Photonic IC Market Players to See Lucrative Growth Opportunities with Growing Application Base

A photonic integrated circuit (PIC), as the name suggests, makes use of photons to carry data, as opposed to electronics that make use of electrons to do the same. A PIC essentially integrates two or more photonic functions to form an integrated optical circuit. Photons, with their attribute of traveling at the speed of light, have made the development of highly sophisticated optical chips a reality by improving the speed of data transfer. With a never-ending demand for high data speeds and the subsequent investments by companies to cater to this need, the global photonic IC market is expected to benefit immensely.

Putting this growth into numbers, Transparency Market Research, a market intelligence and consulting firm, predicts that the global photonic IC market will touch US$1.3 bn by the end of 2022, rising at a CAGR of 25.3% from 2015 through 2022. In 2013, the global photonic IC market was valued at US$0.19 bn.

Cost and Size Reduction of Photonic ICs Gives Market Head Start

The integration of various optical components such as lasers, modulators, and detectors into a single, multi-functional component has proven to be a launch pad for the global photonic IC market. Moreover, other desirable qualities of photonic ICs—such as better transmission capacities and speed, lower power consumption, and higher efficiency—have helped their adoption rates soar.

Photonic ICs have thus become commonplace in a myriad of industry verticals such as aerospace and defense, telecommunication, metrology, and healthcare. With new technological advancements reported in the global photonic ICs market, growth is a certain. Quantum computing, which is expected to be commercialized by 2018, will generate massive demand for photonic ICs. Quantum computing will mark a new breakthrough in processing power speeds, and this could be the biggest opportunity yet for companies in the photonic ICs market.

That having been said, design issues continue to be a matter of concern in large-scale photonic integration. In 2013, North America accounted for 39.0% of the global photonic IC market’s revenue and will continue to remain in the reigning position over the next few years.

Request A Sample Of This Report : http://www.transparencymarketresearch.com/sample/sample.php?flag=S&rep_id=997

Hybrid Integration Predicted to Remain Dominant but Will Face Competition from Monolithic Integration

Based on the integration technique, the photonic IC market can be divided into hybrid integration, monolithic integration, and module integration. Hybrid integration is the most preferred integration technique currently and will continue to remain so over the next few years. The deployment of monolithic integration is expected to rise substantially over the next few years. According to TMR analysts, the monolithic integration segment will exhibit a 26.5% CAGR between 2015 and 2022. Monolithic integration renders better efficiency in large- and medium-scale PICs, which explains why more companies will increasingly look toward monolithic integration technique for PICs.

From the standpoint of raw materials used in photonic ICs, silicon-on-insulator and indium phosphide were the most widely used raw materials for manufacturing photonic ICs. The two raw material segments generated 60.9% revenue of the global photonic IC market as of 2013. The use of indium phosphide as a substrate is driven by its ability to efficiently integrate both passive and active components within a photonic integrated circuit.

About Us

Transparency Market Research (TMR) is a global market intelligence company providing business information reports and services. The company’s exclusive blend of quantitative forecasting and trend analysis provides forward-looking insight for thousands of decision makers. TMR’s experienced team of analysts, researchers, and consultants use proprietary data sources and various tools and techniques to gather and analyze information.

TMR’s data repository is continuously updated and revised by a team of research experts so that it always reflects the latest trends and information. With extensive research and analysis capabilities, Transparency Market Research employs rigorous primary and secondary research techniques to develop distinctive data sets and research material for business reports.

Contact

Mr.Sudip S

90 Sate Street, Suite 700

Albany, NY 12207

Tel: +1-518-618-1030

USA Canada Toll Free: 866-552-3453

Email: sales@transparencymarketresearch.com

Website: http://www.transparencymarketresearch.com/

Photonic IC Market Poised for Strong Growth, to Reach US$1.3 bn Globally by 2022

According to a new market report published by Transparency Market Research “Photonic IC Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2015 - 2022,” the photonic ic market was valued at US$0.19 bn in 2013, and is expected to reach US$1.3 bn by 2022, expanding at a CAGR of 25.3% from 2015 to 2022.

Browse the full Photonic IC (Hybrid Integration, Monolithic Integration, and Module Integration) Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2015 – 2022 report at http://www.transparencymarketresearch.com/photonic-integrated-circuit.html

Cost and size reduction achieved by integrating different optical components, including detectors, modulators, and lasers, into a single distinct package is the major factor driving the photonic IC market. In addition, benefits offered in terms of efficiency, transfer speed, transmission capacity, and power consumption have ensured market penetration into varied end-use verticals such as metrology, aerospace and defense, healthcare, telecommunication, industrial, and data communication. Lack of digitization, coupled with design and packaging challenges related with the photonic integration, have inhibited the swift growth of photonic ICs. Commercialization of quantum computing (expected by 2018) is predicted to offer tremendous growth opportunities for the photonic IC market.

photonic-integrated-circuit

Three integration techniques deployed in photonic ICs include hybrid integration, monolithic integration, and module integration. Hybrid integration was the major integration technique used for photonic integration, accounting for 56.8% of the global market revenue in 2013. Although it is expected to remain the major integration technique over the forecast period, monolithic integration is expected to exhibit the maximum growth, growing at a CAGR of 26.5% during 2015–2022. On the other hand, the module integration technique is expected to witness a fall in the revenues owing to its inferior integration capabilities as compared to hybrid and monolithic integration techniques.

Indium phosphide and Silicon-on-Insulator collectively accounted for over half (60.9%) of the global market revenue in 2013. The dominance of indium phosphide is majorly on account of its ability to integrate opto-electronic functions into an optical system chip monolithically. In addition, the benefits offered in terms of size, speed, energy efficiency, and cost of fabrication and packaging have further ensured its dominance. Among different PIC components, lasers accounted for the majority of revenue share (29.3%) in the global photonic IC market in 2013. Optical amplifiers, which help in realizing high-level photonic integration by compensating for optical losses from individual photonic elements is expected to exhibit maximum growth, expanding at a CAGR of 26.6% over the forecast period from 2015 to 2022.

Optical communications was the largest application segment in the photonic IC market, accounting for over half (58.6%) of the market revenue. It is expected to remain the largest application segment over the forecast period as a result of increasing demand from data center applications. Currently, sensing and biophotonics are the other major application segments, collectively accounting for around one-third (35.5%) of the global photonic IC market revenue. Although the current contribution from optical signal processing segment is the least, it is expected to witness healthy growth post commercialization of quantum computing.

North America was the largest photonic IC market 2013, followed by Europe and Asia Pacific. Although North America is expected to remain the largest photonic IC market by 2022, Asia Pacific is expected to witness healthy growth, outpacing North America and Europe. The growth in Asia Pacific can be majorly attributed to growing demand from data center and biophotonics applications. The global photonic IC market is highly fragmented and is characterized by the presence of large number of players. Some of the leading players in the market include Infinera Corporation (the U.S.), Alcatel-Lucent S.A. (France), Huawei Technologies Co. Ltd (China), JDS Uniphase Corporation (the U.S.), Avago Technologies Ltd. (Singapore), Intel Corporation (the U.S.), and NeoPhotonics Corporation (the U.S.).