(MENAFN- GlobeNewsWire - Nasdaq) Boost ROI via low-power silicon photonics, domestic fabrication, regional ecosystems, supply-chain diversification, and acquisitions targeting data center and quantum applications.Dublin, Oct. 19, 2026 (GLOBE NEWSWIRE) -- "Photonic Integrated Circuits Market Report 2026" has been added to ResearchAndMarkets.com's offering.
The global photonic integrated circuits market is experiencing rapid growth, supported by rising demand for high-speed data transmission, energy-efficient optical technologies and advanced communications infrastructure. The market is projected to increase from $14.25 billion in 2025 to $17.05 billion in 2026, representing a compound annual growth rate (CAGR) of 19.7%.
Growth during the historic period has been driven by the expanding adoption of optical communication systems, continued investment in telecommunications infrastructure and greater integration of photonics into consumer electronics. Organizations across telecommunications, cloud computing, data center and advanced technology sectors are increasingly adopting photonic integrated circuits to improve bandwidth, transmission capacity and energy efficiency.
The photonic integrated circuits market is forecast to reach $34.6 billion by 2030, expanding at a CAGR of 19.3%. Key growth factors include the accelerating deployment of silicon photonics, demand for compact optical components, rising investment in data centers and the continued expansion of cloud computing infrastructure. The rollout of 5G and next-generation communications networks is also expected to create substantial opportunities for photonic chip technologies.
Prominent photonic integrated circuits market trends include advancements in photonic integration, innovation in optical chip design and the development of lower-power photonic circuits. Research into advanced materials and continued progress in miniaturized optical components are expected to support broader commercial adoption. These developments are particularly important for artificial intelligence infrastructure, hyperscale networking, telecommunications and other environments that require high-bandwidth, scalable connectivity.
The growing use of high-speed optical communication systems is a major factor supporting market expansion. Rising global internet traffic and increasing performance expectations for fixed broadband services are encouraging network operators and service providers to replace legacy infrastructure with fiber-based connectivity. Photonic integrated circuits enable compact, high-capacity and energy-efficient optical components, helping improve signal transmission while reducing power consumption and deployment costs.
According to the US Federal Communications Commission, the United States had 133 million fixed broadband connections as of June 30, 2024, an increase of 2.3% compared with June 2023. Optical carrier connections accounted for 24.5% of the total, while 26% of fixed connections provided speeds of at least 940 megabits per second. The continued expansion of full-fiber, gigabit-class broadband services is strengthening demand for advanced photonic components and optical networking solutions.
Product innovation is also shaping competition within the photonic integrated circuits market. Technology developers are focusing on high-bandwidth silicon photonics chips that address increasing requirements for data capacity, component density and power efficiency across data centers, AI systems and hyperscale networks.
In October 2023, DustPhotonics Ltd. introduced the Carmel-8 800G silicon photonics chip for DR8 and DR8+ optical transmitter applications with transmission reach of up to two kilometers. The solution integrates eight optical channels operating at 100 Gb/s each in a compact package compatible with industry-standard form factors. It also supports on-board lasers through low-loss laser coupling, enabling flexible use across multiple optical transceiver applications.
Strategic acquisitions are further contributing to photonic technology development. In June 2025, France-based neutral-atom quantum computing company Pasqal SAS acquired AEPONYX Inc. for an undisclosed amount. The transaction is intended to integrate AEPONYX's photonic integrated circuit capabilities into Pasqal's quantum processor platforms, supporting improvements in system precision, stability and scalability. The acquisition also highlights the growing importance of integrated photonics in quantum computing, atom control and entanglement applications.
North America was the largest regional market for photonic integrated circuits in 2025, supported by substantial investment in data centers, cloud platforms, advanced networking, quantum computing and semiconductor innovation. Asia-Pacific is expected to be the fastest-growing region during the forecast period as manufacturing capacity, telecommunications infrastructure and digital services continue to expand. The photonic integrated circuits market covers Asia-Pacific, Southeast Asia, Western Europe, Eastern Europe, North America, South America, the Middle East and Africa. Key countries include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, the United Kingdom, the United States, Canada, Italy and Spain.
Markets Covered:
1) By Component: Lasers; Modulators; Detectors; Multiplexers; Optical Amplifiers; Other Components
2) By Material: Indium Phosphide; Silicon; Lithium Niobate; Gallium Arsenide; Other Materials
3) By Application: Optical Communication; Sensing; Biophotonics; Optical Signal Processing; Other Applications
4) By End-Users: Telecommunications; Healthcare; Data Centres; Defense And Security; Other End Users
Subsegments:
1) By Lasers: Distributed Feedback Laser; Vertical Cavity Surface Emitting Laser; Fabry Perot Laser; Quantum Cascade Laser
2) By Modulators: Electro Optic Modulator; Mach Zehnder Modulator; Microring Modulator; Phase Modulator
3) By Detectors: Photodiode; Avalanche Photodiode; PIN Photodetector; Quantum Dot Photodetector
4) By Multiplexers: Wavelength Division Multiplexer; Arrayed Waveguide Grating; Planar Lightwave Circuit Multiplexer; Optical Add Drop Multiplexer
5) By Optical Amplifiers: Semiconductor Optical Amplifier; Erbium Doped Waveguide Amplifier; Raman Amplifier; Optical Parametric Amplifier
6) By Other Components: Optical Switch; Optical Coupler; Waveguide; Optical Filter
Time Series: Five years historic and ten years forecast.
Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita.
Data Segmentation: Country and regional historic and forecast data, market share of competitors, market segments.
Key Attributes:
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