Integrated Quantum Optical Circuits Market Size, By Material, Component, Integration Level, Fabrication Technology, Application, End-Use Industry, Forecast 2025 - 2034

Integrated Quantum Optical Circuits Market Size

The global integrated quantum optical circuits market was valued at USD 2.1 billion in 2024 and is anticipated to grow at a CAGR of 11% between 2025 to 2034.
 

This market is driven by investment in development and has several application areas. This technology aims to enhance computing systems capabilities and also establish the foundation for next generation computing systems. The integrated quantum optical circuits industry integrates quantum computing, photonics, and semiconductor technologies. These circuits combine quantum principles and optics engineering to improve information systems and communication systems.
 

The integrated quantum optical circuits market is an important development in photonic technology where integration of quantum a system has been integrated with other systems to enable innovations in computing, communication and sensing. The integration of quantum systems into photonics systems shows a great promise for addressing the challenges of computing, secure communication, and accurate measurement technology. The industry is benefiting from the convergence of material science, photonic integration and quantum engineering, as it is one of the building blocks of next generation technology ecosystems. The future prospects are potential for both established and start-up companies to focus to develop efficient, inexpensive, and highly effective solutions.
 

Integrated Quantum Optical Circuits Market Trends

The market is thriving with the rise in the demand for quantum communication systems. As cyberattacks and data breaches are widespread globally, the regular encryption methods have shown to fall short. Quantum Key Distribution or QKD becomes feasible with Integrated Quantum Optical Circuits, which reinforces higher security using quantum mechanics concepts that instantly pinpoint interception attempts. The expansion of the market is by the enterprise and government funding on quantum communication infrastructure to support their data protection systems.
 

Integrated Quantum Optical Circuits Market Analysis

The substantial obstacle hindering the expansion of the Integrated Quantum Optical Circuits Industry is the ability to uphold quantum coherence and stability. Quantum systems exhibit sensitivity to environmental conditions such as temperature, electromagnetic interference and materials inconsistency. These limitations increase the difficulty of maintaining operational efficiency in practical, real-world applications. In addition, this complexity serves to put up barriers of high R& D costs which hampers mass adoption.
 

By combining AI's data processing capabilities with quantum systems' advanced problem-solving potential, industries can tackle previously unsolvable challenges in fields like drug discovery, financial modeling, and climate prediction. This synergy is expected to unlock new business opportunities, driving market expansion and attracting cross-sector collaborations for innovation.
 

Based on material, the integrated quantum optical circuits market is classified into indium phosphide, silica glass, silicon photonics, lithium niobate, and gallium arsenide. Silicon photonics segment is the dominating segment, which is anticipated to account for the market share of 36.34% in 2024.
 

• Silicon photonics facilitates cost-effective production of quantum optical components because it is compatible with the CMOS (complementary metal-oxide-semiconductor) industrial process. This advantage allows for scalability while still preserving quality and hence, there is a preference for silicon photonics to be used for IQOCs in commercial purposes.
   
• Providing sophisticated and integrated silicon photonic platforms show expected coherence maintenance capabilities, leading to more reliable and robust quantum information processing. The maturation of silicon technology processes provides a solid basis for the development of more complex designs of quantum optical circuits.
   

Based on integration level, the integrated quantum optical circuits market is bifurcated into monolithic integration, hybrid integration, and module-based integration. Hybrid integration segment is expected to reach a value of over USD 2.4 billion by 2034.
 

• Hybrid integration employs the use of silicon for photonics and indium phosphide for light sources thereby improving the performance concerning multiple materials integration. This integration method allows for better design flexibility to cater for different applications.
   
• The use of multiple quantum-complementary materials properties by means of hybrid techniques support architectures of sophisticated quantum optical circuits. The enhancement of material interfaces and coupling techniques through the hybrid integration approach facilitates the growth of quantum computational abilities, which is leading to segment growth over the forecasting period.
   

In North America integrated quantum optical circuits market, it is estimated that U.S. is expected to grow at a CAGR of 11.2% during 2024. The integrated quantum optical circuits industry in the United States is contributed by growing investments in technological research and innovation. In the United States, technology companies are joining forces with research universities to create quantum computational infrastructure. The market benefits from federal government grants, research programs, and various forms of technological entrepreneurship. Silicon Valley, among other technology hubs, is promoting further growth of quantum ecosystem. The market is focused on creating scalable progress in quantum technology for use in defense, telecommunications and computation.
 

In China, market shows signs of prioritization in national technology policy through the establishment of government-funded research initiatives. The market contains strategies for the development of new technologies, investment in resources and interaction between educational centres and state sponsored research initiatives. Teams in China are improving quantum coherence technologies and creating various architectures for quantum optical circuits. The market pursues technological independence through the development of their own capabilities in the field of quantum technologies and aims to accomplish significant share of the quantum technology development market.
 

In India, the integrated quantum optical circuits market is a developing technological system with rising research investments and increasing collaborations between the academia and industries. It benefits through the availability of skilled engineering workforce, affordable research facilities and the increasing government encouragement of high-end technological research programs. Existing research establishments and new quantum technology start-ups are gradually building exemplary highly specialized quantum optical circuit technologies. There is a high potential for telecommunication and computing industries to develop new innovative quantum technology solutions.
 

The South Korean integrated quantum optical circuits industry has developed a highly intricate and strategically elaborated technological focus and has been marked by an increasing synergy of the international technological business, scientists and public administration. Growing investment on the development of quantum and next generation semiconductor technologies are fostering rapid technological changes. This ecosystem focuses on the innovation of competitive quantum technologies for industrial uses in areas such as telecommunications, semiconductor manufacturing, and high-performance computing.
 

Japan’s integrated quantum optical circuits market is technologically advanced and precision based. The rising focus on advanced semiconductor technology and precision nanoscale techniques is driving the market growth at substantial rate. The potential of developing new and advanced quantum computers is leveraging various growth opportunities for the regional market expansion.
 

Integrated Quantum Optical Circuits Market Share

The market for integrated quantum optical circuits is characterized by the presence of both new technology startups and established technology conglomerates with competitive insight, suggesting a relative high degree of competition in this market. Although the market is moderately competitive as there are several major firms with the capability to remain technologically active. The competitive environment is influenced by the factors such as technological developments, ownerships of patents and development of strategic alliances in the realm of research.
 

The geographical expansion of the market players is presenting various opportunity for the adoption of competitive strategies by high research spending, establishment of joint ventures and development of a comprehensive portfolio of intellectual properties for this marketplace. Companies are also investing in new quantum circuit architecture, strengthening interdisciplinary collaborations to stimulate the development of patented technologies.
 

Integrated Quantum Optical Circuits Market Companies

Major players operating in the integrated quantum optical circuits industry are:

• Aifotec
• Bluefors
• Broadcom
• Enablence Technologies
• IBM
• Infinera Corporation
• Intel
• Lioni X International
• Microsoft
• Nanoscribe
• QuiX Quantum Holding BV
• QuTech
• Sicoya GmbH
• Tera Xion
• Toptica Photonics
• Toshiba
• Xanadu
   

Integrated Quantum Optical Circuits Industry News

• In February 2022, Intel Corporation declared the acquisition of Tower Semiconductor, that associates with IDM 2.0 strategy to increase the amount of manufacturing capabilities, expand to different regions of the globe, and increase the range of their technology offered to match the current high demand of semiconductors. Tower Semiconductor specializes in RF, power, SiGe and industrial sensor specialized analog technologies as well as strong customer and foundry bases in the US and Asia.
   
• In November 2024, IonQ declared its collaboration with imec for the development of photonic integrated circuits, as well as the ion trap chip technology for quantum computers. This partnership focuses on shift from bulk optics to integrated photonic devices with the objective of increasing the number of qubits in the system and enhancing performance while minimizing the cost and size of the hardware. This effort involves the creation of more efficient fabrication processes for traps in order to reduce the cost per qubit and hasten the entrance of new players to the quantum computer market.
   

This integrated quantum optical circuits market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million/billion) from 2021 to 2034, for the following segments:

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Market, By Material

• Indium phosphide
• Silica glass
• Silicon photonics
• Lithium niobate
• Gallium arsenide

Market, By Component

• Waveguides
• Directional coupler
• Active components
• Light sources
• Detectors

Market, By Integration Level

• Monolithic integration
• Hybrid integration
• Module-based integration

Market, By Fabrication Technology

• Lithography-based processes
• Nanofabrication techniques
• Direct laser writing
• Molecular beam epitaxy (MBE)
• Others

Market, By Application

• Optical fiber communication
• Optical sensors
• Bio medical
• Quantum computing
• Others

Market, By End-Use Industry

• Telecommunications
• Aerospace and defense
• Healthcare
• Energy and utilities
• Automotive
• Academia and research
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA