Photonic IC Market To Generate $41,037.7 Million Revenue by 2030.
- Published: July 2022
The global photonic IC market revenue is projected to reach $41,037.7 million in 2030, witnessing a compound annual growth rate of 20.5% during 2021–2030. This can be ascribed to the extensive demand for these ICs from the telecommunications, biomedical, and data center industries, burgeoning popularity of autonomous vehicles, rapid automation across sectors, and reducing size of electronic devices.
Silica-on-Silicon Category To Witness Fastest Growth in Market
The silica-on-silicon category is set to witness the fastest growth during the forecast period. This would be owing to the high efficiency and small size this material imparts to photonic ICs. Furthermore, these integrated circuits provide ease of fabrication and a higher computational and processing power.
Furthermore, the hybrid category will witness the faster growth in the photonic IC market in the forecast period, based on integration process. This is because companies are strongly focusing on innovating hybrid platforms that integrate various photonic technologies into a single functional unit.
Moreover, hybrid integration has numerous applications in the telecommunications and data center industries. The need for a high data transfer rate, which is not possible with traditional ICs, is the primary factor driving the adoption of hybrid PICs in both these markets.
The telecommunications category held the second-largest share in the market owing to the rising availability of 5G connectivity and development of high-speed networks. The widespread deployment of transceivers and passive components and usage of this technology in the telecom sector enhance the demand for PICs in the telecommunications sector.
Geographically, APAC captured the third-largest market share in 2021, and it is expected to witness the fastest growth in the upcoming years. This is attributed to the advancement in the technologies used in the electronics and telecom sectors.
Portfolio and Facility Expansions Are Among Most-Effective Strategic Measures
Key players in the photonic IC market have been involved in portfolio and facility expansions to boost their revenue. For instance:
In March 2022, Scintil Photonics announced plans to launch the prototype III–V-Augmented Silicon photonic IC.
In December 2021, Intel Corporation inaugurated a research center for integrated photonics, for data center interconnects. The aim is to accelerate optical input/output technology innovation in performance scaling and integration, with a particular emphasis on the photonics technology and associated devices.
Key players in the market include Teramount LTD., X-FAB Silicon Foundries SE, Broadcom Inc., Enablence, Technologies Inc., Huawei Technologies Co. Ltd., Intel Corporation, Cisco Systems Inc., VLC Photonics S.L., and Lumentum Operations LLC.