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Photonic IC Market Expansion Fueled by Demand in AI, IoT, and 5G Technologies - Top Companies are Intel Corporation, Cisco Systems, Inc., Infinera Corporation.

05-07-2025 08:36 AM CET | IT, New Media & Software

Press release from: DataM Intelligence 4market Research LLP

Photonic IC Market

Photonic IC Market

Photonic IC Market report, published by DataM Intelligence, delivers detailed insights and analysis on major market trends, growth prospects, and emerging challenges. With a strong focus on providing actionable intelligence, DataM Intelligence enables businesses to make well-informed decisions and maintain a competitive edge. By blending both qualitative and quantitative research approaches, the company offers thorough reports that support clients in navigating complex market environments, driving strategic expansion, and capitalizing on new opportunities in today's rapidly evolving global landscape.

Photonic IC Market reached US$ 3.2 Billion in 2023 and is expected to reach US$ 31.7 Billion by 2031, growing with a CAGR of 33.2% during the forecast period 2024-2031.

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✦ Increasing Demand for High-Speed Data Communication and Internet Connectivity

As internet traffic surges, data center operators are expanding their infrastructure to support growing demand for digital services such as cloud computing, streaming, e-commerce, and social media. Silicon photonics technology enables high-speed optical interconnects, transceivers, and switches that efficiently transfer data within and between data centers, meeting the needs of modern digital ecosystems. The rising reliance on scalable and on-demand cloud computing services by both businesses and individuals continues to fuel this demand.

✦ Rise of 5G Networks and IoT Applications

The expansion of 5G networks demands high-speed data transmission and efficient communication to handle the vast volume of data generated by IoT devices. Photonic integrated circuits (PICs), which use optical signals for data transmission, offer substantial bandwidth advantages, making them essential components in 5G infrastructure and optical interconnect systems. These networks support ultra-low latency and real-time communication-critical for technologies such as autonomous vehicles, telemedicine, and augmented reality.

Photonic IC Market Recent Development:

On October 20, 2023, the Indian Institute of Technology Madras partnered with the Ministry of Electronics & Information Technology to establish the Centre of Excellence for Silicon Photonics. This technology is well-suited for applications in quantum computing, quantum key distribution, and artificial intelligence.

List of the Key Players in the Photonic IC Market:

Intel Corporation, Cisco Systems, Inc., Infinera Corporation, Polariton Technologies AG, teem photonics, Lumentum Holdings Inc., Luxtera, Inc., LIGENTEC SA, Acacia Communications, Inc., Kaiam Corporation and TCG Crest.

Assessing the Effects of U.S. Tariffs on the Photonic IC Market

The U.S. tariff war is reshaping how businesses analyze trends and make strategic decisions. As tariffs drive up costs and disrupt supply chains, companies are increasingly focused on understanding consumer behavior, identifying new sourcing opportunities, and adjusting their operations to remain competitive. The ongoing uncertainty has created a stronger demand for timely insights and data-driven strategies to navigate shifting trade dynamics and economic pressures.

Research Process:

Both primary and secondary data sources have been used in the global Photonic IC Market research report. During the research process, a wide range of industry-affecting factors are examined, including governmental regulations, market conditions, competitive levels, historical data, market situation, technological advancements, upcoming developments, in related businesses, as well as market volatility, prospects, potential barriers, and challenges.

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Segment Covered in the Photonic IC Market:

By Component: Optical Laser, Modulator, Detector, Transceivers, Attenuators, Others.

By Raw Material: Lithium Niobate, Indium Phosphide, Silica-on-Silicon, Gallium Arsenide, Silicon, Quantum Dots, Silicon-on-Insulator, Others.

By Integration: Hybrid, Monolithic, Module.

By Application: Optical Communications, Sensing, Optical Signal Processing, Bio Photonics.

By End-User: Telecommunications, Biomedical, Data Centres, Others.

Regional Analysis for Photonic IC Market:

⇥ North America (U.S., Canada, Mexico)

⇥ Europe (U.K., Italy, Germany, Russia, France, Spain, The Netherlands and Rest of Europe)

⇥ Asia-Pacific (India, Japan, China, South Korea, Australia, Indonesia Rest of Asia Pacific)

⇥ South America (Colombia, Brazil, Argentina, Rest of South America)

⇥ Middle East & Africa (Saudi Arabia, U.A.E., South Africa, Rest of Middle East & Africa)

People Also Ask:

Most Frequently Asked Questions in the Photonic IC Market Research Industry:

➠ What are the global figures for sales, production, consumption, imports, and exports in the Photonic IC market?

➠ Who are the top manufacturers in the global Photonic IC industry, and what is their current status in terms of production capacity, output, sales performance, pricing structure, cost analysis, profit margins, and overall revenue?

➠ What key opportunities are available for vendors in the Photonic IC market, and what challenges are they likely to encounter?

➠ Which application areas, end-user segments, or product types are projected to experience significant growth, and how is the market share distributed among them?

➠ What are the major drivers and barriers influencing the growth trajectory of the Photonic IC market?

➠ What are the primary sales, marketing, and distribution strategies used across the global Photonic IC industry landscape?

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Contact Us -

Company Name: DataM Intelligence
Contact Person: Sai Kiran
Email: Sai.k@datamintelligence.com
Phone: +1 877 441 4866
Website: https://www.datamintelligence.com

About Us -

DataM Intelligence is a Market Research and Consulting firm that provides end-to-end business solutions to organizations from Research to Consulting. We, at DataM Intelligence, leverage our top trademark trends, insights and developments to emancipate swift and astute solutions to clients like you. We encompass a multitude of syndicate reports and customized reports with a robust methodology.

Our research database features countless statistics and in-depth analyses across a wide range of 6300+ reports in 40+ domains creating business solutions for more than 200+ companies across 50+ countries; catering to the key business research needs that influence the growth trajectory of our vast clientele.

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