The Global Photonic Integrated Circuit Market is analyzed in this report across material, integration process, application, end-use, and region, highlighting major trends and growth forecasts for each segment.

Introduction

Photonic Integrated Circuits (PICs) represent a breakthrough in optoelectronics, delivering compact, high-speed, and energy-efficient solutions for data transmission and signal processing. By consolidating multiple optical functions onto a single chip, PICs enable faster communication, advanced sensing, and scalable integration in compact form factors. Their adoption is expanding across data centers, telecommunications, healthcare diagnostics, autonomous vehicles, and quantum computing.

The global PIC market was valued at approximately USD 13.9 billion in 2024 and is projected to reach USD 36.7 billion by 2030, growing at a CAGR of 18.2%. This growth is being fueled by surging demand for high-bandwidth data transmission, rapid 5G and cloud infrastructure deployment, and the rising adoption of AI and photonic computing. The push for miniaturization, energy efficiency, and higher integration in next-generation electronic and optical systems is further accelerating adoption, positioning PICs at the forefront of digital innovation.

Market Dynamics

The global photonic integrated circuit market is expanding rapidly, driven by converging technological, industrial, and societal needs.

The primary growth drivers include the demand for high-speed data transmission, the expansion of cloud services and 5G infrastructure, and the requirement for compact, energy-efficient solutions in telecom and data systems. PICs are transforming data center interconnects, optical networking, and signal processing by delivering faster speeds, lower power consumption, and smaller footprints. Beyond telecommunications, they are enabling breakthroughs in autonomous driving, healthcare diagnostics, and quantum computing—particularly in optical sensing, imaging, and high-performance computation. The growing reliance on AI and machine learning is further amplifying demand for photonic hardware capable of supporting data-intensive workloads with ultra-low latency.

The market also presents substantial opportunities across emerging applications. These include PIC-enabled optical transceivers for next-gen data centers, LiDAR-on-chip solutions for automotive and robotics, and photonic chips for quantum communication and computing. In healthcare, photonic lab-on-chip systems are advancing ultra-sensitive biosensing and real-time diagnostics. Progress in hybrid and monolithic integration, coupled with material innovations such as silicon nitride (SiN) and indium phosphide (InP), is creating scalable, cost-effective manufacturing pathways. Regional infrastructure trends, such as the surge in Indian data center construction, are further boosting demand for high-speed optical interconnects and reinforcing the role of PICs in large-scale digital ecosystems.

Several key trends are shaping the industry’s trajectory. These include the adoption of co-packaged optics (CPO) in hyperscale data centers, the integration of PICs into AI accelerators and neuromorphic systems, and rising investment in heterogeneous integration platforms. The push toward quantum photonics, lithium-niobate devices, and modular photonic chiplets is driving innovation. Strategic policies such as the European Commission’s 5G framework are also catalyzing infrastructure rollouts and strengthening demand for PIC-enabled technologies. As the ecosystem matures, greater collaboration, standardization, and scaling of photonic foundries are expected to accelerate the industry’s evolution. Collectively, these dynamics position PICs as foundational to the future of high-speed, low-power, and intelligent communication and computing systems.

Segment Highlights and Performance Overview

By Material

Indium Phosphide (InP) leads the material segment with approximately 45% to 46% market share. Renowned for its superior optical properties, InP is widely used in active components such as lasers, modulators, and photodetectors. Its dominance is reinforced by its compatibility with high-performance telecom and datacom applications, making it central to both monolithic and hybrid integration platforms.

By Integration Process

Monolithic integration holds the largest share at 48.9%, driven by its ability to fabricate all photonic components on a single substrate. This approach ensures compact design, low optical losses, and strong scalability, making it particularly valuable for data center interconnects and silicon photonics applications.

By Application

Lasers account for the largest application segment at 40.3%. As the core light source in photonic systems, integrated lasers enhance efficiency while reducing size and power consumption. Their widespread use in transceivers, LiDAR systems, and biosensors continues to anchor their demand across multiple industries.

By End-Use

Telecommunications leads end-use adoption with about 45% of the market. Driven by the rollout of broadband, fiber networks, and 5G infrastructure, telecom providers are leveraging PICs for dense wavelength division multiplexing (DWDM), improved network efficiency, and reduced operating costs across metro and long-haul systems.

Geographical Analysis

The global photonic integrated circuit market is examined across key regions, including North America, Europe, Asia-Pacific, South & Central America, and the Middle East & Africa.

North America accounts for the largest share—approximately 35% to 40%—supported by advanced data center infrastructure, widespread fiber-optic deployment, and strong adoption across telecom, healthcare, and defense sectors. Extensive R&D investments and supportive government initiatives further strengthen regional leadership.

Asia-Pacific is forecast to achieve the highest CAGR, estimated between 16.5% and 20%. Growth is fueled by massive investments in optical communication, rapid 5G rollouts, and rising demand for compact, energy-efficient solutions in China, India, Japan, and South Korea. The region’s increasing emphasis on AI acceleration, automotive LiDAR, and photonic chip manufacturing further underscores its role as the fastest-growing market for PIC adoption.

Competition Landscape

The PIC market is highly competitive, featuring established semiconductor companies, dedicated photonics players, and agile startups. Companies are pursuing innovations in integration, material science, and strategic partnerships to expand global market presence.

Key players profiled in this report include Intel Corporation, POET Technologies, Lumentum Holdings Inc., Coherent Corp., Broadcom Inc., Rockley Photonics, Sicoya GmbH, Anello Photonics, Aeva Technologies, and Xanadu Quantum Technologies. These firms are driving innovation across telecom, AI, sensing, and quantum computing applications.

Key Developments

• June 2024 – Intel Corporation demonstrated its first fully integrated optical compute I/O chiplet, embedding an InP-based PIC with DWDM capability. Designed for high-bandwidth AI infrastructure, this innovation reinforces the role of PICs in scalable, low-latency data center interconnects.
• March 2025 – Anello Photonics was awarded a Phase I SBIR contract by the U.S. Navy to test its Silicon Photonics Optical Gyroscope (SiPhOG™) in GPS-denied environments. This highlights growing defense interest in rugged, compact PIC-based navigation systems and underscores their potential in aerospace and military applications.

Segmentations

By Material:

• Indium Phosphide (InP) 
• Silicon (Si)
• Silicon Nitride (SiN)
• Gallium Arsenide (GaAs)
• Lithium Niobate (LiNbO₃)
• Others

By Integration Process:

• Monolithic Integration
• Hybrid Integration
• Multi-Chip Integration
• Others

By Application:

• Lasers
• Optical Transceivers
• Optical Switches
• Modulators
• Photodetectors
• Others

By End-Use:

• Telecommunications 
• Data Centers
• Automotive & Transportation
• Healthcare & Biomedical
• Consumer Electronics
• Defense & Aerospace
• Others

Companies:

• Intel Corporation
• POET Technologies
• Lumentum Holdings Inc.
• Coherent Corp.
• Broadcom Inc.
• Rockley Photonics
• Sicoya GmbH 
• Anello Photonics
• Aeva Technologies
• Xanadu Quantum Technologies