Silicon Leads Photonics Market by Material with 40.3% Share and GaN Projected to Rise at 9.3% CAGR through 2030, Reports Mordor Intelligence

The photonics market is driven by the rising adoption of optical communication, laser-based manufacturing, and energy-efficient lighting technologies. Expanding use in telecom, healthcare imaging, and semiconductor production is fueling global photonics industry growth and innovation across connected and sustainable applications.

Hyderabad, India, Dec. 02, 2025 (GLOBE NEWSWIRE) — The photonics market is valued at USD 1.75 trillion in 2025 and is projected to reach USD 2.39 trillion by 2030, growing at a CAGR of 6.43%, driven by rising demand for high-speed data transmission, energy-efficient displays, and advancements in optical communication technologies. Growth is fueled by the increasing deployment of high-speed optical links in data centers, wider adoption of LiDAR in vehicles, and ongoing demand for energy-efficient LED lighting.  

Regional initiatives such as India’s PLI scheme and the EU Chips Act are accelerating fab construction, while investments in silicon-photonics start-ups and the standardization of LiDAR in automotive ADAS systems support market expansion. Additionally, scaling up GaN and micro-LED manufacturing reflects a shift toward lower power consumption technologies in consumer and industrial devices. 
 
Key Trends and Growth Drivers in the Photonics Industry 

LiDAR Integration Accelerating ADAS Adoption in China 

Chinese automakers are rapidly adopting LiDAR-based systems, making advanced driver-assistance features more accessible in mid-range vehicles. Collaborations between local suppliers and OEMs are expanding deployment beyond premium models, while government-backed safety standards are speeding up certification and commercialization across the automotive market. 

Rising Data-Center Interconnect Needs Boost Silicon Photonics Adoption 

The growing complexity of AI-driven data centers is driving a shift from copper to silicon photonics transceivers, enabling faster data transfer with lower energy use. Advanced foundry platforms integrating photonic and electronic layers are supporting large-scale optical connections, while strong investor interest continues to accelerate innovation and market expansion. 

PLI Scheme Driving Growth of India’s Photonics Ecosystem 

India’s Production-Linked Incentive program is accelerating the formation of domestic photonics hubs by supporting semiconductor manufacturing and research. With new facilities and collaborative partnerships, the initiative is strengthening local capabilities, reducing import dependence, and positioning India as a rising player in advanced photonics production. 

Photonics Market Regional Insights 

Asia-Pacific dominates the photonics market share, driven by large-scale electronics manufacturing in China, Japan, and South Korea.  

Check out more details and stay updated with the latest industry trends, including the Japanese version for localized insights: https://www.mordorintelligence.com/ja/industry-reports/photonics-market-market?utm_source=globenewswire 

Europe leads in photonic research and innovation, with Germany and the Netherlands pioneering integrated optics.  

North America sees strong growth across defense and medical photonics, supported by high R&D investments and robust semiconductor infrastructure. 

Table of Contents (Partial) – Photonics Market 

1. INTRODUCTION  

• 1.1 Study Assumptions and Market Definition  

• 1.2 Scope of the Study  

2. RESEARCH METHODOLOGY  

3. EXECUTIVE SUMMARY  

4. MARKET LANDSCAPE  

• 4.1 Market Overview  

• 4.2 Market Drivers  

• 4.2.1 Proliferation of data-center interconnect spurring silicon photonics transceiver demand in North America  

• 4.2.2 Adoption of LiDAR-based ADAS across Chinese automotive OEMs  

• 4.2.3 EU Green-Deal incentives for micro-LED and GaN photonics fabs  

• 4.2.4 And more 

• 4.3 Market Restraints  

• 4.3.1 Compound-semiconductor wafer bottlenecks (InP, GaN <150 mm)  

• 4.3.2 Thermal-management limits on >10 kW diode lasers  

• 4.3.3 Interoperability gaps among integrated photonic IC standards  

• 4.3.4 And more 

• 4.4 Industry Ecosystem Analysis  

• 4.5 Technological Outlook  

• 4.6 Porter’s Five Forces Analysis  

• 4.6.1 Bargaining Power of Suppliers  

• 4.6.2 Bargaining Power of Buyers  

• 4.6.3 Threat of New Entrants  

• 4.6.4 Threat of Substitutes  

• 4.6.5 Intensity of Competitive Rivalry  

5. MARKET SIZE AND GROWTH FORECASTS (VALUES)  

• 5.1 By Product  

• 5.1.1 Lasers  

• 5.1.1.1 Diode Lasers  

• 5.1.1.2 Fiber Lasers  

• 5.1.1.3 Solid-state and Others  

• 5.1.2 LEDs  

• 5.1.3 Sensors and Detectors  

• 5.1.4 Optical Fibers and Waveguides  

• 5.1.5 Modulators and Switches  

• 5.1.6 Others  

• 5.2 By Material  

• 5.2.1 Silicon  

• 5.2.2 Glass and Silica  

• 5.2.3 Compound Semiconductors (InP, GaAs, GaN)  

• 5.2.4 Polymers and Plastics  

• 5.2.5 Others  

• 5.3 By Wavelength  

• 5.3.1 Ultraviolet (UV)  

• 5.3.2 Visible  

• 5.3.3 Infrared  

• 5.4 By End-user Industry  

• 5.4.1 Consumer Electronics  

• 5.4.2 Aerospace and Defense  

• 5.4.3 Display and Imaging  

• 5.4.4 Solar Photovoltaics  

• 5.4.5 LED Lighting  

• 5.4.6 Medical and Bio-instrumentation  

• 5.4.7 Industrial and Manufacturing  

• 5.4.8 Automotive (incl. LiDAR)  

• 5.4.9 Data and Telecom  

• 5.4.10 Others  

• 5.5 By Geography  

• 5.5.1 North America  

• 5.5.1.1 United States  

• 5.5.1.2 Canada  

• 5.5.1.3 Mexico  

• 5.5.2 Europe  

• 5.5.2.1 Germany  

• 5.5.2.2 United Kingdom  

• 5.5.2.3 France  

• 5.5.2.4 Italy  

• 5.5.2.5 Spain  

• 5.5.2.6 Rest of Europe  

• 5.5.3 Asia-Pacific  

• 5.5.3.1 China  

• 5.5.3.2 Japan  

• 5.5.3.3 South Korea  

• 5.5.3.4 India  

• 5.5.3.5 South East Asia  

• 5.5.3.6 Rest of Asia-Pacific  

• 5.5.4 South America  

• 5.5.4.1 Brazil  

• 5.5.4.2 Rest of South America  

• 5.5.5 Middle East and Africa  

• 5.5.5.1 Middle East  

• 5.5.5.1.1 United Arab Emirates  

• 5.5.5.1.2 Saudi Arabia  

• 5.5.5.1.3 Rest of Middle East  

• 5.5.5.2 Africa 

• 5.5.5.2.1 South Africa  

• 5.5.5.2.2 Rest of Africa  

6. COMPETITIVE LANDSCAPE  

• 6.1 Market Concentration  

• 6.2 Strategic Moves  

• 6.3 Market Share Analysis  

• 6.4 Company Profiles {(includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products and Services, and Recent Developments)}  

• 6.4.1 Hamamatsu Photonics KK  

• 6.4.2 Intel Corporation  

• 6.4.3 Nokia Corporation (Alcatel-Lucent)  

• 6.4.4 Coherent Corp.  

• 6.4.5 AMS OSRAM AG  

• 6.4.6 IPG Photonics Corp.  

• 6.4.7 Signify NV  

• 6.4.8 Lumentum Holdings Inc.  

• 6.4.9 Infinera Corp.  

• 6.4.10 NEC Corp.  

• 6.4.11 Corning Inc.  

• 6.4.12 And more 

7. MARKET OPPORTUNITIES AND FUTURE OUTLOOK  

• 7.1 White-space and Unmet-need Assessment 

To get more details on the other market segments, read here – https://www.mordorintelligence.com/industry-reports/photonics-market-market?utm_source=globenewswire 

Related Reports by Mordor Intelligence 

Laser Diode Market

The laser diode market is valued at USD 8.58 billion in 2025 and is projected to reach USD 13.76 billion by 2030, growing at a 9.91% CAGR. Growth is driven by rising demand in optical communication, industrial machining, medical devices, and automotive LiDAR, supported by trends in miniaturization and energy efficiency. 

Coherent Inc., IPG Photonics Corporation, OSRAM Opto Semiconductor GmbH (OSRAM GmbH), Trumpf Inc., and Cutting Edge Optronics Inc. (Northrop Grumman Corp.) are the major companies operating in this market 
 
Read more about companies active in laser diode at: https://www.mordorintelligence.com/industry-reports/laser-diode-market/companies?utm_source=globenewswire 

Photonic Integrated Circuit Market

The photonic integrated circuit (PIC) market is set to grow from USD 13.63 billion in 2025 to USD 25.23 billion by 2030, at a 13.11% CAGR. Key drivers include expanding data center needs, energy-efficient optical components, and the rise of 5G and AI infrastructure, with silicon photonics playing a vital role. 

Quantum Photonics Market

The quantum photonics market is projected to surge from USD 0.85 billion in 2025 to USD 3.78 billion by 2030, growing at a 34.5% CAGR. Growth is fueled by demand for quantum computing, secure communications, and precision sensing, supported by rising public and private investments. 

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