Published: May, 2018

The global photonic integrated circuit (IC) market is prophesied in a report by Transparency Market Research (TMR) to witness a significantly high level of competition taking shape between top players, viz. Alcatel-Lucent S.A., Ciena Corp., Huawei Technologies Co. Ltd., and Infinera Corporation. In such a heated competitive scenario, new entrants could cash in on rewarding growth prospects birthed through strategic alliances and mergers and acquisitions. The market could expect the rise of niche offerings from new players. As the number of players operating in the market increases, the degree of competition is anticipated to simultaneously increase going forth.

By the completion of 2022, the global photonic IC market is foreseen to collect revenue worth a US$1.3 bn, according to TMR. In terms of application, optical communication could continue to lead the market, reaching a valuation of US$0.7 bn by the same year. By region, North America is foretold to gather pace while raking in a US$0.5 bn in the same year.

Photonic Integration Helps with Miniaturization of Optical Systems

Manufacturers of optical systems use the platform provided via the introduction of photonic integration for miniaturizing the systems with a view to extend the scope of their application and also control manufacturing cost. The overall system could be made compact with the integration of optical devices into a single package through the use of photonic IC. Optical amplifiers, multiplexers, lasers, and modulators are few examples of optical devices that could be integrated.

In the recent years, photonic IC has been largely employed by manufacturers due to reduced production cost of the devices as a result of the integration. Over the next few years, demand for photonic IC is projected to surge because of extensive usage in futuristic applications.

Lack of Digitization Expected to Hamper Usability of Photonic IC

According to experienced researchers, the international photonic IC market could bear the brunt of inadequate digitalization in some regions leading to decreased usability of certain products. Although photonics is said to be at the analog stage, its digital format finds application in electronics with the use of analog transistors. Digitalization could be extremely crucial for the market since a higher integration level is enabled with the engagement of digital photonics. Furthermore, application of photonic IC could be limited due to the complex designing of integrated circuits.

However, increased demand for hybrid integration and growing application in optical communication are prognosticated to produce lucrative opportunities in the international photonic IC market.

The information presented in this review is based on a TMR report, titled “Photonic Integrated Circuits (ICs) Market (Integration - Hybrid (Packaging), Monolithic, and Module; Raw Material - Indium Phosphide, Gallium Arsenide, Lithium Niobate, Silicon, Silicon-on-insulator, and Silica-on-silicon, Silicon Dioxide, and Silicon Nitride; Component - Lasers, Modulators, Detectors, Attenuators, Multiplexers/Demultiplexers, and Optical Amplifiers; Application - Optical Communications (FTTX and Access Networks, Microwave/RF Photonics, Long-haul and Transport Networks, and Optical Datacom), Sensing (Structural Engineering, Chemical Sensors, Transport and Aerospace, and Energy and Utilities), Optical Signal Processing (Optical Metrology, Optical Instrumentation, Quantum Optics, and Quantum Computing), and Biophotonics (Medical Instrumentation, Photonic Lab-on-a-chip, Analytics and Diagnostics, and Optical Biosensors)) - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2015 - 2022.”

The global photonic IC market has been segmented as presented below:

Global Photonic IC Market by Integration

  • Monolithic Integration
  • Hybrid Integration
  • Module Integration

Global Photonic IC Market by Raw Material

  • Indium Phosphide
  • Gallium Arsenide
  • Lithium Niobate
  • Silicon
  • Silicon-on-insulator
  • Silica-on-silicon, Silicon Dioxide, and Silicon Nitride

Global Photonic IC Market by Component

  • Lasers
  • Modulators
  • Detectors
  • Attenuators
  • Multiplexers/Demultiplexers
  • Optical Amplifiers

Global 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

Global Photonic IC Market by Region

  • North America
  • Europe
  • Asia Pacific
  • Rest of the World

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