North America To Generate Almost Half Of All Global Revenues In PICs Market By 2022
Following its emergence as the overall leader in 2014 with a global market revenue share of 38.9%, the market intelligence company predict the growth trend for North America will continue and is likely to reach the US$505.8-mn mark by 2022. The Asia Pacific market for PICs, on the other hand, is expected to expand at a CAGR of 26.50% between 2015 and 2022.
The report indicates this trend will continue over the coming years due to the rising penetration of photonic products in the field of fibre optic communication, particularly data centre applications and wireless access networks. Asia Pacific, however, is expected to present most attractive growth prospects for PICs on account of the immense rise in the field of biophotonics.
Optical Communication Sector to Remain Key Consumer of PICs
The report also highlights that PICs find widespread application in optical communication, optical signal processing, sensing, biophotonics, and optical signal processing. Among these, optical communication surfaced as the key consumer of these integrated circuits in 2014 with a share of more than 58% in the overall revenue generated in this market. The segment is expected to remain the key application area for PICs in the near future due to their increasing demand in data centres.
Other segments are also anticipated to register a steady rise in the demand for PICs over the years to come. The opportunity for PICs in optical communication is estimated to increase to US$777.2 mn by 2022.
Analysts at TMR also foresee the growing demand of PICs in a wide array of emerging futuristic applications to add substantially to the growth of this market over the next few years.
However, the forecast also indicates that the low level of digitization worldwide may limit the application of PICs significantly in the near future. The complex designs of these circuits are anticipated to hamper their demand in the years to come.
Having said that, the global PICs market is expected to rise at an exponential CAGR of 25.30% during the period from 2015 to 2022, increasing from US$0.2 bn in 2014 to an estimated value of US$1.3 bn by 2022. The market is projected to gain significant impetus from the emergence of photonic integration in the years to come.
In this report, the PICs market has been segmented into the following regions: Asia Pacific, Europe, North America, and the Rest of the World, which includes Latin America, and the Middle East and Africa.