Photonics-Electronics Convergence Technology Market Across Data Centers, 5G & AI Systems | Strategic Acquisitions and Collaborations 2026

Photonics-Electronics Convergence Technology Market Size and Forecast

DataM Intelligence has published a new research report on "Photonics-Electronics Convergence Technology Market Size 2025". The report explores comprehensive and insightful Information about various key factors like Regional Growth, Segmentation, CAGR, Business Revenue Status of Top Key Players and Drivers. The purpose of this report is to provide a telescopic view of the current market size by value and volume, opportunities, and development status.

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Recent Developments:

🔹 January 2026
Accelerated integration of photonic chips with advanced CMOS nodes to support AI, HPC, and data-center interconnect scalability.

🔹 December 2025
Increased industry collaboration between semiconductor foundries and photonics startups to commercialize co-packaged optics (CPO).

🔹 November 2025
Growing adoption of silicon photonics-based electronic-photonic integrated circuits (EPICs) for energy-efficient, high-bandwidth communication systems.

Photonics-Electronics Convergence: Recent M&A Momentum

The past quarter has seen meaningful consolidation in the photonics-electronics convergence space, driven by AI infrastructure scale-up, optical interconnect demand, and co-packaged optics adoption:

🔹 Marvell Technology × Celestial AI
Marvell announced the acquisition of Celestial AI, a pioneer in optical interconnect "photonic fabric" technology, strengthening Marvell's position in scale-up AI and cloud data-center connectivity.

🔹 FormFactor × Keystone Photonics
FormFactor acquired Keystone Photonics to expand its silicon photonics and co-packaged optics wafer-level test capabilities, addressing growing demand for integrated optical-electronic semiconductor validation.

Key Players:

Intel Corporation, NVIDIA Corporation, STMicroelectronics, Cisco Systems, Marvell Technology, Ciena Corporation, Ayar Labs, IPG Photonics, NTT, and TDK Corporation

Growth Forecast Projected:

The Global Photonics-Electronics Convergence Technology 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 Photonics-Electronics Convergence Technology 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 Segments:

By Component:
The market is segmented by component into Photonics Integrated Circuits (PICs), Electronics Integrated Circuits (EICs), optical interconnects, transceivers, and others. PICs hold a prominent share as they enable high-speed data transmission, lower power consumption, and compact system design. EICs complement photonic components by handling signal processing and control functions. Optical interconnects and transceivers are widely used to support high-bandwidth communication in data centers and telecom networks, while the "others" segment includes modulators, lasers, and detectors that enhance overall system performance.

By Material:
Based on material, the market includes silicon photonics, indium phosphide (InP), gallium arsenide (GaAs), lithium niobate, and others. Silicon photonics leads due to its compatibility with CMOS manufacturing and cost-effective mass production. InP is preferred for active photonic components such as lasers and amplifiers, offering superior optical performance. GaAs is widely used in high-frequency and optoelectronic applications, while lithium niobate is gaining attention for high-speed modulation and low signal loss. The "others" category covers emerging and hybrid materials used for specialized photonic applications.

By End-User:
By end-user, the market spans IT & telecom, consumer electronics, healthcare, automotive & mobility, military & defense, industrial, and others. IT & telecom dominate adoption driven by growing demand for high-speed data transmission, 5G, and data center expansion. Consumer electronics leverage photonic components for advanced sensing and communication features. Healthcare uses photonics in medical imaging and diagnostics, while automotive & mobility adopt these technologies for LiDAR and advanced driver-assistance systems. Military & defense and industrial sectors rely on photonics for secure communications, sensing, and precision applications, with the "others" segment including research and emerging technology fields.

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: Lays the foundation by defining the scope of the report, highlighting core market segments across regions, product types, and applications. It delivers a clear snapshot of current market size, growth potential, and how the industry is expected to evolve in both the near and long term.

Chapter 2: Spotlights the most impactful market insights, unveiling the transformative trends and forces shaping the future of the industry.

Chapter 3: Provides a deep dive into the competitive landscape of , covering revenue shares, strategic initiatives, and notable mergers & acquisitions that are reshaping the market.

Chapter 4: Presents detailed company profiles of leading players featuring financial performance, product portfolios, profit margins, and key milestones that set them apart in the industry.

Chapters 5 & 6: Break down revenue analysis at both regional and country levels, offering precise data on market size, growth drivers, and expansion opportunities across global markets.

Chapter 7: Analyzes the market by product type, spotlighting segment-specific opportunities and helping stakeholders identify untapped, high-growth areas.

Chapter 8 :Explores the market through application-based segmentation, assessing demand across industries and pinpointing downstream sectors with the strongest potential for growth.

Chapter 9: Maps the industry's supply chain in detail, tracing upstream and downstream activities to provide clarity on value creation across the ecosystem.

Chapter 10: Wraps up with a concise summary of the report's key insights distilling the most critical findings and strategic takeaways for decision-makers and stakeholders.

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FAQ

Q1: What is the current size of the Photonics-Electronics Convergence Technology Market?

A: The Photonics-Electronics Convergence Technology Market reached US$18,033.07 million in 2023, rising to US$21,535.09 million in 2024 and is expected to reach US$1,04,265.62 million by 2032.

Q2: How rapidly will the Market expand?

A: The Photonics-Electronics Convergence Technology market is projected to grow at a CAGR of 22.1% between 2025 and 2032.

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