Photonic IC Market Technology Innovation and Current Business Trends by 2024: Global Market Insights, Inc.
In the photonic IC market, optical communication dominated the industry and will grow at a fast rate over the forecast timespan. Over the last few years, the industry has witnessed a tremendous increase in the data traffic. Optical communication based on the photonic ICs offers an efficient and cost-effective alternative to data transmission. In addition, owing to its efficiency in handling the increasing data traffic, the demand for optical communications photonic IC market is anticipated to increase. Moreover, the high bandwidth and low signal attenuation provided by optical communication systems are expected to boost their demand. Photonic IC Market size is anticipated to grow owing to advantages of the components such as cost-effectiveness and enhanced functionalities. Several optical devices, such as multiplexers, modulators, and amplifiers, can be integrated into these circuits, reducing the overall cost and making the system compact. The miniaturization of devices and increase in the level of integration are the key factors driving the photonic IC market. These circuits host complex circuit configurations and feature power efficiency and cost reduction due to miniaturization. Photonic components enable efficient electrical to optical conversion and allow devices to work at high temperatures.
The ICs use photons for carrying data, unlike electronic ICs that utilize electrons for data transfer. Optical rays carry more data, thereby proving to be superior than electrical semiconductor techniques and facilitate high data transmission rates than copper-based transmissions. The usage of optical devices makes the system discrete. Moreover, these chips can also be integrated with basic electronic circuits further extending their applications for more functions. High-speed data transmission facilitated by these circuits makes them suitable for a wide range of applications across the aerospace, industrial, and telecommunication, utilities, and energy sectors, which is a key factor driving the photonic IC market. Issues pertaining to the design & packaging of the components is anticipated to hamper the photonic IC market over the coming years. Owing to huge demand for a high level of electronic-photonic integration have led to complex packaging of the circuits with control circuitry, amplifiers, and electronic drivers. Lack of digitalization and awareness of advanced packaging techniques in several economies are restraining the photonic IC market growth. In addition, factors such as thermal effect issues, need for high initial investments, and lack of skilled technicians to run the fabrication units are also restricting the growth. 1|Page