Photonic Integrated Circuits Market By Integration Technique (Monolithic Integration, Hybrid Integration, Module Integration), By Raw Materials (Indium Phosphide (INP), Gallium Arsenide (GaAS), Silicon, Silicon-On-Insulator (SOI)), By Application (Optical Communication, Sensing, Biophotonics, Optical Signal Processing) – Growth, Share, Opportunities & Competitive Analysis, 2018 – 2028

Market Overview:

Photonic integrated circuits (PIC) present unmatched advantages in areas such as energy efficiency, compactness, speed, and affordability, fueling their market demand. A rising need for swift communication, particularly in optical communication, magnifies this growth. Forecasts suggest a CAGR of 21% from 2021 to 2028 for the PIC market. Despite these promising aspects, the gradual shift towards digitization, combined with design and manufacturing hurdles, challenge the market. The worldwide revenue for the photonic integrated circuit market was $XX million in 2021, projected to reach $XX million by 2028 with the aforementioned growth rate.

Report Objective: This comprehensive report, “Global Photonic IC Market – Growth, Share, Opportunities, and Competitive Analysis, 2021 – 2028,” is crafted to provide stakeholders, executives, and industry professionals with profound insights. This aims to assist in making strategic decisions that align with the prospects in the global web security sector.

Intended Readership:

• Investment professionals in the industry
• Suppliers of raw materials
• Manufacturers of Photonic ICs
• Producers of Photonic Equipment/Products
• End-users

The choice of surface material in photonic integration is pivotal, as the value of photonic integration lies in its potential to consolidate multiple functions on a single substrate. Hence, the material substrate’s choice is vital for both functionality and cost-efficiency.

The global photonic integrated circuits (PIC) market, based on various raw materials, is divided into:

• Indium Phosphide (InP)
• Gallium Arsenide (GaAs)
• Silicon (Si)
• Silicon-on-Insulator (SOI)
• Others (e.g., Lithium Niobate, Silicon Nitride)

Indium Phosphide (InP) stands out as the top choice for photonic integrated circuits. In 2021, InP was responsible for approximately a third of the global market’s revenue. It’s anticipated to maintain its lead in the photonic integration sector from 2022 onwards. InP’s popularity stems from its unparalleled ability to bring together both active and passive optical functions on one substrate. Coupled with advantages in cost, dependability, and energy conservation, InP emerges as the go-to material for photonic integration. Other materials, like silicon and silicon-on-insulator, also find considerable usage due to their affordability, accessibility, and ease of fabrication. Photonic integration plays a pivotal role in consolidating various optical components/functions into a unified unit, paving the way for more compact electronic devices.

Top Players in Photonic Integrated Circuit Market Are:

• 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.
• Lumentum Operations LLC

Recent Development:

• September 2021 – LIGENTEC and X-FAB Silicon Foundries SE entered a strategic alliance with the goal to provide a large-volume supply of integrated photonic devices across Europe.
• December 2021 – Infinera was chosen by Telia Carrier, owing to its advanced ICE6 800G coherent technology, which is slated to be a cornerstone of Telia Carrier’s international expansion.
• March 2022 – EFFECT Photonics, a leader in photonics semiconductors, joined hands with Jabil Photonics, a manufacturing powerhouse, to pioneer the next wave of coherent optical modules. This unique solution caters to hyper-scalers and network providers, delivering perks like superior performance of QSFP-high DD, energy efficiency, compactness, field replaceability, affordability, consumption, and supplier compatibility for cloud Data Center Interconnects (DCIs).
• March 2022 – ColorChip Group, known for its optical sub-systems and components in the Datacom and Telecom sectors, teamed up with Skorpios Technologies Inc., a frontrunner in heterogeneously integrated silicon photonics. The partnership aims to leverage Skorpios’ groundbreaking optical tech to offer optical modules at unprecedented price points.
• May 2022 – EV Group, specializing in wafer bonding and lithography tools, collaborated with Teramount LTD., a visionary in bridging optical fibers with silicon chips. Together, they are set to bring forth cutting-edge packaging technologies for photonic ICs.
• June 2022 – Intel Corporation, a titan in electronic components, unveiled its integrated silicon photonics, marking a new era for accelerated processor networking.

Integration Technique Breakdown:

The photonic IC market, based on integration techniques, can be classified into:

• Monolithic Integration
• Hybrid Integration
• Module Integration

In 2021, Hybrid Integration led the market, contributing over half of the global revenue. While it’s anticipated to remain predominant, Monolithic Integration is projected to experience the most significant uptake, with an expected CAGR of 21% from 2022 to 2028. Its rise can be attributed to its ability to support medium to large-sized photonic integrated circuits. The growing appreciation for its reliability, power efficiency, and testing capabilities has industries worldwide increasingly favoring it. Conversely, Module Integration held the smallest revenue share in 2021, and its slow growth is expected to persist through 2028, mainly due to its limitations in merging numerous optical functions and subpar fiber coupling integration.

Application Segmentation:

Photonic ICs have a range of applications, including:

• Optical Communication (e.g., Wireless Access Networks, Long Haul, Transport Networks, Data Centers)
• Sensing (e.g., Engineering, Energy & Utilities, Transport & Aerospace)
• Biophotonics (e.g., Medical Devices, Photonic Lab-On-A-Chip)
• Optical Signal Processing (e.g., Quantum Optics, Quantum Computing, Optical Metrology)

Optical communication, especially in areas like wireless access networks and data centers, emerged as the dominant application segment in 2021, capturing over 50% of the market revenue. With the rising demand for rapid communication, this dominance is projected to continue. Biophotonics and sensing are also pivotal, with the former transforming healthcare by offering early disease detection and treatment. Among these, Optical Signal Processing is foreseen to witness the most significant growth, primarily driven by the prospective commercialization of quantum computing by 2028.

Historical Context:

Photonic integration’s concept originated in the latter half of the 20th century, yet its full potential lay dormant for decades due to technological limitations and a lack of application products. The breakthrough came with the advent of advanced photonic integrated circuits, which rejuvenated the photonics industry. These circuits have recently gained commercial traction, particularly for enhancing data centers and telecom networks.

Although electronic integrated circuits have historically outpaced photonic ICs, industry insiders forecast a shift, with photonic ICs eventually superseding their electronic counterparts. These predictions also include potential integrations of optics and electronics in the future.

Comparison of Photonic and Electronic ICs:

• Raw Materials: Photonic ICs utilize various materials depending on the device’s function, whereas electronic ICs predominantly use silicon. Both, however, employ photolithography in fabrication.
• Key Devices: Transistors are fundamental in electronics, while no single device dominates in photonics.
• Functionality: Electronic ICs operate digitally, while photonic ICs are analog, necessitating digitization for reduced complexity.
• Data Transfer: Photonic ICs, which use photons, promise faster data transfer rates compared to electronic ICs that rely on electrons.

Regional Analysis:

In 2021, North America, primarily the U.S., dominated the photonic IC market, holding over 35% of the global revenue. The region’s lead is attributed to the extensive use of photonic tech in fiber optics, a strong base of photonic device manufacturers, and persistent photonics research. Though North America is predicted to retain its leading position until 2028, Asia Pacific is set to experience the most significant growth, driven by escalating demands from data centers and biophotonics sectors.

Chapter 1 Preface
1.1 Report Description
1.1.1 Purpose of the Report
1.1.2 Target Audience
1.1.3 USP and Key Offerings
1.2 Research scope
1.3 Market Segmentation
1.4 Research Methodology
1.4.1 Phase I – Secondary Research
1.4.2 Phase II – Primary Research
1.4.3 Phase III – Expert Panel Review
1.4.4 Approach Adopted

Chapter 2 Executive Summary
2.1 Market Snapshot: Global Photonic IC Market
2.2 Global Photonic IC Market, By Integration Technique
2.3 Global Photonic IC Market, By Raw Material
2.4 Global Photonic IC Market, By Application
2.5 Global Photonic IC Market, By Geography

Chapter 3 Market Dynamics
3.1 Introduction
3.1.1 Global Photonic IC Market Revenue and Growth, 2018 – 2028, (US$ Bn) (Y-o-Y %)
3.2 Market Inclination Insights
3.3 Market Drivers
3.4 Market Growth Inhibitors
3.5 See-Saw Analysis
3.5.1 Impact Analysis of Drivers and Restraints
3.6 Attractive Investment Proposition
3.7 Competitive Analysis
3.7.1 Market Positioning of Key Manufacturers

Chapter 4 Global Photonic IC Market Analysis, By Integration Technique
4.1 Overview
4.2 Tornado Analysis
4.3 Monolithic Integration
4.3.1 Global Photonic IC Market Revenue for Monolithic Integration, 2018 – 2028, (US$ Bn)
4.4 Hybrid Integration
4.4.1 Global Photonic IC Market Revenue for Hybrid Integration, 2018 – 2028, (US$ Bn)
4.5 Module Integration
4.5.1 Global Photonic IC Market Revenue for Module Integration, 2018 – 2028, (US$ Bn)

Chapter 5 Global Photonic IC Market Analysis, By Raw Materials
5.1 Overview
5.2 Tornado Analysis
5.3 Indium Phosphide (InP)
5.3.1 Global Photonic IC Market Revenue for Indium Phosphide, 2018 – 2028, (US$ Bn)
5.4 Gallium Arsenide (GaAs)
5.4.1 Global Photonic IC Market Revenue for Gallium Arsenide, 2018 – 2028, (US$ Bn)
5.5 Silicon
5.5.1 Global Photonic IC Market Revenue for Silicon, 2018 – 2028, (US$ Bn)
5.6 Silicon-on-Insulator (SOI)
5.6.1 Global Photonic IC Market Revenue for Silicon-on-Insulator, 2018 – 2028, (US$ Bn)
5.7 Others ( Lithium Niobate, Silicon Nitride, etc.)
5.7.1 Global Photonic IC Market Revenue for Other Raw Materials, 2018 – 2028, (US$ Bn)

Chapter 6 Global Photonic IC Market Analysis, By Application
6.1 Overview
6.2 Tornado Analysis
6.3 Optical Communication
6.3.1 Global Photonic IC Market Revenue for Optical Communication Applications, 2018 – 2028, (US$ Bn)
6.4 Sensing
6.4.1 Global Photonic IC Market Revenue for Sensing Applications, 2018 – 2028, (US$ Bn)
6.5 Biophotonics
6.5.1 Global Photonic IC Market Revenue for Biophotonic Applications, 2018 – 2028, (US$ Bn)
6.6 Optical Signal Processing
6.6.1 Global Photonic IC Market Revenue for Optical Signal Processing Applications, 2018 – 2028, (US$ Bn)

Chapter 7 North America Photonic IC Market Analysis
7.1 Overview
7.1.1 North America Photonic IC Market Revenue and Growth, 2018 – 2028, (US$ Bn)
7.2 North America Photonic IC Market Revenue Analysis, By Integration Technique, 2013– 2022 (US$ Bn)
7.2.1 SRC Analysis
7.3 North America Photonic IC Market Revenue Analysis, By Raw Material, 2018 – 2028 (US$ Bn)
7.3.1 SRC Analysis
7.4 North America Photonic IC Market Revenue Analysis, By Application, 2018 – 2028 (US$ Bn)
7.4.1 SRC Analysis
7.5 North America Photonic IC Market Revenue Analysis, By Country, 2018 – 2028 (US$ Bn)
7.5.1 SRC Analysis
7.5.2 U.S.
7.5.3 Rest of North America

Chapter 8 Europe Photonic IC Market Analysis
8.1 Overview8.1.1 Europe Photonic IC Market Revenue and Growth, 2018 – 2028, (US$ Bn)
8.2 Europe Photonic IC Market Revenue Analysis, By Integration Technique, 2013– 2022 (US$ Bn)
8.2.1 SRC Analysis
8.3 Europe Photonic IC Market Revenue Analysis, By Raw Material, 2018 – 2028 (US$ Bn)

8.3.1 SRC Analysis
8.4 Europe Photonic IC Market Revenue Analysis, By Application, 2018 – 2028 (US$ Bn)
8.4.1 SRC Analysis
8.5 Europe Photonic IC Market Revenue Analysis, By Country, 2018 – 2028 (US$ Bn)
8.5.1 SRC Analysis
8.5.2 EU7 (UK, France, Germany, Italy, Spain, Netherlands, Belgium)
8.5.3 CIS
8.5.4 Rest of Europe

Chapter 9 Asia Pacific Photonic IC Market Analysis
9.1 Overview
9.1.1 Asia Pacifc Photonic IC Market Revenue and Growth, 2018 – 2028, (US$ Bn)
9.2 Asia Pacific Photonic IC Market Revenue Analysis, By Integration Technique, 2013– 2022 (US$ Bn)
9.2.1 SRC Analysis
9.3 Asia Pacific Photonic IC Market Revenue Analysis, By Raw Material, 2018 – 2028 (US$ Bn)
9.3.1 SRC Analysis
9.4 Asia Pacific Photonic IC Market Revenue Analysis, By Application, 2018 – 2028 (US$ Bn)
9.4.1 SRC Analysis
9.5 Asia Pacific Photonic IC Market Revenue Analysis, By Country, 2018 – 2028 (US$ Bn)
9.5.1 SRC Analysis
9.5.2 Japan
9.5.3 China
9.5.4 Indian Subcontinent
9.5.5 Rest of Asia Pacific

Chapter 10 Rest of World Photonic IC Market Analysis
10.1 Overview
10.1.1 Rest of World Photonic IC Market Revenue and Growth, 2018 – 2028, (US$ Bn)
10.2 Rest of World Photonic IC Market Revenue Analysis, By Integration Technique, 2013– 2022 (US$ Bn)
10.2.1 SRC Analysis
10.3 Rest of World Photonic IC Market Revenue Analysis, By Raw Material, 2018 – 2028 (US$ Bn)
10.3.1 SRC Analysis
10.4 Rest of World Photonic IC Market Revenue Analysis, By Application, 2018 – 2028 (US$ Bn)
10.4.1 SRC Analysis
10.5 Rest of World Photonic IC Market Revenue Analysis, By Country, 2018 – 2028 (US$ Bn)
10.5.1 SRC Analysis
10.5.2 Latin America
10.5.3 Middle-East and Africa

Chapter 11 Company Profiles
11.1 Teramount LTD.

11.2 X-FAB Silicon Foundries SE
11.3 Broadcom Inc.
11.4 Enablence Technologies Inc.
11.5 Huawei Technologies Co. Ltd.
11.6 Intel Corporation
11.7 Cisco Systems Inc.
11.8 VLC Photonics S.L. 
11.9 Lumentum Operations LLC