Photonic Computing Components for Consumer Devices Market Size - By Technology, By Application, Analysis, Share, Growth Forecast, 2025 – 2034

Photonic Computing Components for Consumer Devices Market Size

The global photonic computing components for consumer devices market was valued at USD 485 million in 2024. The market is expected to grow from USD 552.4 million in 2025 to USD 2.55 billion in 2034, at a CAGR of 18.5%, according to latest report published by Global Market Insights Inc.

The growing number of artificial intelligence workloads on consumer devices is growing due to the increasing demand for photonic computing accelerators. The National Science Foundation has funded more than USD 200 million to fund photonic computer systems to avoid the limitations of electronic artificial intelligence processors. As an example, NVIDIA is testing photonic architecture to improve the performance of their AI accelerators to meet the demand for greater computational needs.
 

According to the US Department of Energy, photonic computing help in energy savings upto 90% for tasks in comparison to the traditional electronic processors. This energy efficiency paradigm is important for many of our compact consumer devices. For instance, IBM is examining photonic processors to determine whether these processors can enable the enhancement of energy efficiency in AI workloads, or other areas that follow miniaturization trends.
 

The growing demand for photonic computing components is fueled by increasing data generation and processing requirements. This is particularly evident in consumer devices, where bandwidth demands double approximately every 18 to 24 months. In response, Intel is actively exploring optical interconnects to overcome the limitations of electrical connectors, which typically struggle to exceed 56 Gbps.
 

The use of the established CMOS manufacturing ecosystem has also greatly reduced the production expenses associated with photonic components, contributing to the quicker market supplies. According to IEEE, the costs associated with photonic components have decreased by approximately 60% over the past five years. Their research also anticipates another cost reduction on the order of 40% by 2027. Companies such as GlobalFoundries are strengthening these costs by using existing semiconductor facilities that can produce silicon photonics and create more economically driven photonic.
 

The rollout of 5G networks and the pursuit of 6G technologies will foster new demand for photonic components for connectivity. The International Telecommunication Union has forecasted that 6G-based networks will rely on optical front-haul and back-haul to meet the demand for sub-millisecond latency for communication. Companies such as Huawei have already begun investing in photonic technology to support next-generation connectivity and networking solutions.
 

Photonic Computing Components for Consumer Devices Market Trends

The changing innovation and technology transformation are important for the growth of the market.
 

• With a budget of USD 52 billion, the CHIPS and Science Act is directing investments in semiconductor and photonics manufacturing that will significantly encourage the new advanced packaging methods that combine photonics and CMOS electronics. Leading consumer electronics companies are adopting 2.5D and 3D packaging when designed to minimize delay and power consumption. This typically involves stacking or aligning photonic dies very closely to the processor dies. 
   
• Photonic processors designed specifically for photonic applications are moving beyond the confines of research labs and successful adoption is being made by companies designing consumer products focused on AI and signal processing research. The European Commission's Horizon Europe program is directing USD 194.4  million for the funding of 15 photonic computing projects with a focus on consumer applications such as image recognition and natural language processing. 
   
• Industry consortia are designing standard interfaces to enable interoperability and adoption of photonic components into consumer products as quickly as possible. Specifications for silicon photonic transceivers released by the Optical Internetworking Forum (OIF) are meant to address consumer applications and establishes mechanical, electrical, and optical interfaces.
   
• Photonic components are making their way into consumer applications beyond their conventional use in data communication. Applications exist in LiDAR sensing, providing biosensing functionality, and next-generation display devices. Experts presenting at the SPIE Photonics West conference indicated that consumer LiDAR applications will have a strong compound annual growth rate of 45% from now until 2028, driven by the emergence of autonomous vehicles, robotics, and smartphone depth sensing.
   

Photonic Computing Components for Consumer Devices Market Analysis

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Based on technology platform segment, the market is segmented into silicon photonics (SOI), thin-film lithium niobate (TFLN/LNOI), silicon nitride (SiN/Si3N4), indium phosphide (InP) and others emerging platform technologies. The silicon photonics (SOI) category held the largest share of the market and generated revenue of USD 255.8 million in 2024.
 

• Silicon photonics (SOI) is the dominant photonic computing components platform in the consumer devices market because it provides unique density of integration and performance. This new generation of SOI designs integrates thousands of components on chips that are not larger than 10mm², creating more compact and efficient solutions, such as Intel's SOI photonic transceivers delivering higher performance in data centers and consumer electronic devices based on the superior density offered.
   
• Furthermore, SOI provides cost advantages that further solidify SOI's market position. SOI-based silicon photonics offer the lowest cost per function compared to other photonic platforms while being aligned with price sensitive consumer devices. Cisco's deployments of SOI photonics in their networking solutions demonstrate the cost parity SOI provides to high-speed electronic components while still delivering high-level performance.
   
• SOI also has the ability to monolithically integrate photonic and electronic components to reside on the same substrate, eliminating cumbersome hybrid assembly integration processes. Monolithic integration through SOI reduces the cost of assembly by 60% while improving circuit reliability. IBM is one example of a company using SOI to integrate photonic and electronic circuits, driving the next generation of consumer computing devices.
   
• The mature supporting ecosystem of SOI silicon photonics is another significant advantage, as greater than fifty companies (including Synopsys and Cadence) offer design tools, IP libraries and foundry services for SOI platforms. This strong supporting ecosystem provides faster development timelines and cost-effective manufacturing processes providing SOI advantage over alternative solutions.
   
• Finally, SOI technology developments, such as wafer-level testing and packaging advances, have reduced manufacturing costs by 50% versus traditional methods. Companies such as GlobalFoundries have used these developments to provide high-quality and cost-effective photonic components for consumer markets ensuring SOI’s leadership in the marketplace.            
   

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Based on the consumer device application the market is bifurcated AR/VR devices, smartphones & tablets, automotive systems, wearable devices, gaming systems and IoT & edge devices and others. The AR/VR devices segments held the largest share, accounting for 46% of the global photonic computing components for consumer devices market in 2024.
 

• The AR/VR devices are the largest market driving photonic consumption owing to their strict performance requirements. AR and VR devices require high data rates and low latency to provide an immersive experience. For example, next-generation VR headsets will require data rates of greater than 100 Gbps in order to support dual 4K displays at 120 Hz and latency less than 1 m/s to avoid motion sickness according to the IEEE Virtual Reality Technical Committee.
   
• Weight and dimensional constraints also place AR/VR devices, specifically AR glasses, and VR headsets at the top of the list to drive photonic consumption. Consumers are demanding AR glasses weigh less than 200 grams, and VR headsets weigh less than 400 grams. Silicon photonic integrated circuits are a 100 times smaller than traditional optical components, which will make designing shape and weight more feasible for manufacturers. Companies like Magic Leap and Meta are leveraging silicon photonic integrated circuits to develop very lightweight, highly functional, wearable devices for consumers.
   
• Power efficiency is another key aspect that is leading to wide-scale adoption of photonic components into AR/VR devices. Standalone AR/VR devices have limitations due to battery life.  The U.S. Department of Energy has concluded that photonic transceivers draw 70% less power than electrical SerDes at equal data rates, which doubles battery life from (approximately) 2-3 hours to 6-8 hours.  Companies pursuing this are Oculus (Meta) and HTC who are implementing photonic components to improve usability of their untethered devices.
   
• The meteoric rise of the AR/VR market also showcases its growth potential, leading in the photonic computing components market. The Consumer Technology Association has published that the AR/VR segment expects a 45% CAGR versus smartphones at 8% and wearables at 12%. This substantial growth is driving demand for photonic components. Many companies including Sony and Apple are investing heavily in AR/VR technologies enhancing the growth of the market.
   
• Government programs and funding is a critical component of pushing forward AR/VR photonics. For example, the European Union launched a new program called Horizon Europe which has funded and allocated potential USD 540 million into AR/VR photonics, noting its essential strategic value, this funding will help to spur innovation for companies like Varjo and Lumus, which are designing photonics for use in AR/VR.
   

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North America Photonic Computing Components for Consumer Devices Market

In 2024, the U.S. dominated the market growth in North America, accounting for 74.9% of the share in the region.
 

• The United States market is built around consumer devices, driven both through large investments in innovative computing technologies and the presence of companies like Intel Corporation and IBM in this market. The U.S. government has also supported photonic technologies through funding for research on quantum physics and photonics related work, exemplified by the National Quantum Initiative Act which established a fund that invests specifically in quantum and photonic technologies.
   
• An additional reason for the regional dominance is the adoption of consumer devices that contain photonic components, which include smartphones, AR/VR devices, and wearable technology. As example, in the United States, a higher-than-average demand for energy-efficient technology and upgraded device processing speeds has fostered drone development, leading to further development and implementation of photonic technologies and a market increase.
   

Asia Pacific Photonic Computing Components for Consumer Devices Market

Asia Pacific photonic computing components for consumer devices market is the largest region and is expected to grow at 18.9% during the forecast period.
 

• This growth is fueled by the rapid expansion of the consumer electronics industry in countries like China, Japan, and South Korea. For instance, China leads in manufacturing photonic components, supported by government-backed initiatives such as the "Made in China 2025" plan, which emphasizes technological self-reliance. Additionally, the presence of major players like Huawei Technologies, Samsung Electronics, and Sony Corporation, coupled with increasing R&D investments in photonic technologies, has strengthened the region's market position.
   

Europe Photonic Computing Components for Consumer Devices Market

Europe market is expected to grow at 18.1% during the forecast period.
 

• Europe's market benefits from strong government support for photonic research, such as the European Commission's Horizon Europe program, which allocates USD 103.1 billion for research and innovation, including photonic advancements. Germany and the Netherlands are leading contributors to photonic technology development in the region.
   
• Moreover, the increasing adoption of photonic components in consumer electronics, driven by demand for energy-efficient and high-performance devices, is propelling market growth.
   

Middle East and Africa Photonic Computing Components for Consumer Devices Market

Middle East and Africa market is expected to grow at 18.2% during the forecast period.
 

• This growth is primarily driven by the increasing penetration of smartphones and other consumer electronics in the region. Governments in countries like the UAE and Saudi Arabia are investing heavily in digital transformation initiatives, such as Saudi Vision 2030, which emphasizes technological advancements.
   
• Additionally, the region is attracting interest from global players aiming to expand their presence in emerging markets. For example, companies like Nokia and Ericsson are actively working on deploying photonic-based solutions in the region, further driving market growth.
   

Photonic Computing Components for Consumer Devices Market Shares

The top companies in the market include Intel Corporation, Broadcom Inc, NVIDIA Corporation, Coherent Corp and Lightmatter Inc and collectively hold a share of 51% of the market. These prominent players are proactively involved in strategic endeavors, such as mergers & acquisitions, facility expansions & collaborations, to expand their service portfolios, extend their reach to a broad customer base, and strengthen their market position.
 

• Intel leverages its expertise in semiconductor innovation to develop integrated photonic circuits that accelerate data processing in consumer devices. Its silicon photonics technology enables high-speed optical interconnects for AI-driven applications, AR/VR, and edge computing. By combining advanced packaging and miniaturization, Intel ensures scalable solutions that enhance device performance and energy efficiency.
   
• Broadcom applies its leadership in optical networking and chip design to deliver photonic components optimized for high-bandwidth consumer electronics. Its solutions focus on low-latency data transfer and power-efficient architectures, supporting immersive gaming and smart home ecosystems. Broadcom’s strong R&D capabilities and modular design strategies enable rapid deployment across diverse device platforms.
   
• NVIDIA integrates photonic computing with its AI acceleration platforms to deliver ultra-fast processing for next-generation consumer devices. Its innovations in optical interconnects and GPU-photonic synergy enable real-time responsiveness for AR/VR and edge AI applications. NVIDIA’s focus on energy-efficient designs and scalable architectures positions it as a key driver of photonic-enabled smart experiences.
   

Photonic Computing Components for Consumer Devices Market Companies

Major players operating in the photonic computing components for consumer devices industry are:

• Analog Photonics
• Ayar Labs Inc.
• Broadcom Inc.
• Cisco Systems Inc.
• Coherent Corp.
• Intel Corporation
• Lightmatter Inc.
• LIGENTEC SA
• Marvell Technology Inc.
• NVIDIA Corporation
• PICadvanced
• PsiQuantum
• Q.ANT
• Salience Labs
• Xanadu Quantum Technologies
   

Coherent brings deep expertise in laser and optical technologies to create photonic components that enhance data transmission and device performance. Its advanced waveguide and integrated optics solutions support high-speed connectivity for consumer electronics, wearables, and IoT devices. Coherent emphasizes precision engineering and sustainability, ensuring reliable and eco-conscious photonic systems.
 

Lightmatter pioneers photonic processors designed for AI workloads, enabling unprecedented speed and energy efficiency in consumer applications. Its optical computing platforms reduce latency and power consumption, making them ideal for smart devices and immersive technologies. By focusing on cutting-edge photonic architectures, Lightmatter positions itself as a disruptor in next-generation computing for connected living.
 

Photonic Computing Components for Consumer Devices Industry News

• In April 2025, Lightmatter introduced a next-generation photonic processor designed for AI workloads, leveraging light-based computation for ultra-fast, energy-efficient performance. The processor uses advanced photonic architectures to overcome Moore’s Law limitations, enabling real-time AI inference and immersive consumer applications.
   
• In March 2025, NVIDIA unveiled its Spectrum-X and Quantum-X photonic networking switches featuring co-packaged optics to scale AI factories to millions of GPUs. These switches deliver up to 1.6 Tbps per port, 3.5x energy savings, and 10x network resiliency, marking a breakthrough in integrating silicon photonics for hyperscale AI and consumer device ecosystems.
   
• In March 2025, Coherent Corp. announced its role as a key collaborator in NVIDIA’s silicon photonics ecosystem for co-packaged optics (CPO). This partnership aims to accelerate optical networking adoption in AI-driven data centers and consumer electronics, showcasing Coherent’s leadership in photonic component innovation.
   
• In November 2024 Q.ANT released its first photonics-based Native Processing Unit (NPU) on a PCIe interface, delivering 30x energy efficiency improvements and significant computational speed gains over CMOS technology. This launch targets AI inference and high-performance computing for consumer devices and data centers.
   
• In December 2024 Ayar Labs announced a USD155 Million Series D funding round led by major chipmakers, including Intel and NVIDIA, to advance optical I/O chiplet technology. This investment underscores the growing demand for photonic interconnects in AI infrastructure and consumer electronics, aiming to deliver 1000x bandwidth improvements at 10x lower power.
   

The photonic computing components for consumer devices market research report includes in-depth coverage of the industry, with estimates & forecasts in terms of revenue (USD Million) and volume (Thousand Units) from 2021 to 2034, for the following segments:

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Market, By Technology Platform

• Silicon photonics (SOI) 
• Thin-film lithium niobate (TFLN/LNOI) 
• Silicon nitride (SiN/Si3N4)
•  Indium phosphide (InP) 
• Others emerging platform technologies

Market, By Component Function

• Optical waveguides 
• Optical modulators
• Photodetectors 
• Light sources
• Optical switches & routing components
• Coupling & interface components

Market, By Consumer Device Application

• AR/VR devices
• Smartphones & tablets
• Automotive systems
• Wearable devices
• Gaming systems
•  IoT & edge devices
• Others

 The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • France
  • UK
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea 
• Latin America
  • Brazil
  • Mexico
• MEA
  • Saudi Arabia
  • UAE
  • South Africa