The Silicon Photonics Market is expected to reach USD 3.59 Billion by 2028, growing at a Compound Annual Growth Rate (CAGR) of 25.8% from 2022 to 2028. Silicon photonics provides various advantages such as good spectral efficiency, low environmental footprint, low operating costs, high integration, low heating of components, and high reliability in terms of low error rate. All these factors are reasonable for the high demand of Silicon Photonics Market. In addition, rising demand high data transfer capabilities, and high bandwidth is expected to augment the growth of the Silicon Photonics Market in the upcoming years. Whereas, the use of complex technology such as the integration of on-chip laser is hampering the Silicon Photonics Market demand. And the use of silicon photonics technology in short-distance communication will provide growth opportunities for Silicon Photonics Market in the near future.
Product Segment Outlook:
Based on the product segment, the market is segmented as transceivers, variable optical attenuators, switches, cables, and sensors. The transceivers segment is expected to accelerate the largest growth in the Silicon Photonics Market during the forecast period. These receivers are used in various applications such as data centers, telecommunication, and high-performance computing. The transfer of data at a speed up to 400 Gbps is possible because of the emergence of various advancements in the Silicon Photonics Market.
Component Segment Outlook:
Based on component Segment, the market is categorized into lasers, modulators, and photodetectors. Laser’s segment is expected to incorporate the highest growth in Silicon Photonics Market during the forecast period. To overcome the mass-production issues in silicon lasers, hybrid silicon lasers are widely used. This is one of the reasons that augmented the segmental growth of the Silicon Photonics Market in the years to come.
Asia Pacific is expected to grow at the fastest CAGR during the forecast period. This surge is owing to the high demand for silicon photonics in various applications such as data centers, high-performance computing, and telecommunication. Also, there is a large number of internet users in countries like China and India, thus the use of mobile devices and high-speed broadband networks is also high. This in turn increases the various growth opportunities of the Silicon Photonics Market in the region.
The most prominent players in the 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 conventional copper cable is not able to meet the demand for high-speed data transfer. The silicon photonics transceivers and optical interconnectors are thus used to overcome this issue. In addition, silicon photonics technology supports less power consumption with the help of components such as switches used in communication networks and transceivers interconnectors. In order to solve this issue, various companies also initiate new products which provide less power consumption. For example, CISCO (American multinational technology Conglomerate Corporation) and Intel (American Multinational Corporation and Technology Company) introduced optical switches with low power consumption and can provide high switching speed. This one is also the key factor that propels the growth of the Silicon Photonics Market in the coming years.
- June 2021: NeoPhotonics announced the launch of the CFP2-DCO module transceiver, with a transmission speed of 400 Gbps over the 1500 km range.
- March 2020: MACOM Technology has announced the availability of 25G Avalanche Photodiode optical components for 5G wireless and datacentre applications.
- March 2020: Intel has announced the successful integration of a Tbps (Terabytes per second) silicon photonics engine with a 12.8 Tbps programmable Ethernet switch.