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Silicon Photonics for Vehicle Communication Market Size - By Component, By Product, By Technology, By Vehicle, Growth Forecast, 2025 - 2034
Report ID: GMI15048
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Published Date: October 2025
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Report Format: PDF
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Authors: Preeti Wadhwani,
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Base Year: 2024
Companies covered: 25
Tables & Figures: 170
Countries covered: 23
Pages: 235
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Silicon Photonics for Vehicle Communication Market
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Silicon Photonics for Vehicle Communication Market Size
The global silicon photonics for vehicle communication market was estimated at USD 303.5 million in 2024. The market is expected to grow from USD 360.6 million in 2025 to USD 1.75 billion in 2034, at a CAGR of 19.2%, according to latest report published by Global Market Insights Inc.
Silicon photonics is a technology that supports light-based devices such as lasers, modulators, and detectors on silicon chips. In automotive applications, silicon photonic devices are increasingly being used in components and communication systems for vehicles with both vehicle-to-vehicle (V2V), vehicle-to-infrastructure (V2I) and vehicle-to-everything (V2X) communication systems.
They are also being utilized to support LiDAR sensors and faster in-vehicle data transfer rates. All advanced developments around advanced driver assistance systems (ADAS) and autonomous driving are significant areas where silicon photonics provide a better bandwidth, lower latency and more energy efficiency than traditional electronic technologies.
The key factors driving this market are the expansion of autonomous and semi-autonomous vehicles, which need sophisticated sensing and communication devices. Silicon photonics-based LiDAR systems using frequency modulated continuous wave (FMCW) techniques provide greater range detection and velocity measurement compared to time-of-flight systems widely used today, which are particularly critical for high-speed driving and urban driving conditions.
Similarly, as bandwidth demand increases within vehicles (i.e., HD cameras, sensors and infotainment systems), automotive companies need to begin exploring photonic interconnects in place of copper wiring, which is heavier and limits the amount of data that can be sent over a wiring harness.
The market trends currently indicate a move to solid-state LiDARs that utilize silicon photonics for steering and detecting light, eliminating mechanical movement to create smaller, more rugged, and lower-cost sensor modules. An additional market trend is the integration of sensing and communication functions, with photonic devices being engineered to provide many functions, making systems simpler and facilitating speed in decision-making, which is especially valuable for autonomous driving.
North America continues to lead in the silicon photonics for vehicle communication market. Europe is also making significant strides, with substantial government-backed investments aimed at advancing next-generation photonics manufacturing and integrating photonics into the automotive industry. Meanwhile, the Asia-Pacific region particularly China is emerging as a major consumer and manufacturer of photonics-based automotive systems. Chinese OEMs have started incorporating LiDAR technology into their vehicles to support advanced navigation and enhanced safety features.
For instance, LightIC launched an FMCW LiDAR system for automotive applications with a metric detection range of over 300 meters as well as an instantaneous velocity measurement. Aeva Technologies produced a silicon photonics-based LiDAR solution with a processing chipset developed in-house that was going to be utilized by commercial vehicle manufacturers.
13% market share
Collective market share in 2024 is 54%
Silicon Photonics for Vehicle Communication Market Trends
The market for silicon photonics in vehicle communications is undergoing significant transformation, driven by advances in integration, efficiency and automotive network architectures. One of the most prominent trends is the shift towards production on an industrial scale.
Silicon photonics is moving from R&D to high-volume production, particularly through initiatives such as the EU-backed Starlight project. The program, led by STMicroelectronics, focuses on developing 300 mm silicon photonics production lines suitable for high-bandwidth automotive applications such as LiDAR and vehicle-to-everything (V2X) communications.
A parallel trend is the simplification of networks in vehicles. As modern vehicles become increasingly software-defined, the amount of data exchanged between sensors, control units and displays has grown exponentially. Manufacturers are actively exploring high-speed optical connections to reduce the weight, complexity and cost associated with traditional copper wiring. Companies such as Ethernovia and Marvell are working on high-speed Ethernet transceivers for cars that act as enablers for the widespread use of photonics.
Another major area of development is the integration of silicon photonics into advanced sensor systems, especially solid-state LiDAR. Photonic integrated circuits (PICs) are used to replace bulky optical assemblies, leading to smaller, more power-efficient and cost-effective solutions for vehicle perception systems. Solid-state LiDAR not only increases spatial resolution and range but also contributes to the long-term reliability of autonomous driving technologies.
In terms of performance and reliability, there is increasing emphasis on developing photonic devices that can operate under the harsh conditions typical of automotive environments – extreme temperatures, vibrations and electromagnetic interference. Considerable academic and industrial research is directed towards improvements in waveguide design, switching efficiency and energy consumption, all of which are essential to meet stringent automotive standards.
Silicon Photonics for Vehicle Communication Market Analysis
Based on component, the silicon photonics for vehicle communication market is divided among optical waveguides, photodetectors, modulators, light sources/lasers, filters, and others. The optical waveguides segment dominated the market, accounting for around 25% share in 2024 and is expected to grow at a CAGR of over 19.7% through 2025 to 2034.
Based on product, the silicon photonics for vehicle communication market is segmented into transceivers, switches, cables, sensors, and others. Transceivers segment dominated the market with around 40% share in 2024, and the segment is expected to grow at a CAGR of 19% from 2025 to 2034.
Based on technology, the silicon photonics for vehicle communication market is segmented among CMOS, hybrid silicon photonics, silicon-on-insulator (SOI) photonics, and silicon nitride photonics. The CMOS segment dominated the market with market share of 46% in 2024.
Based on vehicle, the silicon photonics for vehicle communication market is segmented into passenger cars, and commercial vehicles. Passenger cars dominate the market with share of around 77% in 2024.
North America dominated the silicon photonics for vehicle communication market with around 34% share and generated around USD 102.8 million revenue in 2024.
Europe silicon photonics for vehicle communication market accounted for USD 75.3 million in 2024 and is anticipated to show lucrative growth over the forecast period.
Asia Pacific region accounted for market size of USD 94.8 million in 2024 and is anticipated to show fastest growth of 21.3% over the forecast period.
Latin America accounted for around USD 14.4 million in 2024 and is anticipated to show robust growth over the forecast period.
Middle East and Africa silicon photonics for vehicle communication market accounted for USD 16.2 million in 2024 and is anticipated to show lucrative growth over the forecast period.
Silicon Photonics for Vehicle Communication Market Share
Silicon Photonics for Vehicle Communication Market Companies
Major players operating in silicon photonics for vehicle communication industry are:
Silicon Photonics for Vehicle Communication Industry News
The silicon photonics for vehicle communication market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn) and volume (units) from 2021 to 2034, for the following segments:
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Market, By Component
Market, By Product
Market, By Technology
Market, By Vehicle
The above information is provided for the following regions and countries: