Product Code: FBI107051
Growth Factors of photonic integrated circuit (PIC) Market
The global photonic integrated circuit (PIC) market has emerged as a crucial segment in the electronics and telecommunications industry, driven by the growing demand for high-speed data transfer, optical computing, and advanced communication technologies. According to recent reports, the market was valued at USD 17.36 billion in 2025, expected to grow to USD 20.85 billion in 2026, and projected to reach USD 86.44 billion by 2034, exhibiting a CAGR of 20.8% during the forecast period. In 2025, Asia Pacific dominated the market with a 44.3% share, reflecting the region's rapid growth in electronics manufacturing and telecommunication infrastructure.
A photonic integrated circuit consists of two or more photonic components on a microchip to perform signal processing using photons instead of electrons. These circuits, also known as photonic chips, are increasingly used in telecommunications, data centers, quantum computing, and biomedical applications. The surge in demand for faster communication networks, including 5G and the upcoming 6G, and the increasing adoption of advanced technologies such as quantum computing and AI have fueled the market growth.
Impact of Generative AI
Generative AI plays a significant role in enhancing the PIC market by providing energy-efficient computation, low-latency interconnects, and acceleration for AI applications. Photonics allows AI hardware accelerators to reduce power consumption compared to traditional electronic solutions, as moving data optically consumes less energy than moving electrons. The integration of AI with PICs is a growing trend, particularly for optical computing, network optimization, and automated design of photonic circuits, which improves both performance and energy efficiency.
Market Trends
A key trend in the market is the integration of AI with photonic circuits, which enables high-speed AI networks, optical signal processing, and enhanced adaptability of optical systems. Machine learning algorithms can optimize PIC design parameters, production yield, and performance. Moreover, optical parallelism allows faster computations compared to traditional electronic circuits. This trend is expected to continue driving innovation in data centers, telecommunications, and high-performance computing applications.
Growth Factors
- Telecommunications and data center applications: The telecommunication segment dominated the market with a 29.74% share in 2026, driven by the need for high-speed data transmission, 5G networks, and low-latency communication.
- Quantum computing and AI adoption: PICs are critical for manipulating photons in advanced computing, enabling next-generation technologies.
- Cloud and data center traffic: Rising cloud applications increase the demand for high-speed, energy-efficient PICs.
Restraining Factors
Despite the strong growth prospects, the market faces challenges due to high initial costs and complex design requirements. The development of PICs involves precise alignment of optical components, advanced fabrication techniques, and significant capital investment. Smaller companies and startups may find these barriers limiting, potentially slowing market penetration and innovation.
Market Segmentation
By Application: Telecommunications, data center, biomedical, quantum computing, and others. The biomedical segment is expected to register the highest CAGR, as PICs are increasingly used in bio-sensing, medical imaging, and telemedicine.
By Integration Type: Monolithic, hybrid, and module. The monolithic segment dominated with 39.81% share in 2026, offering high performance and cost efficiency. Hybrid PICs are expected to grow fastest due to their combination of optical and electronic components, enabling high-speed communication and advanced sensing applications.
By Component: Lasers, MUX/DEMUX, modulators, optical amplifiers, detectors, and attenuators. The lasers segment held 27.34% market share in 2026, as lasers are crucial for high-speed optical communication. The modulators segment is expected to grow fastest, facilitating manipulation of optical signals for efficient data transfer.
Regional Insights
- Asia Pacific: Dominated the market with USD 7.68 billion in 2025 and USD 9.23 billion in 2026, driven by China, Japan, and India's growth in electronics, telecommunication, and semiconductor production.
- Europe: Growing rapidly due to government investments in PIC technology, pilot manufacturing lines, and research programs. UK and Germany are projected to reach USD 0.84 billion and USD 0.78 billion in 2026.
- North America: Second-highest growth with U.S. projected to reach USD 3.96 billion by 2026, fueled by data centers and fiber optic communication networks.
- Middle East & Africa: Growth driven by rising demand for 5G networks and high-speed internet.
- South America: Expansion in urbanization and digital infrastructure supports market growth.
Key Industry Players
Major companies are leveraging mergers, acquisitions, and strategic partnerships to expand market reach. Top players include:
Infinera Corporation, Intel Corporation, Lumentum Operations, Ciena Corporation, Cisco Systems, Broadcom, POET Technologies, EMCORE Corporation, Coherent Corporation, STMicroelectronics.
Recent Developments:
- May 2024: Foxconn selected POET Technologies' optical engines for high-speed applications.
- March 2024: Infinera launched ICE-D PIC technology for intra-data center optics at speeds above 1.6 Tb/s.
- August 2022: Lumentum acquired NeoPhotonics, enhancing capabilities in lasers and optical components.
Conclusion
The photonic integrated circuit market, growing from USD 17.36 billion in 2025 to USD 86.44 billion by 2034, is poised for significant expansion due to high-speed data demands, 5G/6G adoption, AI integration, and quantum computing applications. Asia Pacific leads in market share, while Europe and North America show strong growth prospects. Despite high costs and complex designs, advancements in monolithic and hybrid PICs, lasers, modulators, and AI-enabled photonics are expected to sustain long-term market growth and technological innovation across telecommunications, data centers, and healthcare sectors.
Segmentation By Application
- Telecommunications
- Data Center
- Quantum Computing
- Biomedical
- Others (Aerospace & Defense, Agriculture)
By Integration Type
By Component
- Lasers
- MUX/DEMUX
- Modulators
- Optical Amplifiers
- Detectors
- Attenuators
By Region
- North America (By Application, Integration Type, Component, and Country)
- U.S. (By Component)
- Canada (By Component)
- Mexico (By Component)
- South America (By Application, Integration Type, Component, and Country)
- Brazil (By Component)
- Argentina (By Component)
- Rest of South America
- Europe (By Application, Integration Type, Component, and Country)
- U.K. (By Component)
- Germany (By Component)
- France (By Component)
- Italy (By Component)
- Spain (By Component)
- Russia (By Component)
- Benelux (By Component)
- Nordics (By Component)
- Rest of Europe
- Middle East & Africa (By Application, Integration Type, Component, and Country)
- Turkey (By Component)
- Israel (By Component)
- GCC (By Component)
- North Africa (By Component)
- South Africa (By Component)
- Rest of the Middle East & Africa
- Asia Pacific (By Application, Integration Type, Component, and Country)
- China (By Component)
- Japan (By Component)
- India (By Component)
- South Korea (By Component)
- ASEAN (By Component)
- Oceania (By Component)
- Rest of Asia Pacific
Table of Content
1. Introduction
- 1.1. Definition, By Segment
- 1.2. Research Methodology/Approach
- 1.3. Data Sources
2. Executive Summary
3. Market Dynamics
- 3.1. Macro and Micro Economic Indicators
- 3.2. Drivers, Restraints, Opportunities and Trends
- 3.3. Impact of Generative AI
4. Competition Landscape
- 4.1. Business Strategies Adopted by Key Players
- 4.2. Consolidated SWOT Analysis of Key Players
- 4.3. Global Photonic Integrated Circuit Key Players (Top 3 - 5) Market Share/Ranking, 2025
5. Global Photonic Integrated Circuit Market Size Estimates and Forecasts, By Segments, 2021-2034
- 5.1. Key Findings
- 5.2. By Application (USD)
- 5.2.1. Telecommunications
- 5.2.2. Data Center
- 5.2.3. Biomedical
- 5.2.4. Quantum Computing
- 5.2.5. Others (Aerospace & Defense, Agriculture, etc.)
- 5.3. By Integration Type (USD)
- 5.3.1. Monolithic
- 5.3.2. Hybrid
- 5.3.3. Module
- 5.4. By Component (USD)
- 5.4.1. Lasers
- 5.4.2. MUX/DEMUX
- 5.4.3. Modulators
- 5.4.4. Optical Amplifiers
- 5.4.5. Detectors
- 5.4.6. Attenuators
- 5.5. By Region (USD)
- 5.5.1. North America
- 5.5.2. South America
- 5.5.3. Europe
- 5.5.4. Middle East & Africa
- 5.5.5. Asia Pacific
6. North America Photonic Integrated Circuit Market Size Estimates and Forecasts, By Segments, 2021-2034
- 6.1. Key Findings
- 6.2. By Application (USD)
- 6.2.1. Telecommunications
- 6.2.2. Data Center
- 6.2.3. Biomedical
- 6.2.4. Quantum Computing
- 6.2.5. Others (Aerospace & Defense, Agriculture, etc.)
- 6.3. By Integration Type (USD)
- 6.3.1. Monolithic
- 6.3.2. Hybrid
- 6.3.3. Module
- 6.4. By Component (USD)
- 6.4.1. Lasers
- 6.4.2. MUX/DEMUX
- 6.4.3. Modulators
- 6.4.4. Optical Amplifiers
- 6.4.5. Detectors
- 6.4.6. Attenuators
- 6.5. By Country (USD)
- 6.5.1. U.S.
- 6.5.2. Canada
- 6.5.3. Mexico
7. South America Photonic Integrated Circuit Market Size Estimates and Forecasts, By Segments, 2021-2034
- 7.1. Key Findings
- 7.2. By Application (USD)
- 7.2.1. Telecommunications
- 7.2.2. Data Center
- 7.2.3. Biomedical
- 7.2.4. Quantum Computing
- 7.2.5. Others (Aerospace & Defense, Agriculture, etc.)
- 7.3. By Integration Type (USD)
- 7.3.1. Monolithic
- 7.3.2. Hybrid
- 7.3.3. Module
- 7.4. By Component (USD)
- 7.4.1. Lasers
- 7.4.2. MUX/DEMUX
- 7.4.3. Modulators
- 7.4.4. Optical Amplifiers
- 7.4.5. Detectors
- 7.4.6. Attenuators
- 7.5. By Country (USD)
- 7.5.1. Brazil
- 7.5.2. Argentina
- 7.5.3. Rest of South America
8. Europe Photonic Integrated Circuit Market Size Estimates and Forecasts, By Segments, 2021-2034
- 8.1. Key Findings
- 8.2. By Application (USD)
- 8.2.1. Telecommunications
- 8.2.2. Data Center
- 8.2.3. Biomedical
- 8.2.4. Quantum Computing
- 8.2.5. Others (Aerospace & Defense, Agriculture, etc.)
- 8.3. By Integration Type (USD)
- 8.3.1. Monolithic
- 8.3.2. Hybrid
- 8.3.3. Module
- 8.4. By Component (USD)
- 8.4.1. Lasers
- 8.4.2. MUX/DEMUX
- 8.4.3. Modulators
- 8.4.4. Optical Amplifiers
- 8.4.5. Detectors
- 8.4.6. Attenuators
- 8.5. By Country (USD)
- 8.5.1. U.K.
- 8.5.2. Germany
- 8.5.3. France
- 8.5.4. Italy
- 8.5.5. Spain
- 8.5.6. Russia
- 8.5.7. Benelux
- 8.5.8. Nordics
- 8.5.9. Rest of Europe
9. Middle East & Africa Photonic Integrated Circuit Market Size Estimates and Forecasts, By Segments, 2021-2034
- 9.1. Key Findings
- 9.2. By Application (USD)
- 9.2.1. Telecommunications
- 9.2.2. Data Center
- 9.2.3. Biomedical
- 9.2.4. Quantum Computing
- 9.2.5. Others (Aerospace & Defense, Agriculture, etc.)
- 9.3. By Integration Type (USD)
- 9.3.1. Monolithic
- 9.3.2. Hybrid
- 9.3.3. Module
- 9.4. By Component (USD)
- 9.4.1. Lasers
- 9.4.2. MUX/DEMUX
- 9.4.3. Modulators
- 9.4.4. Optical Amplifiers
- 9.4.5. Detectors
- 9.4.6. Attenuators
- 9.5. By Country (USD)
- 9.5.1. Turkey
- 9.5.2. Israel
- 9.5.3. GCC
- 9.5.4. North Africa
- 9.5.5. South Africa
- 9.5.6. Rest of Middle East & Africa
10. Asia Pacific Photonic Integrated Circuit Market Size Estimates and Forecasts, By Segments, 2021-2034
- 10.1. Key Findings
- 10.2. By Application (USD)
- 10.2.1. Telecommunications
- 10.2.2. Data Center
- 10.2.3. Biomedical
- 10.2.4. Quantum Computing
- 10.2.5. Others (Aerospace & Defense, Agriculture, etc.)
- 10.3. By Integration Type (USD)
- 10.3.1. Monolithic
- 10.3.2. Hybrid
- 10.3.3. Module
- 10.4. By Component (USD)
- 10.4.1. Lasers
- 10.4.2. MUX/DEMUX
- 10.4.3. Modulators
- 10.4.4. Optical Amplifiers
- 10.4.5. Detectors
- 10.4.6. Attenuators
- 10.5. By Country (USD)
- 10.5.1. China
- 10.5.2. Japan
- 10.5.3. India
- 10.5.4. South Korea
- 10.5.5. ASEAN
- 10.5.6. Oceania
- 10.5.7. Rest of Asia Pacific
11. Company Profiles for Top 10 Players (Based on data availability in public domain and/or on paid databases)
- 11.1. Infinera Corporation
- 11.1.1. Overview
- 11.1.1.1. Key Management
- 11.1.1.2. Headquarters
- 11.1.1.3. Offerings/Business Segments
- 11.1.2. Key Details (Key details are consolidated data and not product/service specific)
- 11.1.2.1. Employee Size
- 11.1.2.2. Past and Current Revenue
- 11.1.2.3. Geographical Share
- 11.1.2.4. Business Segment Share
- 11.1.2.5. Recent Developments
- 11.2. Intel Corporation
- 11.2.1. Overview
- 11.2.1.1. Key Management
- 11.2.1.2. Headquarters
- 11.2.1.3. Offerings/Business Segments
- 11.2.2. Key Details (Key details are consolidated data and not product/service specific)
- 11.2.2.1. Employee Size
- 11.2.2.2. Past and Current Revenue
- 11.2.2.3. Geographical Share
- 11.2.2.4. Business Segment Share
- 11.2.2.5. Recent Developments
- 11.3. Lumentum Operations LLC
- 11.3.1. Overview
- 11.3.1.1. Key Management
- 11.3.1.2. Headquarters
- 11.3.1.3. Offerings/Business Segments
- 11.3.2. Key Details (Key details are consolidated data and not product/service specific)
- 11.3.2.1. Employee Size
- 11.3.2.2. Past and Current Revenue
- 11.3.2.3. Geographical Share
- 11.3.2.4. Business Segment Share
- 11.3.2.5. Recent Developments
- 11.4. Ciena Corporation
- 11.4.1. Overview
- 11.4.1.1. Key Management
- 11.4.1.2. Headquarters
- 11.4.1.3. Offerings/Business Segments
- 11.4.2. Key Details (Key details are consolidated data and not product/service specific)
- 11.4.2.1. Employee Size
- 11.4.2.2. Past and Current Revenue
- 11.4.2.3. Geographical Share
- 11.4.2.4. Business Segment Share
- 11.4.2.5. Recent Developments
- 11.5. Cisco Systems, Inc.
- 11.5.1. Overview
- 11.5.1.1. Key Management
- 11.5.1.2. Headquarters
- 11.5.1.3. Offerings/Business Segments
- 11.5.2. Key Details (Key details are consolidated data and not product/service specific)
- 11.5.2.1. Employee Size
- 11.5.2.2. Past and Current Revenue
- 11.5.2.3. Geographical Share
- 11.5.2.4. Business Segment Share
- 11.5.2.5. Recent Developments
- 11.6. Broadcom
- 11.6.1. Overview
- 11.6.1.1. Key Management
- 11.6.1.2. Headquarters
- 11.6.1.3. Offerings/Business Segments
- 11.6.2. Key Details (Key details are consolidated data and not product/service specific)
- 11.6.2.1. Employee Size
- 11.6.2.2. Past and Current Revenue
- 11.6.2.3. Geographical Share
- 11.6.2.4. Business Segment Share
- 11.6.2.5. Recent Developments
- 11.7. POET Technologies
- 11.7.1. Overview
- 11.7.1.1. Key Management
- 11.7.1.2. Headquarters
- 11.7.1.3. Offerings/Business Segments
- 11.7.2. Key Details (Key details are consolidated data and not product/service specific)
- 11.7.2.1. Employee Size
- 11.7.2.2. Past and Current Revenue
- 11.7.2.3. Geographical Share
- 11.7.2.4. Business Segment Share
- 11.7.2.5. Recent Developments
- 11.8. EMCORE Corporation
- 11.8.1. Overview
- 11.8.1.1. Key Management
- 11.8.1.2. Headquarters
- 11.8.1.3. Offerings/Business Segments
- 11.8.2. Key Details (Key details are consolidated data and not product/service specific)
- 11.8.2.1. Employee Size
- 11.8.2.2. Past and Current Revenue
- 11.8.2.3. Geographical Share
- 11.8.2.4. Business Segment Share
- 11.8.2.5. Recent Developments
- 11.9. Coherant Corporation
- 11.9.1. Overview
- 11.9.1.1. Key Management
- 11.9.1.2. Headquarters
- 11.9.1.3. Offerings/Business Segments
- 11.9.2. Key Details (Key details are consolidated data and not product/service specific)
- 11.9.2.1. Employee Size
- 11.9.2.2. Past and Current Revenue
- 11.9.2.3. Geographical Share
- 11.9.2.4. Business Segment Share
- 11.9.2.5. Recent Developments
- 11.10. STMicroelectronics
- 11.10.1. Overview
- 11.10.1.1. Key Management
- 11.10.1.2. Headquarters
- 11.10.1.3. Offerings/Business Segments
- 11.10.2. Key Details (Key details are consolidated data and not product/service specific)
- 11.10.2.1. Employee Size
- 11.10.2.2. Past and Current Revenue
- 11.10.2.3. Geographical Share
- 11.10.2.4. Business Segment Share
- 11.10.2.5. Recent Developments