Press release
Photonic IC Industry Sector to hit US$ 31.7 Billion by 2031: Industrial Growth, Market Production, Industry Projects, Investment | Top Companies are teem photonics, Lumentum Holdings Inc., Luxtera, Inc., LIGENTEC SA, Acacia Communications, Inc.
Photonic IC Industry
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Latest M&A
✅ Pasqal, a French quantum computing company, acquired Canadian member AEPONYX to integrate photonic integrated circuits in quantum systems, expanding PIC application domains.
✅ Series of 22 M&A deals were reported in September 2025 focused on photonics companies offering PIC design, manufacturing, and innovation capabilities, consolidating the industry around key technology providers.
✅ Companies like ASML and Marvell Technology continue strategic investments and partnerships with PIC developers to enable next-gen optical communication and data center applications.
Key Players:
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.
Latest News and Product Launches
IIT Madras launched two indigenous silicon photonics products designed at Centre of Excellence in programmable photonic integrated circuits and systems (CoE-CPPICS), including a fiber-array unit for photonic chip packaging and silicon photonics-based quantum random number generator targeting scalable quantum computing.
OpenLight raised $34 million in Series A to scale next-gen integrated photonics for AI data centers, developing heterogeneously integrated silicon photonics with indium phosphide on-chip laser technology.
NLM Photonics validated its silicon-organic hybrid PIC performance above 200G in multi-channel testing, indicating advancements in power-efficient, high-bandwidth PIC platforms for data communications
Growth Forecast Projection:
The Global Photonic IC Market is anticipated to rise at a considerable rate during the forecast period, between 2025 and 2032. In 2024, the market is growing at a steady rate, and with the rising adoption of strategies by key players, the market is expected to rise over the projected horizon.
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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Key Segmentation:
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 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)
Benefits of the Report:
Chapter 1: Sets the stage by outlining the report's coverage, summarizing key market segments by region, product type, and application. Presents a snapshot of market sizes, growth potential across segments, and anticipated industry evolution both short and long term.
Chapter 2: Highlights pivotal market insights and uncovers the most significant emerging trends driving change within the industry.
Chapter 3: Offers an in-depth look at the competitive landscape among Photonic IC producers, including revenue shares, strategic moves, and recent mergers and acquisitions.
Chapter 4: Presents comprehensive profiles of the market's key players, delving into details such as revenue, profit margins, product portfolios, and company milestones.
Chapters 5 & 6: Analyze Photonic IC revenue at both regional and country levels, providing quantitative breakdowns of market sizes, growth opportunities, and development prospects worldwide.
Chapter 7: Focuses on different market segments by type, examining their individual sizes and potential, guiding readers toward high-impact, untapped market areas.
Chapter 8: Explores segmentation by application, evaluating industry growth potential in various downstream markets and pinpointing promising sectors for expansion.
Chapter 9: Provides a thorough review of the industry's supply chain mapping out both upstream and downstream activities.
Chapter 10: Concludes with a summary of the report's key findings and highlights the most critical takeaways for industry stakeholders.
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Latest Investments
Significant capital is flowing into photonics startups focusing on AI-scale workload connectivity, quantum computing interconnects, and telecom-all relying heavily on PIC innovations.
European investments include a €17.2 million government-backed boost to SPARC in Vigo, Spain, focusing on creating Europe's first photonic semiconductor manufacturing with III-V materials such as InP, GaAs, and GaN
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Demand and Supply
✅ Growing AI and cloud computing adoption significantly boosts the demand for photonic chips for high-speed, energy-efficient optical communications, especially in hyperscale data centers and 5G networks.
✅ Supply chains are balancing the complexities of III-V semiconductor materials with silicon photonics integration to provide scalable, cost-effective PIC solutions.
✅ Regional hubs in the United States, Europe, and Asia dominate PIC development and supply, supported by strategic manufacturing investments and government subsidies enhancing capacity and commercialization.
Project Hubs
✅ India's IIT Madras operates a Centre of Excellence for programmable photonic IC and systems focused on quantum and microwave photonics, supporting local ecosystem growth.
✅ Europe, particularly Spain's Vigo region with SPARC and The Netherlands' PhotonDelta initiative, is a growing nexus for integrated photonics manufacturing and innovation projects.
✅ US hubs focus on scaling PIC manufacturing aligned with hyperscale data center demands and telecom infrastructure readiness.
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