Allied Market Research

2024

Photonic Integrated Circuit Market

Photonic Integrated Circuit Market Size, Share, Competitive Landscape and Trend Analysis Report by Component Type, by Integration Type, by Raw Material, by Application and by Industry Vertical : Global Opportunity Analysis and Industry Forecast, 2023-2032

SE : Semiconductors

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Author's: | Sonia Mutreja
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Photonic Integrated Circuit Market Outlook - 2027

Photonic Integrated Circuit (PIC) is a complex, integrated device which incorporates a lot of optical devices and at least two photonic functions embedded onto it. This combination of photonic sensors processes information signals by superimposing them on visible and infrared wavelengths in range of 800nm to 1700nm. This ground-breaking technology is used on a large-scale in the consumer electronics and telecommunication sector as these optical devices are discrete, compact in size, low weight and offer high-level, power-efficient performance. 

Use of these miniature devices in data centers, cloud services, and automation services facilitate high data transmission rate with minimum heat dissipation than copper-based transmission. The chip is of low cost and can be integrated in various components such as amplifier and modulator thus shrinking the size of the component and simplifying equipment design, which helps in increasing manufacturing capabilities. Photonic components enable efficient electrical to optical conversion and allow devices to work at high temperature enhancing product quality standards in the market. Optics being the most significant method for long-haul data transmission, the photonic integrated circuit market share is anticipated to grow at considerably higher rate in the coming years.

Covid Impact Analysis:

  • The exponential spread of COVID-19 impacted the semiconductor industry adversely with manufacturing facilities temporarily shut leading to significant slowdown in production. Wuhan in China, the epicenter of the pandemic outbreak, accounts for the largest production base of optoelectronic and photonic integrated devices with a domestic market share of more than 60%. This resulted in disruption across the ecosystem with several supply chain participants shifting their production facilities outside China, thereby reducing over-reliance on China.
  • Lockdown imposed by governments worldwide has not only affected manufacturing but also hauled consumer demand for semiconductor devices. Since organizations are preferring work from home culture photonic integrated circuit devices would help to develop fiber optic communication system that help in real-time data sharing offering consistent performance with minimum information loss. The imbalance in the demand-supply chain, owing to unprecedented lockdown and strict restriction on import regulations worldwide causes the photonic integrated circuit market share to plunge.  
  • In April 2020, Swiss Federal Laboratories for Material Science and Technology developed a dual-functional plasmonic biosensor that uses optical and thermal methods to detect the virus SARS-COV-2 safely and reliably. It comprises integrated 2D, gold nano island AUNI chip that is functionalized with the DNA receptors to perform sensitive detection of selected sequences from SARS-CoV-2 virus through nucleic acid hybridization.

Top Impacting Factors: Market Scenario Analysis, Trends, Drivers, and Impact Analysis

Extensive use of advanced fiber communication network, growth of 3D sensing application using InP (Indium Phosphide) in PIC, increase in use of miniaturized compact integrated devices simplifying complex fabrication processes, and growth in use of bandwidth intensive applications such as provision of high-speed internet are primary factors that drive the photonic integrated circuit market growth. Organizations are shifting to fiber-optic enabled enterprise networks to handle benefits of IoT, artificial intelligence, and use optical splitters to separate light signals of various wavelength as they are transmitted through the network. 

However, lack of skilled workforce to handle complex, advanced packaging techniques, need for high initial investments and thermal effect issues act as obstacles to hinder the photonic integrated circuit market growth. Contrarily, innovation in fabrication technologies of PIC, improvements in photonic integration with conventional technology processes, and extensive use of advanced data solution using silicon-based PIC are anticipated to pave new avenues in the photonic integrated circuit industry.

New Product Launches to Flourish the Market

Key photonic integrated circuit market players have adopted necessary steps to bring about optimized solutions to fulfill critical demand for limitless bandwidth in cloud-service data centers.

In March 2020, Intel Corporation, American multinational corporation and technology company, declared that it integrated its 1.6Tbps silicon photonics engine with its 12.8Tbps programmable Ethernet switch. The silicon interconnect platform features 1.6Tbps photonic engines realized at 4ports of 400GBase-DR4 interfaces. The engines are modular arrays of transceivers with on-chip lasers and high-speed modulator and detector. The ethernet switch is programmed to meet the needs of hyperscale data centers and cloud service provider networks.

Surge in Use in Automotive and Industrial Applications 

The laser PIC market is used at large-scale in automotive and industrial sectors for marking, engraving, cutting, welding, and drilling purposes as they provide wide operating range and enhanced optical power.

In May 2019, European scientists developed a pulse laser system to cut and shape ultra-high strength industrial materials at very high speed producing very less waste. The hardest boron steel used in vehicles can be cut by this new laser at 1cc/min operating at 1.5km per second. This technology have the control etch molds for vehicle parts at micron-scale accuracy and micro-weld dissimilar metals for solar thermal absorbers.

Key benefits of the stakeholders:

  • The study gives an analytical overview of the photonic integrated circuit market forecast with current trends and future estimations to determine imminent investment pockets.
  • The report provides information related to key drivers, restraints, and opportunities along with detailed photonic integrated circuit market analysis.
  • The current photonic integrated circuit market trends are quantitatively analyzed.
  • Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market. 

Questions answered in the photonic integrated circuit Market research report:

  • Who are the leading market players active in the photonic integrated circuit market?
  • What would be the detailed impact of COVID-19 on the market?
  • What current trends would influence the market in the next few years?
  • What are the driving factors, restraints, and opportunities in the photonic integrated circuit market?
  • What are the projections for the future that would help in taking further strategic steps?

Photonic Integrated Circuit Market Report Highlights

Aspects Details
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By Component Type
  • Laser
  • Optical Amplifier
  • Modulator
  • Detector
  • Attenuator
  • MUX/DMUX(Multiplexer/Demultiplexer)
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By Integration Type
  • Monolithic Photonic Integration
  • Modular Photonic Integration
  • Hybrid Photonic Integration
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By Raw Material
  • Lithium Niobate
  • Gallium Arsenide
  • Indium Phosphide
  • Silicon-on-silicon
  • Silicon on insulator
  • Quantum Dots
  • Others
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By Application
  • Optical Communication sensing
  • Biophotonics
  • Optical Signal Processing
  • Quantum Computing
  • Others
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By Industry Vertical
  • Aerospace & defense
  • IT & Telecommunication
  • Energy & Power
  • Healthcare
  • Others
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By Region
  • North America  (US, Canada, Mexico)
  • Europe  (Germany, UK, France, Russia, rest of Europe)
  • Asia Pacific  (India, Japan, China, rest of Asia Pacific)
  • LAMEA  (Latin America, Middle East, Africa)
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Key Market Players

Neophotonics Corp., Finisar Corp, Huawei Technologies Co. Ltd., Ciena Corp., Infinera Corp., Colorchip Ltd., Viavi Solutions Inc, Intel Corp., Broadcom Ltd., Hewlett Packard

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Photonic Integrated Circuit Market

Global Opportunity Analysis and Industry Forecast, 2023-2032