Investment in scale up, manufacturing and supply chains could lead to significant growth and acceleration for UK companies developing photonic integrated circuits (PICs).
That's according to a new report by Compound Semiconductor Applications (CSA) Catapult, called Unlocking the Future with Photonic Integrated Circuits.
PICs use light to handle and transmit information, delivering higher bandwidth, faster data transfer, lower power consumption, and immunity to electromagnetic interference compared with traditional electronic circuits.
According to market forecasts, the global PIC sector is expected to surge from $3.9 billion in 2024 to $54.5 billion by 2035, reflecting a compound annual growth rate (CAGR) of 24%. This rapid market expansion is anticipated in data centres and telecommunications and in quantum technologies (56.1% CAGR) and sensing (47.5% CAGR).
The UK’s photonics sector currently contributes £18.5 billion to the economy and supports over 84,000 jobs, according to the Photonics Leadership Group making it one of the most productive manufacturing industries in the country.
The UK is the second largest photonics producer in Europe and the ninth globally, accounting for around 2.25% of a £850 billion global market. Most UK firms export more than half of their output, and foreign investment continues to flow into the sector due to its reputation for innovation and skills.
According to the report to secure long-term leadership in PICs the UK should:
- Invest in scale-up, manufacturing and supply chain capacity – establish pilot and production facilities and strengthen domestic supply chains to bridge the gap between research and industrial deployment, enhancing the UK’s technological sovereignty.
- Embed PICs within national AI and quantum strategies – position PICs as a core enabler of the UK’s 10-year compute roadmap and national quantum programmes.
- Strengthen integration and prototyping capabilities – expand, co-design, packaging and validation services to reduce adoption risk and accelerate innovation.
- Develop specialist talent pipelines – expanding training, apprenticeships and fellowships to address gaps in photonic design, packaging and testing.
- Promote cross-sector adoption and international collaboration – showcase PIC applications across telecoms, data centres, healthcare and quantum, while fostering global partnerships to secure market competitiveness.
Nick Singh, Chief Technology Officer, said:
“Photonic integrated circuits are a critical part of modern digital infrastructure. If the UK acts now to build capability and capacity, it can secure long-term leadership to support the fast growing markets in AI hardware, quantum and 6G.
“CSA Catapult can support UK photonics companies by combining our design expertise with integrated prototyping services, we want to be a key enabler of the UK’s photonics supply chain.
“Our focus on manufacturability, scalability, and convergence ensures that emerging PIC technologies can transition more effectively from research to industrial deployment.”
