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      Photonic IC Market Estimated to Surpass $29.1 Billion by 2026

      admin by admin
      February 15, 2022
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      (EMAILWIRE.COM, February 15, 2022 ) The global Photonic IC Market is estimated to surpass $29.1 billion by 2026 growing at a rapid CAGR of 32.7% during 2021-2026. The explosive growth of internet users across the globe is set to surge the demand in high speed internet connectivity thereby driving the photonic IC components in the telecommunication sector. Apart from this, the growing establishment of data centers is also analyzed to be one of the major market drivers for photonic IC market. The high investments by the governments, increasing demand for higher level of integration, growing number of data centers, the benefits of PICs, and technological advancements related to Power splitters, Microwave filters, Optical transistor, Optical transmitters are some of the key attributes that have rendered North America with a maximum share in the global photonic integrated circuit market.

      Photonic IC Market Segment Analysis – By Component

      Laser component holds a major share in the photonic IC market in the year 2020 at 26.4%. Researchers are now trying to develop a type of laser that uses both light and sound to create optical amplification. A Brillouin laser is integrated in photonic IC which can use both light and sound for optical amplification. Researchers are in the process of developing a new laser design that is able to harness a new type of forward Brillouin interaction. The invention of the new laser which is integrated in the PICs are expected to drive the laser component market during the forecast period 2021-2026.

      Request for Sample Report @ https://www.industryarc.com/pdfdownload.php?id=19184

      Report Price: $ 4500 (Single User License)

      Photonic IC Market Segment Analysis – By Application

      Telecom sector holds a major share for the photonic IC market globally in the year 2020. The telecommunication photonic IC market is poised to grow at a CAGR of 39.1% during the forecast period 2021-2026. The number of internet users across globe is increasing widely. According to Internet World Stats, Asia houses around 2.1 billion internet users. The increasing internet penetration rate requires the photonics that can ensure uninterrupted service to the users, is driving the growth of the photonics IC market.

      Photonic IC Market Segment Analysis – By Geography

      North America dominates the photonic integrated circuit market, accounting for 43.1% share of the global revenue generation in 2020. APAC region was one of the biggest markets for Photonic IC market in 2020 at 29.2%. Some of the countries in APAC region such as China, Japan, South Korea and Malaysia are having major production hub of photonic ICs. The market is this region is mainly driven by the developments in telecommunication industry. In 2019, South Korea’s largest telecommunications company KT Corporation, has officially launched the world’s first nationwide commercial fifth-generation (5G) wireless network in South Korea. Developments in South Korean telecommunication industry, along with growing number of product launches related to photonic IC, where photonic ICs are majorly applied in detectors, modulators, will escalate the growth of photonic IC market in this region.

      Inquiry Before Buying @ https://www.industryarc.com/reports/request-quote?id=19184

      Photonic IC Market Drivers

      Increasing Demand from the Hyper scale Data centers

      Data centers are identified as one of the biggest potential users of photonic ICs. The use of the photonic IC in data centers will help enhancing the speed. This also helps in lowering the power consumption which make them highly desirable alternatives to conventional ICs. According to Cisco the data centers are going to increase by 29% by 2022. Increase in the data centers, where photonic IC will be utilized to enhance the speed, is anticipated to provide ample opportunities for PIC market.

      Increase in Data traffic of 18% over 2019 driven by Covid-19

      There is a significant rise in data consumption owing to strong increase in smartphone usage in the developing countries coupled with rise of data intensive applications such as video streaming, online gaming, and many others. According to Cisco, the mobile data traffic growth numbers in 2020 saw a significant jump by 18% when compared with 2019 primarily due to increased lockdowns. Thus, the growing numbers of data usage globally are set to impact the market positively for Photonic ICs, due to high demand for faster speed as compare to conventional circuits.

      Photonic IC Market Challenges

      Necessity of Automation in Manufacturing

      There is a huge gap of the production and sales of the PIC components, especially in telecom and data center application, which is acting as a barrier for market growth. There is a delay in manufacturing process owing to high human interaction and to overcome this delay major market players are shifting towards automation.

      Photonic IC Market Landscape

      Partnerships and acquisitions along with product development are the key strategies of the players in the Photonic IC market. As of 2020, the market for the Photonic IC is fragmented with the top 5 players accounting for 35% of the market share. The major players in the Photonic IC Market include Infinera Corporation, Acacia Communication, Inc., Intel, NeoPhotonic Corporation, Foxconn Interconnect Technology Inc. and many others.

      Partnerships/Mergers/Acquisitions

      In 2019, MACOM Technology Solutions and Global Foundries are coming up with a strategic collaboration to ramp up the production of laser PICs aiming to meet the surge in demand in foreseeable future.

      In 2019, CompoundTek partnered with leading photonic simulation software provider, Lumerical. This partnership will help the company in enhancing the product portfolio and will also help in expanding the global presence of the company.

      Key Takeaways

      Implementation of new technology such as 3D-based hybrid laser integration is likely to bring new opportunities for hybrid photonics ICs.

      Growing digitalization and IoT applications increase the demand for higher bandwidth and storage requirement which in turn open market opportunities for Photonic IC.

      The APAC holds 29.2% of the share in the photonics IC market in 2020. The growing number of telecom connections, supported by the growing penetration of 4G in developing economies and the upcoming launch of 5G, will play a pivotal role in the growth of Photonic Integrated Circuit(IC) market in the APAC region during 2021-2026.

      Related Reports:

      A. Photonic Integrated Circuit (IC) & Quantum computing Market

      https://www.industryarc.com/Report/15793/photonic-integrated-circuit-ic-quantum-computing-market.html

      B. Silicon Photonics Market

      https://www.industryarc.com/Report/15368/silicon-photonics-market.html

      For more Electronics Market reports, please click here

      About IndustryARC: IndustryARC primarily focuses on Cutting Edge Technologies and Newer Applications market research. Our Custom Research Services are designed to provide insights on the constant flux in the global supply-demand gap of markets. Our strong team of analysts enables us to meet the client research needs at a rapid speed, with a variety of options for your business. Any other custom requirements can be discussed with our team, drop an e-mail to sales@industryarc.com to discuss more about our consulting services.



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