The global Photonic IC Market Growth Accelerated by Increasing Demand for Miniaturized Photonic Devices

Photonic integrated circuits (PICs) are miniaturized devices that integrate multiple photonic components and functions into a single chip. PICs enable the miniaturization of optical components and allow complex photonic systems to be built at a significantly lower manufacturing costs compared to individual optical elements. PICs find a wide range of applications in telecommunications, optical sensing, spectroscopy, on-chip signal processing, and displays.

The global Photonic IC Market is estimated to be valued at US$3535.23 Mn in 2024 and is expected to exhibit a CAGR of 5.2% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
The increasing demand for miniaturized photonic devices across various industries is anticipated to drive the growth of the photonic IC market over the forecast period. PICs enable the miniaturation of optical systems into chips and help integrate multiple functions into a single device. This property of PICs makes them well-suited for applications like telecommunications that require integration of several components into compact devices. PIC technology helps improve scalability, reliability, and manufacturability of optical chip manufacturing. Ongoing technological advancements in PIC fabrication processes are further improving integration density and functionality of photonic chips. This is expected to boost the adoption of PICs thereby propelling the market growth.

Segment Analysis
The global photonic IC market size is segmented based on integration type, materials, and application. Based on integration type, the monolithic segment dominated the market in 2020 owing to their capability to offer advantages such as low power consumption, miniaturization, system on chip capability, and functionality. Based on materials, the indium phosphide segment is expected to grow at the highest CAGR during the forecast period attributed to the widespread adoption of indium phosphide for the manufacturing of photonic ICs for fiber optic communication. Based on application, the fiber optic communication segment accounted for the largest share of the market in 2020 due to increasing deployment of 5G infrastructure and rising need for high-speed data transmission globally.

Key Takeaways
The global photonic IC market is expected to witness high growth during the forecast period. The increasing demand for high-speed connectivity solutions for data-intensive applications is driving the market growth. The global Photonic IC Market is estimated to be valued at US$3535.23 Mn in 2024 and is expected to exhibit a CAGR of 5.2% over the forecast period 2024 to 2031.

Regional analysis suggests that Asia Pacific region is expected to witness the fastest growth during the forecast period owing to rapid industrialization and presence of leading photonic IC manufacturers in countries such as China and Japan.

Key players operating in the photonic IC market are Cargill Inc., Tate & Lyle PLC, Corbion N.V., Firmenich SA, Sensient Technologies, Associated British Foods Plc., Givaudan, Takasago International Corporation, Mane SA, International Flavors & Fragrances Inc. (IFF), Quest Nutrition LLC, Danisco A/S. The key players are focusing on new product launches and partnerships to strengthen their foothold in the market. For instance, in 2021, Hamamatsu Photonics introduced new silicon photonic IC platforms to expand its portfolio of photonic integrated circuits.

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