silicon photonics market

Silicon Photonics Market Share, Size, Trends, Industry Analysis Report, By Product (Transceivers, Variable Optical Attenuators, Switches, Cables, and Sensors), By Component (Lasers, Modulators, and Photo Detectors), By Waveguide, By Application; By Region; Segment Forecast, 2022 - 2030

  • Published Date: Jan 2022
  • Pages: 110
  • Format: PDF
  • Report ID: PM2245
  • Base Year: 2021
  • Historical Data: 2018 - 2020

Report Summary

The global silicon photonics market was valued at USD 1.08 billion in 2021 and is expected to grow at a CAGR of 27.4% during the forecast period. The increasing acceptance of automated manufacturing practices along with the innovative developments in technology is anticipated to boost the market growth globally. The wide range of applications of silicon photonics, including medical & life sciences, military, telecommunication, and data center, among others, 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.

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Furthermore, the current use of silicon for the development of IC (integrated circuits) along with the compatibility of this technology with the present fabrication techniques is encouraging 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 also 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 on account of the acceptance of work from home. However, the surge in the use of digital services has come on the cost of cutting down company expenditures as well as lay-off of employees. Thus, the sale of networking components which include 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 growth of the market. 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 2030

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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, among others. Moreover, the rising focus towards reducing the power consumption utilizing silicon photonics transceivers is anticipated to drive the growth of the silicon photonics market globally. The use of this technology and optical interconnects can help to 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 interconnect on this technology are increasingly being used in communication networks as they consume less power. For instance, companies including Intel and Cisco have launched optical switches that offer high switching speed (6 ns) along with low power consumption (0.6 mW). Additionally, when compared to traditional products silicon, 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 on the basis of 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, Spain, Netherlands, Austria)
  • 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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Insight by Component

The Lasers segment is recorded to hold the larger shares in 2020 and is expected to lead the market in the forecasting years. The huge share of the segment can be attributed to the growing demand for hybrid silicon lasers that are utilized to overcome mass production issues in silicon lasers. This is expected to increase the network capacity, thus boosting the applications of this technology in telecommunication and data centers. Therefore, these factors, in turn, drive the growth of the segment.

The Modulators segment is projected to show the fastest growth rate in the forecasting years. Modulators modify or change the properties, including optical power or the phase of light beams. An optical modulator is a device that can alter various beam parameters and can be categorized into phase, polarization, and amplitude modulators. These are primarily used to manipulate the property of an optical beam. The rising demand for high-speed optical networks is anticipated to drive the industry for silicon modulators globally.

Geographic Overview

Geographically, 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 growth of the industry. For instance, with initiatives such as Made in China 2025, China aims to become the global leader in the manufacturing of all electronic components.

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

Moreover, the North American silicon photonics market is anticipated to exhibit the progressive CAGR over the forecasting years. The growth of the industry in North America can be attributed to the increasing use of high-speed broadband networks. Further, the presence of major industry players, including Intel, IBM, and Cisco, among others in the United States is 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 industry 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.

Silicon Photonics Market Report Scope

Report Attributes

Details

Market size value in 2021

USD 1.08 billion

Revenue forecast in 2030

USD 9.14 billion

CAGR

27.4% from 2022 - 2030

Base year

2021

Historical data

2018 - 2020

Forecast period

2022 - 2030

Quantitative units

Revenue in USD billion and CAGR from 2022 to 2030

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

Key Take-Away
Polaris Market Research
Silicon Photonics Market Size Global Report, 2022 - 2030