The report forecasts a compound annual growth rate of 22.5%, supported by increasing requirements for high-speed data transfer and continuing progress in semiconductor manufacturing. The rapid expansion of data centres, cloud computing services and fibre-optic networks remains central to this momentum, while emerging applications in quantum computing are beginning to play a significant role.

PIC adoption is also accelerating in healthcare and life sciences, where energy-efficient photonic components are being integrated into diagnostic and monitoring technologies. In parallel, growing investment in autonomous and smart vehicles is creating new opportunities for photonics-based sensing and communication systems.

Efforts to expand high-speed internet infrastructure are further supporting market growth. National broadband programmes, including Canada’s plan to reach 98% high-speed coverage by 2026, reflect increasing reliance on photonic circuits to enhance data transmission using light instead of electrical signals.

The competitive landscape is being influenced by ongoing innovation and strategic acquisitions. Companies such as Keysight Technologies are developing advanced design tools to simplify PIC development workflows. Consolidation is also gathering pace: in June 2025, Pasqal’s acquisition of Aeponyx highlighted the importance of PIC technologies in building scalable, fault-tolerant quantum computing platforms.

Major technology firms - including Huawei Technologies, Intel, IBM, Cisco and Fujitsu - continue to lead the sector but face challenges from global supply-chain constraints and tariff-related pressures, particularly across the Asia-Pacific and North American regions.

With rising demand across telecommunications, data centres, healthcare, automotive systems and defence applications, photonic integrated circuits are positioned to become a core component of next-generation, energy-efficient digital infrastructure.

By: DocMemory
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