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Photonic Packaging Market to Grow at 5.7% CAGR, Expected to Reach US$ 452.3 Billion by 2032


Photonic Packaging Market to Grow at 5.7% CAGR, Expected to Reach US$ 452.3 Billion by 2032

According to Fact.MR, a market research and competitive intelligence provider, the global photonic packaging market is estimated at US$ 452.3 billion in 2032 and is expected to expand at a healthy CAGR of 5.7% during the forecast years of 2022-2032. The market is poised to grow due to remarkable use case of photonics in several end-use digital applications.

With the rise of 2.5D and 3D package integration techniques and the emergence of the Internet of Everything, connectivity requirements are skyrocketing. The number of mobile devices, such as smartphones and tablets, is increasing quickly. Their data communication needs are increasing the required capacity of global communication networks. The transfer of data, logic, and applications to the cloud increases the need for latency reduction while allowing for increased network capacity by using photonics.

The broad range of methods and technical know-how required to create optical, mechanical, thermal, electrical, and occasionally chemical connections between a PIC and the outside world are together referred to as photonic packaging. The integration of electronic chips, microchips, laser chips, and microfluidics on PICs is among the most well-known applications of photonic packaging.

The other aspects of the field also include the impedance matching of transmission lines from external connectors to PICs’ microscopic photonic components and high-speed (25 Gbps) routing. Additionally, it is done due to the effective thermal stabilization and thermal cooling required to keep the PIC within its operational limit.

Owing to technological developments in the photonics market, demand for its sustainable and robust packaging is expected to witness significant growth over the coming years.

Key Takeaways from Market Study

  • The global photonic packaging market is projected to grow 1.7X and reach US$ 452.3 billion by 2032.
  • The market witnessed 4.1% CAGR between 2017 and 2021.
  • Under packaging technology, optical photonic packaging dominates the market with US$ 110.9 billion valuation in 2022.
  • APAC dominated the market with 68.2% market share in 2021.
  • Together, the Americas and EMEA are likely to represent 32.2% market share in 2022.

Based on region, demand for photonic packaging is expected to increase at CAGRs of 5.1% and 6.6%, respectively, in APAC and the Americas.

“Advanced packaging technologies provide a route to improved scaling of photonics devices, especially for high-volume applications,” says a Fact.MR analyst.

Market Development

Technological advancements such as passive Fibre-to-PIC alignment, more accurate flip-chip vertical integration, improved thermal-stack design, and others have created a significant impact. Moreover, with ‘soft’ developments such as the adoption and publication of packaging standards and the consolidation and expansion of the component and material supply chain, there has been a dynamic shift in the overall photonic packaging landscape.

The need to create co-packaging solutions that integrate photonics with electronics, microfluidics, and MEMs will increase as photonics becomes more prevalent and finds more applications across vivid domains. The biggest prospects for this technology are in automotive, healthcare, and ICT end use. Thus, key companies are looking to diversify their offerings to gain an early mover advantage in this space.

Competitive Landscape

Prominent photonic packaging manufacturers are Aim Photonics, boschman, Fiberoptics Technology Inc, IBM, Inphotec, Juniper Networks, Keysight, MSRI Systems, PHIX, Technobis, Tyndall National Institute, and VLC Photonics.

The clear trend is for more compact photonic packaging designs with higher levels of integration (MEMs and electrical), effective and ideally passive thermal stabilization, and lower insertion loss. To solve this challenge, companies in photonic packaging are transforming towards developing scalable and standardized solutions from a legacy of individually customized prototypes. All in all, this will create higher relative profit margins in the optical packaging market.

  • In Sept 2020, MRSI Systems, in its new offering, introduced ‘MRSI-S-HVM’. It has features such as wafer-level packaging, co-packing photonic and electronic chips, and a flexible 0.5 micrometer die bonder for silicon photonics.
  • In January 2022, Phix, a photonics packaging business, and Nanoscribe announced a cooperation to offer the photonic packaging industry on-fiber printing services. Phix is using this new technological method to produce standard lensed fibre arrays using Nanoscribe’s nano-precision alignment capabilities with new high-performance 3D microlens printing technology (LFAs).

5 Major Trends Transforming mPOS Terminals Market Outlook Over 2021-2027

Growing penetration of smartphones in conjunction with increased consumer proclivity towards UPI payment methods has led to the transformation of the payment landscape. The increasing card transactions across the globe are driving the adoption of mPOS payment solutions across various sectors including, hospitality, retail, healthcare, entertainment, etc. In March 2021, over 1.5 billion debit card transactions were recorded in the UK which represents an increase of 21.4% as compared to February 2021. A notable rise in the usage of card payments is expected to give a major impetus to mPOS terminals market over the upcoming years. The market size is projected to surpass USD 70 billion by 2027, cited the latest report by Global Market Insights Inc.

The industry growth is being further stimulated by the pivotal trends mentioned below:

Development of innovative solutions by market players

Various major players operating in the industry are inclined on developing advanced solutions that can suit the customer requirements and offer an enhanced experience. For instance, in 2021, Mastercard partnered with Global Payments Inc. and NMI to roll out the pilot of its first live Cloud Tap on Phone with Computer Engineering Group. This product is apparently Mastercard’s next-generation acceptance product, where the software is hosted on Microsoft’s Azure cloud platform.

Increasing consumer preference for cloud-based mPOS

Cloud-based mPOS terminals are observing mounting demand especially among small stores and restaurants owing to their low cost of installation and maintenance. These terminals require an efficient internet connection for carrying out payment transactions which reduce the need for costly infrastructure. The cost-effectiveness and space constraints encourage small merchants to deploy cloud-based mPOS systems.

Growing popularity of contactless payments

The massive popularity of contactless payment transactions due to the expansion of e-commerce sector and the emerging trend of card-on-delivery has accelerated the deployment of mPOS terminals. Consumers are now preferring contactless payment methods owing to more convenience and safety while performing transactions. Besides, the COVID-19 pandemic has also expedited the trend of contactless payments globally. For instance, effective from May 2020, the France government increased the limit on contactless payment from USD 35 to USD 59, on the recommendation of the European Banking Authority (EBA).

Increasing adoption in restaurants

Restaurants are increasingly adopting the mPOS terminals as they intend to enhance the customers’ dining experience. A large number of cafes, restaurants, bars and pantries are now investing in innovative POS devices to facilitate faster transactions during peak hours. For instance, in 2020, Shift4 Payments launched a contactless QR code ordering solution for restaurants. According to the company, this system provides restaurants with a customized QR code that can be displayed on placemats, table tents, etc. The customers can scan the code using their phone to access the menu and place an order. The order is then sent directly to the restaurant’s POS system.

Burgeoning demand in the hospitality sector of North America

mPOS terminals industry is witnessing significant growth in North America owing to the increasing adoption of POS terminals in the regional hospitality sector. The thriving travel & tourism industry has impelled the construction of various luxury hotels and resorts in the region. Citing an instance, in 2021, Wyndham Hotels & Resorts, Inc. announced the launch of a luxury hotel brand amid the recovery of the luxury sector from the pandemic. Several independent casinos, hotels, and resorts owners use mPOS solutions for providing the guests with a seamless experience and convenience while paying bills.

The industry will grow exponentially over the ensuing years as people around the world are showing great interest in more innovative and convenient ways of payments. This is indeed prompting numerous industrial sectors to invest in innovative POS solutions to meet customer demand. Increasing penetration of the internet and smartphones will further strengthen the mobile POS terminals industry landscape.