In 2021, the photonic integrated circuit in the industry contributes $7,639.5 million, and it is expected to rise at a rate of 20.5%, to generate $41,037.7 million revenue by 2030. The massive demand for such components in biomedical, telecommunications, and data center facilities, resulting in a growing inclination toward autonomous vehicles, electronic device miniaturization, and rapid automation in numerous sectors boosts the industry growth.
Under the raw material segment, the iii-V material category holds a significant share of the industry. It is led by the technological advancements of 3D depth sensing in, automotive lighting, consumer electronics, horticultural lighting, IR LED, and LiDar applications.
In addition, the silica-on-silica category captures the next significant photonic IC industry, owing to the affordable cost of setting up and operating photonic integrated circuits made by this material. In addition, such components can easily be integrated into electronic devices, and hence provides numerous opportunities to industry players.
Moreover, the rising number of telecommunications networks, increasing data center demand, and growing adoption of high-performance computers enable high-speed data flow, economic cost, large bandwidth, and enhanced energy efficiency. Thus, photonics integration into electronics offers quick data transfer and leads to increasing demand for III-V raw materials.
Under the application segment, the data centers are projected to experience rapid growth, advancing at a rate of 20.9% from 2021 to 2030. It is led by the advent of services of cloud interconnection, video streaming, and 5G mobile networks, driving the construction of data centers on a large scale.
Under the integration process segment, monolithic capture a substantial share of the photonic integrated circuit industry. It is led by the photonic ICs integration through the monolithic process in various active and passive optical devices made of a single material, that mitigates the adaption issues among multiple materials.
Additionally, the monolithic photonics platforms' incorporation in advanced CMOS technologies for the commercialization of processes and integration of next-generation systems are projected to enlarge the monolithic integration scope.
Moreover, growing advancements in photonics IC technology and numerous integration methods drive industry growth. For example, Hong Kong University of Science and Technology researchers created monolithic InP on a silicon-on-insulator platform that develops a path for wholly integrated photonics ICs based on silicon. The monolithic SOI or InP platform reflects conventional InP and Si photonic platforms' synergy and supports the adoption of wholly integrated PICs.
North America captures a significant share of the industry, accounting for 45%, due to massive usage of high-speed data transmission, resulting in more load on cloud computing networks, coupled with the rapid integration of IoT, developing a massive potential for the photogenic IC industry.
In addition, companies have started to adopt integrated circuits due to rising data generation and consumption as well as bandwidth requirements. Such components utilize photons and light, unlike electricity and electronics for offering higher bandwidth and efficiency. Therefore, they could facilitate numerous future applications. PICs are utilized for supporting new technologies, including quantum computing.
Moreover, Europe captures the next-significant photonic integrated circuit industry share, due to the growing penetration of data centers in the region. Around 450 data centers are established in Germany, 420 in the United Kingdom, and 250 data centers located in the Netherlands.
Therefore, the large amounts of data generation and consumption, coupled with the growing requirement for data centers boost the industry growth.
