Photonic Integrated Circuit Market Trends

Global Photonic Integrated Circuit (PIC) Market Overview

Photonic Integrated Circuit (PIC) Market Size was valued at USD 7262.2 million in 2023. The Photonic Integrated Circuit (PIC) market industry is projected to grow from USD 8671.0668 Million in 2024 to USD 30655.9 million by 2032, exhibiting a compound annual growth rate (CAGR) of 17.10% during the forecast period (2024 - 2032).  A photonic integrated circuit (PIC) is a microchip containing two or more photonic components which form a functioning circuit, hence, also named photonic chip. Photonic components utilize photons (or particles of light) as opposed to electrons. As they move at the speed of light, photons have a wide bandwidth and minimal energy loss, making them both fast at transferring data and highly energy efficient.

Photonic integrated circuits can be used to create faster, and more energy efficient devices. That’s because these PICs can sense with the highest level of precision and are highly effective at processing and transmitting data. They are also integrated alongside traditional electronic chips and applications across a wide range of industries, including data and telecommunications, medical and healthcare, engineering and transport.

FIGURE 1: PHOTONIC INTEGRATED CIRCUIT (PIC) MARKET SIZE 2019-2032 (USD MILLION)

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

Photonic Integrated Circuit (PIC) Market Trends

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  INTEGRATION OF AI IN PHOTONIC INTEGRATED CIRCUITS

  
  

AI is collaborating with photonics in many areas, and photonics is also playing the role of AI, enabling ultra-fast AI networks and providing a new class of information processing machines (IPMs). The integration of photonic circuits with AI and machine learning algorithms is an emerging trend. This integration can be used for optimizing the performance of optical networks and enhancing their adaptability. AI technique particular machine learning can be applied to design and fabrication process of PIC. This includes automating the tuning of parameter for better performance and yield. AI algorithm can be integrated into PIC for optical computing applications. This involves using light signal to perform specific computation tasks, leveraging the parallelism inherit in optics for faster and more efficient processing. Photonic Integrated Circuit not only delivers higher levels of performance, but also provides a path to greater energy efficiency. Photonics can also support miniaturization, thereby minimizing power consumption.

Photonic Integrated Circuit (PIC) Market Segment Insights:

Photonic Integrated Circuit (PIC) Substrate Material Insights

Based on Substrate Material, the Photonic Integrated Circuit (PIC) Market segmentation includes Silicon, Indium Phosphide, Gallium Arsenide, Lithium Niobate. Silicon will be the majority share in 2022, contributing around 72.9% to the market revenue.  A Silicon Photonic Integrated Circuit (PIC) is a technology that combines the usefulness of silicon-based electronics with photonics to transmit and process data at high speeds. It utilizes silicon as a medium to guide and manipulate light waves, enabling efficient data transfer through optical signals. The circuit integrates multiple components on a single silicon chip, such as waveguides, modulators, and detectors. This integration eliminates the need for separate components, reducing cost, size, and power consumption. Silicon PICs find applications in various fields like telecommunications, data centres, and optical interconnects, offering faster and more reliable data transmission and processing capabilities.

FIGURE 2: PHOTONIC INTEGRATED CIRCUIT (PIC) MARKET, BY Substrate Material, 2022 VS 2032 (USD MILLION)

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

Photonic Integrated Circuit (PIC) Integration Type Insights

Based on the Integration Type, the Photonic Integrated Circuit (PIC) Market segmentation is Hybrid Integrated PIC, Monolithic Integration PIC. Hybrid Integrated PIC dominated the market in 2022. A Hybrid Integrated PIC (Photonic Integrated Circuit) is a technology that combines both electronic and photonic components on a single chip. It integrates optical functions, such as lasers, detectors, modulators, and waveguides, with electronic circuitry for seamless communication and data processing. This integration enhances speed, efficiency, and reliability in high-speed optical communication, sensing, and quantum information processing applications. By harnessing the unique properties of light, Hybrid Integrated PICs offer a promising solution to overcome the limitations of traditional electronic circuits, opening new avenues in the field of photonics and enabling advanced technologies for various industries.

Photonic Integrated Circuit (PIC) Integration Level Insights

Based on Integration Level, the Photonic Integrated Circuit (PIC) Market segmentation includes Small-Scale PIC, Medium-Scale PIC, Large-Scale PIC. Medium-Scale PIC Photonic Integrated Circuit (PIC) held the majority share in 2022. Medium-scale PIC (Photonic Integrated Circuit) refers to a hybrid integration approach combining both electronic and photonic components on a single chip. It enables the integration of numerous optical functions, such as lasers, waveguides, modulators, and detectors, with electronic circuits necessary for control and data processing. This technology allows for efficient and compact photonic systems, enabling advanced applications like high-speed optical communication, optical sensing, and quantum computing. With the potential to revolutionize the field of photonics, medium-scale PICs offer remarkable opportunities for higher bandwidth, faster data transmission, and more compact, reliable photonic devices.

Photonic Integrated Circuit (PIC) Application Insights

Based on Application, the Photonic Integrated Circuit (PIC) Market segmentation includes Optical Fiber Communication, Optical Fiber Sensor, Biomedical, Quantum Computing, Others. The Material Handling held the majority share in 2022. Optical Fiber Communication Photonic Integrated Circuit (PIC) is a technology that enables the integration of various photonic functions onto a single chip, facilitating efficient and high-speed transmission of data in fiber-optic communication systems. PICs combine different components like lasers, modulators, detectors, and waveguides on a single platform, enhancing performance while reducing size and power consumption. These circuits convert electrical signals into optical signals and vice versa, enabling rapid transmission of data through optical fibers. They play a crucial role in long-distance communication, offering advantages such as high bandwidth, low latency, and immunity to electromagnetic interference, making them essential components in modern data networks.

Photonic Integrated Circuit (PIC) Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific, Middle East and Africa and South America. The North America Photonic Integrated Circuit (PIC) market accounted for ~39% in 2022. It is expected to exhibit a significant CAGR growth during the study period. North America is one of the earliest adopters of industrial Photonic Integrated Circuit (PIC) due to the due to the swift adoption of smart factories and industrial automation.

FIGURE 3: PHOTONIC INTEGRATED CIRCUIT (PIC) MARKET SIZE BY REGION 2022 VS 2032

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

Further, the major countries studied in the market report are the U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, South Korea, and Brazil.

Photonic Integrated Circuit (PIC) Key Market Players & Competitive Insights

The Photonic Integrated Circuit (PIC) market is experiencing fierce competition, with several significant players vying for market share. Infinera Corporation, a leading player in the industry, is known for its innovative optical network solutions, including PICs. Agilent Technologies, Inc. is another prominent player, offering a diverse range of photonics and electronic solutions. Intel Corporation, a technology giant, has also entered the PIC market with its advanced integrated photonics technology. Acacia Communications, Inc. specializes in high-speed coherent optical interconnect products and is a key player in the PIC market. Cyoptics designs TE Connectivity, known for its expertise in photonic integration and offers a broad range of optical components. Nanophotonics Corp is driving advancements in PIC technology with its vertically integrated capabilities. Other notable players in the market include Ciena Corporation, Emcore Corp, Colorchip Ltd, and several others. These companies offer various PIC-based solutions catering to different applications and industry verticals. With the growing demand for high-speed data communication and advancements in PIC technology, the competitive landscape of the PIC market is expected to intensify. Companies strive to develop cutting-edge PICs with improved performance, power efficiency, and cost-effectiveness to gain a competitive edge in this rapidly evolving market.

Key Companies in the Photonic Integrated Circuit (PIC) market include.

• Infinera Corporation


• Agilent Technologies, Inc.


• Intel Corporation


• Acacia Communications, Inc.


• Cyoptics designs


• TE Connectivity


• Neophotonics Corp


• Ciena Corporation


• Emcore Corp.


• Colorchip Ltd


• Other Players

Photonic Integrated Circuit (PIC) Industry Developments

• In February 2022, Infinera announced the introduction of ICE6 Turbo, the industry’s first coherent optical solution that can operate above 100 Gbaud. With the introduction of the Turbo mode, ICE6 increases its lead over competitive solutions by providing up to a 30 percent performance boost in high-speed applications.


• In December 2021, Intel Corporation has Launched integrated photonics research center for Data Center Interconnects. The center’s mission is to accelerate optical input/output (I/O) technology innovation in performance scaling and integration with a specific focus on photonics technology and devices, CMOS circuits and link architecture, and package integration and fiber coupling.

Photonic Integrated Circuit (PIC) Market Segmentation

Photonic Integrated Circuit (PIC) Substrate Material Outlook

• Silicon


• Indium Phosphide


• Gallium Arsenide


• Lithium Niobate

Photonic Integrated Circuit (PIC) Integration Type Outlook

• Hybrid Integrated PIC


• Monolithic Integration PIC

Photonic Integrated Circuit (PIC) Integration Level Outlook

• Small-Scale PIC


• Medium-Scale PIC


• Large-Scale PIC

Photonic Integrated Circuit (PIC) Application Outlook

• Optical Fiber Communication


• Optical Fiber Sensor


• Biomedical


• Quantum Computing


• Others

Photonic Integrated Circuit (PIC) Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  • Mexico
  
  
  
  


• Europe
  
  
  
  • UK
  
  
  • Germany
  
  
  • France
  
  
  • Italy
  
  
  • Spain
  
  
  • Switzerland
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Taiwan
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Middle East & Africa
  
  
  
  • South America