Photonic Integrated Circuit Market Benefits from Silicon Photonics Growth

In 2024, the global photonic integrated circuit (PIC) market was valued at USD 14.08 billion. It is expected to grow to about USD 25.80 billion by 2030, reflecting a compound annual growth rate (CAGR) of 10.8% for the period 2025-2030. Key forces driving this growth include the expansion of modern digital infrastructure, rising demand for high-speed data communication, the need for enhanced bandwidth for advanced networks, and broader deployment of PICs in telecommunications, data centers, and consumer devices.

Key Market Trends & Insights

• In 2024, North America held the largest share of revenue (~38.5%) in the market.
• Within that region, the United States dominated, contributing about 83.6% of North America’s revenue.
• Among materials, the III-V material segment led globally in 2024 with a revenue share of 33.2%, driven by its favorable properties—improved efficiency, thermal stability, and low power consumption.
• For integration process, the hybrid integration segment was most prominent in 2024, benefiting from flexible design, cost efficiency, reduced physical footprint, and better performance in many applications.
• In terms of application, data centers accounted for the largest share of revenue in 2024, owing to requirements for higher throughput, lower latency, and improvements in energy efficiency.

Market Size & Forecast

• 2024 market size was USD 14.08 billion.
• 2030 forecast is USD 25.80 billion, with a CAGR of 10.8% over 2025-2030.
• Asia Pacific is projected to be the fastest-growing regional market during this forecast period.

The rise of 5G networks and their network expansions is expected to strongly stimulate demand for PICs from 2025 through 2030.

Other factors include: superior performance of PICs over traditional ICs in terms of bandwidth and latency; growing awareness of energy efficiency; and the suitability of PICs in devices such as smartphones, laptops, and systems used in real-time data transfer and analysis.

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Key Companies & Market Share Insight

Several leading companies control substantial share of the PIC market and shape its development. These firms are pushing ahead with research & development, forming collaborations, and innovating to stay competitive.

These companies are investing in new materials and integration methods, elevating device performance, reducing costs, and expanding applications in telecommunications, biomedical areas, data centers, and beyond.

Key Companies List

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

Conclusion

Overall, the photonic integrated circuit market is experiencing robust growth driven by demand for higher bandwidth, lower latency, and energy efficiency—particularly in data centers and telecommunications. With material innovations like III-V and silica-on-silicon, and integration processes shifting towards both hybrid and monolithic methods, the market is seeing technological diversification. North America leads in current revenue, but Asia Pacific is set to grow fastest. The competitive landscape is shaped by several major players that are pushing the frontier of performance and cost reductions. As infrastructure upgrades continue globally, especially in 5G and data transmission, the PIC market is well positioned for sustained expansion through 2030.

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