China Photonic Integrated Circuit Market Size, Share, Growth and Report 2025-2033

China Photonic Integrated Circuit Market Overview

Base Year: 2024

Historical Years: 2019-2024

Forecast Years: 2025-2033

Market Size in 2024: USD 2.25 Million

Market Forecast in 2033: USD 9.96 Million

Market Growth Rate (2025-33): 16.04%

The China photonic integrated circuit market size reached USD 2.25 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 9.96 Million by 2033, exhibiting a growth rate (CAGR) of 16.04% during 2025-2033. Growing demand for high-speed data transmission, rising 5G deployment, advances in cloud computing, government support for photonics R&D, miniaturization trends in electronics, increased adoption in AI and data centers, and the push for energy-efficient, cost-effective optical communication solutions are some of the factors contributing to the China photonic integrated circuit market share.

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China Photonic Integrated Circuit Market Trends and Drivers:

The currently fast-developing Chinese domestic PIC industry is a result of national-level policies aimed at achieving self-sufficiency in this technology while providing stable and secure digital supply chains. One accomplishment in this regard is the support of efforts to overcome the bottleneck in advanced semiconductor packaging and heterogeneous integration technologies. Unlike electronic chips, PICs can move data at very high speed, and with very low power, making them an ideal candidate for the future of telecommunication. In response to the international re-shuffle of supply chains, China is investing heavily through state-backed investments in domestic foundries and R&D consortia. The entire range of components in the value chain is covered, from substrate materials such as indium phosphide and silicon nitride, through design software, to packaging technologies allowing mass production of high yield. Recent industrial park reports from the leading industrial parks in Shanghai and Shenzhen show several increase in prototyping co-packaged optics and 1.6 Terabits per second plus optical transceivers for flagship national projects. The effort is part of government strategy, and is focused on replacing imports and making China a leading global architect of the future networks: hyper-efficient, and under their own jurisdiction.

Another natural market driver for photonic integrated circuits (PICs) is the demand for high-performance compute for AI and ML workloads in hyperscale data centers. The "power wall" barrier of electrical links in large data centers and supercomputers is an important hurdle to training much larger, deeper, and more advanced machine learning models. Powered by PIC technology, the optical I/O can drastically reduce the latency and power while providing an exponential increase in the bandwidth in the link between servers and switches. The major Chinese cloud companies and technology companies are partnering with domestic PIC vendors to co-develop the optical engine-based server solutions for the next generation server architecture. These are accelerating the transition from pluggable optical transceivers to deeper co-packaged photonics that integrate optical link with the switching silicon. Internally, the performance data being generated by these collaborations suggests these co-packaged optics will offer more than a 50% reduction in power per bit and three times increase in port density relative to today. This market dynamic creates a virtuous circle: the immediate needs of the AI sector, which are often performance-oriented, de-risk the process of increasing scale in the manufacture of PICs, reducing their cost, and easing their deployment in other areas of the digital economy.

Beyond telecommunications and data centers, other frontier technologies are fuelling the growth of the Chinese PIC market, particularly sensing, LiDAR and quantum information processing (QIP). Integrated photonics has an important role to play as an enabling technology for these markets, with miniaturized systems, robustness and cost savings making integrated photonics the enabling technology for the next-generation advanced systems. Silicon photonics-based frequency-modulated continuous wave (FMCW) LiDAR chips are being developed for self-driving cars and robotics. These chips offer higher resolution, and are less prone to interference than mechanical LiDARs. National labs and commercial startups are working with photonic integrated circuit technology to build quantum computers that use PICs to manipulate qubits with extreme precision, making quantum computers more stable. In addition, PICs are being employed in medical and environmental sensors as part of prototype lab-on-a-chip biosensors that are able to detect pathogens or pollutants at very low concentrations, something that would help diversify the type of applications in which PICs could be used as well as broadening the market. It seeks to create stable revenue streams that will enable a more sustainable future growth for the PIC industry, less reliant on the fluctuations of the telecommunications capital investment cycle.

China Photonic Integrated Circuit Market Industry Segmentation:

Component Insights:

• Lasers

• MUX/DEMUX

• Optical Amplifiers

• Modulators

• Attenuators

• Detectors

Raw Material Insights:

• Indium Phosphide (InP)

• Gallium Arsenide (GaAs)

• Lithium Niobate (LiNbO3)

• Silicon

• Silica-on-Silicon

Integration Insights:

• Monolithic Integration

• Hybrid Integration

• Module Integration

Application Insights:

• Optical Fiber Communication

• Optical Fiber Sensor

• Biomedical

• Quantum Computing

Regional Insights:

• North China

• East China

• South Central China

• Southwest China

• Northwest China

• Northeast China

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

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Key highlights of the Report:

• Market Performance (2019-2024)

• Market Outlook (2025-2033)

• COVID-19 Impact on the Market

• Porter’s Five Forces Analysis

• Strategic Recommendations

• Historical, Current and Future Market Trends

• Market Drivers and Success Factors

• SWOT Analysis

• Structure of the Market

• Value Chain Analysis

• Comprehensive Mapping of the Competitive Landscape

Note: If you need specific information that is not currently within the scope of the report, we can provide it to you as a part of the customization.

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IMARC Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

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