonic Integrated Circuit. The market is this region is mainly driven by the developments in telecommunication industry. In 2019, South Korea’s largest telecommunications company KT Corporation, has officially launched the world’s first nationwide commercial fifth-generation (5G) wireless network in South Korea. Developments in South Korean telecommunication industry, along with growing number of product launches related to Photonic Integrated Circuit, where Photonic Integrated Circuits are majorly applied in detectors, modulators, will escalate the growth of Photonic Integrated Circuit Market in this region.

    Photonic Integrated Circuit Market Drivers

    Increasing Demand from the Hyper scale Data centers

    Data centers are identified as one of the biggest potential users of Photonic Integrated Circuit. The use of the Photonic Integrated Circuit in data centers will help enhancing the speed. This also helps in lowering the power consumption which make them highly desirable alternatives to conventional ICs. According to Cisco the data centers are going to increase by 29% by 2022. Increase in the data centers, where Photonic Integrated Circuit will be utilized to enhance the speed, is anticipated to provide ample opportunities for PIC market. 

    Increase in Data traffic of 18% over 2019 driven by Covid-19

    There is a significant rise in data consumption owing to strong increase in smartphone usage in the developing countries coupled with rise of data intensive applications such as video streaming, online gaming, and many others. According to Cisco, the mobile data traffic growth numbers in 2020 saw a significant jump by 18% when compared with 2019 primarily due to increased lockdowns. Thus, the growing numbers of data usage globally are set to impact the market positively for Photonic Integrated Circuit, due to high demand for faster speed as compare to conventional circuits. 

    Photonic Integrated Circuit Market Challenges

    Necessity of Automation in Manufacturing

    There is a huge gap of the production and sales of the PIC components, especially in telecom and data center application, which is acting as a barrier for market growth. There is a delay in manufacturing process owing to high human interaction and to overcome this delay major market players are shifting towards automation. 

    Photonic Integrated Circuit Market Landscape

    Partnerships and acquisitions along with product development are the key strategies of the players in the Photonic Integrated Circuit Market. As of 2020, the market for the Photonic Integrated Circuit is fragmented with the top 5 players accounting for 35% of the market share. The major players in the Photonic Integrated Circuit Market include Infinera Corporation, Acacia Communication, Inc., Intel, NeoPhotonic Corporation, Foxconn Interconnect Technology Inc. and many others.

    Partnerships/Mergers/Acquisitions

    • In 2019, MACOM Technology Solutions and Global Foundries are coming up with a strategic collaboration to ramp up the production of laser PICs aiming to meet the surge in demand in foreseeable future.
    • In 2019, CompoundTek partnered with leading photonic simulation software provider, Lumerical. This partnership will help the company in enhancing the product portfolio and will also help in expanding the global presence of the company.

    Relevant Reports

    Photonic Integrated Circuit (IC) & Quantum computing Market - Forecast(2021 - 2026)
    Report Code: ESR 0268

    Report Code: ESR 0133

    For more Electronics Market reports, please click here

    1. Photonic Integrated Circuit Market - Overview
        1.1 Definitions and Scope
    2. Photonic Integrated Circuit Market - Executive summary
        2.1 Market Revenue, Market Size and Key Trends by Company
        2.2 Key Trends by type of Application
        2.3 Key Trends segmented by Geography
    3. Photonic Integrated Circuit Market Landscape
        3.1 Comparative analysis
            3.1.1 Product Benchmarking - Top 10 companies
            3.1.2 Top 5 Financials Analysis
            3.1.3 Market Value split by Top 10 companies
            3.1.4 Patent Analysis - Top 10 companies
            3.1.5 Pricing Analysis 
    4. Photonic Integrated Circuit Market – Startup companies Scenario Premium Premium
        4.1 Top 10 startup company Analysis by
            4.1.1 Investment
            4.1.2 Revenue
            4.1.3 Market Shares
            4.1.4 Market Size and Application Analysis
            4.1.5 Venture Capital and Funding Scenario
    5. Photonic Integrated Circuit Market – Industry Market Entry Scenario Premium Premium
        5.1 Regulatory Framework Overview
        5.2 New Business and Ease of Doing business index
        5.3 Case studies of successful ventures
        5.4 Customer Analysis – Top 10 companies
    6. Photonic Integrated Circuit Market Forces
        6.1 Drivers
        6.2 Constraints
        6.3 Challenges
        6.4 Porters five force model
            6.4.1 Bargaining power of suppliers
            6.4.2 Bargaining powers of customers
            6.4.3 Threat of new entrants
            6.4.4 Rivalry among existing players
            6.4.5 Threat of substitutes 
    7. Photonic Integrated Circuit Market -Strategic analysis
        7.1 Value chain analysis
        7.2 Opportunities analysis
        7.3 Product life cycle
        7.4 Suppliers and distributors Market Share
    8. Photonic Integrated Circuit Market – By Integration (Market Size -$Million / $Billion)
        8.1 Market Size and Market Share Analysis 
        8.2 Application Revenue and Trend Research
        8.3 Product Segment Analysis
            8.3.1 Hybrid
            8.3.2 Monolithic
    9. Photonic Integrated Circuit Market – By Component (Market Size -$Million / $Billion)
        9.1 Laser
        9.2 Modulator
        9.3 Photo Detectors
        9.4 Attenuators
        9.5 Optical Amplifiers
        9.6 Others
    10. Photonic Integrated Circuit Market – By Raw Materials (Market Size -$Million / $Billion)
        10.1 Lithium Niobate
        10.2 Silica-on-silicon
        10.3 Silicon on insulator
        10.4 Galium arsenide
        10.5 Indium phosphide
        10.5 Others
    11. Photonic Integrated Circuit Market – By Application (Market Size -$Million / $Billion)
        11.1 Telecom
        11.2 Data Center
        11.3 Healthcare
        11.4 Industrial 
        11.5 Others
    12. Photonic Integrated Circuit - By Geography (Market Size -$Million / $Billion)
        12.1 Photonic Integrated Circuit Market - North America Segment Research
        12.2 North America Market Research (Million / $Billion)
            12.2.1 Segment type Size and Market Size Analysis 
            12.2.2 Revenue and Trends
            12.2.3 Application Revenue and Trends by type of Application
            12.2.4 Company Revenue and Product Analysis
            12.2.5 North America Product type and Application Market Size
                12.2.5.1 U.S.
                12.2.5.2 Canada 
                12.2.5.3 Mexico 
        12.3 Photonic Integrated Circuit Market - South America Segment Research
        12.4 South America Market Research (Market Size -$Million / $Billion)
            12.4.1 Segment type Size and Market Size Analysis 
            12.4.2 Revenue and Trends
            12.4.3 Application Revenue and Trends by type of Application
            12.4.4 Company Revenue and Product Analysis
            12.4.5 South America Product type and Application Market Size
                12.4.5.1 Brazil  
                12.4.5.2 Venezuela
                12.4.5.3 Argentina
                12.4.5.4 Ecuador
                12.4.5.5 Peru
                12.4.5.6 Colombia 
                12.4.5.7 Costa Rica
                12.4.5.8 Rest of South America
        12.5 Photonic Integrated Circuit Market  - Europe Segment Research
        12.6 Europe Market Research (Market Size -$Million / $Billion)
            12.6.1 Segment type Size and Market Size Analysis 
            12.6.2 Revenue and Trends
            12.6.3 Application Revenue and Trends by type of Application
            12.6.4 Company Revenue and Product Analysis
            12.6.5 Europe Segment Product type and Application Market Size
                12.6.5.1 U.K  
                12.6.5.2 Germany 
                12.6.5.3 Italy 
                12.6.5.4 France
                12.6.5.5 Netherlands
                12.6.5.6 Belgium
                12.6.5.7 Spain
                12.6.5.8 Denmark
                12.6.5.9 Rest of Europe
        12.7 Photonic Integrated Circuit Market – APAC Segment Research
        12.8 APAC Market Research (Market Size -$Million / $Billion)
            12.8.1 Segment type Size and Market Size Analysis 
            12.8.2 Revenue and Trends
            12.8.3 Application Revenue and Trends by type of Application
            12.8.4 Company Revenue and Product Analysis
            12.8.5 APAC Segment – Product type and Application Market Size
                12.8.5.1 China 
                12.8.5.2 Australia
                12.8.5.3 Japan 
                12.8.5.4 South Korea
                12.8.5.5 India
                12.8.5.6 Taiwan
                12.8.5.7 Malaysia
                12.8.5.8 Others
        12.9 Photonic Integrated Circuit Market – RoW Segment Research
        12.10 RoW Market Research (Market Size -$Million / $Billion)
            12.10.1 Segment type Size and Market Size Analysis 
            12.10.2 Revenue and Trends
            12.10.3 Application Revenue and Trends by type of Application
            12.10.4 Company Revenue and Product Analysis
            12.10.5 Row Segment – Product type and Application Market Size
                12.10.5.1 Middle East 
                12.10.5.2 Africa
    13. Photonic Integrated Circuit Market - Entropy
        13.1 New product launches
        13.2 M&A's, collaborations, JVs and partnerships
    14. Photonic Integrated Circuit Market – Industry / Segment Competition landscape Premium Premium
        14.1 Market Share Analysis
            14.1.1 Market Share by Country- Top companies
            14.1.2 Market Share by Region- Top 10 companies
            14.1.3 Market Share by type of Application – Top 10 companies
            14.1.4 Market Share by type of Product / Product category- Top 10 companies
            14.1.5 Market Share at global level- Top 10 companies
            14.1.6 Best Practises for companies
    15. Photonic Integrated Circuit Market – Key Company List by Country Premium Premium
    16. Photonic Integrated Circuit Market Company Analysis
        16.1 Market Share, Company Revenue, Products, M&A, Developments
        16.2 Agilent Technologies
        16.3 Aifotec AG
        16.4 Alcatel-Lucent
        16.5 Avago Technologies
        16.6 Ciena Corporation
        16.7 Company 6
        16.8 Company 7
        16.9 Company 8
        16.10 Company 9
        16.11 Company 10