Global Market for Silicon Photonics is Anticipated to grow at a Significant Pace i.e., USD 5.8 Billion during the Forecast Period 2025 - 2030

Published Date: Mar, 2024

The global silicon photonics market is anticipated to grow at a market share of 26.9% (CAGR) during the projected period 2025-2030. 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.

NeoPhotonics Corporation, a leading developer of advanced photonics technologies, made an announcement in March 2022. They confirmed the successful demonstration of 120Gbaud operation using their Indium Phosphide-based Coherent Receiver and Coherent Modulators, combined with Distributed Feedback Lasers or Ultra-Narrow Linewidth Tunable Lasers. These advancements have wide-ranging applications, from 800G LR transmission to 400G long haul transmission, enabling bandwidth-intensive, high-speed communications networks.

The COVID-19 pandemic has ushered in a significant increase in internet usage due to the widespread adoption of remote work, increased interest in television streaming, and a shift towards e-learning activities. However, the economic impact of the pandemic has led to workforce reductions and reduced company spending. Consequently, sales of networking components, including silicon photonic devices, have experienced a decline. One of the promising areas for silicon photonics technology is its application in the 5G network. However, the deployment of 5G has been delayed due to the pandemic, impacting the growth trajectory of the silicon photonics industry.

Despite these challenges, NeoPhotonics Corporation's advancements in photonics technologies demonstrate their commitment to pushing the boundaries of high-speed communications networks. As the world gradually recovers from the pandemic and the deployment of 5G networks resumes, the demand for silicon photonics solutions is expected to rebound. The industry will play a crucial role in supporting the increasing need for bandwidth-intensive applications and enabling the seamless connectivity required for a digitally transformed world.

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 2030"

By application, telecommunication accounts for the fastest growth during the forecast period 2023-2030.

Telecommunication is anticipated to have the fastest growth during the forecast period 2025-2030 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 2025-2030.

Global Silicon Photonics Market Segmentation and Key Players

Segment / Key Players

Categorization

Product

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

Component

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

Application

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

Key Players

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

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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.

Global Silicon Photonics Market Coverage

Product Insight and Forecast 2025-2030

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

Component Insight and Forecast 2025-2030

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

Application Insight and Forecast 2025-2030

  • 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