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Photonic IC Market Size
Photonic IC Market size is estimated to grow significantly from 2024-2032 owing to increasing demand due to advantages, such as enhanced functionalities and cost-effectiveness. Several governments worldwide are allocating resources for R&D activities and commercialization of photonics technologies, further fostering innovations and adoption of photonic ICs across various sectors. To cite an instance, in October 2023, India's secretary of electronics and IT established the Centre for Programmable Photonic Integrated Circuits and Systems, to achieve self-sufficiency and propel the commercialization of products through startups.
Funding programs, tax incentives, and collaborative initiatives are also providing financial support and infrastructure for companies and research institutions, further driving the widespread product adoption.Top of Form However, the lack of digitalization and awareness of advanced packaging techniques in several economies may restrain the market growth. In addition, factors, such as thermal effect issues, the need for high initial investments, and the lack of skilled technicians to run the fabrication units may slow down the industry expansion.
Photonic IC Market Trends
Mounting pressure due to the exponential increase in data is leading to the growing demand for data centers globally, consequently escalating the demand for high-speed and efficient data transmission in data centers. In addition, the need for improved communication and computation needs along with the growing preference for flexible, miniaturized, and power-efficient circuits will provide growth opportunities for the industry players.
Photonic IC Market Analysis
With respect to component, the laser photonic IC industry amassed a significant revenue share in 2023 and is foreseen to grow at a steady CAGR between 2024 and 2032 owing to its wide usage in applications, such as telecommunication and data center domains. Companies, such as Intel are focusing on implementing technologies, such as hybrid silicon lasers. Advancements in laser technology are driving the demand for high-performance photonic ICs for offering enhanced functionalities in telecommunications, data centers, and healthcare applications. Additionally, the integration of lasers to reduce system complexity and power consumption will drive the product adoption.
Based on raw material, the photonic integrated circuit industry from the indium phosphide segment is anticipated to grow at a rapid pace through 2032. This is owing to the rising need for high-speed data transmission. The ability to integrate both passive and active devices and the capability of cost-effective mass production is leading to the rising product demand.
Given the regional landscape, the North America photonic IC market is set to exhibit robust growth during 2024-2032 owing to the presence of advanced electronics and telecom sectors along with the adoption of latest advanced technologies. The strong presence of key market players, coupled with significant R&D investments are fostering innovations in the region. For instance, in October 2023, OpenLight, USA, established a strategic agreement with Spark Photonics, which offers pure-play end-to-end integrated photonics design, consulting services, and layout, on silicon, silicon nitride, lithium niobate, indium phosphide platforms. The need to upgrade the existing infrastructure coupled with the growing adoption of components in sensing and communications applications will also augment the industry outlook.
Photonic IC Market Share
Leading photonic integrated circuit providers are investing in R&D activities for technology differentiation and product innovations to consolidate their share in the thriving market.
Major players operating in the photonic IC industry include-
- Infinera Corporation
- JDS Uniphase Corporation
- Agilent Technologies
- Alcatel-Lucent
- Finisar Corporation
- Intel Corporation
- Ciena Corporation
- Avago Technologies
- Hewlett-Packard Enterprise
- Luxtera, Inc.
- Huawei Technologies Co., Ltd.
Photonic IC Industry News
- In March 2023, Spain-based nanotech firm iPronics developed programmable photonic devices for wireless signal processing, data centers, ML, and other high-performance computing applications.
- In January 2024, Luceda Photonics collaborated with Luxtelligence to create Luceda PDK for Luxtelligence, offering photonic IC designers access to the latter’s groundbreaking deep-etch LiNbO3 technology via the Luceda Photonics Design Platform.