Hybrid photonic integrated circuit market seen doubling by 2030

By AI, Created 5:09 PM UTC, May 18, 2026, /AGP/ – The hybrid photonic integrated circuit market is forecast to rise from $8.03 billion in 2025 to $18.75 billion by 2030, driven by demand for faster data transmission, AI data centers, 5G, and high-performance computing. North America led the market in 2025, while Asia-Pacific is expected to grow fastest.

Why it matters: - Hybrid photonic integrated circuits are becoming a core technology for faster data transmission and telecom infrastructure. - The market’s projected jump to $18.75 billion by 2030 points to stronger demand for optical solutions across data centers, networks and advanced computing. - The technology is also tied to energy efficiency gains, which matters as networks carry more data and power costs rise.

What happened: - The Business Research Company released its Global Market Report 2026 on the hybrid photonic integrated circuit market on May 15, 2026. - The market was valued at $8.03 billion in 2025. - The market is projected to reach $9.5 billion in 2026, up 18.3% year over year. - The market is forecast to reach $18.75 billion by 2030, with a 18.5% CAGR over the forecast period. - North America held the largest market share in 2025. - Asia-Pacific is expected to be the fastest-growing region through 2030. - The report covers Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, the Middle East and Africa.

The details: - A hybrid photonic integrated circuit combines multiple photonic materials and components on a single chip. - The design includes active and passive elements such as waveguides and filters. - Mixing materials can improve flexibility, efficiency and compactness versus single-material platforms. - Market growth in the recent period has been supported by demand for high-speed data transfer, expansion of data center infrastructure, advances in silicon photonics, wider use of wavelength division multiplexing and telecom network growth. - Forecast growth is supported by AI-driven data centers, high-performance computing, 5G and next-generation telecom adoption, broader lidar use in autonomous systems and more investment in integrated photonics R&D. - High-speed data transmission is a major market catalyst because cloud computing, data-heavy applications and digital services need faster and more reliable network connections. - HPICs integrate optical and electronic components on a single chip, which can raise bandwidth, speed processing, reduce latency and improve energy efficiency. - Ofcom reported in February 2024 that average monthly data consumption per fixed broadband connection rose by 53 GB, or 11%, to 535 GB in 2023. - The report identifies co-packaged optics architectures as an emerging trend because they can improve data processing and transmission efficiency. - The report also points to growing integration of III-V semiconductor materials with silicon platforms. - Demand is rising for high-bandwidth optical transceivers. - Hybrid integration techniques are expanding to support more compact photonic modules. - Energy efficiency in optical interconnects is a key focus area.

Between the lines: - The market outlook suggests hybrid photonic integration is moving from a niche optical technology toward a broader infrastructure layer for AI, telecom and autonomous systems. - The combination of higher data loads and power-efficiency pressure is likely to favor chip architectures that merge optical and electronic functions. - North America’s lead and Asia-Pacific’s faster growth point to a market split between current deployment strength and future scale-up. - Download a free sample of the hybrid photonic integrated circuit market report. - View the full hybrid photonic integrated circuit market report.

What’s next: - Market growth is expected to continue as AI data centers, 5G deployment, high-performance computing and lidar adoption expand. - More investment in integrated photonics research and development could accelerate new device designs and broader commercial use. - Regional competition is likely to intensify as Asia-Pacific scales and North America maintains a lead in market share.

The bottom line: - Hybrid photonic integrated circuits are set to benefit from the shift toward faster, denser and more energy-efficient data infrastructure.