The photonic integrated circuit (PIC) market has been forecast to increase at a compound annual growth rate (CAGR) of 27.7% through to 2016, driven by is the reducing cost of optical packages, and the increase in R&D spending on photonic ICs.
The photonic integrated circuits market is growing at a phenomenal rate as it provides significant improvements in system size, power consumption, reliability and cost. The development of silicon photonics technology has helped in large scale manufacturing of PICs at low cost.
Also current leading players have developed monolithically integrated Indium Phosphide (InP) based PICs that can integrate more than 600 components/functions in a single chip.
Photonic Integrated circuits is a breakthrough technology as it uses photons (smallest unit of light) as the data carrier instead of electrons (smallest unit of electricity) used in electronic ICs. As light travels at very high speeds, PIC technology is widely used to transfer huge amounts of data at a very high speed.
At present North America has the largest market for PIC based products, especially in data centers and WAN applications of optical fibre communications.However, APAC is the largest player in the access network application of optical fibre communications right now.
North America is the leader in PIC market with 49% market share however it is estimated that APAC will emerge as the market leader by 2022 growing at a CAGR of 35.9% from 2012 to 2022.
Key players currently dominating the PIC market include Infinera Corporation (U.S.), NeoPhotonics Corporation (U.S.), Oclaro (U.S.), Luxtera (U.S.), Kotura (U.S.), and OneChip Photonics (CA).
The leading vendors of the market have increased their investment in the R&D of photonic ICs. The rapidly growing demand for photonic ICs in data centre applications has motivated vendors to increase their investments in R&D, and this increases the scope for the market.
Using effective R&D processes, vendors are also in the process of developing a proper set of technology standards and this can help revolutionise data transfer applications.
These players have played a great role in changing the market dynamics. For example, Infinera has introduced 500 Gb/s PICs used in long haul flex coherent super channels.
For more information on the photonic IC market, see the latest research: Photonic IC Market
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