Global Photonic Integrated Circuit Industry To 2026 – Data Centers By Application To Drive Market Growth – | Business



DUBLIN – (BUSINESS WIRE) – November 30, 2021–

The “Global Photonic Integrated Circuit Market – Growth, Trends, COVID-19 Impact, and Forecast (2021-2026)” the report was added to ResearchAndMarkets.comoffer.

The global photonic integrated circuits market was valued at USD 5,790.6 million in 2020, and is expected to reach USD 2,1649.8 million by 2026, registering a CAGR of 22.4% during the forecast period 2021 -2026.

Companies mentioned

  • Neophotonics Society
  • Poet Technologies
  • II-VI Incorporated
  • Infinera Corporation
  • Intel company
  • Cisco Systems Inc.
  • Source Photonics Inc.
  • Lumentum Holdings
  • Caliopa
  • Photonic effect
  • Colorchip Ltd

Key market trends

Data Centers By Application To Drive Market Growth

The Internet of Things (IoT), cloud, video streaming, 5G, and many other trends are forcing data centers to scale exponentially. According to the Cisco Global Cloud Index, annual data center Internet Protocol traffic is expected to exceed 20 zettabytes (or 20 x 1021 bytes) by 2021. In data centers, optical links connect server racks through a network fiber optic cable complex. Currently, 100 Gb / s optical links consisting of 4×25 Gb / s single channels or lanes support data traffic within the data center. These links transmit data over fiber lengths ranging from a few meters to 2 km, single-mode fiber being the optical medium of choice for covering great distances.

More likely, over the next few years, data center operators are expected to upgrade their networks to 400 Gb / s optical links (aggregating 4 100 Gb / s lanes per link) in order to meet the huge demand for data. As the number of optical links within data centers will grow exponentially, these links need to be inexpensive and consume as little power as possible, which should boost the market for photonic integrated circuits.

However, nanophotonic silicon technology is already making system-to-system connections in data centers. In the future, technology will move into connections between chips within servers and possibly between sections on the chips themselves. This development is a response to the difficulty of moving electrons at increasingly high speeds over shorter and shorter distances. In March 2021, Teramount, a provider of connectivity solutions for very high-speed applications, announced that it had completed an $ 8 million funding round. This investment will contribute to their photonics socket technology, which will open the door to the next-generation technology package to deliver on the promise of silicon photonics in data centers, 5G mobility and beyond.

North America will hold a significant market share

In North America, demand for photonic integrated circuit (PIC) products is driven by data centers and WAN fiber optic communications applications. The growing need for high-speed data transmission has increased data traffic in cloud computing, and the rapid deployment of IoT has created a potentially booming photonic integrated circuit industry in the region. According to Cisco Cloud Index, North America is expected to generate the most cloud traffic (ZB 7.7 per year) by the end of 2021. Such trends are expected to increase market adoption.

Service providers face increasing demand for bandwidth, much of which is driven by mobile, video and cloud services. Companies are expected to base their optical networks on PIC, which is expected to positively contribute to the growth of the market. Multinational companies, such as IBM Corporation, Intel Corporation and Cisco in the region are working hand-in-hand with partners from academia, business and government, to develop PIC-based solutions for communication challenges. .

For small businesses, public-private partnerships have forged national research consortia, such as the American Institute for Manufacturing Integrated Photonics (AIM Photonics, Rochester, NY) in the United States, the Canadian Photonic Industry Consortium, the Florida Photonics Cluster and the Ontario Photonics Industry Network.

The Defense Advanced Research Projects Agency (DARPA) recently issued a call for tenders for the Atomic-Photonics Integration (A-PhI) project aimed at reducing the complexity of high performance trapped atom PNT devices. Researchers envision photonic integrated circuits replacing the optical assembly behind atomic physics devices while allowing the trapping, manipulation, cooling and interrogation of atoms. This is expected to increase adoption of PIC technology developments during the forecast period.

Main topics covered:


1.1 Hypotheses of the study and market definition

1.2 Scope of the study




4.1 Market overview

4.2 Industry Attractiveness – Porter’s Five Forces Analysis

4.3 Assessment of the impact of COVID-19 on the market


5.1 Market drivers

5.1.1 Growing Applications in Telecommunications and Data Centers

5.1.2 Investments and research to miniaturize ICPs

5.2 Market challenges

5.2.1 Continued Demand for Traditional Integrated Circuits

5.2.2 Optical network capacity crisis


6.1 By component type

6.2 By type of raw material

6.3 By integration process

6.4 By application

6.5 By geography


7.1 Company profiles



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Laura Wood, Senior Press Director

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SOURCE: Research and markets

Copyright Business Wire 2021.

PUB: 11/30/2021 12:07 PM / DISC: 11/30/2021 12:07 PM

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