Silicon Photonics Market By Product (Transceivers, Variable Optical Attenuators, Switches, Cables, and Sensors), by Component (Lasers, Modulators and Photo Detectors), by Waveguide (400-1,500 NM, 1,310-1,550 NM, and 900-7000 NM), by Application (Data Centers and High-performance computing, Telecommunication, Military, Defense and Aerospace, Medical and Life Science, and Other Applications), and By Region (North America, Europe, Asia Pacific, Latin America, and Middle East and Africa) – Global and Regional Industry Overview, Market Intelligence, Comprehensive Analysis, Historical Data and Forecasts 2022 – 2028

Silicon Photonics Market Overview

Silicon Photonics is a new field of research that uses photonic systems to process, alter, produce, and transmit data between microchips significantly more quickly. The constant need for faster data transfer rates is prompting manufacturers to embrace this technology to improve data centre computing and processing capabilities. The market is growing at a steady rate as it lowers costs and uses less energy. Many manufacturers prefer silicon photonics technology and are willing to invest in it to gain a competitive advantage. 

Short-reach communication can connect optical interconnects, giving the global silicon photonics industry a lot of room to grow in the communication sector. The technology can improve the performance of a short-range communication system. As a result, data can be sent at a faster rate. The market leaders in silicon photonics have been working hard to boost transmission speeds and extend transmission distances. The implanting of various types of integrated circuits is a key activity for the global market. Because of the temperature effect, it is a significant challenge. Component embedding at the nanoscale scale is extremely difficult. The waveguide diameters are more sensitive in these silicon photonic devices. As a result, they require non-meter scale control and a reasonable level of silicon-refractive index fluctuation. This is a significant difficulty because the only way to regulate it is to increase the power consumption. 

Market Size

According to Business Intelligence Insights "The Silicon Photonics Market is expected to grow from USD 962.90 million in 2021 to USD USD 3927.02 million by 2028 during the 
forecast period 2022-2028

Covid -19 Impact Analysis

The COVID-19 epidemic has disrupted component supply, manufacturing, and worldwide value chains, resulting in a reduction in demand and consumer expenditure. With the beginning of the COVID-19 pandemic, there has been a surge in internet usage, owing to widespread acceptance of the work-from-home norm and increased interest in television viewing and e-learning, among other things. However, the rising usage of digital services has resulted in organisations laying off people or reducing spending. As a result, networking components like silicon photonic devices have seen a significant drop in sales. One of the fastest-growing applications of silicon photonic systems is projected to be data centres and high-performance computing. COVID-19 has interrupted and delayed the implementation of the 5G network, which will have an impact on the growth of the silicon photonics market throughout FY 2021–2022.

Market Dynamics

Short-reach communication can connect optical interconnects, giving the global silicon photonics industry a lot of room to grow in the communication sector. The technology can improve the performance of a short-range communication system. As a result, data can be sent at a faster rate. The market leaders in silicon photonics have been working hard to boost transmission speeds and extend transmission distances. The implanting of various types of integrated circuits is a key activity for the global market. Because of the temperature effect, it is a significant challenge. Component embedding at the nanoscale scale is extremely difficult. The waveguide diameters are more sensitive in these silicon photonic devices. As a result, they require non-meter scale control and a reasonable level of silicon-refractive index fluctuation. This is a significant difficulty because the only way to regulate it is to increase the power consumption

Segmentation Insights

By Product-

Transceivers dominated Market share is more than 40%

 In 2021, the market for Silicon Photonics was dominated by Transceivers as a product owing to the increased demand for energy and weight management among working professionals and sports players. The market share is more than 40%. Transceivers are used in high-performance computing, data centres, and communications. It is now possible to send data at speeds of up to 400 Gbps thanks to tremendous technological advances in silicon photonics. The device has a small footprint and provides high-speed performance in an optical communication system. Its low-power consumption capability has also helped it gain acceptance in industries including telecommunications, high-performance computing, and data centres. The 100G PSM4 QSFP28 optical transceiver from Intel can transmit data at a rate of 100 Gbps. Due to the rapid spread of the COVID-19 pandemic, silicon photonic device sales have dropped, particularly in 2020. However, sales of silicon photonic goods are likely to increase rapidly in the future years, particularly to meet 2020 needs.

By Component-

Market Share of the laser is more than 30 %.

 The components in which Silicon Photonics can be taken are Lasers, Modulators, Photo Detectors. In the worldwide silicon photonics, laser is the most popular components mode. The market share of the laser is more than 30 %.One of the main reasons for the increased demand for lasers in the silicon photonics market is the usage of hybrid silicon lasers (silicon and group III-V semiconductor) to solve mass-production problems in silicon lasers. To produce electrically driven lasers on a silicon wafer that can be incorporated into other silicon photonic devices, the hybrid technique takes advantage of the light-emitting capabilities of III-V semiconductor materials combined with the process maturity of silicon. Silicon photonics companies are working on the same thing. Intel, for example, is developing hybrid silicon lasers based on indium phosphide and other compound semiconductor materials.

Segmentation of the Global Silicon Photonics Market

By Product-
•    Transceivers
•    Variable Optical Attenuators
•    Switches
•    Cables
•    Sensors

By Component-
•    Lasers
•    Modulators
•    Photo Detectors

By Waveguide-
•    400-1,500 NM
•    1,310-1,550 NM
•    900-7000 NM

By Application-
•    Data Centers and High-performance computing
•    Telecommunication
•    Military, Defense and Aerospace
•    Medical and Life Science
•    Other Applications

By Region-
•    North America
o    U.S.
o    Canada
•    Europe 
o    Germany
o    U.K.
o    France
o    Italy
o    Spain
o    Rest of Europe
•    Asia Pacific 
o    China
o    India
o    Japan
o    Rest of Asia Pacific
•    Latin America 
o    Brazil
o    Mexico
o    Rest of Latin America
•    Middle East and Africa 
o    UAE
o    South Africa
o    Rest of Middle East and Africa (MEA)

Key Players

List of Key Players in Silicon Photonics Market:

•    Cisco Systems (US)
•    Intel (US)
•    MACOM Technology (US)
•    GlobalFoundries (US)
•    NeoPhotonics (US)
•    InPhi(US)
•    II-VI (US)
•    IBM (US)
•    STMicroelectronics (Switzerland)
•    Rockley Photonics (US)

Regional Insights

The silicon photonics market in APAC is predicted to develop at the fastest rate

The silicon photonics market in APAC is predicted to develop at the fastest rate, owing to increased use of silicon photonics in telecommunications, data centres, and high-performance computing, among other applications. The growing number of internet users in China and India, as well as the increasing use of high-speed broadband networks and mobile devices, all of which necessitate established infrastructure enabling telephony and high-speed communication, are driving the silicon photonics market in APAC. As a result, APAC appears to offer a significant opportunity for the silicon photonics market. 

Table

Report Attributes	Details
Market Size Value in 2021	USD 962.90 Million
Market Size Value in 2028	USD 3927.02 Million
Growth Rate	+26.40%
Base Year	2021
Forecast Period	2022-2028
Historical Data	2018-2020
Forecast Units	(USD Million)
Countries Covered	North America: U.S and Canada Europe: Germany, France, Italy, U.K, Spain, Russia, Rest of Europe APAC: China, Japan, South Korea, India, Australia, South East Asia, Rest of Asia Pacific Latin America: Brazil, Mexico Middle East And Africa: Saudi Arab, South Africa, UAE
Segments Covered	By Product, By Component, By Waveguide, By Application & By Region
Competitive landscape	Leading companies, Competitive strategies and Consumer engagement scope
Customization is available	If our report does not contain the information you require, you can contact our experts to have segments created for you. Please contact us at sales@businessintelligence-insights.com if you have any questions

 

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