Photonic Integrated Circuit Market to Surpass US$50B by 2035, Says New IDTechEx Report
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Photonic Integrated Circuit Market to Surpass US$50B by 2035, Says New IDTechEx Report
The importance of PICs in high-speed communication within AI data centers is leading to rapid growth in demand for PIC-enabled transceivers to help machine learning models grow ever-larger. Anticipation of the skyrocketing requirement for AI data centers is the key for market intelligence firm IDTechEx's prediction that the PIC market would hit a staggering US$54 billion in 2035 in its latest report, "Silicon Photonics and Photonic Integrated Circuits 2025-2035: Technologies, Market, Forecasts"
BOSTON, MASSACHUSETTS / ACCESS Newswire / February 4, 2025 / Photonic Integrated Circuits (PICs) are tiny optical systems manufactured with technology used in the electronic integrated circuit industry. PICs enable everything from complex optical designs that allow billions of bits of information to be sent and received in a package the size of a candy bar to artificial noses that can detect different compounds and molecules in the air around them.
Sam Dale, Senior Technology Analyst and one of the report authors explains: "By leveraging the billions of dollars in investment in CMOS chip manufacturing, PICs can unlock new processing scaling potential beyond Moore's law. However, there are still significant challenges for the PIC market, such as material limitations, integration complexity, and cost management. Large demand volumes are required to offset the initial cost of designing and manufacturing PICs, and production lead times can take months." IDTechEx's report thoroughly investigates the PIC market and has identified Photonic Transceivers for AI as an emerging segment that is soon to be the largest source of demand for PICs.
The market for Silicon Photonics and PICs is experiencing robust growth, driven by the surge in AI and datacom transceiver demand. Key players in the industry such as Intel/Jabil, Coherent, and Infinera are actively using PICs within their transceivers. Innolight, a China-based transceiver company, hit 1.6Tbps of transfer speed in their latest transceivers in late 2023. Coherent, which has its own InP wafer fab facilities, is also developing higher-performance transceivers for 1.6T+ applications. Intel Silicon Photonics, which has transferred its transceiver business to Jabil, announced it had shipped over 8 million PICs since 2016, showing the maturity of the technology. IDTechEx forecasts that PIC technology is to continue to dominate the high-performance transceiver market, further solidifying its position as a critical component in the modern technological landscape.
To find out more about this new IDTechEx report please see www.IDTechEx.com/SemiPIC.
About IDTechEx
IDTechEx provides trusted independent research on emerging technologies and their markets. For more information, contact [email protected] or visit www.IDTechEx.com.
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SOURCE: IDTechEx
View the original press release on ACCESS Newswire
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