Global Market for Silicon Photonics is Anticipated to grow at a Significant Pace i.e., USD 4.8 Billion during the Forecast Period 2021-2027

Published Date: May, 2022

The global silicon photonics market is anticipated to grow at a market share of 26.9% (CAGR) during the projected period 2021-2027. The rising demand for silicon in photonics products at data centers to improve computational and processing capabilities, increased emphasis to reduce power consumption via silicon photonic transceivers, escalating need for high bandwidth, and mounting internet traffic will propel the market growth of the silicon photonics market. Moreover, it is widely adopted in applications of meteorology and sensors, aerospace, datacom, data centers, telecom, commercial videos, HDTVs, laptop, and PCs. Furthermore, the surge in deployment of silicon photonics technology in short-reach communication will offer significant opportunities in the market during the forecast period. Nevertheless, businesses are opting for silicon photonics technology and are making investments to have a competitive advantage.

In March 2022, NeoPhotonics Corporation, one of the prominent developers of silicon photonics and advanced hybrid photonic integrated circuit-based lasers, modules, and subsystems for bandwidth-intensive, high-speed communications networks, confirmed that it has demonstrated 120Gbaud operation in applications ranging from 800G LR transmission to 400G long haul transmission using its Indium Phosphide-based Coherent Receiver and Coherent Modulators, in combination with Distributed Feedback Lasers or Ultra-Narrow Linewidth Tunable Lasers.

With the beginning of the COVID-19 pandemic, there has been a surge in internet usage, owing to widespread acceptance of the remote work culture and increased interest in television viewing and e-learning activities.  However, the increased adoption of digital services has resulted in the layoff of staff and a reduction in company spending. As a result, networking components, such as silicon photonic devices, have seen a significant drop in sales. One of the fastest-growing applications of silicon photonics technology is likely to be the 5G network. COVID-19 has delayed the deployment of the 5G network, which will have an impact on the growth of the silicon photonics industry.

Browse 53 market data Tables and 35 Figures spread through 250 Pages and in-depth TOC on " Silicon Photonics Market by Product (Transceiver, Variable Optical Attenuator, Switch, Cable, and Sensor), by Component (Active Component (Laser, Optical Modulators, Photodetectors, and Others), and Passive Component (Optical Waveguide, Splitters, and Isolators)), by Application (Data Center & High-Performance Computing, Telecommunication, Military, Defense, and Aerospace, Medical and Life Sciences, and Sensing), and Region - Global Forecast to 2027"

By application, telecommunication accounts for the fastest growth during the forecast period 2021-2027.

Telecommunication is anticipated to have the fastest growth during the forecast period 2021-2027 owing to the development of novel technologies like 4G/LTE, 5G, cloud, social networking, and smartphones. The surge in internet penetration requires more bandwidth in order to provide customers with uninterrupted service. This is propelling the silicon photonics market forward. Also, increasing efforts to create data centers, as well as considerable deployment of silicon photonics technology for high-speed communication, is expected to drive market growth over the forecast period 2021-2027.

Global Silicon Photonics Market Segmentation Analysis

Segment

Categorization

Leading Category

Product

Transceiver, Variable Optical Attenuator, Switch, Cable, and Sensor

Transceiver (Largest)

 

Component

Active Component (Laser, Optical Modulators, Photodetectors, and Others), and Passive Component (Optical Waveguide, Splitters, and Isolators)

Laser (Largest)

 

Application

Data Center & High-Performance Computing, Telecommunication, Military, Defense, and Aerospace, Medical and Life Sciences, and Sensing

Data Center & High-Performance Computing (Largest)

Telecommunication (Fastest)

 

Region

North America, Europe, Asia-Pacific, and Rest of the World

North America

(Largest)

Asia-Pacific

 (Fastest)

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“Asia-Pacific is anticipated to be the fastest growing region in the Silicon Photonics market.”

Asia-Pacific is expected to be the fastest-growing region owing to the rising demand for high-speed internet networks, development of technological infrastructure, and increased prominence of mobile devices in the region.

Some of the major players in the global silicon photonics market include Cisco Systems, Inc., Intel Corporation, NeoPhotonics Corporation, MACOM, STMicroelectronics, Rockley Photonics Ltd., SICOYA GMBH, Lumentum Operations LLC, Broadcom, and Hamamatsu Photonics K.K.

Scope of the Report

Report Metric

Details

Market Size Available for the Years in the Study

2015–2027

Historical Period

2015–2020

Base Year

2020

Forecast Period

2021–2027

Segments Covered in the Study

Product, Component, Application, and Region

Geographies Covered in the Study

North America (U.S., Canada, Mexico), Europe (Germany, U.K., France, Italy, Spain, Russia), Asia-Pacific (China, Japan, India, South Korea), and Rest of the World (Brazil, Saudi Arabia, South Africa, U.A.E.)

Companies Covered in the Study

Cisco Systems, Inc., Intel Corporation, NeoPhotonics Corporation, MACOM, STMicroelectronics, Rockley Photonics Ltd., SICOYA GMBH, Lumentum Operations LLC, Broadcom, and Hamamatsu Photonics K.K.

Global Silicon Photonics Market Coverage

Product Insight and Forecast 2015-2027

  • Transceiver
  • Variable Optical Attenuator
  • Switch
  • Cable
  • Sensor

Component Insight and Forecast 2015-2027

  • Active Component
    • Laser, Optical Modulators
    • Photodetectors
    • Others
  • Passive Component
    • Optical Waveguide
    • Splitters
    • Isolators

Application Insight and Forecast 2015-2027

  • Data Center & High-Performance Computing
  • Telecommunication
  • Military, Defense, and Aerospace
  • Medical and Life Sciences
  • Sensing

Geographical Segmentation

Silicon Photonics Market by Region

North America

  • By Product
  • By Component
  • By Application
  • By Country – U.S., Canada, and Mexico

Europe

  • By Product
  • By Component
  • By Application
  • By Country – Germany, U.K., France, Italy, Spain, Russia, and Rest of Europe

Asia-Pacific (APAC)

  • By Product
  • By Component
  • By Application
  • By Country – China, Japan, India, South Korea, and Rest of Asia-Pacific

Rest of the World (RoW)

  • By Product
  • By Component
  • By Application
  • By Country – Brazil, Saudi Arabia, South Africa, U.A.E., and Other Countries