Silicon Photonics Market: Global Industry Analysis and Forecast (2022-2029)

Silicon Photonics Market size was valued at US$ 1.10 Bn. in 2021 and the total revenue is expected to grow at a CAGR of 26.9% from 2022 to 2029, reaching nearly US$ 7.40 Bn.

Silicon Photonics Market Overview:

Silicon Photonics Market is expected to reach US$ 7.40 Bn. by 2029. Photonic integrated circuits (PICs) can be produced using the silicon photonics (SiPh) material platform. Most of the common CMOS production techniques can be used, and silicon on insulator (SOI) wafers are used as the semiconductor substrate material. This report focuses on the different segments of the Silicon Photonics market (Product, Component, Waveguide, Application, and Region). This report offers a detailed analysis of the top industry participants and geographic regions (North America, Asia Pacific, Europe, Middle East & Africa, and South America). It offers a thorough examination of the phenomenal modern-era growth in the many sectors. Figures, graphics, and slideshows emphasise the essential data analysis from 2017 to 2021. The market drivers, restraints, opportunities, and challenges for Silicon Photonics are examined in this report. The MMR report's investment suggestions are based on a thorough examination of the current competitive environment in the Silicon Photonics market. Silicon Photonics Market To know about the Research Methodology :- Request Free Sample Report COVID-19 Impact on the Silicon Photonics Market: There has been a decrease in demand and consumer spending as a result of the COVID-19 pandemic, which has also impacted industrial and global value chains and hampered the component supply. The high acceptance of the work-from-home norm and the rise in interest in television viewing and online learning activities, among other factors, have contributed to the increase in internet usage that has occurred since the COVID-19 pandemic spread. But as digital services are increasingly used, businesses are also more likely to lay off workers or reduce spending. The sale of networking components, such as silicon photonic devices, has consequently drastically decreased. One of the applications of silicon photonic technologies that is expected to grow the fastest is the data center and high-performance computing. The initial rollout of the 5G network has been hampered by COVID-19, which has also caused a delay in deployment. This will have an impact on how quickly the silicon photonics market grows.

Silicon Photonics Market Dynamics:

The use of silicon photonic transceivers to reduce power consumption is becoming more and more popular Meeting the rising demand for high-speed data transfer with conventional copper connections is challenging. Utilizing silicon photonic transceivers with optical interconnects solves the problem of the restricted spectral range. Additionally, power consumption is reduced in silicon photonics-based communication networks due to parts like switches, interconnects, and transceivers. With a low power consumption of 0.6 mW and a rapid switching speed of 6 ns, companies like CISCO and Intel have developed optical switches. Unlike conventional goods, which rely on board-to-board and computer-to-computer integrations, silicon photonic devices are built on on-chip integration, which not only shrinks the size of the product but also aids in lowering power consumption. On-chip laser integration is difficult. For high-performance optical data transfer, lasers are necessary because they produce pure light in terms of frequency and colour. Either an on-chip or an off-chip light source is used in silicon photonics. A tiny on-chip light source can reach a higher integration density and performs better than an off-chip light source in terms of energy efficiency and energy proportionality. However, because it adds to the complexity, integrating laser sources on a silicon device is challenging. Additionally, since different light sources have various light sources, integrating an on-chip laser is a difficult operation that hampers market growth. Incorporating silicon photonic components into tiny circuits It is crucial to successfully implant several silicon photonic components into a 220-nanometer integrated circuit. Additionally, it is quite difficult to implant these components at the nanoscale size because of the heat effect. Due to the extreme sensitivity of silicon photonic devices to waveguide parameters, full wafer control at the nanoscale scale is necessary, and the silicon-refractive index varies significantly. Active tuning and temperature control can help to overcome this obstacle, although doing so may significantly increase the optical link's power consumption. Use of silicon photonics technology for short-range communication is increasing The construction of communication networks can be significantly facilitated by short-reach communication, which connects optical interconnects. Short-reach communication systems can perform better due to silicon photonics technology. Data may be sent at 400 Gbps fast speeds up to 10 kilometres with this technique. The transmission speed and distance are being increased by businesses like Intel, Luxtera, Molex, and STMicroelectronics. As a result, silicon photonics technology is probably going to become more popular in data centres for short-range data communication.

Silicon Photonics Market Segment Analysis:

Based on the Application, the market is segmented into Data Centers and High-performance computing, Telecommunication, Military, Defense and Aerospace, Medical and Life Science, and Other Applications. Data Centers and High-performance computing application segment is expected to hold the largest market share of xx% by 2029. As high-performance computing (HPC) applications proliferate and data centres grow in size, there is an increasing demand for silicon photonics, particularly those utilised in high-bandwidth optical transceivers. A significant opportunity for the silicon photonics market could arise from the increase in data centres through 2021 as a result of increased traffic from businesses and consumers. The major drivers of workload and computation demand in data centres inside the organisation are computing and collaboration. With connectivity bottlenecks gone, silicon photonics have more space to operate due to this rise in performance. The architecture behind the Internet of Everything (IoE) highlights the requirement for real-time response between people and objects in addition to the enormous expansion in data flow. Cloud computing, cognitive computing, and big data analysis are becoming more and more important for data processing and traffic management, which puts pressure on market suppliers to provide the necessary speed and capacity to produce a quick response. Optical communication systems are increasingly using silicon nanophotonics technology. Due to demand from massive data centres and the development of 5G technology, the silicon Photonics market is expected to grow significantly during the forecast period. Technologies based on high-speed silicon photonics are enabling smaller form factors with greater bandwidth and better power efficiency. Video/media streaming is the biggest source on the consumer side. Important companies like Google, Facebook, and Microsoft are preparing to increase their data centre volumes globally in response to the expected data centre traffic. Because of this, the necessity for long-distance data transfer may increase during the forecast period relative to traditional electronics. Silicon Photonics Market Based on the Product, the market is segmented into Transceivers, Variable Optical Attenuators, Switches, Cables, and Sensors. Transceivers segment is expected to grow rapidly at a CAGR of xx% during the forecast period 2022-2029. High-performance computing, data centres, and communications are just a few of the applications where transceivers are used. Data transmission at rates of up to 400 Gbps are now feasible due to significant technological breakthroughs in silicon photonics. Data transmission at 100 Gbps is possible with Intel's 100G PSM4 QSFP28 optical transceiver. Sales of silicon photonic devices declined, particularly in 2020, as a result of the COVID-19 pandemic's quick spread. Sales of silicon photonic devices are expected to increase significantly during the forecast period.

Silicon Photonics Market Regional Insights:

The Asia Pacific region is expected to dominate the Silicon Photonics Market during the forecast period 2022-2029. The Asia Pacific region is expected to hold the largest market share of xx% by 2029. Due to its advanced economy and significant market share in global electronics, China's silicon photonics market is expected to grow at one of the fastest rates among Asia-Pacific nations. China is a significant producer and consumer of electronics. The region's industrial market is increasing quickly, and different manufacturing and telecommunications technologies are constantly being implemented, which is expected to drive market growth. Research and development (R&D) operations in industrial automation and technology, as well as investments in them, are being encouraged by Chinese government programmes like the Made in China 2025 programme. The "Made in China" initiative seeks to increase domestic production of automation equipment because the majority of it is imported. Japan has a significant market share in silicon photonics and is growing more receptive to partnerships. Big businesses seek investments to generate growth in order to maintain their position as leaders. The scale of the market, the newfound openness, and the vibrant industry may undoubtedly help innovative enterprises in Japan, supporting the growth of the Japanese market. The objective of the report is to present a comprehensive analysis of the Global Silicon Photonics Market to the stakeholders in the industry. The past and current status of the industry with the forecasted market size and trends are presented in the report with the analysis of complicated data in simple language. The report covers all the aspects of the industry with a dedicated study of key players that include market leaders, followers, and new entrants. PORTER, PESTEL analysis with the potential impact of micro-economic factors of the market has been presented in the report. External as well as internal factors that are supposed to affect the business positively or negatively have been analyzed, which will give a clear futuristic view of the industry to the decision-makers. The reports also help in understanding the Global Silicon Photonics Market dynamic and structure by analyzing the market segments and projecting the Global Silicon Photonics Market size. Clear representation of competitive analysis of key players by Distribution Channel, price, financial position, product portfolio, growth strategies, and regional presence in the Silicon Photonics Market make the report investor’s guide.

Silicon Photonics Market Scope: Inquire before buying

Global Silicon Photonics Market
Report Coverage Details
Base Year: 2021 Forecast Period: 2022-2029
Historical Data: 2017 to 2021 Market Size in 2021: US $ 1.10 Bn.
Forecast Period 2022 to 2029 CAGR: 26.9% Market Size in 2029: US $ 7.40 Bn.
Segments Covered: by Product • Transceivers • Variable Optical Attenuators • Switches • Cables • Sensors
by Component • Lasers • Modulators • Photo Detectors
by Waveguide • 400-1,500 NM • 1,310-1,550 NM • 900-7000 NM
by Application • Data Centers and High-performance computing • Telecommunication • Military, Defense and Aerospace • Medical and Life Science • Other Applications

Silicon Photonics Market, by Region

• North America • Europe • Asia Pacific • South America • Middle East and Africa

Silicon Photonics Market Key Players

Luxtera • Intel • Cisco • Finisar • Mellanox Technologies • Globalfoundries • Hamamatsu • STMicroelectronics • Juniper • Ciena • Oclaro • Broadcom Limited • Neophotonics • Reflex Photonics • Huawei • Fujitsu Frequently Asked Questions: 1] Which region is expected to hold the highest share in the Silicon Photonics Market? Ans. The Asia Pacific region is expected to hold the highest share in the Silicon Photonics Market. 2] Who are the top key players in the Silicon Photonics Market? Ans. Luxtera, Intel, Cisco, Finisar, Mellanox Technologies, Globalfoundries, Hamamatsu, and STMicroelectronics are the top key players in the Silicon Photonics Market. 3] Which segment is expected to hold the largest market share in the Silicon Photonics Market by 2029? Ans. Data Centers and High-performance computing application segment is expected to hold the largest market share in the Silicon Photonics Market by 2029. 4] What is the market size of the Silicon Photonics Market by 2029? Ans. The market size of the Silicon Photonics Market is expected to reach US $7.40 Bn. by 2029. 5] What was the market size of the Silicon Photonics Market in 2021? Ans. The market size of the Silicon Photonics Market was worth US $1.10 Bn. in 2021.
1. Global Silicon Photonics Market: Research Methodology 2. Global Silicon Photonics Market: Executive Summary 2.1 Market Overview and Definitions 2.1.1. Introduction to the Global Silicon Photonics Market 2.2. Summary 2.1.1. Key Findings 2.1.2. Recommendations for Investors 2.1.3. Recommendations for Market Leaders 2.1.4. Recommendations for New Market Entry 3. Global Silicon Photonics Market: Competitive Analysis 3.1 MMR Competition Matrix 3.1.1. Market Structure by region 3.1.2. Competitive Benchmarking of Key Players 3.2 Consolidation in the Market 3.2.1 M&A by region 3.3 Key Developments by Companies 3.4 Market Drivers 3.5 Market Restraints 3.6 Market Opportunities 3.7 Market Challenges 3.8 Market Dynamics 3.9 PORTERS Five Forces Analysis 3.10 PESTLE 3.11 Regulatory Landscape by region • North America • Europe • Asia Pacific • The Middle East and Africa • South America 3.12 COVID-19 Impact 4. Global Silicon Photonics Market Segmentation 4.1 Global Silicon Photonics Market, by Product (2021-2029) • Transceivers • Variable Optical Attenuators • Switches • Cables • Sensors 4.2 Global Silicon Photonics Market, by Component (2021-2029) • Lasers • Modulators • Photo Detectors 4.3 Global Silicon Photonics Market, by Waveguide (2021-2029) • 400-1,500 NM • 1,310-1,550 NM • 900-7000 NM 4.4 Global Silicon Photonics Market, by Application (2021-2029) • Data Centers and High-performance computing • Telecommunication • Military, Defense and Aerospace • Medical and Life Science • Other Applications 5. North America Silicon Photonics Market (2021-2029) 5.1 North America Silicon Photonics Market, by Product (2021-2029) • Transceivers • Variable Optical Attenuators • Switches • Cables • Sensors 5.2 North America Silicon Photonics Market, by Component (2021-2029) • Lasers • Modulators • Photo Detectors 5.3 North America Silicon Photonics Market, by Waveguide (2021-2029) • 400-1,500 NM • 1,310-1,550 NM • 900-7000 NM 5.4 North America Silicon Photonics Market, by Application (2021-2029) • Data Centers and High-performance computing • Telecommunication • Military, Defense and Aerospace • Medical and Life Science • Other Applications 5.5 North America Silicon Photonics Market, by Country (2021-2029) • United States • Canada • Mexico 6. Europe Silicon Photonics Market (2021-2029) 6.1. Europe Silicon Photonics Market, by Product (2021-2029) 6.2. Europe Silicon Photonics Market, by Component (2021-2029) 6.3. Europe Silicon Photonics Market, by Waveguide (2021-2029) 6.4. Europe Silicon Photonics Market, by Application (2021-2029) 6.5. Europe Silicon Photonics Market, by Country (2021-2029) • UK • France • Germany • Italy • Spain • Sweden • Austria • Rest Of Europe 7. Asia Pacific Silicon Photonics Market (2021-2029) 7.1. Asia Pacific Silicon Photonics Market, by Product (2021-2029) 7.2. Asia Pacific Silicon Photonics Market, by Component (2021-2029) 7.3. Asia Pacific Silicon Photonics Market, by Waveguide (2021-2029) 7.4. Asia Pacific Silicon Photonics Market, by Application (2021-2029) 7.5. Asia Pacific Silicon Photonics Market, by Country (2021-2029) • China • India • Japan • South Korea • Australia • ASEAN • Rest Of APAC 8. South America Silicon Photonics Market (2021-2029) 8.1. South America Silicon Photonics Market, by Product (2021-2029) 8.2. South America Silicon Photonics Market, by Component (2021-2029) 8.3. South America Silicon Photonics Market, by Waveguide (2021-2029) 8.4. South America Silicon Photonics Market, by Application (2021-2029) 8.5. South America Silicon Photonics Market, by Country (2021-2029) • Brazil • Argentina • Rest Of South America 9. Middle East and Africa Silicon Photonics Market (2021-2029) 9.1 Middle East and Africa Silicon Photonics Market, by Product (2021-2029) 9.2. Middle East and Africa Silicon Photonics Market, by Component (2021-2029) 9.3. Middle East and Africa Silicon Photonics Market, by Waveguide (2021-2029) 9.4. Middle East and Africa Silicon Photonics Market, by Application (2021-2029) 9.5. Middle East and Africa Silicon Photonics Market, by Country (2021-2029) • South Africa • GCC • Egypt • Nigeria • Rest Of ME&A 10. Company Profile: Key players 10.1 Luxtera 10.1.1. Company Overview 10.1.2. Financial Overview 10.1.3. Global Presence 10.1.4. Capacity Portfolio 10.1.5. Business Strategy 10.1.6. Recent Developments 10.2 Intel 10.3 Cisco 10.4 Finisar 10.5 Mellanox Technologies 10.6 Globalfoundries 10.7 Hamamatsu 10.8 STMicroelectronics 10.9 Juniper 10.10 Ciena 10.11 Oclaro 10.12 Broadcom Limited 10.13 Neophotonics 10.14 Reflex Photonics 10.15 Huawei 10.16 Fujitsu

About This Report

Report ID 2492
Category Electronics
Published Date July 2022
Updated Date
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