The global photonic integrated circuit (IC) & quantum computing market is poised to make a quantum leap in growth. FMI’s projections indicate that market revenue could surge from USD 1.5 billion in 2023 to a whopping USD 9.8 billion by 2033. This exponential growth is likely to be powered by a remarkable CAGR of 20.1%, signaling a bright and brilliant future for this exciting field.
The market is primarily driven by the widespread adoption of advanced fiber optic communication networks. Another factor propelling the market growth is the growing use of InP (Indium Phosphide) in 3D sensing applications. The increasing use of miniaturized compact integrated devices that simplify complex fabrication processes is also fueling the demand for photonic IC & quantum computing. The rising demand for bandwidth-intensive applications is also contributing to the market expansion.
Other Key Drivers Boosting the Demand for Photonic Integrated Circuit & Quantum Computing are:
Challenges for Market Players in the Photonic IC & Quantum Computing Industry:
| Attributes | Details |
|---|---|
| Base Year Value (2022) | USD 1.2 billion |
| Current Year Value (2023) | USD 1.5 billion |
| Expected Forecast Value (2033) | USD 9.8 billion |
| Historical CAGR (2018 to 2022) | 26.1% |
| Projected CAGR (2023 to 2033) | 20.1% |
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Photonic integrated circuits and quantum computing are two emerging technologies that have gained significant attention in recent years. Given the increased demand for high-performance computing and communication technologies, the market experienced significant growth during the historical period.
The growing adoption of cloud-based services has also contributed to the market expansion. The COVID-19 pandemic has further augmented the demand for efficient and reliable communication systems. This has increased the adoption of PICs.
The rising adoption of cloud computing and data centers is also significantly influencing the adoption of photonic quantum computing. The rise of cybersecurity threats and demand for security systems is expected to increase the application of photonic integrated circuit & quantum computing technologies.
Investments in quantum computing and photonic integrated circuit technology by governments and private organizations are increasing. They are attempting to take advantage of IoT and AI's potential. They are gradually switching to fiber-optic-enabled corporate networks to do this. Light signals of various wavelengths are divided as they are transferred via the network using optical splitters.
Many technology companies are investing significantly in this field. They aim to develop commercial quantum computing products during the forecast period. They also focus on the formation of fault-tolerant quantum computers. The objective is to resolve complicated issues that are now intractable by conventional computers.
| Countries | Projected Market Value (2033) |
|---|---|
| The United States | USD 43.2 billion |
| The United Kingdom | USD 482.7 million |
| China | USD 809.4 million |
| Japan | USD 683.8 million |
| South Korea | USD 381.4 million |
The global market is primarily led by North America in 2022. This growth was due to the factors such as:
Advancements in technology also play a role in the dominance of this region.
| Country | The United States |
|---|---|
| Historical CAGR (2018 to 2022) | 24.4% |
| Forecasted CAGR (2023 to 2033) | 19.0% |
The United States emerged as the key market in this region since WAN applications of optical fiber communications are rising across the country. The government has been investing notably in Quantum Information Science. The government passed National Quantum Initiative Act and announced the allocation of USD 1.2 billion over five years in 2018 to advance quantum information science.
The United States photonic integrated circuit & quantum computing market has been growing significantly given the increasing demand for high-speed data processing. According to Cloudscene, the United States had 2,701 data centers as of January 2022. This accounts for around 33% of all data centers worldwide. These technologies are the backbone of advanced optical communication systems.
Market players are focusing on product innovation, partnerships, and collaborations to expand their market share. The micro-transfer-printed (mTP) silicon-photonics laser was made available for commercial use in September 2022 by Rockley Photonics Holdings Limited. With its application, high-density spectrophotometer chips' size is decreased while their density is increased.
The rising popularity of electric and self-driving cars in Japan, China, and South Korea is causing a surge in demand for these technologies and solutions in Asia Pacific. This demand is expected to drive profitable growth in this region throughout the projected period. The rising usage of the internet is creating opportunities for new business models and revenue streams. Additionally, the availability of 5G connections is facilitating the development of new applications and services.
| Country | China |
|---|---|
| Historical CAGR (2018 to 2022) | 27.9% |
| Forecasted CAGR (2023 to 2033) | 21.3% |
| Country | Japan |
|---|---|
| Historical CAGR (2018 to 2022) | 25.2% |
| Forecasted CAGR (2023 to 2033) | 19.6% |
| Country | South Korea |
|---|---|
| Historical CAGR (2018 to 2022) | 27.0% |
| Forecasted CAGR (2023 to 2033) | 20.7% |
China’s photonic integrated circuit & quantum computing market is experiencing significant growth owing to the increasing demand for advanced communication technologies. The 14th Five-Year Plan (2021 to 2026) of China identified quantum technology as a top priority. The government also declared the opening of a national laboratory for quantum information sciences, estimated to cost USD 10 billion.
Given the development of a company in China called Origin Quantum Computing Technology Co, China is now the third nation to be able to produce a fully domestic quantum computer. The first homegrown superconducting quantum computer, Wuyuan, was introduced in 2020.
Following the declaration, it offers cloud-based quantum computing services to consumers all over the world. By 2025, China also intends to produce 70% of its photonic integrated circuits. Advancements in the field of fiber optics and photonics are positively impacting Japan’s photonic integrated circuit & quantum computing market. Market players in Japan are highly focused on developing revolutionary solutions. For instance,
The company revealed two different quantum key distribution platforms. The first platform is based on its groundbreaking multiplexing technology. The second platform is designed for long-distance applications. South Korea’s photonic integrated circuit & quantum computing market is gaining substantial momentum. The photonic integrated circuit application is on the rise in quantum computing and optical fiber sensing across the country.
The country's investments in 5G infrastructure and the growing adoption of cloud computing are also driving the demand for PICs. The government of South Korea has invested in quantum computing research initiatives. This includes the establishment of the Center for Quantum Information and Quantum Computing. The center is located at KAIST (Korea Advanced Institute of Science and Technology).
The market in Europe is sizable given the widespread use of these technologies in the automotive and industrial sectors. The technologies have a broad working range and improved optical power. In May 2019, researchers from Europe developed a pulse laser system. The laser system can shape and cut industrial materials quickly and efficiently. The laser operates at 1.5 km/s and can cut tough boron steel used in automobiles.
| Country | United Kingdom |
|---|---|
| Historical CAGR (2018 to 2022) | 24.8% |
| Forecasted CAGR (2023 to 2033) | 19.3% |
The United Kingdom’s photonic integrated circuit & quantum computing market is a notably growing market with a promising future. The European Commission, the executive arm of the EU, has made investments in photonic integrated circuit technology over several years. The investment covers cutting-edge expenditures on basic research as well as the creation of tools and software that demonstrate an idea.
The United Kingdom is a leading player in the development of photonic integrated circuits and quantum computing systems. The country has a highly skilled workforce and a strong research and development infrastructure. Recently, several key players have undertaken various strategies to expand their market presence and develop innovative products. For instance,
| Category | Type of Integration |
|---|---|
| Top Sub-segment | Hybrid |
| Historical CAGR (2018 to 2022) | 25.6% |
| Forecasted CAGR (2023 to 2033) | 20.0% |
Hybrid integration has emerged as a dominant technology in the market. It works well with current electrical technologies. This allows integrating photonic capabilities into already-in-use electrical systems simpler. Hybrid integration allows the integration of photonic components with electronic components. This facilitates seamless communication between the two technologies.
The hybrid integration technique also has the advantages of scalability and adaptability. This is an important consideration for manufacturers that want to make multiple devices cost-effectively. Performance is enhanced by the combination of electrical and photonic components. Hybrid integration is also cost-effective. It allows the use of existing electronic components and processes. This makes hybrid integration an attractive option for market players.
The optical fiber sensor segment dominates the market since these are widely used in a wide range of industries. These sensors are in high demand given their ability to provide accurate and real-time data. Photonic ICs and quantum computing technologies have improved the efficiency and performance of optical fiber sensors. This improvement has made optical fiber sensors attractive to industries.
Ongoing research and development in the field of photonics has played a crucial role. It has resulted in advancements in the design and manufacturing of optical fiber sensors. These advancements have made optical fiber sensors more reliable and accurate.
| Category | Type of Integration |
|---|---|
| Top Sub-segment | Optical Fiber Sensor |
| Historical CAGR (2018 to 2022) | 25.1% |
| Forecasted CAGR (2023 to 2033) | 19.9% |
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Numerous large corporations and startups are showing interest in this industry as it is proliferating significantly. They are spending huge capital on research and development for quantum computing and photonic integrated circuits. For uses in data centers, optical communications, sensing, and other areas, they are also constructing novel photonic integrated circuits. Additionally, these businesses are working on other quantum computing technologies, such as superconducting qubits, trapped ions, and photonic qubits to attain a competitive edge.
Top 3 Start-ups to Keep an Eye on:
| Start-up | PsiQuantum |
|---|---|
| Profile | It produces photon-based all-purpose quantum computers. It creates error-corrected general-purpose quantum computers using photonics technology. It is useful in the fields of materials science, personalized medicine, artificial intelligence, and drug discovery. |
| Recent Developments | PsiQuantum announced in January 2023 that it has entered into a contract with the Defense Advanced Research Projects Agency (DARPA). The contract is for working on the Utility-Scale Quantum Computing (US2QC) program. |
| Start-up | Lightmatter |
|---|---|
| Profile | For supercomputers, it offers AI-based photonic microprocessors. The processor employs light signals. It is compatible with TensorFlow, an open-source project funded by Google. Its chipsets are employed in several applications. |
| Recent Developments | In August 2022, Lightmatter launched its brand-new Lightmatter Passage. It is a photonic wafer-scale connector that joins chiplet computers with silicon photonics and co-packaged optics to produce a massive device. |
| Start-up | Scintil Photonics |
|---|---|
| Profile | For utilization in communications, 3D sensing, and quantum photonics, it creates silicon photonic integrated circuits (PIC). For an effortless combination of active and passive optical components, its Backside-on-BOX technology combines silicon and indium phosphide. |
| Recent Developments | Scintil Photonics showcased its recent technology at exhibit #3351 during OFC 2023, a single-chip multi-port 100 GHz DFB (Distributed FeedBack) Comb Laser Source for high-performance computing and AI applications in March 2023. |
| Company | Intel Corporation |
|---|---|
| Profile | Advanced computer processors, motherboards, chipsets, and other semiconductor devices are designed and produced by the company. It is one of the world's leading manufacturers of microprocessors. Its processors are used in a variety of devices and embedded systems. |
| Recent Developments | The Intel® Quantum Software Development Kit (SDK), version 1.0, was released by Intel in February 2023. The SDK is a complete quantum computer in simulation. It can also communicate with Intel's quantum hardware, such as the company's Quantum Spin Qubit and Horse Ridge II Control Chips. |
| Company | EMCORE Corporation |
|---|---|
| Profile | For a variety of sectors, it develops and produces cutting-edge optical systems, subsystems, and components. Its product portfolio includes a range of advanced technologies, including fiber optic transceivers, tunable lasers, optical amplifiers, and high-speed photodetectors. |
| Recent Developments | EMCORE introduced a new series of inertial measurement units (IMUs) in December 2022. EMCORE's unique Photonic Integrated Chip (PIC) technology is used in three powerful IMUs with tactical-grade photonic Fiber Optic Gyros (FOGs). |
| Company | Broadcom Inc. |
|---|---|
| Profile | It creates, produces, and distributes a variety of infrastructure software and semiconductor solutions. The business has an excellent record of innovations. Its products are used by a wide range of customers in various industries including telecommunications, data centers, and networking |
| Recent Developments | Broadcom Inc. declared in February 2022 that its extensive, market-leading PCIe Gen 5.0 portfolio is laying the groundwork for the ecosystem needed to create high-performance, next-generation servers. SerDes, switches, and custom silicon devices from Broadcom PCIe Gen 5.0 are now offered to OEMs, ODMs, and cloud providers. |
Key Players
The market is estimated to secure a valuation of USD 1.5 billion in 2023.
The market is estimated to reach USD 9.8 billion by 2033.
The hybrid segment holds high revenue potential.
The United States, Japan, and China dominate the global market.
The market is forecast to register a CAGR of 20.1% through 2033.
| Market Size (2022) | USD 1.3 Billion |
|---|---|
| Market Size (2032) | USD 9.4 Billion |
| Market CAGR (2022 to 2032) | 21.5% |
| Market Value (2022) | USD 1.99 Billion |
|---|---|
| Market Value (2032) | USD 3.75 Billion |
| Market Value CAGR (2022 to 2032) | 6.5% |
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Photonic Integrated Circuit & Quantum Computing Market
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