Photonic (Integrated Circuits) IC Market is Expected to Reach USD 996.2 Million in 2019: Transparency Market Research

April 29, 2014

ALBANY, New York, April 29, 2014 /PRNewswire/ –

According to a new market report published by Transparency Market Research “Photonic
IC Market – Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2013 -
2019,” the market was valued at USD 160.1 million in 2012, which is expected to reach USD
996.2 million by 2019, growing at a CAGR of 31.3% from 2013 to 2019.

Browse Photonic IC Market Report with full TOC at


Cost reduction achieved by integrating different optical components such as lasers,
detectors, modulators and others into a single unique package is the major driving force
for the growth of photonic integrated circuits (PIC) market. Growing application areas,
especially in the field of optical communication, sensing and biophotonics coupled with
improvements offered in power consumption, reliability and data transfer speed have
further fueled the growth of this market. The advancements in computation power and image
processing capabilities are expected to have positive impact on the growth of PIC based
products in biophotonics applications. The use of photons for the purpose of computation,
offering high-speed data processing and data transfer and data provides a sound
opportunity for the growth of PIC market.

In 2012, hybrid integration was the major integration technology used in PICs,
accounting for 56.3% of the global PIC market. Although hybrid integration is expected to
remain the dominant integration technology, monolithic integration is expected to grow at
the fastest CAGR of 36.3% from 2013 to 2019. This can be attributed to the improvements
offered in reliability, space reduction, power efficiency, and stabilization processes. On
the other hand, the share for module integration is expected to decrease over the forecast
period owing to its inferior integration capabilities as compared to other integration

Indium Phosphide and Silicon-on-Insulator are preferred raw materials used in PICs,
collectively accounted for two-third of the total revenue generated in 2012. Indium
Phosphide has the ability to integrate both optical and passive functions and components.
In addition, InP allows cost-effective mass production using advanced high-yield
semiconductor manufacturing processes. Silicon substrates, offering ease in fabrication,
and relatively low manufacturing cost are also widely used in PICs.

In terms of applications, optical communications held the highest market share, and
was valued at USD 100.9 million in 2012. It is expect to maintain its dominance over the
forecast period, growing at a CAGR of 32.9%. This is attributed to growing demand for
high-speed communication and rise in data center and WAN applications. In 2012, sensing
and biophotonics were the other major application segments, collectively accounting for
around 33% of the global PIC market. Optical signal processing application is expected to
increase significantly after the commercialization of photonic computing.

North America was the market leader in 2012, followed by Europe and Asia Pacific. Asia
Pacific is expected to grow at a CAGR of 35.2% from 2013 to 2019. Increasing number of
manufacturing facilities coupled with significant growth in data center applications is
expected to fuel the growth in Asia Pacific. The global PIC market is highly fragmented
and competitive. Major industry participants include Infinera Corporation (U.S.), Huawei
Technologies Co. Ltd (China), Alcatel-Lucent (France), Avago Technologies (Singapore), JDS
Uniphase Corporation (U.S.), Finisar Corporation (U.S.), and Intel Corporation (U.S.)
among others.

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The report studies the global PIC market, and provides estimates in terms of revenue
(USD Million) from 2013 to 2019. Market estimates on the basis of integration type, raw
materials, components and application; have also been provided for each region. The market
has been segmented as follows:

        Photonic IC Market, by Integration type
        Monolithic integration
        Hybrid integration
        Module integration
        Photonic IC Market, by Raw materials
        Indium Phosphide
        Gallium Arsenide
        Lithium Niobate
        Others (Silica-On-Silicon, Silicon Dioxide (SiO2), Silicon Nitride (Si3Ni4))

Browse Photonic IC Market Report with full TOC at


        Photonic IC Market, by Components
        Optical Amplifiers
        Photonic IC Market, by Application
        Optical Communication
        Fttx and Access networks
        Microwave/RF photonics
        Long-haul and Transport networks
        Optical datacom
        Structural engineering
        Chemical sensors
        Transport and aerospace
        Energy and utilities
        Optical signal processing
        Optical metrology
        Optical instrumentation
        Quantum optics
        Quantum computing
        Medical instrumentation
        Photonic Lab-On-A-Chip
        Analytics and diagnostics
        Optical biosensors
        Photonic IC Market, by Geography:
        North America
        Asia Pacific
        Rest of the World (Latin America, Middle East and Africa)

Browse Semiconductor & Electronics Market Research Reports @


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