QYResearch: The Photonic IC industry is projected to reach USD 1239.28 million USD by 2021

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A photonic integrated circuit (PIC) or integrated optical circuit is a device that integrates multiple (at least two) photonic functions and as such is similar to an electronic integrated circuit. The major difference between the two is that a photonic integrated circuit provides functions for information signals imposed on optical wavelengths typically in the visible spectrum or near infrared 850 nm-1650 nm.

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According to QYResearch, The Photonic IC industry was 394.61 million USD in 2016 and is projected to reach USD 1239.28 million USD by 2021, at a CAGR of 25.72% between 2016 and 2021. The key brand include Infinera, Alcatel-Lucent, Avago, NeoPhotonics, HUAWEI, Cisco, Ciena, Intel, Oclaro, JDS Uniphase, Finisar, Luxtera, Mellanox, OneChip, etc.

On the one hand, today photonic integration is emerging as a new standard for providing cost effective and high-performance miniaturized and optical systems for a wide range of applications. The use of photonic integrated circuits (PICs) enables system designers and manufacturers to unite various optical devices such as modulators, optical amplifiers, lasers, and multiplexers into a single package, thereby making the overall system compact and reduce its cost. As cost is a supremely important factor for both manufacturers and end users, this demand for photonic integrated circuits is expected to see a heightened rise over the coming years.

On the other hand, chip manufacturers all over the world are striving to enhance power efficiency by reducing power consumption and to achieve this, the use of PICs in the circuitry. PICs are increasingly being preferred over optical fiber communication systems. Owing to their benefits such as low power consumption, superior flexibility, and low latency, the application areas of photonic integrated circuits are expected to increase in the future. www.qyresearchglobal.com

The photonic integrated circuits market is still in its nascent stage and thus, with growing prospects in the future, the number of players in the market is likely to increase and this will result in a high level of threat from new entrants in the coming years.

Despite the presence of competition problems, due to the global recovery trend is clear, investors are still optimistic about this area, the future will still have more new investment enter the field. Even so, the market for Photonic IC is intensely competitive and needs to invest massive funds.

The study group recommends the new entrants just having money but without technical advantage and upstream and downstream support do not to enter into this field.

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