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:
| Report Coverage | Details | ||
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| 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: |
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| 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. |
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Restraint:
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
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
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:
Detailed Segmentation
“*” marked represents similar segmentation in other categories in the respective section.
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