Silicon photonics specializes in the study of silicon and silicon-based heterojunction materials. The behavior and laws of photons in materials focus on the working principle, structural design, and manufacturing of silicon-based photonic devices and their practical applications in optical communication and optical computing. Silicon photonics technology is a cost-effective, rapid-speed visual communication technology establishes on silicon photonics. It utilizes laser beams instead of electronic signals to transmit data.
The global silicon photonics market expected to increase market value by USD 5.0 billion, with spurring CAGR in the forecast period from 2020-2027. The main applications that drive the size of the silicon photonics market are the rise in the need for efficiency and speed electronic devices, and reliable wireless connections are deriving market demand.
With the advancement of 100G, 400G, and 800G standardization, the market penetration of silicon photonic devices will continue to increase. Integrated optics is a new discipline that uses integrated methods to study and develop optical devices and hybrid optical electronics device systems. It incorporates complex visual functions into a single device, thereby miniaturizing the device, improving efficiency and reliability, and lowering costs.
Moreover, Silicon photonic transceivers have grown into an industry with millions of shipments, spawning an ecosystem that includes process design kits (PDK), design rules, simulation software, test equipment, and factories. This ecosystem allows new entrants to use this technology to open up new applications quickly.
Silicon photonics is a critical optical communication technology that can provide more reliable and economical products and achieve the high data rate density required by switches in the forecast period. The outcomes of this technology combine the characteristics of ultra-large-scale, ultra-high precision of integrated circuit technology represented by microelectronics and the advantages of ultra-high-speed and ultra-low power consumption of photonic technology.
For optical communications, silicon photonics is a cutting-edge technology that can bring more reliable and cheaper products and can achieve the high data rate density required by switches five years later. It has attracted essential manufacturers in the field of data communication infrastructure.
With the development of 5G and optical fiber communication, the market has higher requirements for communication speed and bandwidth. Photonic integration technology as the forefront of optical fiber communication to meet future demand for network bandwidth. The photonic integrated chip reduces the cost and complexity compared to the traditional discrete optoelectronic optical processing method. By integrating many optical components in a single chip, the large-scale single-chip PIC makes the system size, power consumption, and reliability are large. The range increased while significantly reducing the system cost.
Based on the product, the global silicon photonics market bifurcated into Transceivers, Switches, Variable Optical Attenuators, Cables, Sensors. The transceivers segment is dominating the maximum share of the global silicon photonics market in the forecast period. It is mainly due to the use of transceivers with silicon photonics, which provides high integration density and enables high-speed data transmission and consumes low power. Moreover, the transceivers have the capabilities to higher capacity bandwidth and handle the speed of the data center network of up to 400 Gbps.
Based on the application, the global silicon photonics market segmented into Data Center and High-performance Computing, Telecommunication, Military & Defense, Life Sciences, Sensing. The data center and high-performance computing segment dominate the market share for the global silicon photonics market. As the Internet’s growth is emerging, the amount of data communications in the data center is increasing. The data exchange and interconnection equipment of the existing data center have become increasingly difficult to cope with such massive data traffic growth. Therefore, compared with the existing optical communication technology, silicon photonic components can meet the current requirements in terms of low cost, high integration, richer function embedding, higher interconnection density, lower power consumption, and higher reliability. Besides, an emerging technology that helps in improving the performance of computing is fueling the market demand for data centers and high-performance computing in the global silicon photonics market.
Based on the component, the global silicon photonics market segmented into Lasers, Modulators, Photo Detectors, Wavelength-Division Multiplexing (WDM) filters. The Wavelength-Division Multiplexing (WDM) filter segment captures the highest share in the forecast period from 2020-2027. It is mainly due to the advantage of the parallelism and capacity of wavelength division multiplexing (WDM), optical interconnects can provide high-bandwidth, low-latency solutions to solve the challenges of future computing system bandwidth scalability.
Based on geography, the global silicon photonics market segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa. North America is the world’s fastest-growing global silicon photonics market, accounting for the largest share. It is mainly due to the technology advancement, increasing R&D establishment, prominent innovation in the field of technology companies, rising investment, and huge funds available for research-related work that fuel the market share of North America. Moreover, Asia pacific will show lucrative market demand owing to the growth of data centers, increasing consumer electronics manufacturers, and extended haul. The transport network is contributing to the growth of the silicon photonics market.
Companies such as CISCO, Intel, MACOM, GlobalFoundries, NeoPhotonics, InPhi, Mellanox, II-VI Incorporated, Rockley Photonics, and others are key players for the global silicon photonics market.
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Global Silicon Photonics Market
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