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  • Published On : Dec 2022
  • Code : CMI4179
  • Industry : Semiconductors
  • Pages : 135
  • Formats :

A photonic integrated circuit (IC) or also referred to as an integrated optical circuit is a device that integrates multiple photonic functions similar to an electronic integrated circuit. The main difference between electronic integrated circuits and photonic ICs lies in the type of raw material used for its fabrication. In electronic ICs, silicon is the primary and most dominant material used for fabrication so far, while in the case of PICs, the type of material used majorly depends upon the function/purpose of the device. Indium Phosphide, Gallium Arsenide, silica-on silicon, and silicon on insulator are the most common raw materials used for fabrication.

The global photonic IC market is estimated to account for US$ 22,965.8 Mn in terms of value by the end of 2030.

Recent Developments:

  • In March 2022 - EFFECT Photonics, a photonics semiconductor company, and Jabil Photonics, a manufacturing company declared an alliance to create a new generation of coherent optical modules. These modules present an exclusive solution for hyper-scalers and network operators looking for benefits from QSFP-high DD's performance, low power, small footprint, field replaceability, cost and consumption, and dealer interoperability for cloud DCIs (Data Center Interconnects).
  • In March 2022 - ColorChip Group, a manufacturer of optical sub-systems and components for the Datacom and Telecom markets, and Skorpios Technologies Inc., a heterogeneously integrated silicon photonics company, announced a strategic collaboration to develop and use Skorpios' disruptive optical technology to produce optical modules at new prices.
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Photonic IC Market Report Coverage

Report Coverage Details
Base Year: 2021 Market Size in 2021: US$ 1,719.3 Mn
Historical Data for: 2017 to 2020 Forecast Period: 2022 to 2030
Forecast Period 2022 to 2030 CAGR:  33.6% 2030 Value Projection: US$ 22,965.8 Mn
Geographies covered:
  • North America: U.S. and Canada
  • Latin America: Brazil, Argentina, Mexico, and Rest of Latin America
  • Europe: Germany, U.K., France, Italy, Russia, and Rest of Europe
  • Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia Pacific
  • Middle East and Africa: GCC Countries, South Africa, and Rest of Middle East and Africa
Segments covered:
  • By Components: Lasers, Modulators, Detectors, Attenuators, MUX/DEMUX, Optical Amplifiers.
  • By Integration Type: Monolithic Integration, Hybrid Integration, Module Integration.
  • By Raw Material: Indium Phosphide, Gallium Arsenide, Lithium Niobate, Silicon, Silica-on-Insulator, Others.
  • By Application: Optical communications, Sensing, Biophotonics, Optical signal processing.
Companies covered:

Agilent Technologies, Inc., Intel Corporation, Aifotec AG, Infinera Corporation, Alcatel-Lucent, Hewlett Packard, Avago Technologies, Finisar Corporation, Ciena Corporation, Enablence Technologies Inc., and Emcore Corporation.

Growth Drivers:
  • Decline in cost due to miniaturization is expected to drive growth of the global photonic IC market during the forecast period 
  • Growing application areas and increased functionalities are expected to propel the global photonic IC market growth over the forecast period
Restraints & Challenges:
  • Lack of digitization is expected to restrain growth of the global photonic IC market during the forecast period
  • Lack of standardization in the common fabrication and process techniques is expected to hamper the global photonic IC market growth over the forecast period

Restraint:

  • Lack of digitization is expected to restrain growth of the global photonic IC market during the forecast period
  • Lack of standardization in the common fabrication and process techniques is expected to hamper the global photonic IC market growth over the forecast period

Global Photonic IC Market - Impact of Coronavirus (Covid-19) Pandemic:

Due to the COVID-19 pandemic, many industries witnessed a significant shift in their businesses. There was a significant impact on the growth of the global photonics IC market. Manufacturing operations were temporarily suspended across many countries to contain the coronavirus. Due to this situation, there was a disruption in the supply chain, and companies are shifting their production facilities. The overall consumer demand for semiconductor devices also decreased. Owing to a pandemic, the demand for these photonic integrated circuits is exacerbated by lockdowns imposed in several countries.

North America held a dominant position in the global photonic IC market in 2021

Figure 1: Global Photonic IC Market Share (%), By Region, 2021

Photonic IC  | Coherent Market Insights

Statistics:

North America dominated the photonic IC market in 2021, accounting for a 41.1% share in terms of value, followed by Asia Pacific, Europe, and Latin America, respectively.

Figure 2: Global Photonic IC Market (US$ Mn) Analysis and Forecast, 2022 - 2030

Photonic IC  | Coherent Market Insights

The global photonic IC market was valued at US$ 1,719.3 Mn in 2021 and is expected to reach US$ 22,965.8 Mn by 2030, growing at a CAGR of 33.6% between 2022 and 2030.

Major players operating in the global photonic IC market are Agilent Technologies, Inc., Intel Corporation, Aifotec AG, Infinera Corporation, Alcatel-Lucent, Hewlett Packard, Avago Technologies Finisar Corporation, Ciena Corporation, Enablence Technologies Inc., and Emcore Corporation.

Photonics integrated circuits is a breakthrough technology that uses photons as data carriers as compared to the electron that is used in electronic ICs. The main difference between electronic integrated circuits and photonic ICs lies in the type of raw material used for its fabrication. In electronic ICs, silicon is the primary and most dominant material used for fabrication so far, while in the case of PICs, the type of material used majorly depends upon the function/purpose of the device. This technology is used to transfer large amounts of data at a very high speed. This technology is widely used in applications such as optical fiber communication, sensing, and biophotonics.

The Global Photonic IC Market is estimated to account for US$ 22,965.8 Mn in terms of value by the end of 2030.

Market Dynamics

Rising deployment of data centers by major IT companies to manage large amounts of data and integration of cloud services is expected to drive market growth during the forecast period. Nowadays, most of the countries are moving towards on-soil data requirement where customer personally identifiable information (PII) data can’t leave the country, to meet this requirement all the IT companies across the globe are establishing data center in every country. For instance, Amazon Web Service, Inc., has invested US$ 1,500 million to establish two data centers in Hyderabad owing to increased demand for cloud services in India. This will create demand for high speed and efficient data transmission in data centers and will provide lucrative growth opportunities for photonic IC market.

Moreover, growing application areas and increased functionalities are also expected to drive market growth during the forecast period. The increase in functionality as given by Moore’s law is best achieved by using Indium Phosphide as a substrate for photonic integration. This is majorly on account of its capability to support the incorporation of almost all functions essential in ICT applications. In addition, a set of building blocks including waveguide, phase shifter, amplifier detector, and polarization converter is available for Indium Phosphide and SOI platforms. These building blocks allow the fabrication of several devices, thereby granting freedom to optical designers to architect almost any optical system. Recently, there has been a steep rise in the applications of PICs in the field of optical communications, sensing, and biophotonics. Since PICs use photons as the data carriers, they are able to transfer the bulk of data over a long distance at a very high speed as compared to electronic ICs.

 Key features of the study:

  • This report provides an in-depth analysis of the global photonic IC market and provides market size (US$ million) and compound annual growth rate (CAGR %) for the forecast period (2022-2030) considering 2021 as the base year.
  • It elucidates potential revenue opportunities across different segments and explains attractive investment proposition matrix for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approval, regional outlook, and competitive strategy adopted by leading players
  • It profiles leading players in the global photonic IC market based on the following parameters – regulatory landscape, company overview, financial performance, product portfolio, geographical presence, distribution strategies, key developments and strategies, and future plans
  • Key companies covered in the global photonic IC market are Agilent Technologies, Inc., Intel Corporation, Aifotec AG, Infinera Corporation, Alcatel-Lucent, Hewlett Packard, Avago Technologies Finisar Corporation, Ciena Corporation, Enablence Technologies Inc., and Emcore Corporation.
  • The market players are focusing on strategic collaborations to innovate and launch new products to meet the increasing needs and requirements of consumers.
  • Insights from this report would allow arketers and management authorities of companies to make informed decision regarding future product launches, technology upgradation, market expansion, and marketing tactics
  • The global Photonic IC market report caters to various stakeholders in this industry including investors, suppliers, distributors, new entrants, and financial analysts
  • Stakeholders would have ease in decision-making through the various strategy matrices used in analyzing the global photonic IC market.

Detailed Segmentation

  • Global Photonic IC Market, By Components:
    • Lasers
    • Modulators
    • Detectors
    • Attenuators
    • MUX/DEMUX
    • Optical Amplifiers
  • Global Photonic IC Market, By Integration Type:
    • Monolithic Integration
    • Hybrid Integration
    • Module Integration
  • Global Photonic IC Market, By Material:
    • Indium Phosphide
    • Gallium Arsenide
    • Lithium Niobate
    • Silicon
    • Silica-on-Insulator
    • Others
  • Global Photonic IC Market, By Application:
    • Optical communications
    • Sensing
    • Biophotonics
    • Optical signal processing
  • Global Photonic IC Market, By Region:
    • North America
    • Europe
    • Asia Pacific
    • Latin America
    • Middle East and Africa
  • Company Profiles
    • Agilent Technologies, Inc.*
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Key Strategies
      • Recent Developments
    • Intel Corporation
    • Aifotec AG
    • Infinera Corporation
    • Alcatel-Lucent
    • Hewlett Packard
    • Avago Technologies
    • Finisar Corporation
    • Ciena Corporation
    • Enablence Technologies Inc.
    • Emcore Corporation

“*” marked represents similar segmentation in other categories in the respective section.

Frequently Asked Questions

The global photonic IC market is expected to reach US$ 22,965.8 million by 2030.
The market is expected to witness a CAGR of 33.6% during the forecast period (2022-2030).
Major factor driving the growth of market during the forecast period is growing application areas and increased functionalities.
The laser segment held the major market share in 2021 owing to recent advancements in the technologies and allowed manufactures to design more innovative and robust products owing to its widespread use in drilling, welding, cutting, marking, and engraving.
North America held the largest share in the market in 2021.
Key players operating in the market are Agilent Technologies, Inc., Intel Corporation, Aifotec AG, Infinera Corporation, Alcatel-Lucent, Hewlett Packard, Avago Technologies Finisar Corporation, Ciena Corporation, Enablence Technologies Inc., and Emcore Corporation.

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