News: Markets
19 May 2026
Photonic integrated circuits to comprise US$12.6bn quantum technology materials market by 2046
Photonic integrated circuits (PICs) have enabled a range of applications, notably as optical transceivers for high-speed communication within AI data centers, where they are widely used as the backbone of communication across servers to train the most complex machine learning models.
Most existing PICs are based on silicon or silica, as the fabrication techniques for these materials are the most mature. However, silicon/silica have properties that make them suboptimal or even unusable for some emerging applications in quantum technologies. As a result, quantum tech is one of the frontier applications that is driving interest in new material platforms for PICs. The IDTechEx report ‘Materials for Quantum Technologies’ forecasts that PICs for quantum technologies represent a US$12.6bn market opportunity by 2046, comprising most of a total quantum technology materials market that is expected to rise at a compound annual growth rate of 23.1% from US$298m in 2026 through US$3.38bn in 2036 to US$18.9bn in 2046.
Spanning quantum computing, quantum sensing and quantum communications, quantum technologies has largely been spun out of experimental physics research centers and universities. However, as quantum technologies move from the lab to market, real-world products can no longer be based on bulky optical tables and delicate systems of many individual lasers and lenses. PICs offer a route for quantum technologies to shrink their complex optical systems down to robust and mass-manufacturable chips.
Computing with light
Many of the most advanced hardware approaches to quantum computing are heavily reliant on photonic systems, including those based on neutral atoms, trapped ions, or photonic qubits. In neutral atom quantum computers (such as those developed by Infleqtion or Pasqal) and in trapped-ion computers (which are built by IonQ and Quantinuum) complex systems of lasers, waveguides and cameras are used to manipulate and measure individual atoms and ions (qubits). The photonic quantum computers developed by PsiQuantum, ORCA Computing and Quandela take this a step further and use photons as the qubits themselves.
Developing PICs suited to these applications is therefore crucial for the scale-up of quantum computing for these players. As a result, the last 24 months have seen a flurry of acquisitions by major quantum computing players of photonics companies. These deals are typically focused on bringing expertise and fabrication capabilities to these quantum computing companies, padding out the skillset that they need to turn theory and experiments into a commercial product.
Going beyond silicon
Silicon and silica (silicon dioxide) are the most mature wafer materials for semiconductor manufacturing, but some of their properties are a poor match for the requirements of quantum technologies. One fundamental barrier is that silicon is not transparent in the visible range of light, where many important frequencies for quantum technologies lie, such as atomic or solid-state spin transitions. Also, unlike datacoms applications which typically prioritize speed and high-power capacity above all, quantum technologies are generally more concerned with achieving very low noise and high stability to protect fragile quantum states.
These different requirements have pushed quantum tech players to experiment with materials beyond the usual silicon-based platforms. Promising candidates with suitable properties include silicon nitride (SiN), which is largely compatible with existing silicon-based processes, or thin-film lithium niobate (TFLN) and barium titanate (BTO), which have a high electro-optic coefficient suited to extremely fast modulation of light. However, TFLN and BTO are far less commercially mature than silicon photonics, limited to smaller wafer sizes, high price tags, and only a handful of foundries that are able to work with these materials.
Market outlook for PICs for quantum technologies
Photonic integrated circuits are already enabling high-performance applications in markets across datacoms, telecoms and LiDAR, but quantum technologies are pushing the envelope on what is possible with PICs. Developing the capabilities and supply chains to manufacture high-quality PICs with new material platforms will be key to the rollout of many types of quantum tech, including trapped-ion, neutral atom, and photonic quantum computing, as well as quantum networking and cybersecurity.
Commercialising Quantum
IDTechEx is a supportingEconomist Impact’s 5th Annual Commercialising Quantum Global 2026 event at the Business Design Centre in London, UK (16–17 June), where senior technology analyst Noah El Alami is joining 1100+ attendees.
www.events.economistenterprise.com/commercialising-quantum
www.idtechex.com/en/research-report/materials-for-quantum-technologies/1143
