Photonic Integrated Circuit Market: By Component (Lasers, Modulators, Photodetectors, Attenuators and Optical amplifiers), By Raw Material (Lithium Niobate, Silicon on Insulator, Indium Phosphide and Allium Arsenide), By Integration Process (Module, Hybrid and Monolithic), And Region - Global Analysis of Market Size, Share & Trends for 2019-2020 And Forecasts To 2031
Global Photonic Integrated Circuit to surpass USD 77.6 billion by 2031 from USD 5.6 billion in 2021 at a CAGR of 30% in the coming years, i.e., 2021-31.
PIC (photonic integrated circuit) is a cutting-edge technology that simplifies optical system design, decreases size and power consumption, and enhances reliability. The notion of a photonic integrated circuits is quite similar to that of an electronic integrated circuit. With the emergence of smaller, less expensive optical interconnects, it is on the cutting edge of computing, with applications ranging from communications & security to medical and entertainment. The most common example of photonic integrated circuits is optical fiber communication
Global Photonic Integrated Circuit market is expected to project a notable CAGR of 30% in 2031.
Global Photonic Integrated Circuit to surpass USD 77.6 billion by 2031 from USD 5.6 billion in 2021 at a CAGR of 30% in the coming years, i.e., 2021-31. The rapid growth of internet users worldwide is expected to increase demand for high-speed internet connectivity, boosting the demand for photonic IC component in the telecommunications industry. Apart from that, one of the primary market factors for photonic integrated circuits is the expanding creation of data centers.
Laser segment to grow with the highest CAGR during 2021-31
Lasers, modulator, photodetectors, attenuator, and optical amplifiers are the components that make up the photonic integrated circuits market. Due to its widespread use in industries such as tele-communication and data center sectors, the laser photonic IC industry accounted for the largest share of the industry share & is predicted to develop at a rapid rate. Lasers enable a broad working temperature range, increased optical power, and spectrum purity.
Indium Phosphide segment to grow with the highest CAGR during 2021-31
Lithium Niobate, Silicon on Insulators, Indium Phosphide, and allium Arsenide are some of the raw materials utilized to make PICs. Due to the growing demand for high-speed data transmission, the indium phosphide sector accounted for the biggest proportion of the photonic IC market. The capacity to incorporate both active and passive devices, as well as the ability to mass produce at a low cost, has resulted in an increase in demand. Due to features such as reduced component sizes and high efficiency, the silicon based photonics IC market is growing rapidly. The segment's expansion will be aided by increased computing and processing capabilities of silicon-based components.
Rise in demand for PIC in telecommunication
The shrinking of devices and the increase in the level of integration are driving the growth of the photonic integrated circuits market. This circuit allows for high-speed data transfer, making it suited for a variety of applications in the industrial, aerospace, telecommunications, utilities, and energy sectors, all of which are important drivers of the photonic IC industry. The advantages supplied by photonic integrated circuit firms include simple photonic integrated circuitry with less energy usage, smaller and faster products, and efficient and eco-friendly products.
Increasing inventions and improvements in Photonics
The market is growing due to enhanced inventions and improvements in the realm of photonics and fiber optics. The market for high-speed & efficient data transfer in data centers is growing, which presents prospects for market expansion. The growing demand for enhanced communication and computing, as well as flexible, downsized, and power-efficient circuits, are all aspects that will help the photonic IC market flourish.
Lack of digitization and awareness
The market is being hampered by high assembling costs. Optical and electrical packaging account for over half of total device expenses, making it the photonic integrated circuits market's biggest bottleneck. To address this issue, innovation centers such as the Chip Integrated Technology Center (CITC) are stepping up their efforts to eliminate these roadblocks and develop photonic integrated circuits with heterogeneous integration and sophisticated packaging (PIC). The market's growth is being hampered by a lack of digitization and awareness of modern packaging techniques.
Company Overview, Business Strategy, Key Product Offerings, Financial Performance, Key Performance Indicators, Risk Analysis, Recent Development, Regional Presence, SWOT Analysis
Global Photonic Integrated Circuit market is segmented based on regional analysis into five major regions: North America, Latin America, Europe, Asia Pacific and the Middle East and Africa. Data centers & WAN applications of fiber optic communication are propelling the growth of photonic integrated circuit (PIC) based devices in North America. The growing demand for high-speed data transfer has increased cloud computing data traffic, and the rapid adoption of IoT has generated a potentially burgeoning photonic integrated circuit business in the region. North America is predicted to produce the most cloud traffic during the forecast period, as according Cisco Cloud Index. Market adoption is likely to rise as a result of these dynamics.
Despite the fact that the COVID-19 epidemic has spread to most of the world's regions, the pandemic's effects are still being felt in some places. The majority of business sectors have seen a drop in need for their products. The COVID-19 situation, on the other hand, has a beneficial impact on the photonic integrated circuits market. The manufacturers of photonic integrated circuits have taken advantage of the pandemic scenario and invented a new gadget, a Point-of-Care screening device, that can quickly and accurately determine whether a patient is infected using virus sensors. The PIC market & semiconductor industry, on the other hand, are unaffected by the coronavirus pandemic. As a result, the pandemic condition has a beneficial influence and provides a chance for device development.
Market size value in 2021
USD 5.6 billion
Revenue forecast in 2031
USD 77.6 billion
CAGR of 30% from 2021 to 2031
Base year for estimation
Revenue in USD million and CAGR from 2021 to 2031
Revenue forecast, company ranking, competitive landscape, growth factors, and trends
Components, Raw material, Integration process and Region
North America, Europe, Asia Pacific, Latin America, Middle East & Africa (MEA)
Key companies profiled
Broadcom Inc., Ciena Corporation, Enablence Technologies, Inc., Infinera Corporation, Intel Corporation, Lumentum Operations LLC, NeoPhotonics Corporation, Nokia Networks, NeoPhotonics Corporation and Other Prominent Players.
Photonic Integrated Circuit market size was estimated at USD 5.6 billion in 2021 and is expected to reach USD 77.6 billion in 2031.
PIC (photonic integrated circuit) is a cutting-edge technology that simplifies optical system design, decreases size and power consumption, and enhances reliability. The notion of a photonic integrated circuits is quite similar to that of an electronic integrated circuit
Indium Phosphide and Lasers segment accounted for the largest Photonic Integrated Circuit market share.
Key players: Broadcom Inc., Ciena Corporation, Enablence Technologies, Inc., Infinera Corporation, Intel Corporation, Lumentum Operations LLC, NeoPhotonics Corporation, Nokia Networks, NeoPhotonics Corporation are the key players in the Photonic Integrated Circuit market.
Increasing inventions and improvements in Photonics and Rise in demand of photonic integrated circuits in telecommunication are driving the Market growth.
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