The photonic design automation market was valued at approximately US$ 1.39 billion in 2022 and is projected to grow to US$ 3.90 billion by 2030, reflecting a compound annual growth rate (CAGR) of 13.8% from 2022 to 2030.

A notable trend within the photonic design automation sector is the integration of photonics into electronic design automation (EDA) tools. Established vendors in the EDA space are beginning to recognize the potential of the burgeoning photonic design automation market and are incorporating features tailored specifically for photonics into their existing software. This integration allows designers to easily include photonic components in their projects, thereby streamlining the design workflow and enhancing the performance and functionality of photonic devices. By embedding photonics capabilities into EDA tools, designers can utilize familiar environments and processes, which minimizes the learning curve typically associated with specialized photonic design software. Furthermore, this integration promotes the convergence of electronics and photonics, paving the way for the creation of integrated electronic-photonic circuits. Such convergence is essential for advancing technologies like silicon photonics, where the sharing of tools, processes, and simulation models between photonics and integrated circuit (IC) design accelerates the growth of the photonic design automation market. Overall, the incorporation of photonics into EDA tools signifies the industry's acknowledgment of the increasing significance of photonics and the necessity for efficient design methodologies and optimization strategies in this field. It empowers designers to fully exploit the capabilities of photonics within their electronic designs.

The advancement of compact modeling and simulation tools is anticipated to significantly influence the photonic design automation market. These tools are vital for merging electronics with photonics, enabling quicker and more efficient design processes. Compact modeling involves creating simplified mathematical representations that accurately depict the behavior of complex photonic devices. Such models allow designers to simulate and assess the performance of photonic components without resorting to costly and time-consuming device-level simulations. By integrating compact modeling into design automation tools, designers can enhance the design process and optimize the performance of integrated electronic-photonic circuits. These tools support the transition from electronic-photonic co-design to the realization of fully integrated circuits, allowing designers to achieve superior performance and efficiency. The benefits of these advancements foster broader applications and stimulate growth in the photonic design automation market.

The incorporation of compact modeling and simulation tools into the photonic design automation workflow enables designers to investigate various design alternatives, assess the effects of different parameters, and make well-informed decisions. This results in quicker design iterations, shorter time-to-market, and enhanced overall design quality. The significance of compact modeling and simulation tools provided by players in the photonic design automation market is acknowledged by both industry professionals and academic researchers. Established EDA vendors are integrating photonics-specific functionalities into their existing platforms, facilitating the seamless incorporation of photonics components into designs.

The solutions segment of the photonic design automation market includes a range of software and tools designed to assist in the design, simulation, and verification of photonic integrated circuits (PICs) and other photonic devices. These solutions are specifically crafted to meet the unique challenges and requirements of the photonics sector. Photonic design automation (PDA) tools are crucial for accelerating the development and refinement of photonic devices, equipping designers with sophisticated capabilities for simulation, modeling, and analysis. These tools enable the effective creation and validation of complex photonic circuits, optimizing performance and ensuring efficient production processes. Software tools that facilitate the design and layout of photonic circuits include components such as waveguides, modulators, detectors, and filters. These tools typically feature user-friendly interfaces and advanced design functionalities to streamline the design process. The growth of the photonic design automation market is driven by the increasing demand for photonic devices across various sectors, including telecommunications, data centers, healthcare, sensing, and imaging. As the photonics industry continues to evolve, the necessity for efficient and reliable design tools becomes ever more critical.

The academic research segment of the photonic design automation market encompasses the participation of universities, research institutions, and academic professionals in research and development activities related to photonic design and associated services. This segment is essential for advancing the field of photonics and fostering innovation in design methodologies, algorithms, and tools. Academic institutions and research organizations actively engage in R&D to explore new concepts, algorithms, and techniques, utilizing the various solutions offered by photonic design automation market players. Their focus is on developing innovative solutions to tackle the challenges and limitations in designing photonic components, systems, and integrated circuits. This research not only contributes to the advancement of the field but also provides valuable insights for industry practitioners. Academic researchers frequently collaborate with industry experts, other academic institutions, and research consortia to share knowledge, exchange ideas, and work on joint research projects. Such collaborations encourage interdisciplinary approaches and facilitate the integration of diverse perspectives in photonic design automation. For example, the University of Texas Design Automation Laboratory (UTDA) is dedicated to the R&D of design automation algorithms, methodologies, and tools for optics/photonics, electronics, and emerging technologies within the photonic design automation market.

Industrial research and manufacturing companies are also key players in developing and utilizing design automation tools specifically designed for the photonics industry. These tools enable designers to automate various stages of the design process, including layout generation, simulation, verification, and optimization. By leveraging these tools, companies can expedite the design cycle, enhance design quality, and reduce the time-to-market for photonic products. The industrial research and manufacturing segment is focused on optimizing the manufacturing processes for photonic devices, which includes developing advanced fabrication techniques, process control methodologies, and yield enhancement strategies. By improving manufacturing efficiency and yield rates, companies can achieve cost-effective production of high-quality photonic components and systems. Photonic design automation market players often collaborate with photonic manufacturers to enhance and promote their products. For instance, in March 2022, Cadence Design Systems partnered with GlobalFoundries to accelerate the development of silicon photonics ICs for hyperscale computing, 5G communications, and aerospace systems, among others. Such collaborations significantly raise awareness of these products and contribute to the growth of the photonic design automation market.

The global photonic design automation market is categorized based on components, deployment methods, organization size, and applications. In terms of components, the market is divided into solutions and services. Regarding deployment, it is segmented into on-premise and cloud-based options. By organization size, the market is classified into small and medium enterprises (SMEs) and large enterprises. In terms of applications, the market is divided into academic research and industrial research & manufacturing. Geographically, the photonic design automation market is segmented into North America, Europe, Asia Pacific (APAC), and the Rest of the World (RoW). Key players in the photonic design automation market include AIM Photonics Inc, Ansys Inc, Cadence Design Systems Inc, LioniX International BV, Luceda Photonics, Optiwave Systems Inc, Siemens AG, Synopsys Inc, SystemLab Inc, and VPlphotonics GmbH.