Silicon Photonics Market Size, Share Global Analysis Report, 2023-2032
Silicon Photonics Market Size, Share Global Analysis Report, 2023-2032

Silicon Photonics Market Share, Size, Trends, Industry Analysis Report, By Product; By Component (Lasers, Modulators, and Photo Detectors); By Waveguide; By Application; By Region; Segment Forecast, 2023 - 2032

  • Published Date:Jul-2023
  • Pages: 115
  • Format: PDF
  • Report ID: PM2245
  • Base Year: 2022
  • Historical Data: 2019-2021

Report Outlook

The global silicon photonics market was valued at USD 1,381.07 million in 2022 and is expected to grow at a CAGR of 28.5% during the forecast period.

The global market is expected to grow, driven by the rising adoption of automated manufacturing practices and continuous technological advancements. The wide range of silicon photonics applications, including medical & life sciences, military, telecommunication, and data center, is anticipated to drive the demand worldwide. Pressing bandwidth, virtualization, fast-growing internet traffic, and cloud computing, among others, are key factors driving the silicon photonics market growth.

Silicon Photonics Market Size

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Furthermore, the current use of silicon for developing IC (integrated circuits) and the compatibility of this technology with the present fabrication techniques encourage various companies to adopt this technology in the electronic manufacturing industry. Additionally, the implementation of 5G technology for the delivery of higher bandwidth & high-speed data transfer, along with the increasing penetration of IoT, smartphones, and AI-powered devices, is anticipated to drive the demand for the market over the foreseen years.

The outbreak of COVID-19 has negatively impacted the component supply and disrupted the manufacturing industry globally. With this disruption, along with the reduction in consumer spending during the pandemic, there is a decline in the demand for the market. During the outbreak, internet usage has increased due to the acceptance of working from home.

However, the surge in digital services has come at the cost of cutting down company expenditures and lay-off of employees. Thus, the sale of networking components, including silicon photonics, is declining. Amid the pandemic, data center & high-performance computing is the fastest-growing application of this technology.

Furthermore, the 5G network is one of the major applications of silicon photonics. Due to the outbreak, the deployment of the 5G network has been delayed, affecting the market’s growth. However, as the lockdown restriction is easing up, the demand for the market is anticipated to bounce back over the approaching years.

Silicon Photonics Market Share, Size, Trends

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Industry Dynamics

Growth Drivers
The primary factor driving the demand for silicon photonics is the growing application of these technology-based products across data centers and high-performance computing, telecommunication, and military, defense & aerospace. Moreover, the rising focus on reducing power consumption utilizing silicon photonics transceivers is anticipated to drive the growth of the silicon photonics market globally. This technology and optical interconnects can help meet the increasing demand for high-speed data transfer. The use of silicon photonics eliminates the problem of the limited spectral range.

Further, components, including transceivers interconnected by this technology, are increasingly used in communication networks as they consume less power. For instance, companies including Intel and Cisco have launched optical switches offering high switching speed (6 ns) and low power consumption (0.6 mW). Additionally, compared to traditional silicon products, photonic products are of reduced size as they are based on the on-chip integration. These benefits offered by this are anticipated to drive the growth of the global silicon photonics market.

Report Segmentation

The market is primarily segmented based on product, component, waveguide, application, and region.

By Product

By Component

By Waveguide

By Application

By Region

  • Transceivers
  • Variable Optical Attenuators
  • Switches
  • Cables
  • Sensors
  • Lasers
  • Modulators
  • Photo Detectors
  • 400-1,500 NM
  • 1,310-1,550 NM
  • 900-7000 NM
  • Data Centers and High-performance computing
  • Telecommunication
  • Military
  • Defense & Aerospace
  • Medical and Life Science
  • Other Applications
  • North America (U.S., Canada)
  • Europe (France, Germany, UK, Italy, Netherlands, Spain, Russia)
  • Asia Pacific (Japan, China, India, Malaysia, Indonesia, South Korea)
  • Latin America (Brazil, Mexico, Argentina)
  • Middle East & Africa (Saudi Arabia, UAE, Israel, South Africa)

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Lasers segment emerged as the dominant player in 2022

The Lasers segment emerged as the dominant player in 2022 and is expected to maintain its leadership in the market in the coming years. The significant market share of this segment can be attributed to the increasing demand for hybrid silicon lasers. These lasers have been developed to overcome the mass production challenges associated with silicon lasers. As a result, they enhance network capacity and find extensive applications in telecommunication and data centers. These factors play a crucial role in driving the growth of the Lasers segment.

On the other hand, the Modulators segment is projected to exhibit the highest growth rate in the forecasted period. Modulators are devices used to modify the properties of light beams, such as optical power or phase. They can be categorized into phase, polarization, and amplitude modulators, primarily employed to manipulate optical beam properties. The growing demand for high-speed optical networks is expected to propel the global market for silicon modulators. As a result, the Modulators segment is anticipated to experience rapid growth in the foreseeable future.

Asia Pacific accounted for the largest revenue share in 2022

Asia Pacific accounted for the largest revenue share in the global industry. The huge market share of the region can be attributed to the presence of emerging economies, including India, China, and Japan, among others. The presence of favorable government initiatives coupled with the availability of cheap workforce/labor is anticipated to drive the industry’s growth. For instance, with initiatives such as Made in China 2025, China aims to become the global leader in manufacturing all electronic components.

This is anticipated to present huge market growth opportunities. Furthermore, the industry’s key player is looking to expand their regional manufacturing footprint through acquisitions and mergers to gain a competitive advantage. Moreover, the rising data traffic due to the increasing adoption of smartphones across nations such as India and China is anticipated to drive the industry’s growth.

Moreover, the North American silicon photonics market is anticipated to exhibit a progressive CAGR over the forecasting years. The industry’s growth in North America can be attributed to the increasing use of high-speed broadband networks. Further, major industry players in the United States, including Intel, IBM, and Cisco, are anticipated to present huge market growth opportunities. The growing demand for technology for data centers and high-performance computing applications is anticipated to drive industry growth in the region.

Competitive Insight

Some of the major players operating in the global market include AIO Core Co. Ltd., Cisco Systems Inc., Finisar Corporation, Hamamatsu Photonics K.K, IBM Corporation, Infinera Corporation., Intel Corporation, IPG Photonics Corporation, Mellanox Technologies Ltd., Sicoya, STMicroelectronics NV.

Recent Developments

In February 2022, Intel acquired Tower Semiconductors to enable a globally diversified product portfolio for meeting the growing demand for semiconductors.

Silicon Photonics Market Report Scope

Report Attributes

Details

Market size value in 2023

USD 1,764.46 million

Revenue forecast in 2032

USD 16,866.53 million

CAGR

28.5% from 2023 – 2032

Base year

2022

Historical data

2019 – 2021

Forecast period

2023 – 2032

Quantitative units

Revenue in USD million and CAGR from 2023 to 2032

Segments Covered

By Product, By Component, By Waveguide, By Application, By Region.

Regional scope

North America, Europe, Asia Pacific, Latin America; Middle East & Africa

Key Companies

AIO Core Co. Ltd., Cisco Systems Inc., Finisar Corporation, Hamamatsu Photonics K.K, IBM Corporation, Infinera Corporation., Intel Corporation, IPG Photonics Corporation, Mellanox Technologies Ltd., Sicoya, STMicroelectronics NV.

FAQ's

Key companies in Silicon Photonics market include AIO Core Co. Ltd., Cisco Systems Inc., Finisar Corporation, Hamamatsu Photonics K.K, IBM Corporation.

The global silicon photonics market is expected to grow at a CAGR of 28.5% during the forecast period.

The Metaverse Market report covering key segments are product, component, waveguide, application, and region.

Key driving factors in Silicon Photonics market Growing Demand for High-Speed Data Transfer.

The global silicon photonics market size is expected to reach USD 16,866.53 million by 2032