Dublin, Sept. 29, 2023 (GLOBE NEWSWIRE) -- The "Photonic Integrated Circuit Market Size & Share Analysis - Growth Trends & Forecasts (2023-2028)" report has been added to ResearchAndMarkets.com's offering.
The global Photonic Integrated Circuit (PIC) Market is poised for remarkable growth, with market size estimates at USD 13.43 billion in 2023, projected to surge to USD 41.87 billion by 2028, at a CAGR of 25.53% during the forecast period (2023-2028).
Several key drivers are propelling this expansion, including the unparalleled speed and bandwidth capabilities of PICs compared to traditional Integrated Circuits (ICs), their energy efficiency, and their suitability for addressing various critical applications.
Key Market Highlights
PICs Transforming Technology: Photonic Integrated Circuits (PICs) are revolutionizing technology by integrating multiple photonic components, such as waveguides, lasers, modulators, and detectors, onto a single chip. In comparison to traditional ICs, PICs offer exceptional speed, higher bandwidth, and remarkable power efficiency. These features effectively address the limitations of traditional ICs and have made PICs invaluable for critical applications.
Energy Efficiency: PICs significantly reduce power consumption in crucial applications, potentially cutting power usage by at least 50%. They cover frequencies approximately 1,000-10,000 times higher than those covered by microelectronics, enabling users to achieve much higher frequencies with exceptional energy efficiency.
Rising Demand in Data Centers: The demand for low-cost photonic hardware, manufactured through hybrid or monolithic processes, is surging, driven by the continuous expansion of high-capacity data centers in response to data-driven ecosystems. Amid the highly integrated photonics technology landscape, numerous market players are actively engaged in PIC-led developments to meet the escalating data and network traffic demands, especially within data centers, which have experienced growth exacerbated by the COVID-19 pandemic.
Photonic Integrated Circuit Market Trends
Telecommunications and Data Centers Driving Growth: Hybrid PICs are finding extensive applications in the telecommunications and data center sectors. The need for high data transfer rates, which traditional ICs cannot accommodate, is a primary factor driving the adoption of hybrid PICs in these industries.
The rollout of high-speed networks and the advent of 5G technology have further accelerated the adoption of PICs. Photonics and fiber optics play pivotal roles in transmitting signals to and from next-generation base stations, making PICs indispensable.
North America Taking the Lead: North America is poised to dominate the PIC market, with data centers and fiber optic communication Wide Area Network (WAN) applications driving demand. The region's robust demand for high-speed data transmission, the surge in data traffic resulting from cloud computing, and the rapid deployment of the Internet of Things (IoT) are propelling the PIC industry's growth.
Leading the way in the number of data centers worldwide, the United States, with nearly 2,700 data centers, is witnessing a substantial uptick in PIC-based solutions to address the increasing bandwidth requirements driven by mobile, video, and cloud-based services. Collaboration between multinational companies and academia, businesses, and government partners is fueling the development of PIC-based solutions to tackle communication challenges.
Photonic Integrated Circuit Industry Overview
The global PIC market is moderately competitive and features several key players such as Neophotonics Corporation, Poet Technologies, Cisco Systems Inc., and Infinera Corporation. Currently, a handful of major players dominate the market share. However, continuous innovations and technological advancements are enabling companies to expand their market presence by securing new contracts and exploring new markets.
Conclusion
The global Photonic Integrated Circuit (PIC) Market is on the brink of substantial growth, driven by the superior capabilities of PICs, their energy efficiency, and their applicability across diverse industries. With telecommunications and data centers spearheading this growth, North America is set to lead the way in PIC adoption, with the market poised for significant expansion in the coming years.
A selection of companies mentioned in this report includes
- Neophotonics corporation
- Poet Technologies
- II-VI Incorporated
- Infinera Corporation
- Intel Corporation
- Cisco Systems Inc.
- Source Photonics Inc.
- Lumentum Holdings
- Caliopa (Huawei Technologies Co. Ltd)
- Effect Photonics
- Colorchip Ltd
For more information about this report visit https://www.researchandmarkets.com/r/7k8quc
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