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Silicon Photonics Market

Market Insights on Silicon Photonics covering sales outlook, demand forecast & up-to-date key trends

Silicon Photonics Market By Products (Silicon Optical Modulators, Wavelength Division Multiplexer Filters, Silicon Photo-Detectors, Silicon Photonic Waveguides), Application (Telecommunications, Datacom, High performance Computer (HPC) and Data Centers) & Region - Forecast 2022-2032

Silicon Photonics Market Overview

The global silicon photonics market is estimated to be valued at around US$ 1.3 Billion in 2022. With growing adoption of silicon photonic products in a multitude of applications, the overall demand is projected to grow at a stupendous CAGR of over 26.0% between 2022 and 2032, totaling a valuation of over US$ 6 Billion by 2032.

Report Attribute

Details

Estimated Base Year Value (2021)

US$ 1.0 Billion

Expected Market Value (2022)

US$ 1.3 Billion

Anticipated Forecast Value (2032)

US$ ~6 Billion

Projected Growth Rate (2022-2032)

26.0% CAGR

Silicon photonics is a novel technology which uses silicon as an optical medium. It combines laser and silicon to facilitate data transfer. The platform is used to create photonic integrated circuits which are basis components in majority of modern electronic devices. Adoption of these silicon photonics-based solutions can significantly increase the internet’s bandwidth capacity.

Silicon photonics enables faster data transfer over longer distances as compared to conventional electronics. It enhances the capabilities of microprocessors and enables them to run at low power.

Rising demand for silicon photonics products across diverse sectors such as consumer electronics, IT, telecommunications is the major factor driving the global silicon photonics market.

During the last few years, silicon photonics products have gained immense traction across electronics and IT industries. Consumers are increasingly using products like silicone photonic transceivers to significantly reduce power consumption and achieve faster data transmission rates.

High performance computer and data centers application segment is likely to dominate the silicon photonics market. Growing adoption of cloud computing has resulted in the rise in data traffic across business. This has necessitated the adoption of faster data transmission solutions like silicon photonics. Data center operators are increasingly adopting technologies like CMOS integrated silicon photonics in their facilities.

Which are Some Prominent Drivers Spearheading Silicon Photonics Market Growth?

Rising awareness about the benefits of optoelectronics, increasing penetration of smartphones, growing popularity of 5G transmission, and emerging application of silicon photonics in automotive industry are some of the major factors driving the silicon photonics market.

With rapid digitalization and an increase in the number of data centers, there has been substantial rise in the demand for faster data transfer technologies such as silicon photonics. Adoption of silicone products significantly enhances the computational and processing capabilities of data centers and reduces cost.

Silicon photonics products are gradually becoming standard solutions for high-speed transmission on account of their low energy consumption, higher integration, reliability, and cost-effective features. They have become ideal replacements for traditional electronic components.

Growing application of silicone photonics across diverse end-use industries such as electronics, healthcare, defense, IT, metrology etc. is anticipated to create lucrative growth avenues within the global silicon photonics market during the forecast period.

Subsequently, integration of silicon photonics in lidar to analyze pollutants as well as to support the self-driving in autonomous cars is opening new growth avenues for the market players.

In addition to this, the rising trend of miniaturization of electronic devices along with rapid expansion of semiconductor and electronics industries will further boost the sales of silicon photonics products during the forecast period

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What are the Challenges Faced by the Silicon Photonics Industry?

Although silicon photonics have various uses, there are numerous obstacles likely to pose a challenge to market growth. Some of the major factors that are restraining the growth of the silicon photonics market are the high cost associated with silicone photonics products, complex process of integrating on-chip laser and availability of alternative VCSEL (vertical-cavity surface-emitting laser) at lower rates.

Why is Asia-Pacific Emerging as an Opportunistic Silicon Photonics Market?

According to Future Market Insights, the Asia Pacific silicon photonics market is expected to grow at the fastest CAGR over the forecast period. Growth in the market is primarily driven by rising penetration of internet facilities and increasing usage of smartphones in countries like China and India.

During the last few years, China has become one of the most attractive destinations for silicon photonics products on account of rapid technological advancements and expansion of semiconductor industry.

Thanks to availability of cheap labor, raw material at low cost and favorable government regulations, various existing and emerging players are expanding their bases across Asia Pacific region. This will further expand the Asia Pacific silicon photonics market in the future.

Nikhil Kaitwade
Principal Consultant
LinkedIn
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How is North America Contributing to Growth of the Silicon photonics Market?

Spurred by increasing adoption of advanced technologies, rise in the number of data centers, and favorable government support, North America will continue to remain the most dominant market for silicon photonics over the assessment period.

Growing focus of businesses and data centers on reducing power consumption by using silicon photonic transceivers has become a latest trend across countries like the United States and Canada. Adoption of these silicon photonics helps these end users to achieve high speed data transfer while at the same time reduces power consumption.

Moreover, growing integration of silicon photonics in majority of the modern electronic products coupled with rapid expansion of IT industry will further generate demand for silicon photonics in the region during the forecast period.

Market Competition

Some of the key participants present in the global silicon photonics market include Infinera, NeoPhotonics, Avago Technologies, Luxtera, Mellanox Technologies, OneChip Photonics, Cisco, Skorpios Technologies, Photline Technologies among others.

These prominent market players are continuously investing in research and development activities for introducing innovative products with efficient features. For instance, in March 2020, Ranovus Inc., a leading provider of multi-terabit interconnect solutions for data center and communications networks, launched ODIN silicon photonic device with advanced features. Beside this, they are using various growth tactics such as partnerships, establishment of facilities in attractive regions, and collaborations to expand their global presence.

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Report Scope

Report Attribute

Details

Growth Rate

CAGR of 26.0% from 2022 to 2032

Base Year for Estimation

2021

Historical Data

2015-2020

Forecast Period

2022-2032

Quantitative Units

Revenue in USD Billion, Volume in Kilotons and CAGR from 2022-2032

Report Coverage

Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends and Pricing Analysis

Segments Covered

  • Products
  • Application
  • Region

Regions Covered

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • APEJ
  • Japan
  • Middle East and Africa

Key Countries Profiled

  • U.S
  • Canada
  • Brazil
  • Argentina
  • Germany
  • U.K
  • France
  • Spain
  • Italy
  • Nordics
  • BENELUX
  • Australia & New Zealand
  • China
  • India
  • ASEAN
  • GCC
  • South Africa

Key Companies Profiled

Customization

Available Upon Request

Key Segments Profiled in the Silicon Photonics Industry Survey

Products:

  • Silicon Optical Modulators
  • Wavelength Division Multiplexer Filters
  • Silicon Photo-Detectors
  • Silicon Photonic Waveguides
  • Others (silicon led, silicon optical interconnects etc.)

Application:

  • Telecommunications
  • Datacom
  • High performance Computer (HPC) and Data Centers
  • Medical
  • Sensing and Instruments
  • Defense/Aerospace Industries
  • Research and Development
  • Others (consumers-connecting PCs with HDTVs and desktop PC devices, commercial video, etc.)

Region:

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • APEJ
  • Japan
  • Middle East & Africa

Frequently Asked Questions

FMI projects the global silicon photonics market to expand at a stellar CAGR of around 26.0% between 2022 and 2032.

Asia Pacific is expected to be the most opportunistic silicon photonics market, expanding at a prolific CAGR over the forecast period.

Infinera, NeoPhotonics, Avago Technologies, Luxtera, Mellanox Technologies, OneChip Photonics, Cisco, Skorpios Technologies, Photline Technologies are some prominent silicon photonics manufacturers

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Nikhil Kaitwade
Principal Consultant
LinkedIn
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Silicon Photonics Market