Global Photonics Integrated Circuit (IC) Market Report, published by Variant Market Research, forecast that the global market is expected to reach $3,554 million by 2024 from $390 million in 2016; growing at a CAGR of 31.8% from 2016 to 2024. By geography, Rest of the World (RoW) and Asia-Pacific are expected to grow at a CAGR of 37.1% and 35.2% respectively during the forecast period. Photonics integrated circuit (IC) is used in tunable lasers, transmitters, waveguides, and modulated lasers, among others. Owing to its attributes, it has different applications like optical signal processing, optical communications, sensing, and biophotonics, among others.
"Photonics Integrated Circuit (IC) Market (By Integration Type: Monolithic Integration, Hybrid Integration, and Module Integration; By Raw Material: Indium Phosphide, Gallium Arsenide, Lithium Niobate, Silicon, Silica-on-Insulator, and Other raw materials; By Components: Lasers, Modulators, Detectors, Attenuators, MUX/DEMUX, Optical Amplifiers; By Application: Optical Communications, Sensing, Biophotonics, Optical Signal Processing; By Geography: North America, Europe, Asia-Pacific, and RoW) Global Scenario, Market Size, Outlook, Trend and Forecast, 2015 – 2024"
Better functionalities & increasing application is to drive the photonics integrated circuit market
The factors supporting growth of the global photonics integrated circuit (IC) market are better functionalities & increasing applications, power efficiency, and cost diminution due to miniaturization. However, design concernsand lack of digitization may act as a restraint for the growth of the market. Moreover, rising technological developments would provide several growth opportunities for the market in the coming years.
By integration type, raw material, components, application, and geography are the major segments considered in the global photonics integrated circuit (IC) market. By integration type, the market is bifurcated into monolithic integration, hybrid integration, and module integration. By raw material, the market is further classified as indium phosphide, gallium arsenide, lithium niobate, silicon, silica-on-insulator, and other raw materials. Components include lasers, modulators, detectors, attenuators, MUX/DEMUX, and optical amplifiers. Further, application is divided into optical communications, sensing, biophotonics, and optical signal processing.
By geography, the market is segmented into North America, Europe, Asia Pacific, and Rest of the World (RoW). North America covers the U.S., Canada, and Mexico. UK, Germany, France, Italy, and Rest of Europe are analyzed under the European market. India, China, Japan, South Korea, and Rest of Asia-Pacific are included under the Asia-Pacific market, while RoW is bifurcated into South America, Middle East, and Africa.
Hybrid integration accounted for the largest market share in the integration type segment
Global Photonics Integrated Circuit (IC) Market, by Integration Type
Hybrid integration accounted for the largest market share in 2016, in the integration type segment, and is expected to continue its dominance during the forecast period 2016 – 2024, owing to its advantages such as reduced size, power, and weight. Monolithic integration is expected to grow at the fastest rate over the forecast period, driven by its ability to integrate medium as well as large PICs along with the advantages such as improved power efficiency, reliability, and simplified testing of the components.
Indium phosphide accounted for the largest market share among the raw material segments
Global Photonics Integrated Circuit (IC) Market, by Raw Material
Indium phosphide accounted for the largest market share in 2016, in the raw material segment, and is expected to continue its dominance during the forecast period 2016 – 2024, owing to its ability to integrate both active as well as passive devices and advantages such as potential of offering cost effective mass production.
Lasers accounted for the largest market share in the by component segments
Global Photonics Integrated Circuit (IC) Market, by Component
Lasers accounted for the largest market share in 2016, in the components segment, and are expected to continue its dominance during the forecast period 2016 – 2024, owing to being one of the most essential components in photonic ICs.
North America dominated the global market with largest market share over the forecast period
GLOBAL PHOTONICS INTEGRATED CIRCUIT (IC) MARKET SHARE BY GEOGRAPHY, 2016 (%)
North America dominated the global photonics IC market with largest market share of 44.4% in 2016, and expected to continue its dominance during the forecasted period, owing to rising adoption of photonics integrated circuit (IC) in sensing and communications applications
The major players operating in the market are NeoPhotonics Corporation, Hewlett-Packard Company, Hamamatsu Photonics K.K., IBM Corp., Viavi Solutions, Inc., 3S Photonics S.A.S, Innolume GmbH, Infinera Corp., Broadcom Limited, and Ciena Corporation, among others.