Integrated photonics market seen reaching $17.44 billion by 2030

The integrated photonics market is projected to grow from $10.26 billion in 2025 to $17.44 billion by 2030, powered by rising data traffic, hyperscale data center expansion and demand for more energy-efficient computing. North America led the market in 2025, while Asia-Pacific is expected to grow fastest through the forecast period.

Why it matters: - Integrated photonics is becoming a core technology for faster data transmission and lower-power computing as AI, cloud and video workloads strain existing networks. - The market’s projected jump to $17.44 billion by 2030 signals broader adoption across telecommunications, data centers and sensing.

What happened: - The Business Research Company published its Integrated Photonics Global Market Report 2026, covering market size, trends and forecasts for 2026-2035. - The market is projected to rise from $10.26 billion in 2025 to $11.39 billion in 2026. - The report forecasts the market will reach $17.44 billion by 2030, reflecting an 11.2% compound annual growth rate. - North America was the largest regional market in 2025. - Asia-Pacific is expected to post the fastest growth during the forecast period.

The details: - Integrated photonics uses photons instead of electrons to process data and communicate on a single chip. - The technology supports ultra-fast, high-capacity data transmission on compact platforms. - The market grew on demand for higher-bandwidth communication systems, fiber optic network expansion, limited scalability in electronic chips, growing data center traffic and early silicon photonics adoption. - Future growth is expected to come from higher data traffic tied to AI workloads, more hyperscale data centers, stronger demand for energy-efficient computing, wider use of quantum communication systems and manufacturing advances. - High-bandwidth communication networks are a major driver because they move large volumes of data through optical and telecommunications networks. - Cloud computing and video streaming are adding to demand for fast, large-scale data transfers. - The International Telecommunication Union reported mobile broadband data traffic rose from about 1 zettabyte in 2023 to 1.3 zettabytes in 2024. - The report covers Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, the Middle East and Africa. - The 2026 report adds market attractiveness scoring, TAM analysis, company scoring matrix graphics and tables, Excel-based forecasting dashboards, market hotspots infographics, and updated graphics and tables.

Between the lines: - The forecast suggests integrated photonics is moving from a specialized hardware category toward a broader infrastructure play for AI-era data growth. - The emphasis on energy efficiency shows how power constraints are becoming as important as raw speed in next-generation computing and networking.

What's next: - The market’s pace will likely depend on how quickly hyperscale data centers, AI infrastructure and quantum communication systems expand. - Regional competition may intensify as Asia-Pacific accelerates and companies push manufacturing improvements to scale photonics adoption. - The Business Research Company is offering a free sample report and a full report download through its website.