Silicon Photonics Market
Silicon Photonics Market by Product (Transceivers, Switches), by Application (Data Center & High-performance Computing, Telecommunication Waveguide, Component), by Region (North America, Europe, Asia Pacific, Middle East & Africa) - Global Industry Assessment (2016 - 2021) & Forecast (2022 - 2028)
|Forecast Years for Silicon Photonics Market:||2022 - 2028|
|Historical Years for Silicon Photonics Market:||2016 - 2021|
|Revenue 2021 for Silicon Photonics Market:||USD 1.08 Billion|
|Revenue 2028 for Silicon Photonics :||USD 3.59 Billion|
|Revenue CAGR (2022 - 2028) for Silicon Photonics Market :||25.8%|
|Fastest Growing Region (2022 - 2028) for Silicon Photonics Market:||Asia Pacific|
|Largest Region (2021) for Silicon Photonics Market:||Asia Pacific|
Silicon Photonics Market: By Product, Application, Waveguide, Component, and region
Global Silicon Photonics market is valued at USD 1.08 Billion in 2021 and is projected to attain a value of USD 3.59 Billion by 2028 at a CAGR of 25.8% during the forecast period, 2022–2028. Silicon Photonics is an enabling technology that provides high performance in data transfer speed and distance, which leads to cost-saving for optical system architectures. The main benefits of Silicon Photonics are: 1) High bandwidth; 2) Low power; 3) Large transmission distance; 4) Cost savings. These benefits make it possible to integrate various functions in information processing like functionalities for optical transceiver modules (OTM), wavelength selective switch (WSS), transparent optical crossconnect (OXC), wavelength monitor (WM), optical Ethernet switch/router, coherent receiver module, etc. Therefore, the demand for Silicon Photonics has been increasing recently because the diverse application areas have increased significantly.
Growing focus on Reducing Power Consumption to Drive Growth of Silicon Photonics
Power consumption has increased drastically with the size of data centers. To reduce power consumption, telecommunication companies are now looking at parallelization and optical interconnections to minimize the usage of copper cables.
The use of light for transmission is not new; it was first used in 1960s during the sending of pictures using fiber optic cables. After that, there were various experiments until Silicon Photonics was developed; it uses electronic circuitry on semiconductor material instead of glass fibers carrying optical signals. With this development, electrical circuits replaced optics like what happened after semiconductors replaced vacuum tubes. This is because optical fiber required bending radius less than 10-7m due to its small wavelength (1μm), which is difficult to achieve with metal wires; but with electronic circuits on semiconductors, the wavelength of light is not an issue.
Global Silicon Photonics market is segmented by Product (Transceivers, Switches), Application (Data Center & High-performance Computing, Telecommunication), Waveguide, Component, and Region.
Below tree is interactive. You can click the nodes to get more information.
Optical Networks are Expected to be Key Drivers of Demand for Silicon Photonics
Internet traffic is growing exponentially because of increasing demands from multimedia services, cloud computing, etc. Optical transmission at 40 Gb/s per wavelength can accommodate 200 x 200 Gb/s (400 Tb/s) internet traffic on one fiber. Moreover, optical interconnection can realize transparent data transmission at a super high speed. Optical interconnect technology is expected to be the essential infrastructure for large-scale data centers that process huge volume of information and provide cloud-computing services.
Asia Pacific to Dominate Silicon Photonic Market
Asia-Pacific will continue to lead the global Silicon Photonics market over the forecast period. The Asia-Pacific region is also expected to emerge as an attractive destination for R&D investments due to availability of skilled engineers and research facilities. On the other hand, North America is expected to be the second largest Silicon Photonics market during the forecast period. Furthermore, companies are investing more on standardization of products which is expected to boost the Silicon Photonics market.
The growth of the Asia Pacific market can be attributed to factors such as increasing expansion of optical communication networks and development of high-speed transceivers in the region. Furthermore, gaining need for cost effective data center interconnect applications is promoting growth. In addition, various advancements taking place in the field of optical components has led to development in WDM based laser sources enabling them with low power consumption and low-cost application specific devices that are compatible with other manufacturing platforms to boost the market growth.
Some of the key players in the global Silicon Photonics market are Intel (US), Cisco Systems (US), GlobalFoundries (US), MACOM Technology (US), NeoPhotonics (US), II-VI (US), IBM (US), InPhi (US), Rockley Photonics (US), and STMicroelectronics (Switzerland).
The Silicon Photonics is Segmented as Follows:
Regions & Countries Covered
Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST
analysis, value chain analysis, regulatory landscape, technology landscape, patent analysis, market
attractiveness analysis by segments and North America, company market share analysis, and COVID-19
Frequently Asked Questions
the global demand for Silicon Photonics
in terms of revenue?
The global Silicon Photonics valued at USD 1.08 Billion in 2020 and is expected to reach USD 3.59 Billion in 2028 growing at a CAGR of 25.8%
are the prominent players
in the market?
The prominent players in the market are Intel (US), Cisco Systems (US), GlobalFoundries (US), MACOM Technology (US), NeoPhotonics (US), II-VI (US), IBM (US), InPhi (US), Rockley Photonics (US), and STMicroelectronics (Switzerland)..
At what CAGR is the market projected to grow within the forecast period?
The market is project to grow at a CAGR of 25.8% between 2021 and 2028.
the driving factors
fueling the growth of the market.
The driving factors of the Silicon Photonics include
- Optical Networks are Expected to be Key for Market Growth
region accounted for the
largest share in the market?
Asia Pacific was the leading regional segment of the Silicon Photonics in 2020.