According to a new report, published by KBV research, The Global Photonic Integrated Circuit Market size is expected to reach $27.2 billion by 2031, rising at a market growth of 10.4% CAGR during the forecast period.
In smart homes, PICs enable rapid data exchange between devices such as security cameras, smart thermostats, and lighting systems, ensuring they can operate effectively and respond quickly to user commands. In the same way, PICs facilitate the connection of a variety of sensors and apparatus in industrial settings, enabling the real-time monitoring and control of production processes.
The Hybrid segment is experiencing a CAGR of 9.9 % during the forecast period. The segment is growing because of its ability to incorporate numerous materials and components, which, in turn, enhances performance and makes it possible to incorporate a number of capabilities. Hybrid PICs leverage the strengths of different materials, such as III-V semiconductors and silicon photonics, to create versatile and highly efficient devices, making them particularly suitable for applications in telecommunications, data centers, and advanced sensing technologies.
The Data Centers segment led the maximum revenue in the Global Photonic Integrated Circuit Market by Application in 2023, thereby, achieving a market value of $9.7 billion by 2031. This expansion is due to the growing necessity for high-speed data transmission and efficient optical interconnects in data centers. Due to the exponential increase in data volume, operators are in search of sophisticated solutions to reduce latency and improve bandwidth. PICs provide significant advantages in speed, energy efficiency, and compactness, making them ideal for addressing the challenges modern data center architectures face.
The III-V Material segment is growing at a CAGR of 9.6 % during the forecast period. The success of this segment can be credited to the remarkable optical properties of III-V materials, including gallium arsenide (GaAs) and indium phosphide (InP), which facilitate the efficient emission and detection of light. These materials are particularly favored for applications in telecommunications, data centers, and high-speed optical networks, where performance and efficiency are critical.
Full Report: https://www.kbvresearch.com/photonic-integrated-circuit-market/
The North America region dominated the Global Photonic Integrated Circuit Market by Region in 2023, and would continue to be a dominant market till 2031; thereby, achieving a market value of $9.8 billion by 2031. The Europe region is anticipated to grow at a CAGR of 10.1% during (2024 - 2031). Additionally, The Asia Pacific region would witness a CAGR of 11% during (2024 - 2031).
By Integration Process
By Application
By Material
By Geography
Unique Offerings 
