Emphasis on Raw Material (III-V Material, Lithium Niobate, Silica-on-silicon, and Others); Application (Telecommunications, Biomedical, Data Centers, and Others); Integration Process (Hybrid and Monolithic); Region/Country.
The Photonic Integrated Circuit Market was valued at USD 12,142.7 Million in 2023 and is expected to grow at a robust CAGR of around 12.9% during the forecast period (2024-2032) owing to the Growing demand for high-speed data transmission and energy-efficient solutions.
The market of Photonic Integrated Circuit (PIC) is rapidly growing as the demand for high-speed data transmission, low power consumption, and high-performance optical components is increasing rapidly. PICs enable multiple photonic functions, with the result that these systems are used in telecommunications, data, center health care, and defense. Such devices open up opportunities that are superior to what can be achieved in traditional electronic circuits, they are faster and consume less energy. These are integral in managing the incoming demands that come along with the advanced digitized world. Big market forces include improvements in telecommunication technologies, 5G, IoT networks, and cloud computing among others. Also, the move to submicron scale as well as the configuration of different material types for better performance is fueling further adoption of PIC applications.
The Pacific Island Countries are expected to experience the highest growth in Asia-Pacific, and their key markets will be China, Japan, and India due to sound telecommunication systems, policy support, and escalating interest in photonic systems. For example, photonics has been listed as one of the keys strategically important projects in ‘Made in China 2025’ to avoid heavily relying on external semiconductor technologies and advance domestic production. In North America, the government support of photonics funding programs like DARPA grants within the United States supports photonics research for advanced purposes within defense and telecommunication. These policies and initiatives coupled with rising private investments are improving the PIC market along with positioning it as an essential technology that will enable future innovations in several high demand sectors.
This section discusses the key market trends that are influencing the various segments of the Photonic Integrated Circuit as identified by our team of research experts.
United States
AIM Photonics: Public-private partnership, American Institute for Manufacturing Integrated Photonics, (AIM Photonics) aims to accelerate PIC manufacturing and innovation with access to advanced fabrication and testing facilities for academia, industry and government entities.
DARPA Initiatives: The Photonically Optimized Embedded Microprocessors (POEM) is an example of a program that tries to incorporate photonic technologies in microprocessors in order to better fulfil the goals of energy efficiency and improvement of communication capabilities.
NIST Collaboration: AIM Photonics partners with the National Institute of Standards and Technology to advance photonic chips by developing advanced PICs with the help of expert knowledge of measurements and device modelling.
European Union
Photonics21: A European Technology Platform, integrating industry and academia, committed to promoting photonics research and innovation in influencing the priorities and policies of EU funding and support.
Horizon Europe: Photonics projects are funded extensively within the research and innovation framework program of the EU, and PIC technologies are advancing due to such funding focus.
Asia-Pacific
China: Photonics is an important area under the "Made in China 2025" initiative in which the government is investing in research and manufacturing capabilities to limit dependence on foreign technologies.
Japan: Japan's 'Society 5.0' vision encourages advanced technologies such as photonics to be brought into a wide variety of sectors with government funding and industry partnership.
These policies collectively aim to advance PIC technology, strengthen domestic manufacturing, and maintain global competitiveness in the rapidly evolving photonics landscape.
As its telecoms infrastructure expands, consumer electronics sales continue apace and as the control grid for the 5G era takes shape, the Asia Pacific (APAC) region is rapidly becoming a leading force in the Photonic Integrated Circuit (PIC) market. Leading the way in this growth are countries like China, Japan, South Korea and India leveraging PIC technology to keep up with the insatiable demand for higher level data transfers and greater network capacity. With the roll out of 5G across APAC and continued advances in data centers, PICs are becoming essential to the high bandwidth and low latency demand for the applications, driving demand for PICs. Additionally, market adoption of PICs is reliant on growing role of the PICs in the healthcare, automotive and industrial sectors.
Extension of market is also being made by substantive government policies and strategic investment in APAC PIC market. China's "Made in China 2025" and Japan's "Society 5.0" vision set out, among other things, to develop photonic technologies and reduce reliance on the foreign semiconductor solutions. Government backed R&D efforts in photonics for telecommunications and AI applications are in progress in South Korea while India is investing in indigenous semiconductor and photonic manufacturing capabilities. Combination of these policies along with private investments are putting APAC in a dominant forefront of global PIC market with a promise to set an unprecedented pace of innovation and establish a complementing environment for future growth.
The Photonic Integrated Circuit market is competitive and fragmented, with the presence of several global and international market players. The key players are adopting different growth strategies to enhance their market presence, such as partnerships, agreements, collaborations, new product launches, geographical expansions, and mergers and acquisitions. Some of the major players operating in the market are Marvell Technology, Fujitsu, IBM, Infinera Corporation, Intel Corporation, Lumentum Operations LLC, Ciena Corporation, Cisco Systems, Inc., EMCORE Corporation, and STMicroelectronics.
August 2024 - Sivers Semiconductors AB (STO: SIVE), a leading supplier of integrated chips and photonics modules for the most advanced communications and sensor solutions, announced that the Company has entered into a non-binding letter of intent to merge its Sivers Photonics Ltd subsidiary with byNordic Acquisition Corporation ("byNordic", Nasdaq: BYNO), a publicly-traded special purpose acquisition company. The proposed transaction would create a standalone, publicly traded photonics company that will be funded by significant cash reserves upon completion of the de-SPAC process.
Report Attribute | Details |
Base year | 2023 |
Forecast period | 2024-2032 |
Growth momentum | Accelerate at a CAGR of 6.5% |
Market size 2023 | USD 25.4 Billion |
Regional analysis | North America, Europe, Asia-Pacific, Rest of the World |
Major contributing region | Asia-Pacific is expected to grow at the highest CAGR during the forecasted period. |
Key countries covered | U.S., Canada, Germany, France, UK, Spain, Italy, China, Japan, and India |
Companies profiled | Sealed Air Corporation, Placon Corporation, Pactiv Evergreen Inc., Sonoco Products Company, Huhtamaki, Inc., Amcor Plc., Dart Container Corporation, Tempack, Triton International Enterprises, Inc., Graphic Packaging International, LLC. |
Report Scope | Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Demand and Supply Side Analysis; Competitive Landscape; Company Profiling |
Segments Covered | By Material, Type, By Application, By Region/Country |
The study includes market sizing and forecasting analysis validated by authenticated key industry experts.
The report presents a quick review of overall industry performance at one glance.
The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolios, expansion strategies, and recent developments.
Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.
The study comprehensively covers the market across different segments.
Deep dive regional level analysis of the industry.
The global Photonic Integrated Circuit can further be customized as per the requirement or any other market segment. Besides this, UMI understands that you may have your own business needs, hence feel free to contact us to get a report that completely suits your requirements.
1. Market Introduction
2. Research Methodology or Assumption
3. Executive Summary
4. Market Dynamics
5. Pricing Analysis
6. Global Photonic Integrated Circuit Market Revenue (USD Mn), 2022-2032F
7. Market Insights By Raw Material
8. Market Insights By Application
9. Market Insights By Integration Process
10. Market Insights By Region
11. Value Chain Analysis
12. Competitive Landscape
13. Company Profiles
14. Acronyms & Assumption
15. Annexure
Analyzing the historical market, estimating the current market, and forecasting the future market of global Photonic Integrated Circuit were the three major steps undertaken to create and explore the adoption of Photonic Integrated Circuit in major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, numerous findings and assumptions were taken into consideration to validate these insights. Moreover, exhaustive primary interviews were also conducted with industry experts across the value chain of the global Photonic Integrated Circuit. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments of the industry. Detailed methodology is explained below:
Step 1: In-Depth Study of Secondary Sources:
Detail secondary study was conducted to obtain the historical market size of the Photonic Integrated Circuit through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.
Step 2: Market Segmentation:
After obtaining the historical market size of Photonic Integrated Circuit, we conducted a detailed secondary analysis to gather historical market insights and share for different segments and sub-segments for major regions. Major segments are included in the report such as Raw Material, Application, and Integration Process. Further country-level analyses were conducted to evaluate the overall adoption of testing models in that region.
Step 3: Factor Analysis:
After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of the Photonic Integrated Circuit. Further, we conducted factor analysis using dependent and independent variables such as Raw Material, Application, and Integration Process of the Photonic Integrated Circuit. A thorough analysis was conducted of demand and supply-side scenarios considering top partnerships, mergers and acquisitions, business expansion, and product launches in the Photonic Integrated Circuit sector across the globe.
Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the global Photonic Integrated Circuit, and market shares of the segments. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.
Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., the top-down/bottom-up approach were applied to arrive at the market forecast for 2032 for different segments and sub-segments across the major markets globally. The research methodology adopted to estimate the market size encompasses:
The industry’s market size, in terms of revenue (USD) and the adoption rate of the Photonic Integrated Circuit across the major markets domestically
All percentage shares, splits, and breakdowns of market segments and sub-segments
Key players in the global Photonic Integrated Circuit in terms of products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market
Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.
The data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers for each segment and sub-segment of the global Photonic Integrated Circuit. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of Raw Material, Application, and Integration Process in the global Photonic Integrated Circuit Market.
The current & future market trends of the global Photonic Integrated Circuit were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments on the qualitative and quantitative analysis performed in the study. Current and future market trends determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit from a first-mover advantage. Other quantitative goals of the studies include:
Analyze the current and forecast market size of the Photonic Integrated Circuit in terms of value (USD). Also, analyze the current and forecast market size of different segments and sub-segments
Segments in the study include areas of Raw Material, Application, and Integration Process
Define and analysis of the regulatory framework for the Photonic Integrated Circuit industry
Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry
Analyze the current and forecast market size of the Photonic Integrated Circuit for the major region
Major countries of regions studied in the report include Asia Pacific, Europe, North America, and the Rest of the World
Company profiles of the Photonic Integrated Circuit and the growth strategies adopted by the market players to sustain in the fast-growing market
Deep dive regional level analysis of the industry
Q1: What is the current market size and growth potential of the Photonic Integrated Circuit market?
The Photonic Integrated Circuit was valued at USD 12,142.7 Million in 2023 and is expected to grow at a CAGR of 12.9% during the forecast period (2024-2032).
Q2: What are the driving factors for the growth of the Photonic Integrated Circuit market?
The growth of the Photonic Integrated Circuit market is driven by increasing demand for faster data transmission, energy efficiency, and advancements in optical communication technologies.
Q3: Which segment has the largest share in the Photonic Integrated Circuit market by Application?
The Telecommunication segment has the largest share of the Photonic Integrated Circuit by Application.
Q4: What are the emerging technologies and trends in the Photonic Integrated Circuit market?
Emerging technologies and trends in the Photonic Integrated Circuit (PIC) market include the integration of photonic-electronic circuits for high-performance computing and AI acceleration, advancements in silicon nitride platforms for broader spectral applications, and the development of photonic deep learning accelerators.
Q5: Which region will dominate in the Photonic Integrated Circuit market?
APAC is expected to dominate the market during the forecast period.
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