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Silicon Photonics Market Size, By Product (Transceiver, Variable Optical Attenuator, Switch, Cable, Sensor), By Component (Active {Laser, Modulator, Photodetector}, Passive {Filter, Waveguides}), By Application (Data Center & HPC, Telecommunication, Medical), COVID-19 Impact Analysis, Regional Outlook, Application Potential, Competitive Market Share & Forecast, 2020 – 2026

  • Report ID: GMI2444
  • Base Year: 2019
  • Report Format: PDF

Industry Trends

Silicon Photonics Market size exceeded USD 600 million in 2019 and is anticipated to grow at over 30% CAGR between 2020 and 2026. The proliferation of 5G technology and increasing bandwidth demand will add an opportunity for companies to enhance their research initiatives in the photonics industry. In 5G transmission, this new technology will help in routing a large amount of data traffic at a lower cost and efficient transformation of the radio access network.
 

Silicon Photonics Market Overview

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Silicon photonics technology is also paving its way toward the automotive sector with the growing demand for new safety technologies such as optimal vision in vehicles. Market leaders are continuously focusing on integrating the new technology into LiDAR chips, increasing their growth opportunities in the automotive sector.
 

However, the COVID-19 pandemic has affected the overall production capability of the silicon photonics market due to the lack of a skilled workforce. The declining semiconductor sector in China has majorly impacted the market growth. However, growing work from home scenarios worldwide will increase the demand for high-speed internet connection and 5G technology.
 

Increasing funding for disruptive technology will accelerate innovations for transceiver in the Silicon photonics market

The transceiver segment dominated more than 85% of the market share in 2019 and is expected to witness 30% growth rate through 2026. The device is available in a compact package and delivers high-speed performance in optical communication system. Furthermore, its low-power consumption capability has increased its acceptance in applications such as telecommunication, high-performance computing, and data centers.
 

Market players are focusing on the development of advanced transceiver integrated with silicon photonics technology to increase their business opportunities in high computing applications. Companies are also raising funds from investors to improve their research initiatives in the market.
 

Rising developments in hybrid and tunable lasers to foster the growth opportunities for laser

Silicon Photonics Market Overview

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The lasers segment in the silicon photonics market held 35% of revenue share in 2019 led by the growing development in hybrid Silicon and tunable lasers. Through hybrid approach, leaders can fabricate electrically driven lasers on a Silicon wafer that can be integrated with other photonics devices. This will increase their adoption in various data centers and telecommunication applications to improve network capacity in countries such as the U.S., UK, and France.
 

Moreover, to meet the challenging requirements of next-generation coherent optics, companies are adopting tunable lasers that use high-performance silicon photonics. These lasers power the capability for low-cost fabrication in CMOS foundries, thereby increasing their usage in high-speed coherent applications. Compact tunable lasers also deliver high-performance in emerging applications such as Optical Coherence Tomography (OCT) in biomedical and LiDAR in autonomous vehicles.
 

Growing data center traffic to create new market opportunities for silicon photonics

The data centers and HPC segment accounted for 70% of the silicon photonics market share in 2019 impelled by the rising data center traffic and increasing volume in global network. According to Cisco Global Cloud Index, the annual data centers internet protocol traffic is projected to surpass 20 Zettabytes by 2021. This will propel the market demand to deliver high-energy efficiency and high bandwidth capacity for improved transmission in data centers.
 

Players cater to demands by innovating new technology solutions for high-performance computing and data centers. In March 2020, Ranovus Inc. launched the Odin platform, which includes a 100 GBPS silicon photonics engine. The new platform can deliver 50% power consumption reduction and a 75% cost reduction, thus delivering a power-efficient network solution. Furthermore, the rising trend to develop hyper-scale data centers in future, which includes a high-speed connection to transfer a large amount of data will further boost the market expansion.
 

Increasing internet subscribers in India to fuel the market progression

APAC Silicon Photonics Market

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Asia Pacific silicon photonics market is poised to expand at more than 35% CAGR till 2026 on account of the rising demand for high-speed internet networks and the penetration of mobile devices in India. This will increase the requirement of advanced infrastructure to support high-speed communications, creating an opportunity for the market.
 

The growing optoelectronics industry in China and an increase in data center equipment supply have led market participants to establish new facilities and increase their R&D activities, propelling the industry expansion.
 

Focus on R&D to stay competitive in the market

Leading silicon photonics market players include Intel Corporation, Cisco Systems, Inc., Global Foundries, IBM Corporation, Juniper Networks, Inc., STMicroelectronics, Broadcom, and NeoPhotonics Corporation. Companies engaged in silicon photonics are continuously focusing on innovations and R&D activities to compete in the industry.
 

The silicon photonics market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2016 to 2026 for the following segments:

Market, By Product

  • Transceiver
  • Variable optical attenuator
  •  Switch
  • Cable
  • Sensor

Market, By Component

  • Active
    • Laser
    • Modulator
    • Photodetector
    • Others
  • Passive
    • Filter
    • Waveguide

Market, By Application

  • Data centers & HPC
  • Telecommunication
  • Medical
  • Others

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • France
    • Italy
    • Germany
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
  • LAMEA

 

Authors: Preeti Wadhwani, Prasenjit Saha

Frequently Asked Questions (FAQ) :

The market size of silicon photonics exceeded USD 600 million in 2019.

The industry share of silicon photonics is poised to grow at over 30% CAGR between 2020 and 2026.

Asia Pacific market size is expected to witness a growth rate of around 35% during the forecast timeline led by rising demand for high-speed internet networks and penetration of mobile devices in the region.

According to the analysts at GMI, the transceiver product segment held a market share of over 85% in 2019 and is anticipated to register 30% gains through 2026.

Leading industry players include Intel Corporation, Cisco Systems, Inc., Global Foundries, IBM Corporation, Juniper Networks, Inc., STMicroelectronics, Broadcom, and NeoPhotonics Corporation.

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Premium Report Details

  • Published Date: May 2020
  • Companies covered: 17
  • Tables & Figures: 150
  • Countries covered: 10
  • Pages: 140

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