by The Photonic IC market is witnessing increasing adoption owing to advantages like high computing power, lower power consumption, and improved processing speed compared to electronics chips. Photonic ICs find widespread applications in optical fiber communication, optical signal processing, biomedicine, quantum technology and Lidar among others. The global Photonic IC Market is estimated to be valued at US$ 3068.77 Mn in 2023 and is expected to exhibit a CAGR of 33% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The increasing demand for high-speed data communication is one of the major factors propelling the growth of the photonic IC market. With exponential growth in data volumes across various industries like IT & telecom, healthcare, consumer electronics etc, there is a rising need for communication infrastructure with higher bandwidth and faster transmission speeds. Photonic ICs address this need efficiently by leveraging the advantages of optics for data transport over distances. This has prompted increased R&D towards development of advanced photonic ICs with even higher performance capabilities. The emergence of technologies like 5G and broadband fiber access has further fueled the demand.
SWOT Analysis
Strength: Photonic IC provides higher bandwidth, lower power consumption, and greater flexibility compared to electronic ICs. This makes them suited for applications requiring high-speed data transmission and signal processing.
Weakness: High initial costs are involved in designing and manufacturing photonic ICs. Commercial adoption requires overcoming the technical challenges in integrating diverse photonic and electronic components on a single chip.
Opportunity: Growing demand for high-speed connectivity solutions from sectors like datacenters, high-performance computing, telecommunications is driving the development of photonic ICs. Their use across LiDAR, medical imaging, and quantum computing will further support market growth.
Threats: Alternatives like hybrid photonic-electronic circuits and wireless communication technologies can limit the demand for dedicated photonic ICs if they meet application requirements at a lower cost.
Key Takeaways
The Global Photonic IC Market Size is expected to witness high growth over the forecast period driven by increasing need for bandwidth-intensive applications. The global Photonic IC Market is estimated to be valued at US$ 3068.77 Mn in 2023 and is expected to exhibit a CAGR of 33% over the forecast period 2023 to 2030.
North America currently dominates the market owing to significant research investments and early adoption among key verticals in the region. The telecommunications industry accounts for the largest share aided by growing deployment of 5G infrastructure and fiber networks requiring high-speed connectivity solutions. Asia Pacific is poised to be the fastest growing regional market for photonic ICs. Countries like China, India, and Japan are making substantial investments in developing domestic semiconductor manufacturing capabilities including photonic ICs. This is expected to accelerate regional demand.
Key players operating in the photonic IC are Agilent Technologies, Inc., Intel Corporation, Aifotec AG, Infinera Corporation, Alcatel-Lucent, Hewlett Packard, Avago Technologies, Finisar Corporation, Ciena Corporation, Enablence Technologies Inc., and Emcore Corporation. The market players are focused on innovations, partnerships, and mergers & acquisitions to enhance their product portfolio and geographical footprints.
Tags :
Photonic IC Market , Photonic IC , Semiconductors , ICT , Detectors , Lasers , Indium Phosphide , Gallium Arsenide , Electronic Ics , Photonic IC Market Forecast , Photonic IC Market Size
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Growth Accelerated By Growing Demand For Photonic Integrated Circuits In Telecommunication Networks
Photonic integrated circuits (PICs) are optical circuits that integrate multiple photonic functions and can reduce the power consumption and size of telecommunication systems. PICs allow the integration of multiple photonic devices and circuits on a single chip, which provides advantages like compact packaging, mass producibility, reliability and reduced power consumption.
The global photonic IC market is estimated to be valued at US$ 3068.77 Mn in 2023 and is expected to exhibit a CAGR of 33% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The development of 5G networks globally has accelerated the demand for PICs in optical communication networks. 5G networks require high bandwidth and speed for supporting data-intensive applications like HD video calling, virtual/augmented reality etc. Photonic integrated circuits play a crucial role in satisfying the growing bandwidth demand of 5G as they allow compact integration of multiple optical components like modulators, lasers, detectors on a single chip. This compact integration increases the bandwidth and throughput of optical communication networks. Furthermore, PICs enable high scalability, reliability and lower power consumption in 5G telecom networks, thus driving their increased adoption.
Segment Analysis
The global Photonic IC market is dominated by the Telecommunication & Datacom sub-segment, which holds around 35% of the total market share. Photonics find wide application in long haul and metro telecommunication networks for signal processing, wavelength division multiplexing/demultiplexing, amplifying signals and other functions. As data traffic continues to rise extensively with 5G rollouts and increasing internet connectivity worldwide, demand for photonic ICs from the telecommunications industry remain high.
Key Takeaways
The Global Photonic IC Market Demand is expected to witness high growth over the forecast period of 2023 to 2030. With increasing investments into optical interconnect technologies, the market size is projected to cross US$ 3068.77 Mn by 2023.
Regional analysis
North America dominates the global Photonic IC market currently, supported by significant R&D spending and early adoption of advanced optical communication networks in the region. Several technology giants based in the US and Canada are intensifying efforts to develop next-gen photonic solutions. However, Asia Pacific is anticipated to emerge as the fastest growing regional market. Thriving semiconductor industries and huge investments by governments in countries like China, India to build 5G infrastructure present lucrative opportunities for photonic IC vendors in the coming years.
Key players
Key players operating in the Photonic IC market are Agilent Technologies, Inc., Intel Corporation, Aifotec AG, Infinera Corporation, Alcatel-Lucent, Hewlett Packard, Avago Technologies, Finisar Corporation, Ciena Corporation, Enablence Technologies Inc., and Emcore Corporation. The market demonstrates a high level of consolidation with the top five companies holding over 50% of the share. Notable M&A activities include Mellanox’s acquisition by Nvidia and International Business Machines Corporation’s (IBM) acquisition of Red Hat in recent times.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc.
