Photonic IC Market to Reach US$ 31.7 Billion by 2031 at 33.2% CAGR; North America Leads with 40% Share as Intel and Cisco Drive Growth

The Global Photonic IC Market reached US$ 3.2 billion in 2023 and is expected to reach US$ 31.7 billion by 2031, growing at a CAGR of 33.2% during the forecast period 2024-2031. Market growth is driven by the rising demand for high-speed data transmission, increasing deployment of optical communication networks, and growing adoption of photonics in data centers and advanced computing applications.

Photonic integrated circuits (PICs) integrate multiple photonic functions onto a single chip to enable faster data processing with lower power consumption compared to electronic ICs. Expanding applications across telecommunications, data centers, 5G infrastructure, artificial intelligence, and high-performance computing, along with continuous advancements in silicon photonics and manufacturing technologies, are accelerating global market expansion.

Get a Free Sample PDF Of This Report (Get Higher Priority for Corporate Email ID):- https://www.datamintelligence.com/download-sample/photonic-ic-market?sai-v

The Photonic IC Market refers to the global industry focused on the development and commercialization of photonic integrated circuits that use light instead of electrical signals to enable high-speed data transmission, sensing, and signal processing applications.

Key Developments
✅ January 2026: In North America, demand accelerated for photonic ICs in datacenter and high-performance computing applications as hyperscale cloud providers sought increased bandwidth and energy-efficient optical interconnect solutions.

✅ December 2025: In Europe, telecommunications operators advanced deployment of photonic IC technologies to support next-generation optical networking and 5G/6G infrastructure, focusing on integrated transceivers and coherent photonics.

✅ November 2025: In Asia-Pacific, strong investment in semiconductor and optoelectronics ecosystems bolstered adoption of photonic ICs for AI accelerators, sensing, and next-gen mobile broadband infrastructure.

✅ October 2025: In Latin America, pilot projects using photonic IC-enabled optical sensors and communication modules expanded in industrial automation and smart grid applications to improve connectivity and monitoring.

✅ September 2025: In the Middle East, infrastructure initiatives tied to smart cities and digital transformation increased interest in photonic technologies for communication systems and advanced sensing deployments.

✅ August 2025: In Africa, early research collaborations and technology demonstrations explored photonic IC applications in environmental sensing, telecom upgrades, and educational research programs.

Mergers & Acquisitions
✅ January 2026: In North America, a leading semiconductor and photonics company acquired a photonic IC design startup to strengthen its portfolio in optical interconnects and integrated photonics for datacenter and AI workloads.

✅ December 2025: In Europe, a major optical networking provider acquired a photonic IC developer to accelerate deployment of integrated photonic transceivers across telecom and enterprise networks.

✅ November 2025: In Asia-Pacific, a technology investment group acquired a photonic component manufacturer to expand capabilities in silicon photonics and compound semiconductor photonic IC production for emerging 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 | TCG Crest

Key Highlights
Intel Corporation holds 24.7% share, driven by silicon photonics integration for data centers, high-performance computing, and AI-driven networking applications.

Cisco Systems, Inc. holds 19.6% share, supported by strong optical networking portfolios and deep adoption across enterprise and telecom infrastructure.

Infinera Corporation holds 14.3% share, leveraging coherent optical engines and long-haul, high-capacity transport solutions.

Lumentum Holdings Inc. holds 11.8% share, driven by photonic components for telecom, data center interconnects, and 3D sensing applications.

Acacia Communications, Inc. holds 9.2% share, supported by advanced coherent DSP and optical module technologies.

Luxtera, Inc. holds 6.4% share, focused on silicon photonics transceivers for cloud-scale data centers.

LIGENTEC SA holds 5.1% share, specializing in integrated photonic circuits and wafer-scale manufacturing.

Kaiam Corporation holds 4.0% share, providing optical interconnect solutions for hyperscale and telecom networks.

Polariton Technologies AG holds 2.6% share, driven by ultra-fast plasmonic modulator technologies.

Teem Photonics holds 1.5% share, focused on laser and photonic integration for scientific and industrial uses.

TCG Crest holds 0.8% share, supporting specialty photonics and advanced optical component development.

Buy Now & Unlock 360° Market Intelligence: https://www.datamintelligence.com/buy-now-page?report=photonic-ic-market?sai-v

Market Drivers
- Rapid growth in demand for high-speed data communication and optical networking driven by 5G, cloud computing, and data centers.

- Increasing adoption of photonic integrated circuits for low-power, high-bandwidth optical signal processing.

- Expansion of telecommunications infrastructure and need for cost-effective, miniaturized photonic solutions.

- Rising use of PICs in emerging applications such as LiDAR, quantum computing, and medical diagnostics.

- Advancements in silicon photonics and heterogeneous integration enabling scalable PIC manufacturing.

Industry Developments
- Launch of next-generation photonic IC platforms with enhanced integration, performance, and energy efficiency.

- Strategic collaborations and partnerships between semiconductor foundries, research institutes, and photonics innovators.

- Expansion of production capabilities and investments in silicon photonics fabrication technologies.

- Growth in R&D for advanced materials and integration techniques (e.g., indium phosphide, hybrid PICs).

- Increased focus on standardization and ecosystem development for PIC design, testing, and packaging.

Regional Insights
North America - 40% share: "Driven by strong adoption of optical communications, data center expansion, high R&D investment, and presence of key PIC developers."

Europe - 26% share: "Supported by collaborative photonics research initiatives, growing telecom infrastructure upgrades, and presence of specialized photonic foundries."

Asia Pacific - 27% share: "Fueled by rapid data traffic growth, expansion of 5G networks, rising investment in optical technologies, and increasing manufacturing capacity."

Latin America - 4% share: "Driven by gradual telecom modernization, growing demand for optical networking, and emerging photonics applications."

Middle East & Africa - 3% share: "Supported by developing digital infrastructure, rising investments in connectivity solutions, and expanding interest in advanced optical technologies."

Speak to Our Analyst and Get Customization in the report as per your requirements: https://www.datamintelligence.com/customize/photonic-ic-market?sai-v

Key Segments
By Component
Optical lasers dominate the component segment, driven by their critical role in light generation for integrated photonic systems. Modulators hold a significant share, supported by demand for high-speed data transmission and signal control. Detectors account for a substantial portion, driven by need for accurate signal reception and monitoring. Transceivers represent an important segment, supported by growing deployment in high-bandwidth optical networks. Attenuators and other components contribute steadily by enabling signal optimization and performance management.

By Raw Material
Silicon-based materials dominate the market, driven by compatibility with CMOS manufacturing and cost efficiency. Indium phosphide holds a significant share due to its suitability for active photonic components. Lithium niobate represents a growing segment, supported by advancements in high-performance modulation. Silica-on-silicon and gallium arsenide contribute notably to specific photonic applications. Quantum dots, silicon-on-insulator, and other materials support market growth through emerging and specialized photonic technologies.

By Integration
Monolithic integration dominates the market, driven by compact design, performance efficiency, and reduced manufacturing complexity. Hybrid integration represents a substantial segment, supported by flexibility in combining different material platforms. Module-level integration contributes steadily by supporting customized and application-specific photonic solutions.

By Application
Optical communications represent the largest application segment, driven by rising demand for high-speed data transmission and network bandwidth expansion. Optical signal processing holds a significant share, supported by need for advanced data handling and computing applications. Sensing applications are growing rapidly, driven by use in industrial monitoring and environmental sensing. Biophotonics represent an important segment, supported by applications in medical diagnostics and life sciences research.

Unlock 360° Market Intelligence with DataM Subscription Services: https://www.datamintelligence.com/reports-subscription

Power your decisions with real-time competitor tracking, strategic forecasts, and global investment insights all in one place.

✅ Competitive Landscape
✅ Sustainability Impact Analysis
✅ KOL / Stakeholder Insights
✅ Unmet Needs & Positioning, Pricing & Market Access Snapshots
✅ Market Volatility & Emerging Risks Analysis
✅ Quarterly Industry Report Updated
✅ Live Market & Pricing Trends
✅ Import-Export Data Monitoring

Have a look at our Subscription Dashboard: https://www.youtube.com/watch?v=x5oEiqEqTWg

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.

This release was published on openPR.