Global Photonic Integrated Circuit Market Size to worth USD 94.05 Billion by 2033: Market Report 2023-2033

Global Photonic Integrated Circuit Market worth USD 94.05 Billion by 2033

According to a research report published by Spherical Insights & Consulting, the Global Photonic Integrated Circuit Market Size is Expected to Grow from USD 11.85 Billion in 2023 to USD 94.05 Billion by 2033, at a CAGR of 23.02% during the forecast period 2023-2033.  

Browse key industry insights spread across 210 pages with 110 Market data tables and figures & charts from the report on the Global Photonic Integrated Circuit Market Size, Share, and COVID-19 Impact Analysis, By Material (III-V Material, Lithium Niobate, Silica-on-silicon, and Others), By Integration Process (Hybrid and Monolithic), By Application (Telecommunications, Biomedical, Data Centers, and Others), and By Region (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa), Analysis and Forecast 2023 – 2033.   

Photonic integrated circuit (PIC) is a microchip containing two or more photonic components that form a functioning circuit. Light is detected, produced, transported, and processed by this technology. Unlike electrical integrated circuits, which works electrons, photonic integrated circuits use photons, or particles of light. There is surging trend of faster data transmission rates in telecommunications and data centers which drives the photonics IC market. PICs are essential for manipulating individual photons in cutting-edge technologies like quantum computing and communication, which allows for tremendous improvements in these fields. Further, the need to use photonics to handle previously unheard-of data volumes and transmission rates as a result of the growth of 5G networks and the impending transition to 6G is anticipated to drive the market for PICs. The growing modern digital infrastructures, rising need for high-speed data communication, the need for additional bandwidth to deploy advanced network capabilities, and other reasons are the main drivers of this market's growth. On the contrary, the lack of digitalization as well as the lack of standardization in the common fabrication and process techniques are expected to hinder the market.   

The III-V material segment dominated the global photonic integrated circuit market with the largest share in 2023.

Based on the material, the photonic integrated circuit market is classified into III-V material, lithium niobate, silica-on-silicon, and others. Among these, the III-V material segment dominated the global photonic integrated circuit market with the largest share in 2023. III-V material is favored over other materials due to its lower power consumption capabilities. The qualities of this material include increased electron mobility, improved light absorption and emission efficiency, and improved conductivity and thermal stability.

The hybrid segment is anticipated to dominate the market during the projected timeframe.

Based on the integration process, the photonic integrated circuit market is classified into hybrid and monolithic. Among these, the hybrid segment is anticipated to dominate the market during the projected timeframe. Improved device performance, cost-effectiveness, increased design freedom, and a smaller physical footprint are some of the main advantages of hybrid PIC integration. The widespread application in industries such as sensor technology, data centers, medical imaging, and telecommunication is driving the market.

The data centers segment dominated the market with the largest revenue share in 2023.

Based on the application, the photonic integrated circuit market is classified into telecommunications, biomedical, data centers, and others. Among these, the data centers segment dominated the market with the largest revenue share in 2023. PICs, which use images rather than electrons, are essential for high-speed data transmission. Their increasing use in data centers is also a result of their energy efficiency feature. The continuous expansion of high-capacity data centers in response to data-driven ecosystems is driving the market.

North America is projected to hold the largest share of the global photonic integrated circuit market over the forecast period.

North America is projected to hold the largest share of the global photonic integrated circuit market over the forecast period. The expansion of 5G networks, the huge number of data centers in North America, the rising need for medicinal services, and the existence of several semiconductor market players are the factors responsible for driving the market in the region.

Asia Pacific is predicted to have the highest CAGR growth in the photonic integrated circuit market over the forecast period. The increasing technological advancements in photonic design for data centers and supercomputing as well as government support are responsible for driving the market. Further, the rapid pace of digital transformation and investment in communication infrastructure development are contributing to drive market growth.

Companies Profiles 

Major key players in the photonic integrated circuit market include Lumentum Operations LLC, POET Technologies, Coherent Corp., Infinera Corporation, Intel Corporation, Cisco Systems Inc., Source Photonics, Caliopa (Huawei Technologies Co. Ltd), EFFECT PHOTONICS, ANSYS, Inc., and others.

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Development

• In June 2024, Nokia and Infinera, a global supplier of innovative open optical networking solutions and advanced optical semiconductors, announced a definitive agreement under which Nokia would acquire Infinera in a transaction valuing the company at $6.65 per share or an enterprise value of US$ 2.3 billion.

• In March 2024, Infinera announced ICE-D, a new line of high-speed intra-data center optics based on monolithic indium phosphide (InP) photonic integrated circuit (PIC) technology. ICE-D optics are designed to dramatically lower cost and power per bit while providing intra-data center connectivity at speeds of 1.6 terabits per second (Tb/s) and greater.

• In March 2024, MaxLinear, a leading provider of high-speed interconnect ICs enabling data center, metro, and wireless transport networks, and Jabil, a global leader in design, manufacturing, and supply chain solutions, announced the production availability of a family of 800G silicon photonics-based optical transceiver modules aimed at enabling the AI/ML revolution.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2023 to 2033. Spherical Insights has segmented the global photonic integrated circuit market based on the below-mentioned segments:

Global Photonic Integrated Circuit Market, By Material

• III-V Material
• Lithium Niobate
• Silica-on-silicon
• Others

Global Photonic Integrated Circuit Market, By Integration Process

• Hybrid
• Monolithic

Global Photonic Integrated Circuit Market, By Application  

• Telecommunications
• Biomedical
• Data Centers
• Others

Global Photonic Integrated Circuit Market, Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Uk
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of Middle East & Africa