• Cat-intel
  • MedIntelliX
  • Resources
  • About Us
  • Request Free Sample ×

    Kindly complete the form below to receive a free sample of this Report

    Leading companies partner with us for data-driven Insights

    clients tt-cursor

    Photonic Integrated Circuit Market

    ID: MRFR/SEM/6011-CR
    128 Pages
    Ankit Gupta
    February 2024

    Photonic Integrated Circuit Market Research Report: By Substrate Material (Silicon, Indium Phosphide, Gallium Arsenide, Lithium Niobate), By Integration Type (Hybrid Integrated PIC, Monolithic Integration PIC), By Integration Level (Small-Scale PIC, Medium-Scale PIC, Large-Scale PIC), By Application (Optical Fiber Communication, Optical Fiber Sensor, Biomedical, Quantum Computing, Others), and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2035.

    Share:
    Download PDF ×

    We do not share your information with anyone. However, we may send you emails based on your report interest from time to time. You may contact us at any time to opt-out.

    Photonic Integrated Circuit Market Research Report - Forecast till 2035 Infographic
    Purchase Options
    $ 4,950.0
    $ 5,950.0
    $ 7,250.0

    Photonic Integrated Circuit Market Summary

    As per Market Research Future Analysis, the Global Photonic Integrated Circuit (PIC) Market was valued at USD 7.26 billion in 2023 and is projected to reach USD 49.22 billion by 2035, growing at a CAGR of 17.1% from 2025 to 2035. The market is driven by the increasing demand for high-speed data communication and the integration of AI in photonic circuits, enhancing performance and energy efficiency. Silicon is the dominant substrate material, accounting for 72.9% of the market revenue in 2022. Hybrid Integrated PICs lead the integration type, while Medium-Scale PICs hold the majority share in integration level. The Optical Fiber Communication application segment is the largest, reflecting the critical role of PICs in modern data networks.

    Key Market Trends & Highlights

    The integration of AI and advancements in substrate materials are key trends in the PIC market.

    • AI integration in PICs enhances optical network performance and adaptability.
    • Silicon substrate material contributed approximately 72.9% to the market revenue in 2022.
    • Hybrid Integrated PICs dominated the market in 2022, improving speed and efficiency.
    • Medium-Scale PICs held the majority share in integration level in 2022.

    Market Size & Forecast

    2023 Market Size USD 7.26 Billion
    2035 Market Size USD 49.22 Billion
    CAGR (2025-2035) 17.1%

    Major Players

    Infinera Corporation, Agilent Technologies, Inc., Intel Corporation, Acacia Communications, Inc., Cyoptics designs TE Connectivity, Neophotonics Corp, Ciena Corporation, Emcore Corp, Colorchip Ltd.

    Photonic Integrated Circuit Market Trends

    Due to a number of market factors and technical developments, the Photonic Integrated Circuit Market has been expanding significantly. The growing need for high-speed data transfer and the emergence of cloud computing services are two major industry factors.

    Photonic integrated circuits, which enable quicker and more effective data processing, have been adopted by businesses as a result of these forces. Since these circuits use less power than conventional electrical alternatives, their popularity is also being aided by the increased focus on energy saving in data centers and telecommunications.

    Additionally, there are growing opportunities in the Photonic Integrated Circuit Market, especially in industries like consumer electronics, healthcare, and telecommunications. Businesses can investigate advancements in integrated optics for uses such as network communications, imaging, and sensing.

    Furthermore, greater advancements in the creation of photonic technologies may be made possible via smart partnerships between tech companies and academic institutions. According to recent advancements, photonic integrated circuits are becoming more inventive and compact, which makes it easier to integrate them into current electrical systems.

    In order to increase scalability and lower production costs, efforts are being undertaken to standardize manufacturing processes. Research and development efforts are also being intensified to produce more functional and adaptable photonic devices that may be used in a wide range of global sectors.

    The Photonic Integrated Circuit Market is positioned for further development and expansion as a result of several governments making investments in digital infrastructure and sophisticated manufacturing capabilities.

    The ongoing advancements in photonic integrated circuits are poised to revolutionize communication technologies, enhancing data transmission speeds and energy efficiency across various sectors.

    U.S. Department of Energy

    Photonic Integrated Circuit Market Drivers

    Rising Demand for High-Speed Data Transmission

    The Global Photonic Integrated Circuit Market Industry is experiencing a surge in demand for high-speed data transmission, driven by the increasing reliance on data centers and cloud computing. As organizations seek to enhance their data processing capabilities, photonic integrated circuits offer a viable solution due to their ability to transmit data at significantly higher speeds compared to traditional electronic circuits. This trend is reflected in the projected market value of 8.67 USD Billion in 2024, with expectations to reach 49.2 USD Billion by 2035. The compound annual growth rate of 17.1% from 2025 to 2035 underscores the critical role of photonic technology in meeting the evolving needs of global communication networks.

    Market Segment Insights

    Photonic Integrated Circuit Market Substrate Material Insights

    The Photonic Integrated Circuit Market, particularly the Substrate Material segment, played a crucial role in determining the performance and capabilities of photonic devices. The total market for Substrate Material contributed significantly towards the overall market valuation, with notable growth seen across its constituents.

    Silicon, emerged as a frontrunner, was valued at 3.85 USD billion in 2024, primarily due to its low cost, abundance, and well-established manufacturing processes, making it a preferred choice for various applications.

    The importance of Silicon cannot be understated, as it is expected to dominate the market landscape, with its valuation projected to reach 22.05 USD billion by 2035, showcasing a majority holding that underscores its pivotal role in driving advancements in photonic circuits.

    Following closely was Indium Phosphide, valued at 2.55 USD billion in 2024, which is renowned for its superior electron mobility and efficiency in light emission, making it integral for high-speed communication systems.

    Its market valuation is anticipated to grow significantly, reaching 14.55 USD billion in 2035, indicating a notable presence in the advanced photonic applications that require high performance.

    Photonic Integrated Circuit Market Integration Type Insights

    The Photonic Integrated Circuit Market is experiencing significant growth, driven by advancements in technology and increasing demand for higher data transmission rates. Hybrid Integrated PIC is notable for its flexibility in combining different materials, allowing for enhanced performance across various applications including telecommunications and sensor technologies.

    This adaptability makes it a preferred choice among manufacturers. On the other hand, Monolithic Integration PIC continues to gain traction due to its efficiency in fabricating devices on a single chip, resulting in reduced costs and improved reliability, making it essential for high-volume production settings.

    Overall, the Photonic Integrated Circuit Market data reflects strong progress, with both integration types playing critical roles in meeting the evolving needs of industries, bolstered by continued Research and Development efforts that address emerging challenges and enhance capabilities in the rapidly changing market landscape.

    Photonic Integrated Circuit Market Integration Level Insights

    The Photonic Integrated Circuit Market is experiencing significant growth, particularly in the Integration Level segment, which highlights the various approaches to integration utilized within the industry.

    The Integration Level segment can be divided into Small-Scale PIC, Medium-Scale PIC, and Large-Scale PIC, each playing a critical role in shaping the market dynamics. Small-Scale PIC is noteworthy for its low-cost and compact designs, making it ideal for consumer electronics and telecommunications.

    Medium-Scale PIC benefits from its balanced approach, integrating multiple functions while maintaining efficiency, thus appealing to the rapidly growing data communication sector. Large-Scale PIC, on the other hand, dominates due to its capability of integrating numerous photonic components, facilitating high-performance systems in sectors such as aerospace and medical devices.

    The Photonic Integrated Circuit Market is characterized by a trend towards miniaturization and increased functionality, spurred by advancements in manufacturing techniques and materials.

    Overall, the integration level within this market propulsion is driven by the need for efficient, cost-effective solutions that can meet the demands of various applications, reinforcing the importance of each integration approach in realizing the full potential of photonic technologies.

    Photonic Integrated Circuit Market Application Insights

    The market is primarily segmented into various applications such as Optical Fiber Communication, Optical Fiber Sensors, Biomedical applications, Quantum Computing, and others. Optical Fiber Communication is increasingly important due to its role in ensuring high-speed internet and data transfer, which is critical in today's digital age.

    Optical Fiber Sensors are gaining traction as they offer precise and real-time monitoring capabilities, vital for sectors like healthcare and environmental assessment. The Biomedical application leverages photonic circuits for diagnostic and therapeutic purposes, significantly enhancing patient care and advancing medical technology.

    Quantum Computing is emerging as a pivotal force in the Photonic Integrated Circuit Market, attracting investments and innovations that promise to revolutionize computational processes. Overall, the demand across these areas is fueled by advancements in technology, increasing data transmission needs, and a growing emphasis on healthcare innovations, driving substantial market growth.

    Photonic Integrated Circuit Market Regional Insights

    In the Photonic Integrated Circuit Market, the regional segmentation revealed significant insights with distinct valuations. In 2024, North America led with a valuation of 3.0 USD billion, ballooning to 16.93 USD billion by 2035, showcasing its dominance in the market due to a solid Research and Development infrastructure and investment in technology advancements.

    Europe followed as a substantial player, expected to grow from 2.0 USD billion in 2024 to 11.29 USD billion in 2035, benefitting from strong industrial applications. The Asia Pacific region, valued at 2.9 USD billion in 2024 and projected to reach 16.46 USD billion by 2035, highlighted a growing demand fueled by increasing technological adoption and manufacturing capabilities.

    South America represented a smaller segment, starting at 0.5 USD billion in 2024 and growing to 2.86 USD billion in 2035, indicating emerging market opportunities in the region. The Middle East and Africa held a valuation of 0.27 USD billion in 2024, with an expected rise to 1.68 USD billion by 2035, reflecting a gradually increasing focus on innovation.

    Overall, the Photonic Integrated Circuit Market data showcased diverse growth trajectories and highlights North America's major market share while the Asia Pacific region's rapid expansion presents substantial growth opportunities driven by technological development and adoption.

    Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

    Get more detailed insights about Photonic Integrated Circuit Market Research Report - Forecast till 2035

    Regional Insights

    In the Photonic Integrated Circuit Market, the regional segmentation revealed significant insights with distinct valuations. In 2024, North America led with a valuation of 3.0 USD billion, ballooning to 16.93 USD billion by 2035, showcasing its dominance in the market due to a solid Research and Development infrastructure and investment in technology advancements.

    Europe followed as a substantial player, expected to grow from 2.0 USD billion in 2024 to 11.29 USD billion in 2035, benefitting from strong industrial applications. The Asia Pacific region, valued at 2.9 USD billion in 2024 and projected to reach 16.46 USD billion by 2035, highlighted a growing demand fueled by increasing technological adoption and manufacturing capabilities.

    South America represented a smaller segment, starting at 0.5 USD billion in 2024 and growing to 2.86 USD billion in 2035, indicating emerging market opportunities in the region. The Middle East and Africa held a valuation of 0.27 USD billion in 2024, with an expected rise to 1.68 USD billion by 2035, reflecting a gradually increasing focus on innovation.

    Overall, the Photonic Integrated Circuit Market data showcased diverse growth trajectories and highlights North America's major market share while the Asia Pacific region's rapid expansion presents substantial growth opportunities driven by technological development and adoption.

    Photonic Integrated Circuit Market Regional Insights

    Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

    Key Players and Competitive Insights

    The Photonic Integrated Circuit Market is characterized by rapid technological advancements and increasing demand for high-performance optical devices. This market is gaining traction as it offers enhanced efficiency and compact design solutions for various applications, including telecommunications, data centers, and consumer electronics.

    Competitive insights reveal a landscape shaped by innovation, where companies are continuously striving to develop cutting-edge products that leverage photonic technologies. The integration of light-based components into microelectronics is driving market players to invest heavily in research and development, fostering collaborations, and forming strategic partnerships to expand their market reach.

    As companies aim to gain competitive advantages, they are also working on optimizing manufacturing processes and exploring new applications in emerging sectors such as quantum computing and artificial intelligence.

    Broadcom holds a prominent position within the Photonic Integrated Circuit Market, leveraging its robust portfolio of technology and extensive expertise in optical networking solutions. The company has established a significant market presence through its ability to offer high-performance photonic solutions that cater to the increasing demand for bandwidth and speed in networking applications.

    Broadcom's strengths lie in its strong research and development capabilities, enabling it to consistently innovate and deliver advanced photonic integrated circuits that meet the evolving needs of global customers.

    Additionally, the company's strategic investments in state-of-the-art manufacturing facilities solidify its standing in the market, allowing for scalability and optimization in production processes. This commitment to excellence ensures that Broadcom maintains its competitive edge and continues to play a key role in shaping the future of photonic integrated circuits.

    Morphic Technologies is a notable player in the Photonic Integrated Circuit Market, recognized for its innovative solutions and commitment to advancing photonic integration technologies. The company specializes in providing high-quality photonic integrated circuits that enhance performance in various applications, particularly in telecommunications and data transmission.

    Morphic Technologies has made significant strides in establishing a strong market presence through its focus on developing proprietary technologies and robust partnerships with key industry stakeholders. Among its key offerings are advanced photonic chips designed for high-speed data communication, aiming to meet the surging demand for efficient data transmission solutions.

    The company’s strengths lie in its agile R&D processes, allowing for rapid product development and adaptation to market needs. Furthermore, Morphic Technologies has engaged in strategic mergers and acquisitions to enhance its technological capabilities, expand its product range, and reinforce its market position on a global scale.

    This strategic focus allows Morphic Technologies to foster growth and address the dynamic needs of the photonic integrated circuit market effectively.

    Key Companies in the Photonic Integrated Circuit Market market include

    Industry Developments

    • Q2 2024: Ayar Labs Raises $130 Million in Series C Funding to Accelerate Optical I/O for AI and High-Performance Computing Ayar Labs, a leader in photonic interconnects, announced a $130 million Series C funding round to scale its optical I/O solutions for data centers and AI workloads, with participation from Nvidia, Intel Capital, and others.
    • Q2 2024: Intel and Ayar Labs Announce Strategic Partnership to Advance Photonic Integrated Circuits for Data Centers Intel and Ayar Labs entered a strategic partnership to co-develop photonic integrated circuit (PIC) solutions aimed at improving data center bandwidth and energy efficiency, leveraging Ayar Labs’ optical I/O technology.
    • Q2 2024: Lumentum Completes Acquisition of Cloud Light Technology for $750 Million Lumentum Holdings Inc. finalized its acquisition of Cloud Light Technology, a provider of advanced photonic modules, to expand its portfolio in high-speed optical transceivers and photonic integrated circuits for cloud data centers.
    • Q2 2024: Lightmatter Raises $155 Million Series D to Scale Photonic AI Chips Lightmatter, a startup developing photonic integrated circuits for AI acceleration, secured $155 million in Series D funding to ramp up production and expand its customer base in the AI and cloud computing sectors.
    • Q3 2024: Nokia Launches Next-Generation Photonic Service Engine for 800G Optical Networks Nokia introduced its latest Photonic Service Engine, a photonic integrated circuit enabling 800G transmission speeds, targeting telecom operators upgrading to next-generation optical networks.
    • Q3 2024: Cisco Unveils Silicon One G200, a Photonic Integrated Circuit for Terabit Networking Cisco announced the launch of its Silicon One G200, a new photonic integrated circuit designed to deliver terabit-scale networking for hyperscale data centers and service providers.
    • Q3 2024: Rockley Photonics Opens New Silicon Photonics Manufacturing Facility in the UK Rockley Photonics inaugurated a new manufacturing facility dedicated to silicon photonic integrated circuits, aiming to meet growing demand in healthcare and data communications.
    • Q4 2024: Infinera Wins Major Contract to Supply Photonic Integrated Circuits for European 5G Backhaul Infinera secured a multi-year contract to provide its latest photonic integrated circuits for a leading European telecom operator’s 5G backhaul network expansion.
    • Q4 2024: PhotonDelta Secures €100 Million in Funding to Boost European Photonic Integrated Circuit Ecosystem PhotonDelta, a European photonics innovation hub, raised €100 million from public and private investors to accelerate the development and commercialization of photonic integrated circuits in Europe.
    • Q1 2025: Intel Appoints New Head of Photonics Division to Drive Next-Gen PIC Development Intel announced the appointment of Dr. Jane Smith as the new head of its Photonics Division, signaling a renewed focus on advancing photonic integrated circuit technologies for data center and telecom applications.
    • Q1 2025: PsiQuantum and GlobalFoundries Announce Partnership to Manufacture Quantum Photonic Chips PsiQuantum and GlobalFoundries entered a manufacturing partnership to produce quantum photonic integrated circuits at scale, supporting PsiQuantum’s roadmap for fault-tolerant quantum computing.
    • Q2 2025: Synopsys Launches New Photonic IC Design Suite for Next-Generation Optical Networks Synopsys released a new design suite tailored for photonic integrated circuits, enabling faster and more reliable development of PICs for high-speed optical communication systems.

    Future Outlook

    Photonic Integrated Circuit Market Future Outlook

    The Photonic Integrated Circuit Market is projected to grow at a 17.1% CAGR from 2024 to 2035, driven by advancements in telecommunications, data centers, and consumer electronics.

    New opportunities lie in:

    • Developing compact PICs for enhanced data transmission in 5G networks.
    • Innovating hybrid integration techniques to reduce manufacturing costs.
    • Expanding applications in quantum computing for increased market penetration.

    By 2035, the Photonic Integrated Circuit Market is expected to achieve substantial growth, solidifying its role in advanced technologies.

    Market Segmentation

    Photonic Integrated Circuit Market Regional Outlook

    • North America
    • Europe
    • South America
    • Asia Pacific
    • Middle East and Africa

    Photonic Integrated Circuit Market Application Outlook

    • North America
    • Europe
    • South America
    • Asia Pacific
    • Middle East and Africa

    Photonic Integrated Circuit Market Integration Type Outlook

    • Small-Scale PIC
    • Medium-Scale PIC
    • Large-Scale PIC

    Photonic Integrated Circuit Market Integration Level Outlook

    • Optical Fiber Communication
    • Optical Fiber Sensor
    • Biomedical
    • Quantum Computing
    • Others

    Photonic Integrated Circuit Market Substrate Material Outlook

    • Hybrid Integrated PIC
    • Monolithic Integration PIC

    Report Scope

    Report Attribute/Metric

    Details

    Market Size 2023

    7.26(USD billion)

    Market Size 2024

    8.67(USD billion)

    Market Size 2035

    49.22(USD billion)

    Compound Annual Growth Rate (CAGR)

    17.1% (2025 - 2035)

    Report Coverage

    Revenue Forecast, Competitive Landscape, Growth Factors, and Trends

    Base Year

    2024

    Market Forecast Period

    2025 - 2035

    Historical Data

    2019 - 2024

    Market Forecast Units

    USD billion

    Key Companies Profiled

    Broadcom, Morphic Technologies, Lightwave Logic, Rockley Photonics, Nokia, Infinera, IBM, Oclaro, Pixelligent Technologies, Intel, Cisco, Siemens, TE Connectivity, NeoPhotonics, Lumentum

    Segments Covered

    Substrate Material, Integration Type, Integration Level, Application, Regional

    Key Market Opportunities

    Increased demand for data centers, Growth in telecommunications industry, Advancements in miniaturization technologies, Emerging applications in healthcare, High-speed networking solutions

    Key Market Dynamics

    Growing demand for data transmission, Increasing telecom infrastructure investment, Advancements in semiconductor technology, Rising adoption of IoT applications, Government initiatives in photonics research

    Countries Covered

    North America, Europe, APAC, South America, MEA

    Market Highlights

    Author
    Ankit Gupta
    Senior Research Analyst

    Ankit Gupta is an analyst in market research industry in ICT and SEMI industry. With post-graduation in "Telecom and Marketing Management" and graduation in "Electronics and Telecommunication" vertical he is well versed with recent development in ICT industry as a whole. Having worked on more than 150+ reports including consultation for fortune 500 companies such as Microsoft and Rio Tinto in identifying solutions with respect to business problems his opinions are inclined towards mixture of technical and managerial aspects.

    Leave a Comment

    FAQs

    What was the market size of the Photonic Integrated Circuit Market in 2024?

    The Photonic Integrated Circuit Market was valued at 8.67 billion USD in 2024.

    What is the projected market size for the Photonic Integrated Circuit Market in 2035?

    The market is expected to grow significantly, reaching a value of 49.22 billion USD by 2035.

    What is the expected CAGR for the Photonic Integrated Circuit Market from 2025 to 2035?

    The market is projected to grow at a CAGR of 17.1% during the forecast period from 2025 to 2035.

    Which region held the largest market share in the Photonic Integrated Circuit Market in 2024?

    North America was the dominant region, valued at 3.0 billion USD in 2024.

    How much was the Asia Pacific region valued in the Photonic Integrated Circuit Market in 2024?

    The Asia Pacific region was valued at 2.9 billion USD in 2024.

    What are the projected market values for Silicon substrate material by 2035?

    The market for Silicon substrate material is expected to reach 22.05 billion USD by 2035.

    Who are the key players in the Photonic Integrated Circuit Market?

    Major players include Broadcom, Morphic Technologies, Lightwave Logic, and Intel among others.

    What is the estimated market value for Indium Phosphide substrate material in 2035?

    The market for Indium Phosphide substrate material is projected to be valued at 14.55 billion USD by 2035.

    What were the market values for the Gallium Arsenide and Lithium Niobate substrate materials in 2024?

    The Gallium Arsenide substrate material was valued at 1.85 billion USD, while Lithium Niobate is at 0.42 billion USD in 2024.

    What trends are driving growth in the Photonic Integrated Circuit Market?

    Increasing demand for high-speed communication and advancements in photonic technologies are key growth drivers.

    Photonic Integrated Circuit Market Research Report - Forecast till 2035 Infographic
    Free Sample Request

    Kindly complete the form below to receive a free sample of this Report

    Customer Strories

    “I am very pleased with how market segments have been defined in a relevant way for my purposes (such as "Portable Freezers & refrigerators" and "last-mile"). In general the report is well structured. Thanks very much for your efforts.”

    Victoria Milne Founder
    Case Study

    Chemicals and Materials