BANGALORE, India, Nov. 3, 2025 /PRNewswire/ --
What is the Market Size of Photonic Integrated Circuit (PIC)?
The Photonic Integrated Circuit (PIC) Market was valued at USD 1351 Million in the year 2024 and is projected to reach a revised size of USD 1806 Million by 2031, growing at a CAGR of 4.3% during the forecast period.
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What are the key factors driving the growth of the Photonic Integrated Circuit (PIC) Market
- The Photonic Integrated Circuit (PIC) Market continues evolving through cross-industry adoption in telecommunications, computing, healthcare, and defense.
- PICs combine multiple optical functions on a single chip, enhancing efficiency, scalability, and miniaturization.
- The convergence of photonics with quantum and artificial intelligence technologies expands applications beyond data communication into advanced computational and diagnostic fields.
- Strategic investments from both private and public sectors are accelerating innovation and commercialization.
- Rising demand for high-speed, energy-efficient systems positions photonic circuits as critical enablers of the digital era.
- These technologies are shaping the foundation for next-generation communication, computation, and sensing ecosystems across the global technology landscape.
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TRENDS INFLUENCING THE GROWTH OF THE PHOTONIC INTEGRATED CIRCUIT MARKET:
Indium phosphide is a pivotal material propelling the Photonic Integrated Circuit Market due to its exceptional electron velocity and direct bandgap properties. It enables efficient light generation and modulation, making it ideal for high-speed optical communication systems. Indium phosphide supports seamless integration of lasers, amplifiers, and detectors on a single chip, ensuring minimal power loss and enhanced data transmission. Its compatibility with high-frequency applications strengthens its relevance in telecommunications and data center interconnects. As industries shift toward faster, energy-efficient optical networks, indium phosphide-based photonic chips are increasingly adopted in LiDAR, quantum optics, and 5G infrastructures, cementing its dominance as a foundational material driving advancements in photonic circuit fabrication and deployment.
Gallium arsenide and silica on silicon significantly accelerate the Photonic Integrated Circuit Market by enhancing device efficiency, scalability, and integration capabilities. Gallium arsenide's superior optical gain and electron mobility make it suitable for laser diodes, amplifiers, and high-frequency optoelectronic components. Meanwhile, silica on silicon platforms provide low-loss waveguiding essential for high-performance optical signal transmission. Their combined utilization supports versatile design architectures for telecommunication, sensing, and data center applications. The hybrid integration of these materials enables improved signal reliability, reduced crosstalk, and scalability for mass production. Their contribution ensures compact, power-efficient, and high-speed photonic devices, strengthening the ecosystem across broadband connectivity, aerospace communication, and cloud computing infrastructures globally.
The Biomedical and Quantum Computing sectors are reshaping the Photonic Integrated Circuit Market by introducing novel use cases demanding precision, miniaturization, and data speed. In biomedical applications, photonic circuits enhance diagnostics, biosensing, and medical imaging by enabling ultra-sensitive light manipulation and signal processing. Quantum computing leverages integrated photonics for generating and manipulating qubits, offering stable, low-noise platforms for computation. These applications push manufacturers to design photonic circuits with superior coherence and energy efficiency. The convergence of photonics with biomedical engineering and quantum physics fosters innovation beyond communication, expanding market boundaries into emerging scientific and healthcare domains that demand accuracy, reliability, and ultra-fast optical data operations.
The Photonic Integrated Circuit Market thrives on the escalating demand for high-speed data communication across global networks. With surging data traffic driven by cloud computing, video streaming, and connected devices, photonic circuits enable faster and energy-efficient data transmission compared to traditional electronic systems. Their ability to integrate multiple optical functions within compact modules supports the evolution of high-bandwidth interconnects in data centers and telecom infrastructures. The transition to optical communication minimizes latency and energy loss, ensuring scalability for next-generation internet architectures. This momentum reinforces photonic circuits as the backbone of modern communication, addressing the exponential growth in global data consumption.
Data centers are key accelerators of the Photonic Integrated Circuit Market as they demand high-throughput, low-power communication systems. Photonic integration facilitates faster signal transmission over longer distances while minimizing heat generation and operational costs. The deployment of optical interconnects enhances efficiency and reliability, meeting the massive data processing requirements of cloud platforms. With hyperscale data centers expanding globally, operators adopt photonic-based transceivers and switches to optimize performance. These circuits enable compact and scalable solutions that sustain growing digital workloads. The market's growth aligns with increasing enterprise dependence on data-intensive applications, artificial intelligence analytics, and cloud storage, establishing photonic circuits as an essential infrastructure component.
The rollout of 5G networks and next-generation communication technologies drives substantial growth in the Photonic Integrated Circuit Market. Photonic integration supports ultra-fast data transfer, low latency, and high bandwidth, making it vital for 5G base stations, antennas, and edge computing systems. These circuits ensure signal integrity and reduce interference across complex network architectures. The expansion of connected ecosystems-spanning smart cities, autonomous vehicles, and IoT devices-further elevates demand. By replacing conventional electronic communication components, photonic circuits deliver superior speed and energy efficiency. Their integration enhances scalability, reliability, and sustainability, forming the foundation for advanced mobile connectivity and real-time communication innovations worldwide.
Energy efficiency is becoming a major growth driver for the Photonic Integrated Circuit Market as industries seek to minimize power consumption and operational costs. Photonic circuits transmit signals using light instead of electrical currents, drastically reducing energy losses in data-intensive operations. Their superior heat management capabilities ensure sustained performance even under continuous workloads. As global sustainability initiatives tighten, manufacturers prioritize photonic systems that deliver faster processing with lower power requirements. This transition aligns with green data center goals and eco-conscious production standards. By reducing dependency on energy-intensive electronic components, photonic integration ensures a sustainable and high-performance alternative for future digital infrastructures.
Aerospace and defense sectors increasingly rely on photonic integrated circuits for secure, high-speed communication and sensing applications. These circuits offer compact, lightweight, and radiation-resistant solutions suitable for satellite communication, avionics, and radar systems. Their ability to transmit vast amounts of data with minimal signal degradation enhances mission-critical operations. Governments and defense organizations favor photonic technologies for their resilience and precision under extreme conditions. Additionally, advancements in integrated LiDAR and optical navigation strengthen defense and surveillance systems. The integration of photonic circuits into aerospace platforms ensures enhanced efficiency, data integrity, and reliability, reinforcing their strategic value in modern military and space technologies.
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What are the major product types in the Photonic Integrated Circuit Market?
- Lithium Niobate
- Silica on Silicon
- Silicon on Insulator
- Indium Phosphide
- Allium Arsenide
What are the main applications of the Photonic Integrated Circuit Market?
- Optical Fiber Communication
- Optical Fiber Sensors
- Biomedical
- Quantum Computing
Key Players in the Photonic Integrated Circuit Market:
- Infinera
- MACOM
- Mellanox Technologies
- Luxtera
- Lumentum
- Kotura
- NeoPhotonics
- Finisar
- DS Uniphase
- Alcatel Lucent
- Avago Technologies
- Lumerical
- Aifotec
- Ciena
- Huawei Technologies
- Intel
- TE Connectivity
- Agilent Technologies
- OneChip Photonics
- Emcore Co
- Viavi Solutions Inc
PHOTONIC INTEGRATED CIRCUIT MARKET SHARE
Asia-Pacific dominates production, supported by expanding telecom networks and government-funded innovation programs in countries like Japan and South Korea. The largest region, Asia Pacific, declined 2.0 percent. Sales in the Americas were USD142.1 billion, up 17.0% year-on-year, sales in Europe were USD53.8 billion, up 12.6% year-on-year, and sales in Japan were USD 48.1 Billion, up 10.0% year-on-year. However, sales in the largest Asia-Pacific region were USD 336.2 Billion, down 2.0% year-on-year.
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What are some related markets to the Photonic Integrated Circuit Market?
- Photonic Integrated Circuit And Quantum Computing Market
- Microwave Monolithic Integrated Circuit (MMIC) Market was valued at USD 9979 Million in the year 2024 and is projected to reach a revised size of USD 14730 Million by 2031, growing at a CAGR of 5.8% during the forecast period.
- Integrated Circuit Type Optocoupler Market
- Photonics Integrated Circuit Packaging and Assembly Service Market was valued at USD 636 Million in the year 2024 and is projected to reach a revised size of USD 1173 Million by 2031, growing at a CAGR of 9.2% during the forecast period.
- Integrated Optical Delay Line Market
- Flexible Hybrid Electronics (FHE) Market was valued at USD 68.1 Million in the year 2024 and is projected to reach a revised size of USD 209 Million by 2031, growing at a CAGR of 17.6% during the forecast period.
- Readout Integrated Circuits Market was estimated to be worth USD 4164.4 Million in 2023 and is forecast to a readjusted size of USD 6010.3 Million by 2030 with a CAGR of 4.5% during the forecast period 2024-2030.
- Nano-Photonic Chips Market
- Silicon Photonics Wafer Foundry Service Market was valued at USD 187 Million in the year 2024 and is projected to reach a revised size of USD 1180 Million by 2031, growing at a CAGR of 30.6% during the forecast period.
- Photonic Chip (Optical Chip) Market was valued at USD 3865 Million in the year 2024 and is projected to reach a revised size of USD 10407 Million by 2031, growing at a CAGR of 15.4% during the forecast period.
- Silicon Photonics-based Optical I&O Modules Market was valued at USD 1220 Million in the year 2024 and is projected to reach a revised size of USD 3016 Million by 2031, growing at a CAGR of 14.0% during the forecast period.
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