Photonic Integrated Circuits (ICs) Market: Snapshot

Today photonic integration is emerging as a new standard for providing cost effective and high-performance miniaturized and optical systems for a wide range of applications. The use of photonic integrated circuits (PICs) enables system designers and manufacturers to unite various optical devices such as modulators, optical amplifiers, lasers, and multiplexers into a single package, thereby making the overall system compact and reduce its cost. As cost is a supremely important factor for both manufacturers and end users, this demand for photonic integrated circuits is expected to see a heightened rise over the coming years. The photonic integrated circuits market is still in its nascent stage and thus, with growing prospects in the future, the number of players in the market is likely to increase and this will result in a high level of threat from new entrants in the coming years.

Chip manufacturers all over the world are striving to enhance power efficiency by reducing power consumption and to achieve this, the use of PICs in the circuitry. PICs are increasingly being preferred over optical fiber communication systems. Owing to their benefits such as low power consumption, superior flexibility, and low latency, the application areas of photonic integrated circuits are expected to increase in the future and lead to a stupendous expansion of 25.3% CAGR between 2015 and 2022. In terms of revenue, the global PIC market is expected to rise from US$227.9 mn in 2014 to US$1,338.0 mn by 2022.

High Demand for Wireless and Fixed Network Devices to Drive North America to Lead in Market

On the basis of geography, the global photonic integrated circuits market is expected to be led by North America, and is estimated to reach US$505.8 mn by 2022. The North America market is expected to be driven by factors such as increasing demand for wireless and fixed network devices, which enable users to access information and communicate at high speed data rates anywhere and anytime. PIC manufacturers in North America are investing heavily in research and development activities, which is another reason why the market is likely to grow in the region. However, Asia Pacific is estimated to expand at the most significant CAGR during the forecast period. Asia Pacific is expected to expand at a 26.5% CAGR between 2015 and 2022.  

Optical Communication Segment Continues to Lead in the Market

In terms of application, the optical communication segment not only led in the past but will continue to do so through 2022. The market for optical communication is expected to reach US$777.2 mn by 2022. However, the optical signal processing segment is estimated to expand at the maximum CAGR of 26.4% from 2015 to 2022. By integration type, the market is expected to be led by hybrid integration and the market is expected to be worth US$743.8 mn by 2022. On the other hand, the monolithic integration segment will expand at a 26.5% CAGR from 2015 to 2022. In terms of raw materials, the market is likely to be led by indium phosphide segment. This segment is expected to be worth US$470 mn by 2022.

Some of the key players in the market are Infinera Corporation, Mellanox Technologies, Ltd., Luxtera Inc., Finisar Corporation, JDS Uniphase Corporation, NeoPhotonics Corporation, Alcatel-Lucent, Avago Technologies, M/A-COM Technology Solutions Holdings, Inc.

The research study titled “Photonic Integrated Circuit (PIC) Market – Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2015 - 2022” provides strategic analysis of the global photonic IC market along with the market growth (size in US$ Mn) forecast for the period from 2015 to 2022. The report includes competitive analysis of various market segments based on applications, raw materials, components, and in-depth cross-sectional scrutiny across different geography segments of the photonic IC market. In order to aid in strategic decision-making, the report also includes competitive profiling of the leading PIC manufacturers in the industry, their market positioning, recent developments, and the winning strategies adopted by them. Other in-depth analysis covered in the report provides insights into industry competition, market dynamics, and the most profitable segments in the photonic IC market. Furthermore, the report analyzes the current and future market potential for photonic ICs across the globe. 

On the basis of applications, the photonic IC market is segmented into: optical communication, sensing, optical signal processing, and biophotonics. The market revenue and forecast for different application segments have been included in the report for the period from 2013 to 2022 in terms of US$ Mn, along with the CAGR for the forecast period from 2014 to 2022. Furthermore, the report also segments the photonic IC market on the basis of integration techniques deployed in to monolithic integration, hybrid integration, and module integration. The market revenue and forecast for different integration types have also been included in the report for the period from 2013 to 2022 in terms of US$ Mn, along with the CAGR for the forecast period from 2014 to 2022. Similarly, the report also provides market size and estimates across the geographies for other market segments. The regional analysis of the PIC market gives in-depth insights into the current trends prevailing in different regions including North America, Europe, Asia Pacific, Middle East and Africa, and Latin America. Each of these segments provides market size and forecast for the period from 2013 to 2022, highlighting the key factors responsible for influencing and challenging the market growth. 

The report also provides the breakdown and review of the various factors affecting the growth of the PIC market, appropriately described as market drivers, restraints, and opportunities. These factors emphasize upon the existing trends and their impact on the market growth. In addition, the report provides a separate section focusing on the key trends and future outlook of the PIC market. Overall, the report includes a holistic analysis of the global PIC market and provides growth estimates for the period from 2015 to 2022, keeping in mind the various factors affecting the market.

Photonic IC Market, By Integration Type

  • Monolithic Integration
  • Hybrid Integration
  • Module Integration

Photonic IC Market, By Raw Materials

  • Indium Phosphide
  • Gallium Arsenide
  • Lithium Niobate
  • Silicon
  • Silicon-on-Insulator
  • Others (Silica-On-Silicon, Silicon Dioxide (SiO2), Silicon Nitride (Si3Ni4))

Photonic IC Market, By Components

  • Lasers
  • Modulators
  • Detectors
  • Attenuators
  • Multiplexers/De-Multiplexers
  • Optical Amplifiers

Photonic IC Market, By Application

  • Optical Communication
    • Fttx and Access Networks
    • Microwave/RF Photonics
    • Long-Haul and Transport Networks
    • Optical Datacom
  • Sensing
    • Structural Engineering
    • Chemical Sensors
    • Transport and Aerospace
    • Energy and Utilities
  • Optical Signal Processing
    • Optical Metrology
    • Optical Instrumentation
    • Quantum Optics
    • Quantum Computing
  • Biophotonics
    • Medical Instrumentation
    • Photonic Lab-On-A-Chip
    • Analytics and Diagnostics
    • Optical Biosensors

Photonic IC Market, By Geography:

  • North America
  • Europe
  • Asia Pacific
  • Rest of the World (Latin America, Middle East and Africa)