PIC subsystems, components on the rise

Jan. 1, 2005
Since the introduction of photonic ICs (PICs) in 1997, the optical-component industry has been slowly migrating from the manual assembly of discrete optical devices to automated semiconductor wafer-processing techniques and single-chip designs. The market has undergone a major realignment in the last three years, however. About 75% of photonic chip makers have either merged or closed down since 2001. The carrier market has undergone a number of bankruptcies and consolidations, and a slowdown in equipment spending in the long-haul market is not expected to rebound before 2006. Amid this repositioning, vendors have created product pipelines of advanced photonic chips to meet growing end market demand.

According to a report from Business Communications (Norwalk, CT), the market for PIC subsystems and components is currently estimated at $2.5 billion. Expected to grow at an average annual growth rate (AAGR) of 18.2%, the market should net nearly $5.7 billion by 2009.

Separately, the market for discrete devices or integrated optical circuits will grow from a current estimated market value of $2.2 billion to $4.9 billion by ’09. The established transmission market (laser diodes, transmitters, photodiodes) composes 77% of this market. The market for PIC subsystems will grow at an AAGR of 27.7% to reach $744 million by ’09.

For more information about the report, “RGB-256R Photonic Integrated Circuits: New Directions,” call 203-853-4266 or visit www.bccresearch.com.

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