Photonic Integrated Circuit Market Size & Analysis for North America, Europe, APAC, South America, Middle East and Africa - US, UK, France, Germany, China – 2025-2029

Photonic Integrated Circuit Market Size 2025-2029

The global photonic integrated circuit market size is forecast to grow by USD 7-10 billion at a CAGR of 10%-12% from 2025 to 2029. Exact values for this market can be accessed upon purchasing the report.

This market is witnessing significant growth, driven by key factors such as the increasing demand for high-speed data communication, the growing expansion of 5G infrastructure, and the rising need for energy-efficient and high-performance solutions across industries. The market's growth is further accelerated by the rapid advancement of digital infrastructure, the need for improved bandwidth, and the ongoing shift towards energy-efficient technologies in data centers and telecommunications.

To access the full market forecast and comprehensive analysis, Buy Now

How is this market segmented?

The photonic integrated circuit market research report provides comprehensive data on market segments, forecasts, and estimates (USD billion) for the period 2025-2029, as well as historical data from 2020-2024. The market is segmented as follows:

Material

• III-V Material
• Lithium Niobate
• Silica-on-Silicon
• Other Materials

Integration Process

• Hybrid Integration
• Monolithic Integration

Geography

• North America
  • U.S.
  • Canada
  • Mexico
• APAC
  • China
  • India
  • Japan
  • South Korea
• Europe
  • Germany
  • UK
  • France
• South America
  • Brazil
• Middle East and Africa

Material Insights

The III-V material segment holds the largest market share, driven by its unique properties such as enhanced electron mobility and efficiency in light absorption. However, the silica-on-silicon segment is expected to grow at the fastest rate, driven by its cost-effectiveness and compatibility with existing electronics.

Integration Process Insights

The hybrid integration segment currently leads the market due to its flexibility, cost efficiency, and improved device performance. Meanwhile, the monolithic integration segment is expected to witness the highest growth, owing to its reduced signal loss, improved reliability, and compact design, particularly for applications in quantum computing.

Regional Analysis

North America: Dominates the global market with the U.S. contributing the largest share. The rapid growth of data centers and the ongoing 5G expansion are key factors propelling the market in this region.

Asia Pacific: Expected to witness the highest growth rate, with China and India leading the demand for high-speed data communication solutions and the growing adoption of PICs in advanced technologies such as medical devices and IoT.

Europe: Strong growth driven by expanding 5G networks, data center investments, and technological innovations in countries like Germany and the UK.

Market Dynamics

What are the key market drivers leading to the rise in adoption of Photonic Integrated Circuits?

• The expansion of 5G networks and the growing demand for high-speed data transmission solutions.
• The energy efficiency of photonic integrated circuits, making them ideal for use in modern data centers and telecommunication networks.
• The superior performance of PICs in terms of bandwidth, latency, and speed compared to traditional integrated circuits, boosting their adoption in high-demand applications such as real-time data analysis.

What are the market trends shaping the Photonic Integrated Circuit Market?

• Increased adoption of 5G technology is one of the main factors driving the demand for photonic integrated circuits, as low-latency and high-speed data transmission are crucial for 5G networks.
• Rising demand for energy-efficient solutions is shaping the market, especially in data centers, where PICs provide a more efficient and power-conscious alternative to traditional electronics.
• Integration with CMOS technology is another growing trend, as manufacturers are focused on making PICs more cost-effective and compatible with existing electronic systems.

What challenges does the Photonic Integrated Circuit Market face?

• High development costs for photonic technologies may limit market expansion, especially in emerging regions.
• Skilled labor shortages in the photonics industry may impact the pace of innovation and adoption.
• Supply chain disruptions and the complexity of manufacturing processes could also pose challenges for market players.

Key Companies & Market Insights

The photonic integrated circuit market is highly competitive, with several leading companies playing a pivotal role in its growth and development. This market research report includes detailed analyses of the competitive landscape of the market and information on close to 20 key companies, including:

• Lumentum Operations LLC
• Coherent Corp.
• Infinera Corporation
• Intel Corporation
• Cisco Systems Inc.
• Source Photonics
• POET Technologies
• Caliopa (Huawei Technologies Co. Ltd)
• EFFECT PHOTONICS
• ANSYS, Inc.

Companies are focusing on innovation, research and development, and strategic collaborations to enhance their market presence and address the growing demand for photonic solutions in data centers, telecommunications, and other industries.

Market Scope

Base Year	2024
Forecast Period	2025-2029
Market Size	USD 7-10 Billion
Market Growth	10%-12%
Material	III-V Material Lithium Niobate Silica-on-Silicon Other Materials
Integration Process	Hybrid Integration Monolithic Integration
Regional Landscape	North America Europe APAC South America Middle East and Africa
Key Companies Profiled	Lumentum Operations LLC Coherent Corp. Infinera Corporation Intel Corporation Cisco Systems Inc. Source Photonics POET Technologies Caliopa (Huawei Technologies Co. Ltd) EFFECT PHOTONICS ANSYS, Inc. Others

For further information, Get Free Sample

How the Benefits of a Technavio Market Research Report Can Empower Your Business

Technavio’s reports provide a range of market insights, including:

• A detailed analysis of the market, featuring market size, growth rate, segmentation, and regional performance
• In-depth analysis of the drivers, challenges, and other dynamics that will impact the growth of the market
• Predictions about upcoming trends and changes in consumer behavior
• Detailed information on key market players, including market positioning, product offerings, and more

Table of Contents

1 Executive Summary

• 1.1 Market overview
  • Executive Summary - Chart on Market Overview
  • Executive Summary - Data Table on Market Overview
  • Executive Summary - Chart on Global Market Characteristics
  • Executive Summary - Chart on Market by Geography
  • Executive Summary - Chart on Market Segmentation
  • Executive Summary - Chart on Incremental Growth
  • Executive Summary - Data Table on Incremental Growth
  • Executive Summary - Chart on Company Market Positioning

2 Technavio Analysis

• 2.1 Analysis of price sensitivity, lifecycle, customer purchase basket, adoption rates, and purchase criteria
  • Analysis of price sensitivity, lifecycle, customer purchase basket, adoption rates, and purchase criteria

• 2.2 Criticality of inputs and factors of differentiation
  • Overview on criticality of inputs and factors of differentiation

• 2.3 Factors of disruption
  • Overview on factors of disruption

• 2.4 Impact of drivers and challenges
  • Impact of drivers and challenges in 2024 and 2029

3 Market Landscape

• 3.1 Market ecosystem
  • Parent Market
  • Data Table on - Parent Market

• 3.2 Market characteristics
  • Market characteristics analysis

• 3.3 Value chain analysis
  • Value chain analysis

4 Market Sizing

• 4.1 Market definition
  • Offerings of companies included in the market definition

• 4.2 Market segment analysis
  • Market segments

• 4.3 Market size 2024

• 4.4 Market outlook: Forecast for 2024-2029
  • Chart on Global Market - Market size and forecast 2024-2029 ($ billion)
  • Data Table on Global Market - Market size and forecast 2024-2029 ($ billion)
  • Chart on Global Market: Year-over-year growth 2024-2029 (%)
  • Data Table on Global Market: Year-over-year growth 2024-2029 (%)

5 Historic Market Size

• 5.1 Global Market 2019 - 2023
  • Historic Market Size - Data Table on Global Market 2019 - 2023 ($ billion)

• 5.2 Segment Analysis 2019 - 2023
  • Historic Market Size – Segment Analysis 2019 - 2023 ($ billion)

• 5.4 Geography segment analysis 2019 - 2023
  • Historic Market Size - Geography Segment 2019 - 2023 ($ billion)

6 Qualitative Analysis

• 6.1 Impact of AI on the Global Market

7 Five Forces Analysis

• 7.1 Five forces summary
  • Five forces analysis - Comparison between 2024 and 2029

• 7.2 Bargaining power of buyers
  • Bargaining power of buyers - Impact of key factors 2024 and 2029

• 7.3 Bargaining power of suppliers
  • Bargaining power of suppliers - Impact of key factors in 2024 and 2029

• 7.4 Threat of new entrants
  • Threat of new entrants - Impact of key factors in 2024 and 2029

• 7.5 Threat of substitutes
  • Threat of substitutes - Impact of key factors in 2024 and 2029

• 7.6 Threat of rivalry
  • Threat of rivalry - Impact of key factors in 2024 and 2029

• 7.7 Market condition
  • Chart on market condition - Five forces 2024 and 2029

8 Market Segmentation

• 8.1 Market segments
  • Chart on Segmentation - Market share 2024-2029 (%)
  • Data Table on Segmentation - Market share 2024-2029 (%)

• 8.2 Segment Comparison
  • Chart on Comparison
  • Data Table on Comparison

• 8.3 Segment Market Opportunity
  • Market opportunity ($ billion)
  • Data Table on Market Opportunity ($ billion)

9 Customer Landscape

• 9.1 Customer landscape overview
  • Analysis of price sensitivity, lifecycle, customer purchase basket, adoption rates, and purchase criteria

10 Geographic Landscape

• 10.1 Geographic segmentation
  • Chart on market share by geography 2024-2029 (%)
  • Data Table on market share by geography 2024-2029 (%)

• 10.2 Geographic comparison
  • Chart on Geographic comparison
  • Data Table on Geographic comparison

• 10.3 Market opportunity by geography
  • Market opportunity by geography ($ billion)
  • Data Tables on Market opportunity by geography ($ billion)

11 Drivers, Challenges, and Opportunity/Restraints

• 11.1 Market drivers

• 11.2 Market challenges

• 11.3 Impact of drivers and challenges
  • Impact of drivers and challenges in 2024 and 2029

• 11.4 Market opportunities/restraints

12 Competitive Landscape

• 12.1 Overview

• 12.2 Competitive Landscape
  • Overview on criticality of inputs and factors of differentiation

• 12.3 Landscape disruption
  • Overview on factors of disruption

• 12.4 Industry risks
  • Impact of key risks on business

13 Competitive Analysis

• 13.1 Companies profiled
  • Companies covered

• 13.2 Company ranking index
  • Company ranking index

• 13.3 Market positioning of companies
  • Matrix on companies position and classification

14 Appendix

• 14.1 Scope of the report

• 14.2 Inclusions and exclusions checklist
  • Inclusions checklist
  • Exclusions checklist

• 14.3 Currency conversion rates for US$
  • Currency conversion rates for US$

• 14.4 Research methodology
  • Research methodology

• 14.5 Data procurement
  • Information sources

• 14.6 Data validation
  • Data validation

• 14.7 Validation techniques employed for market sizing
  • Validation techniques employed for market sizing

• 14.8 Data synthesis
  • Data synthesis

• 14.9 360 degree market analysis
  • 360 degree market analysis

• 14.10 List of abbreviations
  • List of abbreviations