Photonic Integrated Circuit Market Summary
As per MRFR Analysis, the Global Photonic Integrated Circuit (PIC) Market was valued at USD 7.26 billion in 2023 and is projected to reach USD 49.22 billion by 2035, growing at a CAGR of 17.1% from 2025 to 2035. The market is driven by the increasing demand for high-speed data communication and the integration of AI in photonic circuits, enhancing performance and energy efficiency. Silicon is the dominant substrate material, accounting for 72.9% of the market revenue in 2022. Hybrid Integrated PICs lead the integration type, while Medium-Scale PICs hold the majority share in integration level. The Optical Fiber Communication application segment is the largest, reflecting the critical role of PICs in modern data networks.
Key Market Trends & Highlights
The integration of AI and advancements in substrate materials are key trends in the PIC market.
- AI integration in PICs enhances optical network performance and adaptability.
- Silicon substrate material contributed approximately 72.9% to the market revenue in 2022.
- Hybrid Integrated PICs dominated the market in 2022, improving speed and efficiency.
- Medium-Scale PICs held the majority share in integration level in 2022.
Market Size & Forecast
2023 Market Size: USD 7.26 Billion
2035 Market Size: USD 49.22 Billion
CAGR (2025-2035): 17.1%
Largest Regional Market Share in 2022: North America (~39%).
Major Players
Infinera Corporation, Agilent Technologies, Inc., Intel Corporation, Acacia Communications, Inc., Cyoptics designs TE Connectivity, Neophotonics Corp, Ciena Corporation, Emcore Corp, Colorchip Ltd.
Key Photonic Integrated Circuit Market Trends Highlighted
Due to a number of market factors and technical developments, the Photonic Integrated Circuit Market has been expanding significantly. The growing need for high-speed data transfer and the emergence of cloud computing services are two major industry factors.
Photonic integrated circuits, which enable quicker and more effective data processing, have been adopted by businesses as a result of these forces. Since these circuits use less power than conventional electrical alternatives, their popularity is also being aided by the increased focus on energy saving in data centers and telecommunications.
Additionally, there are growing opportunities in the Photonic Integrated Circuit Market, especially in industries like consumer electronics, healthcare, and telecommunications. Businesses can investigate advancements in integrated optics for uses such as network communications, imaging, and sensing.
Furthermore, greater advancements in the creation of photonic technologies may be made possible via smart partnerships between tech companies and academic institutions. According to recent advancements, photonic integrated circuits are becoming more inventive and compact, which makes it easier to integrate them into current electrical systems.
In order to increase scalability and lower production costs, efforts are being undertaken to standardize manufacturing processes. Research and development efforts are also being intensified to produce more functional and adaptable photonic devices that may be used in a wide range of global sectors.
The Photonic Integrated Circuit Market is positioned for further development and expansion as a result of several governments making investments in digital infrastructure and sophisticated manufacturing capabilities.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Photonic Integrated Circuit Market Drivers
Rising Demand for High-Speed Data Transmission
The increasing global demand for high-speed data transmission is one of the most significant drivers of growth in the Photonic Integrated Circuit Market. As internet traffic continues to escalate, driven by the proliferation of mobile devices and cloud computing, the need for faster and more efficient communication technologies has become paramount.
Reports from the International Telecommunication Union (ITU) indicate that global internet traffic is expected to reach 400 exabytes per month by 2025, demonstrating a surge in consumer and business connectivity needs.
Organizations such as Cisco are actively contributing to this trend, emphasizing the importance of photonic integrated circuits (PICs) in addressing such demands by offering solutions that allow for increased bandwidth and reduced latency.
By utilizing photonic technologies, data centers can expand their capacity and optimize energy efficiency, further fueling the growth of the Photonic Integrated Circuit Market.
Growth in Telecommunications and Network Infrastructure
The ongoing advancements and investments in telecommunications and network infrastructure are substantial factors influencing the growth of the Photonic Integrated Circuit Market. The deployment of 5G networks is a prominent example, as it requires robust and efficient components to handle increased data traffic.
The European Telecommunications Standards Institute (ETSI) has reported that the demand for 5G technology will lead to a transformation of broadband networks. This transition aims to enhance user experience through higher speeds and improved connectivity.
Major telecommunication companies like AT&T and Verizon are actively investing in photonic technologies to improve their network capabilities. Such investments not only enhance service quality but also represent significant opportunities for the Photonic Integrated Circuit Market.
Increasing Adoption of Photonics in Consumer Electronics
The rising integration of photonics technology in consumer electronics is another vital driver propelling the Photonic Integrated Circuit Market. As devices become more sophisticated, the demand for integrated circuits that support long-lasting battery life and high-speed performance has escalated.
For example, the Consumer Electronics Association (CEA) noted a significant increase in the market for smart devices, anticipating that by 2024, smart device sales would reach 1.5 billion units per year globally, further amplifying the need for efficient photonic solutions.
Companies such as Apple and Samsung are pioneering advancements in photonics with their latest product lines that seamlessly incorporate photonic integrated circuits. This trend indicates a broader acceptance and reliance on photonic technology within the consumer electronics sector, which in turn drives growth within the Photonic Integrated Circuit Market.
Photonic Integrated Circuit Market Segment Insights:
Photonic Integrated Circuit Market Substrate Material Insights
The Photonic Integrated Circuit Market, particularly the Substrate Material segment, played a crucial role in determining the performance and capabilities of photonic devices. The total market for Substrate Material contributed significantly towards the overall market valuation, with notable growth seen across its constituents.
Silicon, emerged as a frontrunner, was valued at 3.85 USD billion in 2024, primarily due to its low cost, abundance, and well-established manufacturing processes, making it a preferred choice for various applications.
The importance of Silicon cannot be understated, as it is expected to dominate the market landscape, with its valuation projected to reach 22.05 USD billion by 2035, showcasing a majority holding that underscores its pivotal role in driving advancements in photonic circuits.
Following closely was Indium Phosphide, valued at 2.55 USD billion in 2024, which is renowned for its superior electron mobility and efficiency in light emission, making it integral for high-speed communication systems.
Its market valuation is anticipated to grow significantly, reaching 14.55 USD billion in 2035, indicating a notable presence in the advanced photonic applications that require high performance.
Gallium Arsenide also held an essential position, with a market valuation of 1.85 USD billion in 2024 and an expected growth to 10.5 USD billion by 2035, aligning it closely within the semiconductor industry and photonic devices, particularly in laser and LED technologies.
Lithium Niobate, while relatively smaller with a valuation of 0.42 USD billion in 2024, is projected to rise to 2.12 USD billion by 2035, showcasing its unique capabilities in electro-optic applications that catered to the specific requirements of photonic integrated circuits.
The growth and development within this Substrate Material segment are primarily driven by increasing demand for high-bandwidth communication networks, advancements in integrated photonics technology, and the continuous pursuit of miniaturization in electronic devices.
Furthermore, the segment faced challenges from material limitations and fabrication complexities, yet, the ongoing Research and Development endeavors present substantial opportunities for innovation and improved functionalities.
The robust growth trajectory reflected through the Photonic Integrated Circuit Market data exemplifies a thriving industry poised to support significant technological advancements and societal needs in communication and information processing.
Understanding the Photonic Integrated Circuit Market statistics within this context illustrates the critical framing of Substrate Materials, reflecting a dynamic interplay of performance, cost, and application relevance that propels the market forward.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Photonic Integrated Circuit Market Integration Type Insights
The Photonic Integrated Circuit Market is experiencing significant growth, driven by advancements in technology and increasing demand for higher data transmission rates. Hybrid Integrated PIC is notable for its flexibility in combining different materials, allowing for enhanced performance across various applications including telecommunications and sensor technologies.
This adaptability makes it a preferred choice among manufacturers. On the other hand, Monolithic Integration PIC continues to gain traction due to its efficiency in fabricating devices on a single chip, resulting in reduced costs and improved reliability, making it essential for high-volume production settings.
Overall, the Photonic Integrated Circuit Market data reflects strong progress, with both integration types playing critical roles in meeting the evolving needs of industries, bolstered by continued Research and Development efforts that address emerging challenges and enhance capabilities in the rapidly changing market landscape.
Photonic Integrated Circuit Market Integration Level Insights
The Photonic Integrated Circuit Market is experiencing significant growth, particularly in the Integration Level segment, which highlights the various approaches to integration utilized within the industry.
The Integration Level segment can be divided into Small-Scale PIC, Medium-Scale PIC, and Large-Scale PIC, each playing a critical role in shaping the market dynamics. Small-Scale PIC is noteworthy for its low-cost and compact designs, making it ideal for consumer electronics and telecommunications.
Medium-Scale PIC benefits from its balanced approach, integrating multiple functions while maintaining efficiency, thus appealing to the rapidly growing data communication sector. Large-Scale PIC, on the other hand, dominates due to its capability of integrating numerous photonic components, facilitating high-performance systems in sectors such as aerospace and medical devices.
The Photonic Integrated Circuit Market is characterized by a trend towards miniaturization and increased functionality, spurred by advancements in manufacturing techniques and materials.
Overall, the integration level within this market propulsion is driven by the need for efficient, cost-effective solutions that can meet the demands of various applications, reinforcing the importance of each integration approach in realizing the full potential of photonic technologies.
Photonic Integrated Circuit Market Application Insights
The market is primarily segmented into various applications such as Optical Fiber Communication, Optical Fiber Sensors, Biomedical applications, Quantum Computing, and others. Optical Fiber Communication is increasingly important due to its role in ensuring high-speed internet and data transfer, which is critical in today's digital age.
Optical Fiber Sensors are gaining traction as they offer precise and real-time monitoring capabilities, vital for sectors like healthcare and environmental assessment. The Biomedical application leverages photonic circuits for diagnostic and therapeutic purposes, significantly enhancing patient care and advancing medical technology.
Quantum Computing is emerging as a pivotal force in the Photonic Integrated Circuit Market, attracting investments and innovations that promise to revolutionize computational processes. Overall, the demand across these areas is fueled by advancements in technology, increasing data transmission needs, and a growing emphasis on healthcare innovations, driving substantial market growth.
Photonic Integrated Circuit Market Regional Insights
In the Photonic Integrated Circuit Market, the regional segmentation revealed significant insights with distinct valuations. In 2024, North America led with a valuation of 3.0 USD billion, ballooning to 16.93 USD billion by 2035, showcasing its dominance in the market due to a solid Research and Development infrastructure and investment in technology advancements.
Europe followed as a substantial player, expected to grow from 2.0 USD billion in 2024 to 11.29 USD billion in 2035, benefitting from strong industrial applications. The Asia Pacific region, valued at 2.9 USD billion in 2024 and projected to reach 16.46 USD billion by 2035, highlighted a growing demand fueled by increasing technological adoption and manufacturing capabilities.
South America represented a smaller segment, starting at 0.5 USD billion in 2024 and growing to 2.86 USD billion in 2035, indicating emerging market opportunities in the region. The Middle East and Africa held a valuation of 0.27 USD billion in 2024, with an expected rise to 1.68 USD billion by 2035, reflecting a gradually increasing focus on innovation.
Overall, the Photonic Integrated Circuit Market data showcased diverse growth trajectories and highlights North America's major market share while the Asia Pacific region's rapid expansion presents substantial growth opportunities driven by technological development and adoption.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Photonic Integrated Circuit Market Key Players and Competitive Insights:
The Photonic Integrated Circuit Market is characterized by rapid technological advancements and increasing demand for high-performance optical devices. This market is gaining traction as it offers enhanced efficiency and compact design solutions for various applications, including telecommunications, data centers, and consumer electronics.
Competitive insights reveal a landscape shaped by innovation, where companies are continuously striving to develop cutting-edge products that leverage photonic technologies. The integration of light-based components into microelectronics is driving market players to invest heavily in research and development, fostering collaborations, and forming strategic partnerships to expand their market reach.
As companies aim to gain competitive advantages, they are also working on optimizing manufacturing processes and exploring new applications in emerging sectors such as quantum computing and artificial intelligence.
Broadcom holds a prominent position within the Photonic Integrated Circuit Market, leveraging its robust portfolio of technology and extensive expertise in optical networking solutions. The company has established a significant market presence through its ability to offer high-performance photonic solutions that cater to the increasing demand for bandwidth and speed in networking applications.
Broadcom's strengths lie in its strong research and development capabilities, enabling it to consistently innovate and deliver advanced photonic integrated circuits that meet the evolving needs of global customers.
Additionally, the company's strategic investments in state-of-the-art manufacturing facilities solidify its standing in the market, allowing for scalability and optimization in production processes. This commitment to excellence ensures that Broadcom maintains its competitive edge and continues to play a key role in shaping the future of photonic integrated circuits.
Morphic Technologies is a notable player in the Photonic Integrated Circuit Market, recognized for its innovative solutions and commitment to advancing photonic integration technologies. The company specializes in providing high-quality photonic integrated circuits that enhance performance in various applications, particularly in telecommunications and data transmission.
Morphic Technologies has made significant strides in establishing a strong market presence through its focus on developing proprietary technologies and robust partnerships with key industry stakeholders. Among its key offerings are advanced photonic chips designed for high-speed data communication, aiming to meet the surging demand for efficient data transmission solutions.
The company’s strengths lie in its agile R&D processes, allowing for rapid product development and adaptation to market needs. Furthermore, Morphic Technologies has engaged in strategic mergers and acquisitions to enhance its technological capabilities, expand its product range, and reinforce its market position on a global scale.
This strategic focus allows Morphic Technologies to foster growth and address the dynamic needs of the photonic integrated circuit market effectively.
Key Companies in the Photonic Integrated Circuit Market Include:
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Broadcom
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Morphic Technologies
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Lightwave Logic
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Rockley Photonics
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Nokia
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Infinera
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IBM
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Oclaro
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Pixelligent Technologies
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Intel
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Cisco
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Siemens
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TE Connectivity
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NeoPhotonics
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Lumentum
Photonic Integrated Circuit Market Developments
Broadcom's 200G-per-lane silicon photonics portfolio, which includes their first 200G VCSEL and EML transmitters, was unveiled at OFC in March 2024. This portfolio improves bandwidth and energy efficiency for data-center optical interconnects and artificial intelligence. Broadcom showcased scalability and thermal efficiency in dense optical modules in August 2023 with a 512-lane CPO (co-packaged optics) system.
The world's first fully integrated optical computing interconnect (OCI) chiplet was introduced by Intel in June 2024. It came with a CPU and was capable of handling real-time data, providing up to 4 Tbps of bandwidth across 100 m fiber with an energy efficiency of 5 pJ/bit.
To better meet the objectives of high-performance computing, Intel restructured its Integrated Photonics Solutions under its Data Center & AI group in September 2024. After being acquired by Nokia, Infinera began to ship large-scale photonic integrated circuits for WDM transmission systems in June 2024.
Building on the microring and monolithic integration methods initially created under SyNAPSE projects, IBM pushed silicon photonics research through its laboratories in late 2023. By the middle of 2025, Cisco and Siemens had started testing PIC-based sensors and optical connectivity modules in smart factory and industrial networking settings.
Photonic Integrated Circuit Market Segmentation Insights
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Photonic Integrated Circuit Market Substrate Material Outlook
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Silicon
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Indium Phosphide
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Gallium Arsenide
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Lithium Niobate
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Photonic Integrated Circuit Market Integration Type Outlook
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Photonic Integrated Circuit Market Integration Level Outlook
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Small-Scale PIC
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Medium-Scale PIC
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Large-Scale PIC
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Photonic Integrated Circuit Market Application Outlook
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Photonic Integrated Circuit Market Regional Outlook
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North America
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Europe
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South America
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Asia Pacific
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Middle East and Africa
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Report Attribute/Metric
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Details
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Market Size 2023
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7.26(USD billion)
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Market Size 2024
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8.67(USD billion)
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Market Size 2035
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49.22(USD billion)
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Compound Annual Growth Rate (CAGR)
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17.1% (2025 - 2035)
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Report Coverage
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Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
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Base Year
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2024
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Market Forecast Period
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2025 - 2035
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Historical Data
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2019 - 2024
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Market Forecast Units
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USD billion
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Key Companies Profiled
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Broadcom, Morphic Technologies, Lightwave Logic, Rockley Photonics, Nokia, Infinera, IBM, Oclaro, Pixelligent Technologies, Intel, Cisco, Siemens, TE Connectivity, NeoPhotonics, Lumentum
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Segments Covered
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Substrate Material, Integration Type, Integration Level, Application, Regional
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Key Market Opportunities
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Increased demand for data centers, Growth in telecommunications industry, Advancements in miniaturization technologies, Emerging applications in healthcare, High-speed networking solutions
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Key Market Dynamics
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Growing demand for data transmission, Increasing telecom infrastructure investment, Advancements in semiconductor technology, Rising adoption of IoT applications, Government initiatives in photonics research
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Countries Covered
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North America, Europe, APAC, South America, MEA
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Photonic Integrated Circuit Market Highlights:
Frequently Asked Questions (FAQ) :
The Photonic Integrated Circuit Market was valued at 8.67 billion USD in 2024.
The market is expected to grow significantly, reaching a value of 49.22 billion USD by 2035.
The market is projected to grow at a CAGR of 17.1% during the forecast period from 2025 to 2035.
North America was the dominant region, valued at 3.0 billion USD in 2024.
The Asia Pacific region was valued at 2.9 billion USD in 2024.
The market for Silicon substrate material is expected to reach 22.05 billion USD by 2035.
Major players include Broadcom, Morphic Technologies, Lightwave Logic, and Intel among others.
The market for Indium Phosphide substrate material is projected to be valued at 14.55 billion USD by 2035.
The Gallium Arsenide substrate material was valued at 1.85 billion USD, while Lithium Niobate is at 0.42 billion USD in 2024.
Increasing demand for high-speed communication and advancements in photonic technologies are key growth drivers.
