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Silicon Photonics Market worth over $3bn by 2026

Published Date: May 20, 2020    Authors: Preeti Wadhwani, Shubhangi Yadav

Silicon Photonics Market size is set to surpass USD 3 billion by 2026, according to a new research report by Global Market Insights, Inc.
 

Silicon photonics is one of the emerging technologies to generate significant research interest due to its potential benefits in optoelectronics applications. The growing trend of miniaturization of electronics devices with rising need for speed and efficiency has resulted in the increasing demand for silicon photonics in optical communications, servers, and data centers.

 

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The exceptional ability to transfer in the range of 100 gigabytes per second of data with a low error rate over optical signals is creating growth opportunity for the silicon photonics market. The growing trend of high data transfer over social networking sites and consumer-based applications will generate a massive amount of data daily, favoring the market demand.
 

Moreover, rise in deployment of hyper-scale datacenters to establish a robust infrastructure in the BFSI sector by integrating large number of servers, storage devices, and photonic components will propel the market growth. Hyperscale Data Centers (HDCs) prefer photonic devices due to their ability to handle large data, high security, and scalability, driving the market size.
 

Silicon photonics has a higher reflective index compared to other semiconductors, which is one of the major challenges faced by manufacturers to achieve miniaturized fabrication of components. High initial cost coupled with thermal effect issues that hamper the performance of the device will further restrict the silicon photonics market growth. Furthermore, the presence of low-cost substitutes, such as Vertical Cavity Surface Emitting Laser (VCSEL), will further limit the adoption of photonics devices.
 

Surging demand for Active Optical Cables (AOC) in cloud and storage applications

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The optical cables segment in the silicon photonics market is projected to grow at a significant rate of 35% till 2026 due to their applications in high-performance computing, cloud, and storage. It can transfer high data rates over long distances while ensuring high-performance and optimum signal integrity. Optical cables have lucrative advantages over traditional optical modules due to their low-cost structure and provide streamline installation in telecom infrastructures and data centers.
 

Recent technological advancements in data processing using scalable host controller interface design are gaining traction to provide new solutions in cloud and enterprise infrastructures. The cloud and enterprise systems are driving growth opportunities owing to a high volume of data generated in the global market. Improvements in data transferring speed through Active Optical Cables (AOC) and an increase in demand for high storage memory systems have triggered the market growth.
 

Datacenter Interconnect (DCI) technology is laying significant impact on silicon photonics filters

The passive photonics filters segment held a market share of 25% in 2019 owing to increasing investment in the deployment of the upcoming 5G network. The introduction of 5G mobile communication technology will lead to increasing demand for smartphones and other interconnected devices, in turn, increasing growth opportunities for silicon photonics components. Filters are heavily deployed in 5G infrastructure and mobile phones to mitigate the radio frequency of the network.
 

The rising proliferation of Datacenter Interconnect (DCI) technology to connect two or more datacenters over short, medium, and long-range distance is creating high growth opportunities for the silicon photonics market. The DCI technology uses passive optical filters to manage the wavelength and remove distortion in optical signals. The passive filter uses Wavelength Division Multiplexing (WDM) phenomena for transferring high data rates over a long distance through photonics-based technology. The growing adoption of silicon photonic components for data transfer over current technology is anticipated to drive the market size.
 

Browse key industry insights spread across 140 pages with 130  market data tables and 20 figures & charts from the report, “Silicon Photonics Market Size By Product (Transceiver, Variable Optical Attenuator, Switch, Cable, Sensor), By Component (Active {Laser, Modulator, Photodetector}, Passive {Filter, Waveguide}), By Application (Data Center & HPC, Telecommunication, Medical), Industry Analysis Report, Regional Outlook, Application Potential, Competitive Market Share & Forecast, 2020 - 2026” in detail along with the table of contents:
https://www.gminsights.com/industry-analysis/silicon-photonics-market
 

Telecommunication segment to witness heavy adoption of silicon photonics due to increasing demand for high bandwidth over the internet

The telecommunication sector is showcasing a significant growth opportunity for the silicon photonics market size expansion. A rise in global internet penetration and growth in the number of smartphones are propelling the market growth. Silicon-based photonic devices increase the bandwidth capacity with low-power consumption, improving telecom services with long-range communication.
 

Furthermore, the rising trend of work from home due to COVID-19 pandemic has resulted in the rising need for high-speed data transmission with large bandwidth over the internet. To support these bandwidth levels, the telecommunication sector will increase the deployment of Silicon photonics as an emerging technology solution in the market.
 

Favorable government policies on photonics-based projects are laying a significant growth impact on the North America market

The North America silicon photonics market revenue will register a substantial CAGR of 30% from 2019 to 2026. The growth is majorly attributed to rising funding series from the government to encourage photonics-based projects in the region.
 

Major players in the industry include Intel Corporation, Cisco, Broadcom, Inc., STMicroelectronics, GlobalFoundries, IBM, Acacia, Mellanox, NeoPhotonics Corporation, Lumentum Operations LLC, among others.
 

Market players are involved in several research & development activities to increase Silicon-based photonics technology adoption in various industries. Companies are investing heavily in new capabilities and implementing several merger & acquisition strategies to strengthen their presence.
 

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