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Global Photonic Integrated Circuits (PIC) Market Report: By Integration Type: Monolithic Integration, Hybrid Integration; By Raw Material: III-V Material, Lithium Niobate, Silica-on-Silicon, Silicon-on-Insulator, Others; By Component: Lasers, Modulators, Detectors, Attenuators, Others; By Application; Regional Analysis; Competitive Landscape; 2024-2032

Global Photonic Integrated Circuits (PIC) Market Outlook

The global photonic integrated circuits (PIC) market size reached a value of nearly USD 21,150 million in 2023. The market is projected to grow at a CAGR of 20.3% between 2024 and 2032 to reach around USD 113,984 million by 2032.

Key Takeaways

The market for photonic integrated circuits is being driven by its increasing application in various end-use sectors, including data and telecommunications, medical and healthcare, engineering and transport.

Infinera Corporation, Coherent Corp. (II-VI Incorporated), and Intel Corporation are some of the major companies in the market.

Use of the internet has grown rapidly across the globe, reaching about 91% of the population in North America, 87% in Europe and 73% in Asia Pacific.

An integrated photonic circuit (PIC) or optical circuit is a system that incorporates several photonic functions and is similar to an integrated electronic circuit. Integrated photonics has vast potential in the automotive sector, including vehicle and system design. LiDAR sensors in autonomous vehicles play a pivotal role in generating a 3D map of the vehicle’s surroundings, serving as a preventive measure against collisions.

Some of the factors driving the photonic integrated circuits (PIC) market growth are the rising smartphone-based applications and the growing need for more digital infrastructure from cloud service providers, hyper scalers, and over-the-top media companies. The increasing use of data is necessitating the need for more energy-efficient ways to increase the speed and capacity of data networks.

Key Trends and Developments

Increasing adoption of 5G technology; growing demand for PIC in different end-use sectors; innovations in PIC technology; and growing smartphone applications drive the photonic integrated circuits (PIC) market growth

Date	Company	Details
November 7th 2023	Lumentum Holdings	acquired Hong Kong-based Cloud Light Technology for approximately USD 750 million.
March 20th 2023	Infinera	Announced the successful deployment of its ICE6 800G coherent optical solution by EXA Infrastructure on the Trans Adriatic Express (TAE) submarine cable.
August 15th 2023	Lumentum Holdings	acquired IPG Photonics' telecom transmission product lines in an all-cash transaction. The acquisition expanded Lumentum's addressable market and technological capabilities, particularly in transceiver product lines and ASICs, such as coherent DSPs.
June 28th 2022	Intel Corporation	Unveiled a breakthrough in Integrated Photonics Research, showcasing a precisely controlled eight-wavelength laser array on a silicon wafer with uniform spacing and matched power.

Trends	Impact
Increasing adoption of 5G	The upgradation of the network technology in the telecommunication industry is driving demand for innovative PIC devices to facilitate higher data processing capacity with lower power consumption.
Growing demand in end use sectors	EnPIC-based transceivers and components find extensive applications in end-use sectors, including engineering and transport and data and telecommunications.
Innovation in PIC technology	Innovation in emerging technologies such as voice activity detection and haptic feedback interfaces supports the market growth.
Rising smartphone-based applications	The rising smartphone applications are driving the need for more digital infrastructure from cloud service providers, hyper scalers, and over-the-top media companies across all regions.

Figure: Global 5G Subscriptions Historical and Forecast: Million (2018-2028)

Global Photonic Integrated Circuits (PIC) Market

Global Photonic Integrated Circuits (PIC) Market Trends

It is anticipated that by 2030, 30 billion connected Internet of Things (IoT) devices will be established across the globe. The growth of the PIC market is supported by the rising telecommunication network traffic and growing demand for data centres that require higher speed, increased bandwidth, and peak data rates, among others. Additionally, LiDAR sensors in autonomous vehicles play a pivotal role in generating a 3D map of the vehicle’s surroundings, serving as a preventive measure against collisions.

Furthermore, the skyrocketing data usage with the adoption of cutting-edge technologies by various enterprises, including big data analytics, cloud computing and IoT are catering to a strong data centre demand. The increasing demand for autonomous vehicles and growing concern for passenger safety require smart sensing and optical devices are also creating opportunities for the photonic integrated circuits (PIC) market growth.

Figure: Data Centre Breakdown by Major Countries 2021 (%)

Global Photonic Integrated Circuits (PIC) Market

Market Segmentation

Global Photonic Integrated Circuits (PIC) Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup	Categories
Integration Type	Monolithic Integration, Hybrid Integration
Raw material	III-V Material, Lithium Niobate, Silica-on-Silicon, Silicon-on-Insulator, Others.
Component	Lasers, Modulators, Detectors, Attenuators, Multiplexers/De-multiplexers, Optical Amplifiers.
Application	Telecommunications, Biomedical, Data Centers, Optical Sensors(LiDAR).
Region	North America, Europe, Asia Pacific, Latin America, Middle East and Africa

Monolithic integration is expected to hold significant share in the photonic integrated circuits (PIC) market in the forecast period.

Monolithic integration features the entire circuit constructed on a single piece of silicon or another semiconductor. Integrating laser sources and photodetectors in silicon photonic integrated circuits (Si-PICs) through the heteroepitaxy of III-V semiconductors on Si offers efficient large-scale production. Currently, most sophisticated PICs contain over 1000 optical components on a single, monolithic, InP-based chip. Some of the key companies offering monolithic PICs include Infinera and Lumentum Holdings Inc.

III-V Materials dominates the photonic integrated circuits (PIC) market share

III-V Material also holds a major market share. The group III-V materials are direct-bandgap materials that can readily facilitate photons required to generate light. Hence, they are used to develop photonic devices and integrated circuits when monolithic integration is required.

Competitive Landscape

Major players in the photonic integrated circuits (PIC) market are increasing their collaboration, partnership, and research and development activities to gain a competitive edge

Company Name	Year Founded	Headquarters	Products/Services
Infinera Corporation	2000	United States	ICE-X, ICE6, ICE7.
Coherent Corp. (II-VI Incorporated)	1971	United States	Silicon-based PICs for coherent and direct-detection transceivers and co-packaging solutions.
Intel Corporation	1968	United States	100G PSM4 QSFP28, 100G CWDM4 QSFP28, 100G SR4 QSFP28, 100G LR4 QSFP28, 200G FR4 QSFP56.
Lumentum Holdings Inc.	2015	United States	Highly integrated indium phosphide (InP) photonic integrated circuit (PIC) technology components.

Other key players in the photonic integrated circuits (PIC) market include IBM Corporation, Cisco Systems, Inc., and STMicroelectronics N.V.

Global Photonic Integrated Circuits (PIC) Market Analysis by Region

The Asia Pacific is anticipated to hold a dominant position in the photonic integrated circuits (PIC) market in the coming years. In Q2 2023 South Korea, China, and Japan stood as the top countries in the adoption of 5G. China occupies a top position in the market for LiDAR. The growing developments in logistics, smart infrastructures, robot axes, and delivery robots, coupled with the booming smart driving sector, contribute to the increased adoption of photonics devices.

The North America photonic integrated circuits (PIC) market is being driven by the presence of several optical component manufacturers finding applications in various end-use segments. North America is a leader in the uptake of 5G connections. By Q4 2022, North America accounted for a total of 119 million 5G and 507 million LTE connections. In 2022, 5G subscription penetration in North America stood at 41%.

Europe holds a growing photonic integrated circuits (PIC) market share and is driven by the presence of an extensive range of companies, with 86% of the 5000 European firms being SMEs specialising in sensors, lasers, optics, fibres, and photonic integrated circuits.

Key Highlights of the Report

REPORT FEATURES	DETAILS
Base Year	2023
Historical Period	2018-2023
Forecast Period	2024-2032
Scope of the Report	Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment: Integration Type Raw Material Component Application Region
Breakup by Integration Type	Monolithic Integration Hybrid Integration
Breakup by Raw Material	III-V Material Lithium Niobate Silica-on-Silicon Silicon-on-Insulator Others
Breakup by Component	Lasers Modulators Detectors Attenuators Multiplexers/De-multiplexers Optical Amplifiers
Breakup by Application	Telecommunications Biomedical Data Centers Optical Sensors(LiDAR)
Breakup by Region	North America United States of America Canada Europe United Kingdom Germany France Italy Others Asia Pacific China Japan India ASEAN Australia Others Latin America Brazil Argentina Mexico Others Middle East and Africa Saudi Arabia United Arab Emirates Nigeria South Africa Others
Market Dynamics	SWOT Analysis Porter's Five Forces Analysis Key Indicators for Demand Key Indicators for Price
Competitive Landscape	Market Structure Company Profiles Company Overview Product Portfolio Demographic Reach and Achievements Certifications
Companies Covered	Infinera Corporation Coherent Corp. (II-VI Incorporated) Intel Corporation Lumentum Holdings Inc. IBM Corporation Cisco Systems, Inc. STMicroelectronics N.V. Others
Report Price and Purchase Option	Explore our purchase options that are best suited to your resources and industry needs.
Delivery Format	Delivered as an attached PDF and Excel through email, with an option of receiving an editable PPT, according to the purchase option.

*At Expert Market Research, we strive to always give you current and accurate information. The numbers depicted in the description are indicative and may differ from the actual numbers in the final EMR report.

1   Preface
2   Report Coverage – Key Segmentation and Scope
3   Report Description
   3.1   Market Definition and Outlook
   3.2   Properties and Applications
   3.3   Market Analysis
   3.4   Key Players
4   Key Assumptions
5   Executive Summary
   5.1   Overview
   5.2   Key Drivers
   5.3   Key Developments
   5.4   Competitive Structure
   5.5   Key Industrial Trends
6   Snapshot
   6.1   Global
   6.2   Regional
7   Opportunities and Challenges in the Market
8   Global Photonic Integrated Circuits (PIC) Market Analysis
   8.1   Key Industry Highlights
   8.2   Global Photonic Integrated Circuits (PIC) Historical Market (2018-2023)
   8.3   Global Photonic Integrated Circuits (PIC) Market Forecast (2024-2032)
   8.4   Global Photonic Integrated Circuits (PIC) Market by Integration Type
       8.4.1   Monolithic Integration
           8.4.1.1 Historical Trend (2018-2023)
           8.4.1.2 Forecast Trend (2024-2032)
       8.4.2   Hybrid Integration
           8.4.2.1 Historical Trend (2018-2023)
           8.4.2.2 Forecast Trend (2024-2032)
8.5   Global Photonic Integrated Circuits (PIC) Market by Raw Material
       8.5.1   III-V Material
           8.5.1.1 Historical Trend (2018-2023)
           8.5.1.2 Forecast Trend (2024-2032)
       8.5.2   Lithium Niobate
           8.5.2.1 Historical Trend (2018-2023)
           8.5.2.2 Forecast Trend (2024-2032)
       8.5.3   Silica-on-Silicon
           8.5.3.1 Historical Trend (2018-2023)
           8.5.3.2 Forecast Trend (2024-2032)
       8.5.4   Silicon-on-Insulator
           8.5.4.1 Historical Trend (2018-2023)
           8.5.4.2 Forecast Trend (2024-2032)
8.5.5 Others
   8.6   Global Photonic Integrated Circuits (PIC) Market by Component
       8.6.1   Lasers
           8.6.1.1 Historical Trend (2018-2023)
           8.6.1.2 Forecast Trend (2024-2032)
       8.6.2   Modulators
           8.6.2.1 Historical Trend (2018-2023)
           8.6.2.2 Forecast Trend (2024-2032)
       8.6.3   Detectors
           8.6.3.1 Historical Trend (2018-2023)
           8.6.3.2 Forecast Trend (2024-2032)
       8.6.4   Attenuators
           8.6.4.1 Historical Trend (2018-2023)
           8.6.4.2 Forecast Trend (2024-2032)
       8.6.5   Multiplexers/De-multiplexers
           8.6.5.1 Historical Trend (2018-2023)
           8.6.5.2 Forecast Trend (2024-2032)
       8.6.6   Optical Amplifiers
           8.6.6.1 Historical Trend (2018-2023)
           8.6.6.2 Forecast Trend (2024-2032)
   8.7   Global Photonic Integrated Circuits (PIC) Market by Application
       8.7.1   Telecommunications
           8.7.1.1 Historical Trend (2018-2023)
           8.7.1.2 Forecast Trend (2024-2032)
8.7.2   Biomedical
           8.7.2.1 Historical Trend (2018-2023)
           8.7.2.2 Forecast Trend (2024-2032)
8.7.3   Data Centers
           8.7.3.1 Historical Trend (2018-2023)
           8.7.3.2 Forecast Trend (2024-2032)
8.7.4   Optical Sensors(LiDAR)
8.8 Global Photonic Integrated Circuits (PIC) Market by Region
8.8.1 North America
8.8.1.1 Historical Trend (2018-2023)
8.8.1.2 Forecast Trend (2024-2032)
8.8.2 Europe
8.8.2.1 Historical Trend (2018-2023)
8.8.2.2 Forecast Trend (2024-2032)
8.8.3 Asia Pacific
8.8.3.1 Historical Trend (2018-2023)
8.8.3.2 Forecast Trend (2024-2032)
8.8.4 LAMEA
8.8.4.1 Historical Trend (2018-2023)
8.8.4.2 Forecast Trend (2024-2032)
9 North America Photonic Integrated Circuits (PIC) Market Analysis
9.1 United States of America
9.1.1 Historical Trend (2018-2023)
9.1.2 Forecast Trend (2024-2032)
9.2 Canada
9.2.1 Historical Trend (2018-2023)
9.2.2 Forecast Trend (2024-2032)
10 Europe Photonic Integrated Circuits (PIC) Market Analysis
10.1 United Kingdom
10.1.1 Historical Trend (2018-2023)
10.1.2 Forecast Trend (2024-2032)
10.2 Germany
10.2.1 Historical Trend (2018-2023)
10.2.2 Forecast Trend (2024-2032)
10.3 France
10.3.1 Historical Trend (2018-2023)
10.3.2 Forecast Trend (2024-2032)
10.4 Italy
10.4.1 Historical Trend (2018-2023)
10.4.2 Forecast Trend (2024-2032)
10.5 Others
11 Asia Pacific Photonic Integrated Circuits (PIC) Market Analysis
11.1 China
11.1.1 Historical Trend (2018-2023)
11.1.2 Forecast Trend (2024-2032)
11.2 Japan
11.2.1 Historical Trend (2018-2023)
11.2.2 Forecast Trend (2024-2032)
11.3 India
11.3.1 Historical Trend (2018-2023)
11.3.2 Forecast Trend (2024-2032)
11.4 ASEAN
11.4.1 Historical Trend (2018-2023)
11.4.2 Forecast Trend (2024-2032)
11.5 South Korea
11.5.1 Historical Trend (2018-2023)
11.5.2 Forecast Trend (2024-2032)
11.6 Taiwan
11.6.1 Historical Trend (2018-2023)
11.6.2 Forecast Trend (2024-2032)
11.7 Others
12 LAMEA Photonic Integrated Circuits (PIC) Market Analysis
12.1 Brazil
12.1.1 Historical Trend (2018-2023)
12.1.2 Forecast Trend (2024-2032)
12.2 Argentina
12.2.1 Historical Trend (2018-2023)
12.2.2 Forecast Trend (2024-2032)
12.3 Mexico
12.3.1 Historical Trend (2018-2023)
12.3.2 Forecast Trend (2024-2032)
12.4 Turkey
12.4.1 Historical Trend (2018-2023)
12.4.2 Forecast Trend (2024-2032)
12.5 Others
13 Market Dynamics
13.1 SWOT Analysis
13.1.1 Strengths
13.1.2 Weaknesses
13.1.3 Opportunities
13.1.4 Threats
13.2 Porter’s Five Forces Analysis
13.2.1 Supplier’s Power
13.2.2 Buyer’s Power
13.2.3 Threat of New Entrants
13.2.4 Degree of Rivalry
13.2.5 Threat of Substitutes
13.3 Key Indicators for Demand
13.4 Key Indicators for Price
14 Value Chain Analysis
15 Competitive Landscape
15.1 Market Structure
15.2 Company Profiles
15.2.1   Infinera Corporation
15.2.1.1 Company Overview
15.2.1.2 Product Portfolio
15.2.1.3 Demographic Reach and Achievements
15.2.1.4 Certifications
15.2.2 Coherent Corp. (II-VI Incorporated)
15.2.2.1 Company Overview
15.2.2.2 Product Portfolio
15.2.2.3 Demographic Reach and Achievements
15.2.2.4 Certifications
15.2.3 Intel Corporation
15.2.3.1 Company Overview
15.2.3.2 Product Portfolio
15.2.3.3 Demographic Reach and Achievements
15.2.3.4 Certifications
15.2.4 Lumentum Holdings Inc.
15.2.4.1 Company Overview
15.2.4.2 Product Portfolio
15.2.4.3 Demographic Reach and Achievements
15.2.4.4 Certifications
15.2.5 IBM Corporation
15.2.5.1 Company Overview
15.2.5.2 Product Portfolio
15.2.5.3 Demographic Reach and Achievements
15.2.5.4 Certifications
15.2.6 Cisco Systems, Inc.,
15.2.6.1 Company Overview
15.2.6.2 Product Portfolio
15.2.6.3 Demographic Reach and Achievements
15.2.6.4 Certifications
15.2.7 STMicroelectronics N.V.
15.2.7.1 Company Overview
15.2.7.2 Product Portfolio
15.2.7.3 Demographic Reach and Achievements
15.2.5.4 Certifications
15.2.8 Others
17 Key Trends and Developments in the Market

List of Key Figures and Tables

1.   Global Photonic Integrated Circuits (PIC) Market: Key Industry Highlights, 2018 and 2032
2.   Global Photonic Integrated Circuits (PIC) Historical Market: Breakup by Integration Type (USD Million), 2018-2023
3.   Global Photonic Integrated Circuits (PIC) Market Forecast: Breakup by Integration Type (USD Million), 2024-2032
4.   Global Photonic Integrated Circuits (PIC) Historical Market: Breakup by Raw Material (USD Million), 2018-2023
5.   Global Photonic Integrated Circuits (PIC) Market Forecast: Breakup by Raw Material (USD Million), 2024-2032
6.   Global Photonic Integrated Circuits (PIC) Historical Market: Breakup by Component (USD Million), 2018-2023
7.   Global Photonic Integrated Circuits (PIC) Market Forecast: Breakup by Component (USD Million), 2024-2032
8.   Global Photonic Integrated Circuits (PIC) Historical Market: Breakup by Application (USD Million), 2018-2023
9.   Global Photonic Integrated Circuits (PIC) Market Forecast: Breakup by Application (USD Million), 2024-2032
10.   Global Photonic Integrated Circuits (PIC) Historical Market: Breakup by Region (USD Million), 2018-2023
11.   Global Photonic Integrated Circuits (PIC) Market Forecast: Breakup by Region (USD Million), 2024-2032
12.   North America Photonic Integrated Circuits (PIC) Historical Market: Breakup by Country (USD Million), 2018-2023
13.   North America Photonic Integrated Circuits (PIC) Market Forecast: Breakup by Country (USD Million), 2024-2032
13.   Europe Photonic Integrated Circuits (PIC) Historical Market: Breakup by Country (USD Million), 2018-2023
15.   Europe Photonic Integrated Circuits (PIC) Market Forecast: Breakup by Country (USD Million), 2024-2032
16.   Asia Pacific Photonic Integrated Circuits (PIC) Historical Market: Breakup by Country (USD Million), 2018-2023
17.   Asia Pacific Photonic Integrated Circuits (PIC) Market Forecast: Breakup by Country (USD Million), 2024-2032
18.   Latin America Photonic Integrated Circuits (PIC) Historical Market: Breakup by Country (USD Million), 2018-2023
19.   Latin America Photonic Integrated Circuits (PIC) Market Forecast: Breakup by Country (USD Million), 2024-2032
20.   Middle East and Africa Photonic Integrated Circuits (PIC) Historical Market: Breakup by Country (USD Million), 2018-2023
21.   Middle East and Africa Photonic Integrated Circuits (PIC) Market Forecast: Breakup by Country (USD Million), 2024-2032
22.   Global Photonic Integrated Circuits (PIC) Market Structure

Key Questions Answered in the Report

What was the global photonic integrated circuits (PIC) market value in 2023?

In 2023, the market value was nearly USD 21,150 million.

What is the growth rate of the market?

The global market is projected to grow at a CAGR of 20.3% between 2024 and 2032.

What is the forecast outlook of the photonic integrated circuits (PIC) market for 2024-2032?

The market is estimated to witness a healthy growth in the forecast period of 2024-2032 to reach around USD 113,984 million by 2032.

What are the major market drivers?

The major market drivers include increasing application of PIC in various end use sectors, increasing adoption of 5G technology, and expanding data centres.

What are the key trends of the photonic integrated circuits (PIC) market?

The key trends include the rising telecommunication network traffic and growing demand for data centres that require higher speed, increased bandwidth, and peak data rates.

What are the different integration types of photonic integrated circuits (PIC)?

The different integration types of PIC include monolithic integration and hybrid integration.

What are the major raw materials used in photonic integrated circuits (PIC)?

The major raw materials used in PIC include III-V material, lithium niobate, silica-on-silicon, and silicon-on-insulator, among others.

Who are the key market players, according to the global photonic integrated circuits (PIC) industry?

The major players in the market include Infinera Corporation, Coherent Corp. (II-VI Incorporated), Intel Corporation, Lumentum Holdings Inc., IBM Corporation, Cisco Systems, Inc., and STMicroelectronics N.V.

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