Hybrid PIC market set to grow by 2035
AI, data centers, 5G and sensing applications are expected to drive growth in hybrid photonic integrated circuits over the next decade.
The global hybrid photonic integrated circuit (PIC) market was valued at $2.45 billion in 2025 and is forecast to reach $6.82 billion by 2035, according to a new report from ResearchAndMarkets.com.
The market is projected to grow at a compound annual growth rate of approximately 13.6% between 2026 and 2035, driven by demand for high-bandwidth data center interconnects, telecommunications infrastructure, LiDAR and sensing technologies, and photonic systems for quantum computing.
Data communication accounted for 45.2% of market revenue in 2025, making it the largest application segment. Growing AI workloads and increasing data volumes are driving demand for higher-capacity and more energy-efficient optical connectivity in data centers and high-performance computing environments.
The report identifies silicon photonics as a key material platform, alongside hybrid approaches including silicon-III-V and silicon nitride-III-V integration and thin-film lithium niobate.
North America was the largest regional market in 2025, while Asia Pacific is forecast to be the fastest-growing region, supported by 5G deployment, semiconductor manufacturing investment and expanding cloud infrastructure.
The report identifies companies including Intel, Broadcom, Infinera, Lumentum, Nokia, Marvell, Coherent and others as participants in the hybrid PIC market.
