The global Photonic IC Market is estimated to surpass $26 billion by 2024 growing at an astonishing CAGR of 35.54% during 2019-2024, from $4.4 billion in 2018. The explosive growth of internet users across the globe is set to surge the demand in high-speed internet connectivity thereby driving the photonic IC components in the telecommunication sector. Apart from this, the growing establishment of data centers is also analyzed to be one of the major market drivers for photonic IC market.
Photonic IC Market Segment Analysis – By Component
Laser component holds a major share in the photonic IC market in the year 2018. Researchers are now trying to develop a type of laser that uses both light and sound to create optical amplification. A Brillouin laser is integrated in photonic IC which can use both light and sound for optical amplification. Researchers are in the process of developing a new laser design that is able to harness a new type of forward Brillouin interaction. The invention of the new laser which is integrated in the PICs are expected to drive the laser component market during the forecast period 2019-2024.
Request for Sample of the Report @ https://www.industryarc.com/pdfdownload.php?id=19184
Report Price: $ 4500 (Single User License)
Photonic IC Market Segment Analysis – By Application
Telecom sector holds a major share for the photonic IC market globally in the year 2018. The telecommunication photonic IC market is poised to grow at a CAGR of 39.45% during the forecast period 2019-2024. The number of internet users across globe are increasing widely. According to Internet World Stats, Asia houses around 2.1 billion internet users. The increasing internet penetration rate requires the photonics that can ensure uninterrupted service to the users, is driving the growth of the photonics IC market.
Photonic IC Market Segment Analysis – By Geography
APAC region was one of the biggest markets for Photonic IC market in 2018. Some of the countries in APAC region such as China, Japan, South Korea and Malaysia are having major production hub of photonic ICs. The market is this region is mainly driven by the developments in telecommunication industry. In 2019, South Korea’s largest telecommunications company KT Corporation, has officially launched the world’s first nationwide commercial fifth-generation (5G) wireless network in South Korea. Developments in South Korean telecommunication industry, along with growing number of product launches related to photonic IC, where photonic ICs are majorly applied in detectors, modulators, will escalate the growth of photonic IC market in this region.
Photonic IC Market Drivers
Increasing Demand from the Hyper scale Datacenters
Data centers are identified as one of the biggest potential users of photonic ICs. The use of the photonic IC in data centers will help enhancing the speed. This also helps in lowering the power consumption which make them highly desirable alternatives to conventional ICs. According to Cisco the data centers are going to increase by 29% by 2022. Increase in the data centers, where photonic IC will be utilized to enhance the speed, is anticipated to provide ample opportunities for PIC market.
Increase in Data traffic
There is a significant rise in data consumption owing to strong increase in smartphone usage in the developing countries coupled with rise of data-intensive applications such as video streaming, online gaming, and many others. According to Cisco, the mobile data traffic growth numbers in 2017 saw a significant jump by 10% when compared with 2016. Thus, the growing numbers of data usage globally are set to impact the market positively for Photonic ICs, due to high demand for faster speed as compare to conventional circuits.
Download Sample Report @ https://www.industryarc.com/pdfdownload.php?id=19184
Photonic IC Market Challenges
Necessity of Automation in Manufacturing
There is a huge gap of the production and sales of the PIC components, especially in telecom and data center application, which is acting as a barrier for market growth. There is a delay in manufacturing process owing to high human interaction and to overcome this delay major market players are shifting towards automation.
Photonic IC Market Landscape
Partnerships and acquisitions along with product development are the key strategies of the players in the Photonic IC market. As of 2018, the market for the Photonic IC is fragmented with the top 5 players accounting for 35% of the market share. The major players in the Photonic IC Market include Infinera Corporation, Acacia Communication, Inc., Intel, NeoPhotonic Corporation, Foxconn Interconnect Technology Inc. and many others.
In December 2018, Lumentum Holdings Inc. acquired Oclaro, Inc. This acquisition will create a strong platform for optical industry and provide opportunities to expand the company’s photonics market presence.
In 2019, MACOM Technology Solutions and Global Foundries are coming up with a strategic collaboration to ramp up the production of laser PICs aiming to meet the surge in demand in foreseeable future.
In 2019, CompoundTek partnered with leading photonic simulation software provider, Lumerical. This partnership will help the company in enhancing the product portfolio and will also help in expanding the global presence of the company.
In 2019, Cambridge Industries Group (CIG) acquired optical transceiver product lines from Lumentum mainly to address the market opportunity by data center expansion and wireless 5G in the near future
Photonic IC Market Research Scope:
The base year of the study is 2018, with forecast done up to 2024. The study presents a thorough analysis of the competitive landscape, taking into account the market shares of the leading companies and the information on unit shipments of the ICs. This information’s provides the key market participants with the necessary business intelligence and help them understand the future of the photonic IC market. The assessment includes the forecast, an overview of the competitive structure, the market shares of the competitors, as well as the market trends, market demands, market drivers, market challenges, and product analysis. The market drivers and restraints have been assessed to fathom their impact over the forecast period. This report further identifies the key opportunities for growth while also detailing the key challenges and possible threats. The key areas of focus include the components of photonic IC market, and their specific applications in the telecommunication, data centers, medical, and industrial sectors.
Implementation of new technology such as 3D-based hybrid laser integration is likely to bring new opportunities for hybrid photonics ICs.
Growing digitalization and IoT applications increase the demand for higher bandwidth and storage requirement which in turn open market opportunities for Photonic IC
The APAC holds 28% of the share in the photonics IC market in 2018. The growing number of telecom connections, supported by the growing penetration of 4G in developing economies and the upcoming launch of 5G, will play a pivotal role in the growth of Photonic Integrated Circuit(IC) market in the APAC region during 2019-2024.
Related Reports :
A. Optical Amplifier Market
B. APAC Bluetooth Low Energy Market
About IndustryARC: IndustryARC primarily focuses on Cutting Edge Technologies and Newer Applications market research. Our Custom Research Services are designed to provide insights on the constant flux in the global supply-demand gap of markets. Our strong team of analysts enables us to meet the client research needs at a rapid speed, with a variety of options for your business. Any other custom requirements can be discussed with our team, drop an e-mail to email@example.com to discuss more about our consulting services.