Author: Prithu Chawla, Senior Research Analyst
19 February 2025
High Data Demand: Improving demand for high-speed Internet and data transfer motivates the use of the packaged image in computer data centers and telecommunication.
Energy Efficiency: PICs employ less power than conventional circuits; they are vital in power-sensitive systems.
5G and IoT Growth: The growing communication needs advanced with 5G and IoT networks require more efficient and high bandwidth optical networks to be enabled with PICs.
Telecommunications Infrastructure Expansion: Constant evolution in the fibre-optic networks around the world is increasing the uptake of PIC technology in telecom.
Technological Advancements in Photonics: A general discussion of current trends in the areas of PIC material and integration technology reveals progressive improvements in PIC functionality and versatility.
Government Initiatives and Funding: Favorable government policies and polices and grants support in areas like APAC and North America help the development of the PIC industry.
Miniaturization and Integration: Requests for smaller products with complex functionalities in different industries lead to the active use of compound-type integrated circuits, PICs.
Data Center Growth: The multiplication of data centers in order to accommodate the processes related to the usage of cloud solutions and big data generates the need for PICs that offer the possibility to process data quickly.
Healthcare Applications: The demand for higher integration levels in systems for application in the medical field as well as a heightened usage of PICs in diagnosis equipment and medical devices fuels the healthcare industry.
Rising Adoption in Quantum Computing: PICs are increasingly essential in quantum computing usage since they improve computational performance.
According to a new report by Univdatos, Photonic Integrated Circuit Market is expected to reach USD 36,187.7 Million in 2032 by growing at a CAGR of 12.9%. 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 eastern region is 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.
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.
A conclusion is drawn to state that government policies across the major regions are highly important to the growth of the Photonic Integrated Circuit (PIC) industry. Research is being funded, industry academia partnerships are fostered, and supportive infrastructure is established by countries such as the United States, members of the European Union, China, and Japan for the advancement of PIC technology and applications. These actions not only expand technological capability and spur innovation but also foster self-reliance and global competitiveness in the photonics sector. Such policies will continue to be essential as demand for high speed, energy efficient data transmission continues to increase to enable a path to PIC adoption and a sustainable, technology driven future.
Market Size, Trends, & Forecast by Revenue | 2024−2032
Market Dynamics – Leading Trends, Growth Drivers, Restraints, and Investment Opportunities
Market Segmentation – A detailed analysis by Raw Material, Application, and Integration Process
Competitive Landscape – Top Key Vendors and Other Prominent Vendors
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