Global Photonic Integrated Circuit (PIC) Market Outlook, 2026 with Profiles of 98 Key Players, Including Broadcom, Ciena, Intel, NeoPhotonics, and Nokia Networks - ResearchAndMarkets.com

DUBLIN, January 21, 2022--(BUSINESS WIRE)--The "Photonic Integrated Circuit (PIC) - Global Market Trajectory & Analytics" report has been added to ResearchAndMarkets.com's offering.

Global Photonic Integrated Circuit (PIC) Market to Reach US$2.9 Billion by the Year 2026

The market is projected to register significant growth driven by the growing interest in the ability to exploit the properties of light to transmit information at speeds millions of times faster than either copper or laser, especially against the backdrop of the insatiable need for bandwidth and communication speeds. The growing opportunity in optical communications and improving investments post COVID-19, bodes well for the growth of PICs.

While sustained high growth in the deployment and expansion of communication networks with fiber optic infrastructure is building strong momentum for PICs, increased use of fiber optics in signal transmission, sensing, and biophotonics is creating a highly conducive environment for growth and proliferation of PICs, on a wider scale.

The dramatic growth in telecom and datacom verticals over the past 5-6 years driven by steep increase in the number of Internet users and ownership rates of IP-enabled devices, and subsequently growing investments on roll out of advanced communication networks such as 100G, 200G and 400G networks is infusing robust growth opportunities for PICs.

Amid the COVID-19 crisis, the global market for Photonic Integrated Circuit (PIC) estimated at US$870.2 Million in the year 2020, is projected to reach a revised size of US$2.9 Billion by 2026, growing at a CAGR of 21.7% over the analysis period. Hybrid Integration, one of the segments analyzed in the report, is projected to grow at a 20.2% CAGR to reach US$1.7 Billion by the end of the analysis period.

After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Monolithic Integration segment is readjusted to a revised 25.5% CAGR for the next 7-year period. This segment currently accounts for a 29.7% share of the global Photonic Integrated Circuit (PIC) market. Monolithic integration is steadily gathering steam as a major integration model for PIC assembly.

Hybrid integration represents the most widely used integration model for PICs. The hybrid integration of PIC facilitates assembly of multiple mono-function optical devices into one common package. Monolithic integration typically allows consolidation of multiple devices as well as functions into one common Photonic material in a more convenient manner than packaging or hybrid integration.

The U.S. Market is Estimated at $386.7 Million in 2021, While China is Forecast to Reach $385.3 Million by 2026

The Photonic Integrated Circuit (PIC) market in the U.S. is estimated at US$386.7 Million in the year 2021. The country currently accounts for a 38% share in the global market. China, the world's second largest economy, is forecast to reach an estimated market size of US$385.3 Million in the year 2026 trailing a CAGR of 34.5% through the analysis period.

Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 16.2% and 18.7% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 18.4% CAGR while Rest of European market (as defined in the study) will reach US$522.7 Million by the end of the analysis period.

Increased demand for integration in smart gadgets and favorable regulatory environment for expansion of medium and small size companies is expected to encourage growth in both Asia-Pacific and the US.

Module Integration Segment to Reach $415.7 Million by 2026

Module integration refers to integration of discrete devices and package into one common module. Module integration for PIC allows integration of different optical functions and materials, and also combining the PIC and electronic IC functions in a seamless manner. In the global Module Integration segment, USA, Canada, Japan, China and Europe will drive the 18.5% CAGR estimated for this segment.

These regional markets accounting for a combined market size of US$128.2 Million in the year 2020 will reach a projected size of US$397.4 Million by the close of the analysis period. China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach US$33.7 Million by the year 2026, while Latin America will expand at a 21.7% CAGR through the analysis period.

Select Competitors (Total 98 Featured)

• Broadcom Inc.

• Ciena Corporation

• Enablence Technologies, Inc.

• Infinera Corporation

• Intel Corporation

• Lumentum Operations LLC

• NeoPhotonics Corporation

• Nokia Networks

Key Topics Covered

I. METHODOLOGY

II. EXECUTIVE SUMMARY

1. MARKET OVERVIEW

• Impact of COVID-19 Pandemic and Looming Global Recession: 2020 Marked as a Year of Disruption & Transformation

• As the Race between the Virus & Vaccines Intensifies, Where is the World Economy Headed in 2021?

• Pandemic Impact on the Integrated Photonics Market

• Biosensors Built around Photonic Integrated Circuits Present New Realms for Point-Of-Care Diagnostics

• The Age of Optical Communication & Networking Throws the Focus on High Speed Photons as Data Carriers

• An Introduction to Photonic Integrated Circuit (PIC)

• Materials Used in Making PIC

• Integration Models for PIC

• Applications

• Photonic Integrated Circuit (PIC): Current Market Scenario and Outlook

• Substrate Materials and Fabrication Methods for PICs

• Indium Phosphide: Largest & Fastest Growing Material Type

• Silicon Substrates Remain in Contention

• Hybrid Integration: The Widely Used PIC Fabrication Method

• Monolithic Integration Emerges as Fastest Growing Fabrication Approach

• Analysis by Application

• Competitive Scenario

• Recent Market Activity

• Select Global Brands

2. FOCUS ON SELECT PLAYERS

3. MARKET TRENDS & DRIVERS

• Expanding Role of DCI in Data Centers Creates Potential Market Opportunities

• Data Center Interconnect (DCI) Related Needs of Enterprises by Sector: A Snapshot

• Major Data Center Trends Influencing DCI Implementations

• Rapid Growth in Data Center Traffic

• Big Data and Cloud Computing Proliferate Demand for Hyperscale Data Centers

• PIC to Gain from Introduction of 5G

• Programmable PICs Exude Tremendous Potential to Transform Photonics

• Optical Communications: Largest Application Market for PIC

• Key Trends Influencing the Uptake of PICs in Optical Communication Space

• Soaring Deployments of 100G & Ultra-100G OTNs

• Growing Uptake of FTTx Networks

• Growing Bandwidth Needs Bring Fiber Optic Networks to the Fore, Steering PIC Demand

• Optical Signal Processing Emerges as Fastest Growing Application Segment

• Biophotonics: A Niche Market Segment for PIC

• Expanding Application Base for Biophotonics Generates Parallel Opportunities for PIC

• Increased Focus on Optical In-Vitro Diagnostics Augurs Well

• Biosensors Build on SiN Photonic Integrated Circuits

• Northbound Trajectory in Fiber Optic Sensors Vertical Gives Impetus to Market Expansion

• Smart Cities Concept to Underpin Sales Growth in the Coming Years

• Smart Homes to Drive Demand for PICs

• Advanced Simulation Software for Designing PICs for Automotive Applications

• Upcoming Quantum Computing Model to Infuse New Growth Opportunities

• Economic Unviability of Electronic IC in OEO Conversion Puts Focus on Photonic IC

• Photonic IC vs. Electronic IC: A Brief Comparative Analysis

• Reduced Number of Optical Packages & Decreased Need for Fiber Coupling Enhance the Image of PIC

• Technology Innovations: Key to High Growth and Consistent Demand

• A Monolithic InP-on-Si-on-Insulator Developed by a HKUST Team of Engineers.

• Optoscribe Begins Sampling its New PIC Coupling Solution, OptoCplrLT

• A University of Rochester Team Creates Miniature Modulators for High Potential PICs

• Purdue University Research Team Develops an Electrically Driven, Magnetic-Free Linear Optical Isolator for PIC Production

• Horizon 2020 Project INSPIRE, Aims to Combine Beneficial Properties of Two Mature Photonic Integration Platforms

• Next Generation Silicon Photonics & Polymer Based Photonic ICs Enhance Speed, Bandwidth and Scalability

• Collaborative Initiatives Foster Development of Innovative Products

• Challenges with PIC Production

4. GLOBAL MARKET PERSPECTIVE

III. MARKET ANALYSIS

IV. COMPETITION

• Total Companies Profiled: 84

For more information about this report visit https://www.researchandmarkets.com/r/mf1h1z

View source version on businesswire.com: https://www.businesswire.com/news/home/20220121005390/en/

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