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 |
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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.
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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.
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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 U.S., the overall market in the U.S. 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.
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.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2017 to 2021 and Forecast, 2022 to 2032 5. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Integration Type 5.1. Monolithic Integration 5.2. Hybrid Integration 5.3. Module Integration 6. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Application 6.1. Optical Communications 6.2. Sensing 6.3. Bio to photonics 6.4. Optical Signal Processing 7. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Raw Material 7.1. Indium Phosphide 7.2. Galium Arsenide 7.3. Lithium Niobate 7.4. Silicone 7.5. Silica to on to Insulator 7.6. Others 8. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Component 8.1. Lasers 8.2. Modulators 8.3. Detectors 8.4. Attenuators 8.5. MUX/DEMUX 8.6. Optical Amplifiers 9. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Region 9.1. North America 9.2. Latin America 9.3. Europe 9.4. Asia Pacific 9.5. MEA 10. North America Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 11. Latin America Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 12. Europe Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 13. Asia Pacific Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 14. MEA Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 15. Key Countries Market Analysis 16. Market Structure Analysis 17. Competition Analysis 17.1. Agilent Technologies 17.2. Broadcom 17.3. Ciena Corporation 17.4. Enablence 17.5. II to VI Inc. 17.6. Hewlett Packard 17.7. Huawei Technologies Co. Ltd. 17.8. Infinera Corporation 17.9. Intel Corporation 17.10. Broadex Technologies Co. Ltd. 17.11. Cisco Systems, Inc. 17.12. MACOM 17.13. Mellanox Technologies 17.14. Neophotonics Corporation 17.15. Oclaro, Inc. 17.16. TE Connectivity 17.17. VLC Photonics S.L. 17.18. POET Technologies 18. Assumptions & Acronyms Used 19. Research Methodology
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