Photonic Integrated Circuits (PICs) - Global Strategic Business Report

Photonic Integrated Circuits (PICs) - Global Strategic Business Report

Global Industry Analysts, Date of Publication: Feb 1, 2016, 183 Pages
US$4,500.00
GIA-MCP7068

Global Market For Photonic Integrated Circuits (PICs)

This report analyzes the worldwide markets for Photonic Integrated Circuits (PIC) in US$ Thousand. The Global market is further analyzed by the following Applications and Integration Methods: By Application - Optical Signal Processing, Optical Communications, and Others; By Integration Methods - Packaging, and Others. The report provides separate comprehensive analytics for the US, Canada, Japan, Europe, Asia-Pacific, Latin America, and Rest of World. Annual estimates and forecasts are provided for the period 2013 through 2020. Market data and analytics are derived from primary and secondary research. Company profiles are primarily based on public domain information including company URLs. The report profiles 52 companies including many key and niche players such as -

Alcatel-Lucent
Avago Technologies
Ciena Corporation
Enablence Technologies, Inc.
Huawei Technologies Co., Ltd.

TABLE OF CONTENTS

 I. INTRODUCTION, METHODOLOGY & PRODUCT DEFINITIONS

Study Reliability and Reporting Limitations I-1
Disclaimers I-2
Data Interpretation & Reporting Level I-2
Quantitative Techniques & Analytics I-3
Product Definitions and Scope of Study I-3


II. EXECUTIVE SUMMARY

1. INDUSTRY OVERVIEW II-1
A Prelude II-1
PIC Assumes Critical Importance Amid Expanding Role of Optical
Communication in the Telecom Sector II-2
Key Trends Influencing the Uptake of PICs in Optical
Communication Space II-2
Soaring Deployments of 100G & Ultra-100G OTNs II-2
Growing Uptake of FTTx Networks II-3
Increased Emphasis on Optical Signal Processing in Fiber Optic
Networks Extends Novel Opportunities for PIC II-4
Market Outlook II-4

2. MARKET TRENDS & GROWTH DRIVERS II-5
Growing Bandwidth Needs Necessitates Strengthening of Fiber
Optic Networks - Strong Business Case for PIC II-5
Table 1: Global IP Traffic Scenario (2015 & 2019): IP Traffic
Volume in Exabytes (includes corresponding Graph/Chart) II-6

Table 2: Global IP Traffic Scenario (2015): Percentage Share
Breakdown of Internet Consumption by Region/Country (includes
corresponding Graph/Chart) II-6

Table 3: Global IP Traffic Scenario (2015): Percentage Share
Breakdown of Internet Consumption by Consumer Segment
(includes corresponding Graph/Chart) II-7

Table 4: Global IP Traffic Scenario (2015 & 2019): Percentage
Share Breakdown of Traffic Volume by Connection Type
(includes corresponding Graph/Chart) II-7
Key Factors Influencing IP Traffic Growth & Bandwidth Needs II-8
Sharp Increase in Number of Internet Subscribers II-8
Table 5: Global Internet Service Market (2014): Number of
Subscribers in Millions by Region (includes corresponding
Graph/Chart) II-8

Table 6: Global Internet Service Market (2014): Population
Penetration Rate (In %) of Internet Subscriptions by Region
(includes corresponding Graph/Chart) II-9
High Penetration of IP-enabled Devices II-9
Table 7: Global Smartphones Market (2015 & 2019): Annual
Shipment of Smartphones (in ‘000 units) by Region (includes
corresponding Graph/Chart) II-10

Table 8: Global Portable Devices Market (2015 & 2019):
Percentage Share Breakdown of Unit Sales by Device Type
(includes corresponding Graph/Chart) II-11

Table 9: Global Wireless Communication Market (2015 &
2019): Percentage Share Breakdown of Traffic Volume by
Device Type (includes corresponding Graph/Chart) II-11
Faster Broadband Speeds II-12
Proliferation of Bandwidth-Intensive Applications II-12
Surging Investments on Advanced Telecom Infrastructure Set to
Fuel Wider Adoption of PICs II-13
Infrastructure Verticals Where Telecom Investments Continue
to Remain High II-14
Long-Haul Networks II-14
Metropolitan Area Networks (MANs) II-14
Access Networks II-15
Expanding Role of DCI in Data Centers Creates Potential Market
Opportunities II-16
Data Center Interconnect (DCI) Related Needs of Enterprises
by Sector: A Snapshot II-17
Major Data Center Trends Influencing DCI Implementations II-17
Rapid Growth in Data Center Traffic II-17
Table 10: Global Data Center Traffic Scenario (2015 &
2019): Data Center Traffic in Exabytes (includes
corresponding Graph/Chart) II-18
Sharp Increase in Cloud Data Center Traffic II-18
Table 11: Global Data Center Traffic Scenario (2015 &
2019): Percentage Breakdown of Data Center Traffic by
Equipment Type (includes corresponding Graph/Chart) II-19

Table 12: Global Cloud Data Center Market (2015 & 2019):
Percentage Breakdown of Data Center Traffic by Cloud Type
(includes corresponding Graph/Chart) II-19
Transition towards Data Center Consolidation II-20
Growing Role of Virtualization II-20
High Tide in Wi-Fi Equipment Installations Bodes Well for
Market Growth II-20
Biophotonics: A Niche Market Segment for PIC II-21
Table 13: Global Biophotonics Market (2015 & 2020): Breakdown
of Revenues in US$ Million by Region(includes corresponding
Graph/Chart) II-22
Expanding Application Base for Biophotonics Generates
Parallel Opportunities for PIC II-22
Increased Focus on Optical In-Vitro Diagnostics Augurs Well II-23
Northbound Trajectory in Fiber Optic Sensors Vertical Gives
Impetus to Market Growth II-24
Table 14: Global Fiber Optic Sensors Market (2015 & 2020):
Breakdown of Sales in US$ Million by Geographic Region
(includes corresponding Graph/Chart) II-25
Smart Cities Concept to Underpin Sales Growth in the Coming Years II-25
Smart Homes to Drive Demand for PICs II-26
Upcoming Quantum Computing Model to Infuse New Growth
Opportunities II-26
Indium Phosphide Emerges as Material of Choice in PIC
Manufacturing II-27
Use of Silicon Substrates Gathers Steam II-27
Packaging Integration or Hybrid Integration: The Widely Used
PIC Fabrication Method II-28
Monolithic Integration Making Steady Progress in PIC Fabrication II-28
Economic Unviability of Electronic IC in OEO Conversion Puts
Focus on Photonic IC II-28
Reduced Number of Optical Packages: Another Major Advantage
with PIC II-29
Decreased Need for Fiber Coupling Further Enhances the Image
of PIC II-29

3. PRODUCT/TECHNOLOGY OVERVIEW II-30
Introduction II-30
Photonic IC vs. Electronic IC II-30
Photonic IC vs. Electronic IC: A Comparative Analysis II-30
Materials Used in Manufacture of PIC II-31
Indium Phosphide II-31
Silicon II-31
Silica-on-Silicon (PLC) II-31
Lithium Niobate (LiNbO3) II-31
Gallium Arsenide (GaAs) II-31
Comparative Analysis of Indium Phosphide (InP) and Silicon
(Si) in Manufacture of PIC II-32
Integration Models II-32
Packaging Integration or Hybrid Integration II-32
Monolithic Integration II-32
Module Integration II-32
Comparative Analysis of Packaging, Monolithic, and Module
Integration Methods for PIC II-32
Key Benefits of PIC II-33
High Performance II-33
Small Footprint II-33
Low Price II-33
Low Power II-33
Limitations of PIC II-33
Applications II-33
Optical Communications II-33
Optical Signal Processing II-33
Others II-34

4. PRODUCT INTRODUCTIONS/LAUNCHES II-35
Infinera Introduces ePIC-500 and oPIC-100 II-35
Acacia Communications Introduces New Single-Chip PIC II-35
Synopsys Introduces RSoft OptSim Circuit II-35
Huawei Launches 200G Photonic Integrated Device II-35
OneChip Photonics Unveils New PIC-based 100Gbps Optical
Interconnects II-35

5. RECENT INDUSTRY ACTIVITY II-36
Nokia Acquires Majority Stake in Alcatel-Lucent II-36
Avago Technologies to Acquire Broadcom II-36
Avago Receives European Union’s Approval for Broadcom’s
Acquisition II-36
NeoPhotonics Launches New Production Unit in Russia II-36
Intel to Acquire Axxia Networking Business of LSI from Avago
Technologies II-36
Huawei and Imec Focus on Silicon Photonics Project II-36
Infinera Delivers DTN-X Platform to TeliaSonera II-37
NeoPhotonics to Acquire LAPIS Semiconductor’s OCU Business II-37
O-Net Group Inks Agreement with ArtIC Photonics II-37

6. FOCUS ON SELECT GLOBAL PLAYERS II-38
Alcatel-Lucent (France) II-38
Avago Technologies (Singapore) II-38
Ciena Corporation (US) II-38
Enablence Technologies, Inc. (Canada) II-39
Huawei Technologies Co., Ltd. (China) II-39
Infinera Corporation (US) II-39
Kaiam Corporation (US) II-40
Lumentum Holdings, Inc. (US) II-40
NeoPhotonics Corporation (US) II-41
Oclaro, Inc. (US) II-41

7. GLOBAL MARKET PERSPECTIVE II-42
Table 15: World Recent Past, Current and Future Analysis for
Photonic Integrated Circuit (PIC) by Region/Country - US,
Canada, Japan, Europe, Asia-Pacific (excluding Japan), Latin
America, and Rest of World Markets Independently Analyzed with
Annual Revenues in US$ Thousand for Years 2013 through 2020
(includes corresponding Graph/Chart) II-42

Table 16: World 8-Year Perspective for Photonic Integrated
Circuit (PIC) by Region/Country - Percentage Breakdown of
Revenues for US, Canada, Japan, Europe, Asia-Pacific
(excluding Japan), Latin America, and Rest of World Markets
for Years 2013, 2015, and 2020 (includes corresponding
Graph/Chart) II-43

Table 17: World Recent Past, Current and Future Analysis for
Photonic Integrated Circuit (PIC) by Application - Optical
Signal Processing, Optical Communications, and Other
Application Markets Independently Analyzed with Annual
Revenues in US$ Thousand for Years 2013 through 2020 (includes
corresponding Graph/Chart) II-44

Table 18: World 8-Year Perspective for Photonic Integrated
Circuit (PIC) by Application - Percentage Breakdown of
Revenues for Optical Signal Processing, Optical
Communications, and Other Application Markets for Years 2013,
2015, and 2020 (includes corresponding Graph/Chart) II-45

Table 19: World Recent Past, Current and Future Analysis for
Photonic Integrated Circuit (PIC) by Integration - Packaging,
and Other Markets Independently Analyzed with Annual Revenues
in US$ Thousand for Years 2013 through 2020 (includes
corresponding Graph/Chart) II-46

Table 20: World 8-Year Perspective for Photonic Integrated
Circuit (PIC) by Integration - Percentage Breakdown of
Revenues for Packaging, and Other Markets for Years 2013,
2015, and 2020 (includes corresponding Graph/Chart) II-47


III. MARKET

1. THE UNITED STATES III-1
A.Market Analysis III-1
Outlook III-1
Telecom Industry’s Focus on High-Speed Fiber Networks Builds
Momentum for PIC Sales in the US III-1
Fiber Optic Networks Register Steady Growth III-2
Fast Internet Access Demand Gears up New Optical Systems III-2
FTTP Deployments: On the Rise III-3
Fiber Optics Industry Benefits from Telecom Regulatory Act,
1996 III-3
Novel Use Case of Biophotonics in Medical Devices to Benefit
PICs III-3
Mainstream Image of Fiber Optic Sensors to Underpin Sales
Growth of PICs III-4
Product Launches III-5
Strategic Corporate Developments III-5
Select Key Players III-6
B.Market Analytics III-9
Table 21: US Recent Past, Current and Future Analysis for
Photonic Integrated Circuit (PIC) Market Analyzed with
Annual Revenues in US$ Thousand for Years 2013 through 2020
(includes corresponding Graph/Chart) III-9

2. CANADA III-10
A.Market Analysis III-10
Outlook III-10
Positive Trends in the Canadian Telecom Sector Encourage PIC
Market III-10
Growing Use of Fiber Optic Sensors Extends Growth Opportunities III-10
Product Launch III-11
Key Player III-11
B.Market Analytics III-12
Table 22: Canadian Recent Past, Current and Future Analysis
for Photonic Integrated Circuit (PIC) Market Analyzed with
Annual Revenues in US$ Thousand for Years 2013 through 2020
(includes corresponding Graph/Chart) III-12

3. JAPAN III-13
A.Market Analysis III-13
Outlook III-13
Japan’s Image as a Major Fiber Optics Consumer Props up
Market Prospects III-13
Corporate Development III-13
B.Market Analytics III-14
Table 23: Japanese Recent Past, Current and Future Analysis
for Photonic Integrated Circuit (PIC) Market Analyzed with
Annual Revenues in US$ Thousand for Years 2013 through 2020
(includes corresponding Graph/Chart) III-14

4. EUROPE III-15
A.Market Analysis III-15
Outlook III-15
Stable Growth in European Fiber Optics Market to Augment PIC
Sales III-15
Growing Home Entertainment Market Spurs Demand for Fiber
Optic Networks III-15
Corporate Development III-16
B.Market Analytics III-17
Table 24: European Recent Past, Current and Future Analysis
for Photonic Integrated Circuit (PIC) by Region/Country -
France, Germany, Italy, UK, Spain, Russia, and Rest of
Europe Markets Independently Analyzed with Annual Revenues
in US$ Thousand for Years 2013 through 2020 (includes
corresponding Graph/Chart) III-17

Table 25: European 8-Year Perspective for Photonic
Integrated Circuit (PIC) by Region/ Country - Percentage
Breakdown of Revenues for France, Germany, Italy, UK, Spain,
Russia, and Rest of Europe Markets for Years 2013, 2015, and
2020 (includes corresponding Graph/Chart) III-18

4a. FRANCE III-19
A.Market Analysis III-19
Outlook III-19
Key Player III-19
B.Market Analytics III-20
Table 26: French Recent Past, Current and Future Analysis
for Photonic Integrated Circuit (PIC) Market Analyzed with
Annual Revenues in US$ Thousand for Years 2013 through 2020
(includes corresponding Graph/Chart) III-20

4b. GERMANY III-21
Market Analysis III-21
Table 27: German Recent Past, Current and Future Analysis
for Photonic Integrated Circuit (PIC) Market Analyzed with
Annual Revenues in US$ Thousand for Years 2013 through 2020
(includes corresponding Graph/Chart) III-21

4c. ITALY III-22
Market Analysis III-22
Table 28: Italian Recent Past, Current and Future Analysis
for Photonic Integrated Circuit (PIC) Market Analyzed with
Annual Revenues in US$ Thousand for Years 2013 through 2020
(includes corresponding Graph/Chart) III-22

4d. THE UNITED KINGDOM III-23
A.Market Analysis III-23
Outlook III-23
PIC Sales to Increase in line with Expanding Investments on
Fiber Optic Networks III-23
B.Market Analytics III-24
Table 29: UK Recent Past, Current and Future Analysis for
Photonic Integrated Circuit (PIC) Market Analyzed with
Annual Revenues in US$ Thousand for Years 2013 through 2020
(includes corresponding Graph/Chart) III-24

4e. SPAIN III-25
Market Analysis III-25
Table 30: Spanish Recent Past, Current and Future Analysis
for Photonic Integrated Circuit (PIC) Market Analyzed with
Annual Revenues in US$ Thousand for Years 2013 through 2020
(includes corresponding Graph/Chart) III-25

4f. RUSSIA III-26
Market Analysis III-26
Table 31: Russian Recent Past, Current and Future Analysis
for Photonic Integrated Circuit (PIC) Market Analyzed with
Annual Revenues in US$ Thousand for Years 2013 through 2020
(includes corresponding Graph/Chart) III-26

4g. REST OF EUROPE III-27
Market Analysis III-27
Table 32: Rest of Europe Recent Past, Current and Future
Analysis for Photonic Integrated Circuit (PIC) Market
Analyzed with Annual Revenues in US$ Thousand for Years 2013
through 2020 (includes corresponding Graph/Chart) III-27

5. ASIA-PACIFIC III-28
A.Market Analysis III-28
Outlook III-28
Ongoing Telecom Infrastructure Projects Set to Widen the
Market Scope for PIC in Asia-Pacific III-28
Pan Asian Continental Terrestrial Fiber Optic Network III-29
Submarine Cables in Asia III-29
B.Market Analytics III-30
Table 33: Asia-Pacific Recent Past, Current and Future
Analysis for Photonic Integrated Circuit (PIC) by
Region/Country - China, South Korea, and Rest of
Asia-Pacific Markets Independently Analyzed with Annual
Revenues in US$ Thousand for Years 2013 through 2020
(includes corresponding Graph/Chart) III-30

Table 34: Asia-Pacific 8-Year Perspective for Photonic
Integrated Circuit (PIC) by Region/Country - Percentage
Breakdown of Revenues for China, South Korea, and Rest of
Asia-Pacific Markets for Years 2013, 2015, and 2020
(includes corresponding Graph/Chart) III-31

5a. CHINA III-32
A.Market Analysis III-32
Outlook III-32
Favorable Growth Prospects for Fiber Optic Networks Augurs
Well for PIC III-32
Increased Adoption of Fiber Optic Sensors Infuses Market
Momentum III-32
Sensors Manufacturing Scenario in China III-33
Product Launch III-33
Strategic Corporate Developments III-34
Key Player III-34
B.Market Analytics III-35
Table 35: Chinese Recent Past, Current and Future Analysis
for Photonic Integrated Circuit (PIC) Market Analyzed with
Annual Revenues in US$ Thousand for Years 2013 through 2020
(includes corresponding Graph/Chart) III-35

5b. SOUTH KOREA III-36
Market Analysis III-36
Table 36: South Korean Recent Past, Current and Future
Analysis for Photonic Integrated Circuit (PIC) Market
Analyzed with Annual Revenues in US$ Thousand for Years 2013
through 2020 (includes corresponding Graph/Chart) III-36

5c. REST OF ASIA-PACIFIC III-37
A.Market Analysis III-37
Outlook III-37
Select Asia-Pacific Markets - Key Telecom Trends Positively
Influencing the PIC Market III-37
Australia & New Zealand III-37
India III-37
Singapore III-38
Hong Kong III-39
Key Player III-39
B.Market Analytics III-40
Table 37: Rest of Asia-Pacific Recent Past, Current and
Future Analysis for Photonic Integrated Circuit (PIC) Market
Analyzed with Annual Revenues in US$ Thousand for Years 2013
through 2020 (includes corresponding Graph/Chart) III-40

6. LATIN AMERICA III-41
A.Market Analysis III-41
Outlook III-41
PIC Market to Benefit from Telecom Infrastructure
Development Projects III-41
Accelerated FTTH Deployments: Opportunities for Fiber Optic
Components III-41
B.Market Analytics III-43
Table 38: Latin American Recent Past, Current and Future
Analysis for Photonic Integrated Circuit (PIC) by
Region/Country - Brazil and Rest of Latin America Markets
Independently Analyzed with Annual Revenues in US$ Thousand
for Years 2013 through 2020 (includes corresponding
Graph/Chart) III-43

Table 39: Latin American 8-Year Perspective for Photonic
Integrated Circuit (PIC) by Region/Country - Percentage
Breakdown of Revenues for Brazil and Rest of Latin America
Markets for Years 2013, 2015, and 2020 (includes
corresponding Graph/Chart) III-44

6a. BRAZIL III-45
A.Market Analysis III-45
Outlook III-45
Brazilian Telecom Market: An Overview III-45
B.Market Analytics III-46
Table 40: Brazilian Recent Past, Current and Future Analysis
for Photonic Integrated Circuit (PIC) Market Analyzed with
Annual Revenues in US$ Thousand for Years 2013 through 2020
(includes corresponding Graph/Chart) III-46

6b. REST OF LATIN AMERICA III-47
A.Market Analysis III-47
Outlook III-47
Mexico - Key Market for Wireless Communication Services III-47
B.Market Analytics III-48
Table 41: Rest of Latin America Recent Past, Current and
Future Analysis for Photonic Integrated Circuit (PIC) Market
Analyzed with Annual Revenues in US$ Thousand for Years 2013
through 2020 (includes corresponding Graph/Chart) III-48

7. REST OF WORLD III-49
A.Market Analysis III-49
Outlook III-49
Middle East’s Thrust on Expanding Communication
Infrastructure Augurs Well for PIC III-49
Fiber Optic Cable Projects for Improving Telecom
Connectivity Drive PIC Sales in Africa III-49
B.Market Analytics III-50
Table 42: Rest of World Recent Past, Current and Future
Analysis for Photonic Integrated Circuit (PIC) Market
Analyzed with Annual Revenues in US$ Thousand for Years 2013
through 2020 (includes corresponding Graph/Chart) III-50


IV. COMPETITIVE LANDSCAPE

Total Companies Profiled: 52

The United States (28)
Canada (4)
Japan (2)
Europe (14)
- France (3)
- Germany (2)
- Spain (1)
- Rest of Europe (8)
Asia-Pacific (Excluding Japan) (2)
Latin America (1)
Middle-East (1)

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