According to a new market report published by Credence Research Inc. “Photonic IC (Optical Communications (Wireless Access Networks, Long Haul and Transport Networks, Data Centers, etc.), Sensing (Engineering, Energy and Utilities, Transport and Aerospace, etc.), Biophotonics (Medical Devices, Photonic Lab-On-A-Chip, etc.), and Optical Signal Processing (Quantum Optics, Quantum Computing, Optical Metrology, etc.)) Market – Growth, Share, Opportunities, Competitive Analysis, and Forecast 2015 – 2022”, the photonic integrated circuits market is expected to expand at a CAGR of 25.2% from 2015 to 2022.
Market and Product Insights
Photonic integrated circuit (PIC) is a sophisticated integrated circuit incorporating multiple optical devices/functions into a unique optical package. The main difference between a photonic integrated circuit and an electronic circuit is that photonic ICs use photons as data carriers unlike electronic ICs which use electrons for transferring data. In addition, a photonic integrated circuit is analogous to electronic integrated circuits. The photonic integrated circuits (PIC) market is still in the nascent stage and is poised to offer immense growth potential during the forecast period 2015 – 2022.
The global photonic integrated circuits (PIC) market is highly fragmented and competitive. The top four players in the photonic integrated circuits (PIC) market accounted for less than forty five percent of the global market revenue share in 2014. Some of the leading players identified in the photonic integrated circuits (PIC) ecosystem include Infinera Corporation (the U.S.), JDS Uniphase Corporation (the U.S.), Alcatel-Lucent S.A. (France), NeoPhotonics Corporation (the U.S.), Huawei Technologies Co. Ltd (China), Intel Corporation (the U.S.), and Avago Technologies Ltd. (Singapore). In addition, the photonic IC market is characterized by the presence of large number of small players, accounting for trivial market share individually. Some of these players include including Ciena Corporation (the U.S.), Finisar Corporation (the U.S.), Mellanox Technologies Ltd. (Israel) and Luxtera Inc (the U.S.) among others. Competition among existing market players is comparatively high owing to the fragmented nature of the industry. Manufacturers compete on the basis of product innovation and technology differentiation. As such, manufacturers are increasingly focused towards research and development activities. Thus, the intensity of competition in the market is expected to remain high throughout the forecast period 2015 – 2022.
- Gradual Transition from Analog to Digital Mode of Operation
- Research on Quantum Computing
- Growing Demand from Data Center Applications
- Growing Preference for Photonic ICs over Electronic ICs
- Improved Functionalities Leading to Increased Application Fields