Photonic Integrated Circuit Market Size (2024 - 2029)

The market size for Photonic Integrated Circuit (PIC) is set to expand significantly in the coming years due to its superior features compared to traditional integrated circuits (ICs). PICs are more energy-efficient, accommodate higher bandwidth, and are faster, addressing some of the key issues associated with traditional ICs. They also allow for a reduction in power consumption in critical applications and can cover higher frequencies, making them more efficient. The growing demand for these devices is driven by the data-driven ecosystems and the need for efficient network traffic management, particularly within data centers. Despite the advantages, hybrid photonic ICs have not yet achieved the same market penetration as traditional ICs. The market is also seeing growth in the surveillance sector due to the deployment of optical and photonic sensors in public places worldwide.

Market Size of Photonic Integrated Circuit Industry

Photonic Integrated Circuit Market Summary
Study Period 2019 - 2029
Market Size (2024) USD 15.11 Billion
Market Size (2029) USD 38.35 Billion
CAGR (2024 - 2029) 20.47 %
Fastest Growing Market Asia Pacific
Largest Market Asia Pacific

Major Players

Photonic Integrated Circuit Market Major Players

*Disclaimer: Major Players sorted in no particular order


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Photonic Integrated Circuit Market Analysis

The Photonic Integrated Circuit Market size is estimated at USD 15.11 billion in 2024, and is expected to reach USD 38.35 billion by 2029, growing at a CAGR of 20.47% during the forecast period (2024-2029).

  • As soon as a single chip is attached, different components of the photonics, like waveguides, lasers, modulators, and detectors, become known as photonic integrated circuits. Photonic integrated circuits are extremely fast, accommodate higher bandwidth, and have high energy efficiency compared to traditional ICs. These features have dealt with some of the fundamental drawbacks associated with traditional ICs.
  • In the case of photonic ICs, the power consumed in such critical applications could be reduced by at least 50%. The frequencies that could be covered with photons are about 1,000-10,000 times higher than the spectrum covered with microelectronics, implying that by using photonic ICs, end users can achieve much higher frequencies that are far more energy-efficient than traditional ICs.
  • These low costs of photonics devices manufactured through the hybrid monolithic approach are growing exponentially every year as a result of DataDriven Ecosystems, finding great demand from end users' applications.
  • In addition, several market participants are working to take advantage of PIC's active developments as part of a highly integrated photonic technology and in order to meet the growing volume of network traffic driven by COVID-19 pandemic responses, particularly within data centers.
  • While hybrid photonic ICs are highly efficient and have a number of advantages compared to previous generations of conventional ICs, they do not achieve the level of market penetration found in traditional ICs.
  • The surveillance market is growing with threats and scenarios like COVID-19. Many public places worldwide are deploying optical and photonic sensors that enable high-sensitivity night vision sensors, cameras, and systems combined with semiconductor photocathode technology with silicon-based digital video technology.

Photonic Integrated Circuit Industry Segmentation

A microchip contains two or more optical components forming a working circuit, which is sometimes referred to as an Integrated Photonics Circuit. This system is capable of detecting, generating, transporting, and processing.

The scope of the study covers photonic ICs, their growth and restricting factors, and the increased demand across various applications. The study also briefly analyzes the impact of macroeconomic trends on the market. The concept of the photonic integrated circuit is similar to electronic integrated circuits.

The report offers global photonic IC market growth, and the market is segmented by type of raw material (iii-v material, lithium niobate, silica-on-silicon, and other raw materials), integration process (hybrid and monolithic), application (telecommunications, biomedical, data centers, and other applications like optical sensors, LiDAR, and metrology), and geography (North America, Europe, Asia Pacific and the Rest of the World). The market sizes and forecasts are provided in terms of value in USD for all the above segments.

By Type of Raw Material
III-V Material
Lithium Niobate
Other Raw Materials
By Integration Process
By Application
Data Centers
Other Applications (Optical Sensors (LiDAR), Metrology)
By Geography
North America
Asia Pacific
Rest of the World

Photonic Integrated Circuit Market Size Summary

The Photonic Integrated Circuit Market is expected to experience significant growth in the coming years. This growth is driven by the increasing adoption of photonic integrated circuits (PICs) in various sectors such as telecommunications, data centers, and surveillance, due to their high speed, energy efficiency, and ability to accommodate higher bandwidth compared to traditional ICs. The market is also benefiting from the growing demand for PICs in response to the increasing volume of network traffic driven by the COVID-19 pandemic, particularly within data centers. However, despite their advantages, hybrid photonic ICs have not yet achieved the same level of market penetration as traditional ICs. The market is seeing increased demand, particularly in North America, driven by data centers and fiber optic communication WAN applications. The rapid growth in cloud computing traffic and the introduction of the Internet of photonics are expected to boost the IC industry in the region. Several international companies are working on PIC-based solutions for telecommunications challenges, in collaboration with academia, business, and government partners. The market is moderately competitive, with several major players dominating. However, with technological advancements and innovations, many companies are increasing their market presence by securing new contracts and tapping into new markets.

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Photonic Integrated Circuit Market Size - Table of Contents


    1. 1.1 Market Overview

    2. 1.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.2.1 Bargaining Power of Suppliers

      2. 1.2.2 Bargaining Power of Consumers

      3. 1.2.3 Threat of New Entrants

      4. 1.2.4 Intensity of Competitive Rivalry

      5. 1.2.5 Threat of Substitute Products

    3. 1.3 Assessment of the Impact of Key Macroeconomic Factors on the Market


    1. 2.1 By Type of Raw Material

      1. 2.1.1 III-V Material

      2. 2.1.2 Lithium Niobate

      3. 2.1.3 Silica-on-silicon

      4. 2.1.4 Other Raw Materials

    2. 2.2 By Integration Process

      1. 2.2.1 Hybrid

      2. 2.2.2 Monolithic

    3. 2.3 By Application

      1. 2.3.1 Telecommunications

      2. 2.3.2 Biomedical

      3. 2.3.3 Data Centers

      4. 2.3.4 Other Applications (Optical Sensors (LiDAR), Metrology)

    4. 2.4 By Geography

      1. 2.4.1 North America

      2. 2.4.2 Europe

      3. 2.4.3 Asia Pacific

      4. 2.4.4 Rest of the World

Photonic Integrated Circuit Market Size FAQs

The Photonic Integrated Circuit Market size is expected to reach USD 15.11 billion in 2024 and grow at a CAGR of 20.47% to reach USD 38.35 billion by 2029.

In 2024, the Photonic Integrated Circuit Market size is expected to reach USD 15.11 billion.

Photonic Integrated Circuit Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)