Superior benefits offered by photonic integrated circuits in terms of power consumption (energy efficiency), size, speed, and cost are collectively driving the photonic integrated circuits (PIC) market. In addition, escalating demand for high speed communication, especially in optical communication field have further fueled market momentum. These factors are expected to contribute towards a compounded annual growth rate (CAGR) of 18.2% during the forecast period 2020 - 2028. However, slower transition towards digitization and issues related to design and fabrication are some of the major challenges faced by the photonic IC market. The photonic integrated circuits market is expected to cross US$ 3,168.8 Mn by 2028, expanding at a CAGR of 18.2% during the forecast period 2020 to 2028.
Purpose of the Report
The purpose of this strategic research study titled “Global Photonic IC Market- Growth, Share, Opportunities, and Competitive Analysis, 2020 - 2028” is to offer industry investors, company executives, and industry participants with in-depth insights to enable them make informed strategic decisions related to the opportunities in the global web security industry.
Target Audience
USP and Key Offerings
The report titled “Global Photonic IC Market- Growth, Share, Opportunities, and Competitive Analysis, 2020 - 2028” offers strategic insights into the global photonic IC market along with the market size and estimates for the duration 2018 to 2028. The said research study covers in-depth analysis of multiple market segments based on integration techniques, raw materials, applications, and cross-sectional study across different geographies. The research study helps in better analyzing the photonic IC market by highlighting competitive insights across different participants involved in the value chain. In order to help strategic decision makers, the report also includes competitive profiling of the leading photonic integrated circuits manufacturers, their SCOT (Strength, Challenges, Opportunities, and Weaknesses) analysis, market positioning, and key developments.
Other in-depth analysis provided in the report includes:
Overall, the research study provides a holistic view of the global photonic integrated circuits market, offering market size and estimates for the period from 2020 to 2028, keeping in mind the above mentioned factors.
On the basis of application, the photonic integrated circuits (PIC) market is categorized into following segments:
The optical communication segment covering wireless access networks, long haul and transport networks, and data center applications was the largest application segment in the global photonic integrated circuits (PIC) market, accounting for over 40% of the market revenue in 2019. Over the forecast period 2020 - 2028, the segment is anticipated to remain the largest contributor to the global photonic integrated circuits market (PIC), majorly supported by the escalating demand for high speed communication in wireless access networks and data center applications. Other major application fields include sensing and biophotonics.
The advent of photonic technology has revolutionized the healthcare industry, offering a reliable means to detect, treat, and/or prevent disease at an early stage. Optical signal processing is another potential application field for photonic ICs. The optical signal processing segment is estimated to witness maximum growth among all other application fields during the forecast period 2020 - 2028. The anticipated growth can be attributed to the expected commercialization of quantum computing during the forecast period.
Geography Segmentation Analysis
On the basis of geography, the global photonic integrated circuits (PIC) market is segmented into following regions and countries.
In terms of revenue, North America (comprising U.S., and Rest of North America) represented the largest photonic IC market, accounting for over 30% of the global revenue share in 2019. The U.S. represents the largest and the most lucrative photonic IC market worldwide. The photonic IC market in North America is majorly driven by the increasing penetration of photonic technology in the field of fiber optic communication, especially data center applications and wireless access networks.
In addition, presence of large number of photonic device manufacturers and continual research in the field of photonics has further cemented its leading position. Although North America is expected to remain the largest photonic IC market over the forecast period 2020 - 2028, Asia Pacific is expected to witness maximum growth, growing at a CAGR of 21.5%. The anticipated growth in the region is expected to be driven by the escalating demand from data center and biophotonics applications during the forecast period 2020 - 2028.
Raw Material Segmentation Analysis
The selection of surface material to be used while carrying out photonic integration is a crucial consideration. This is true, since the photonic integration derives maximum value from its ability to integrate multiple functions into a single material substrate. As such, proper selection of material substrate is crucial from both functionality and cost perspective.
Based on different raw materials used, the global photonic integrated circuits (PIC) market is segmented into following categories
Indium Phosphide (InP) is the most preferred raw material used in photonic integrated circuits. In 2019, Indium Phosphide accounted for around 30% of the global market revenue. It is expected to remain the most preferred raw material used for photonic integration during the forecast period 2020 - 2028. The dominance of Indium Phosphide can be attributed to its ability to integrate active as well as passive optical functions onto one single material substrate. In addition, other benefits offered in terms of cost, reliability, and energy efficiency make Indium Phosphide a preferred raw material for photonic integration. Other raw materials including silicon and silicon-on-insulator are also widely used in photonic integrated circuits on account of low cost, easy availability, and simple fabrication offered by these materials.
Integration Technique Segmentation Analysis
In order to merge multiple optical components/functions into a single package and make electronic devices compact, photonic integration is necessary. Based on integration technique, the global photonic IC market is segmented into following categories
Hybrid integration is the chief integration technique used for photonic integration. In 2019, the hybrid integration technique accounted for about 50% of the global market revenue share. Although it is expected to remain the major photonic integration technique, monolithic integration method is expected to witness maximum adoption, growing at a CAGR of 20.8% during the forecast period 2020 - 2028. The anticipated growth can be credited to its capability to integrate both medium and large sized photonic integrated circuits.
Furthermore, superior benefits offered in terms of reliability, power efficiency, and testing has convinced manufacturers across the globe to increasingly employ monolithic integration technique. Module integration is another technique employed for photonic integration. It accounted for the least revenue share in 2019. Over the forecast period 2020 - 2028, it is expected to exhibit sluggish growth. Inability to merge large number of optical functions and low fiber coupling integration offered as compared to other techniques is seen as the major roadblock in widespread use of module integration technique.
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Purpose of the Report
The purpose of this strategic research study titled “Global Photonic IC Market- Growth, Share, Opportunities, and Competitive Analysis, 2020 - 2028” is to offer industry investors, company executives, and industry participants with in-depth insights to enable them make informed strategic decisions related to the opportunities in the global web security industry.
Target Audience
- Industry Investors
- Raw Material Suppliers
- Photonic IC Manufacturers
- Photonic Equipment/Products Manufacturers
- End-users
USP and Key Offerings
The report titled “Global Photonic IC Market- Growth, Share, Opportunities, and Competitive Analysis, 2020 - 2028” offers strategic insights into the global photonic IC market along with the market size and estimates for the duration 2018 to 2028. The said research study covers in-depth analysis of multiple market segments based on integration techniques, raw materials, applications, and cross-sectional study across different geographies. The research study helps in better analyzing the photonic IC market by highlighting competitive insights across different participants involved in the value chain. In order to help strategic decision makers, the report also includes competitive profiling of the leading photonic integrated circuits manufacturers, their SCOT (Strength, Challenges, Opportunities, and Weaknesses) analysis, market positioning, and key developments.
Other in-depth analysis provided in the report includes:
- Current and future market trends to justify the forthcoming attractive markets within the photonic integrated circuits market
- Market fuelers, market impediments, and their impact on the market growth
- In-depth competitive environment analysis
- Value Chain Analysis
- Two Year Trailing Data (2018 - 2019)
- SRC (Segment-Region-Country) Analysis
Overall, the research study provides a holistic view of the global photonic integrated circuits market, offering market size and estimates for the period from 2020 to 2028, keeping in mind the above mentioned factors.
On the basis of application, the photonic integrated circuits (PIC) market is categorized into following segments:
- Optical Communication (Wireless Access Networks, Long Haul and Transport Networks, Data Centers, etc.)
- Sensing (Engineering, Energy and Utilities, Transport and Aerospace, etc.)
- Biophotonics (Medical Devices, Photonic Lab-On-A-Chip, etc.)
- Optical Signal Processing (Quantum Optics, Quantum Computing, Optical Metrology, etc.)
The optical communication segment covering wireless access networks, long haul and transport networks, and data center applications was the largest application segment in the global photonic integrated circuits (PIC) market, accounting for over 40% of the market revenue in 2019. Over the forecast period 2020 - 2028, the segment is anticipated to remain the largest contributor to the global photonic integrated circuits market (PIC), majorly supported by the escalating demand for high speed communication in wireless access networks and data center applications. Other major application fields include sensing and biophotonics.
The advent of photonic technology has revolutionized the healthcare industry, offering a reliable means to detect, treat, and/or prevent disease at an early stage. Optical signal processing is another potential application field for photonic ICs. The optical signal processing segment is estimated to witness maximum growth among all other application fields during the forecast period 2020 - 2028. The anticipated growth can be attributed to the expected commercialization of quantum computing during the forecast period.
Geography Segmentation Analysis
On the basis of geography, the global photonic integrated circuits (PIC) market is segmented into following regions and countries.
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Rest of Europe
- Asia Pacific
- Japan
- China
- India
- Rest of Asia Pacific
- Rest of the World
- Latin America
- Middle East and Africa
In terms of revenue, North America (comprising U.S., and Rest of North America) represented the largest photonic IC market, accounting for over 30% of the global revenue share in 2019. The U.S. represents the largest and the most lucrative photonic IC market worldwide. The photonic IC market in North America is majorly driven by the increasing penetration of photonic technology in the field of fiber optic communication, especially data center applications and wireless access networks.
In addition, presence of large number of photonic device manufacturers and continual research in the field of photonics has further cemented its leading position. Although North America is expected to remain the largest photonic IC market over the forecast period 2020 - 2028, Asia Pacific is expected to witness maximum growth, growing at a CAGR of 21.5%. The anticipated growth in the region is expected to be driven by the escalating demand from data center and biophotonics applications during the forecast period 2020 - 2028.
Raw Material Segmentation Analysis
The selection of surface material to be used while carrying out photonic integration is a crucial consideration. This is true, since the photonic integration derives maximum value from its ability to integrate multiple functions into a single material substrate. As such, proper selection of material substrate is crucial from both functionality and cost perspective.
Based on different raw materials used, the global photonic integrated circuits (PIC) market is segmented into following categories
- Indium Phosphide (InP)
- Gallium Arsenide (GaAs)
- Silicon (Si)
- Silicon-on-Insulator (SOI)
- Others (Lithium Niobate, Silicon Nitride, etc.)
Indium Phosphide (InP) is the most preferred raw material used in photonic integrated circuits. In 2019, Indium Phosphide accounted for around 30% of the global market revenue. It is expected to remain the most preferred raw material used for photonic integration during the forecast period 2020 - 2028. The dominance of Indium Phosphide can be attributed to its ability to integrate active as well as passive optical functions onto one single material substrate. In addition, other benefits offered in terms of cost, reliability, and energy efficiency make Indium Phosphide a preferred raw material for photonic integration. Other raw materials including silicon and silicon-on-insulator are also widely used in photonic integrated circuits on account of low cost, easy availability, and simple fabrication offered by these materials.
Integration Technique Segmentation Analysis
In order to merge multiple optical components/functions into a single package and make electronic devices compact, photonic integration is necessary. Based on integration technique, the global photonic IC market is segmented into following categories
- Monolithic Integration
- Hybrid Integration
- Module Integration
Hybrid integration is the chief integration technique used for photonic integration. In 2019, the hybrid integration technique accounted for about 50% of the global market revenue share. Although it is expected to remain the major photonic integration technique, monolithic integration method is expected to witness maximum adoption, growing at a CAGR of 20.8% during the forecast period 2020 - 2028. The anticipated growth can be credited to its capability to integrate both medium and large sized photonic integrated circuits.
Furthermore, superior benefits offered in terms of reliability, power efficiency, and testing has convinced manufacturers across the globe to increasingly employ monolithic integration technique. Module integration is another technique employed for photonic integration. It accounted for the least revenue share in 2019. Over the forecast period 2020 - 2028, it is expected to exhibit sluggish growth. Inability to merge large number of optical functions and low fiber coupling integration offered as compared to other techniques is seen as the major roadblock in widespread use of module integration technique.
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Table of Contents
Chapter 1 Preface
Chapter 2 Executive Summary
Chapter 3 Market Dynamics
Chapter 4 Global Photonic IC Market Analysis, By Integration Technique
Chapter 5 Global Photonic IC Market Analysis, By Raw Materials
Chapter 6 Global Photonic IC Market Analysis, By Application
Chapter 7 North America Photonic IC Market Analysis
Chapter 8 Europe Photonic IC Market Analysis
Chapter 9 Asia Pacific Photonic IC Market Analysis
Chapter 10 Rest of World Photonic IC Market Analysis
Chapter 11 Company Profiles
Companies Mentioned
- Alcatel-Lucent S.A.
- Avago Technologies Ltd.
- Ciena Corporation
- Finisar Corporation
- Huawei Technologies Co. Ltd.
- Infinera Corporation
- Intel Corporation
- JDS Uniphase Corporation
- Luxtera Inc.
- Mellanox Technologies Ltd.
- NeoPhotonics Corporation
