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Silicon Photonics Market With Covid-19 Impact, By Product And Application Forecast To 2025

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By Author: Marketsandmarkets
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The silicon photonics market is projected to grow from USD 1.0 billion in 2020 to USD 3.0 billion by 2025, at a CAGR of 23.4%. The silicon photonics market has been segmented based on product, component, application, and geography. Factors accelerating the growth of the silicon photonics market are the rising demand for CMOS-integrated silicon photonics technology in data centers, the growing focus on reducing power consumption using silicon photonic transceivers, the increasing requirement for high bandwidth and high data transfer capabilities, and the surging demand for high-speed broadband services. Increasing government and stakeholder funding, growing deployment of 5G networks, emerging applications of silicon photonics, and surging utilization of silicon photonics technology in short-reach communication provide lucrative opportunities to the silicon photonics market.

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Data centers are experiencing an exponential increase in data traffic due to the rise of cloud computing. Owing to technological advancements in high-performance ...
... computing, there would be an increasing adoption and integration of optics using silicon photonics. Microsoft Azure is using Intel’s silicon photonics for silicon photonics-based optical I/O modules that would target data communication at high speeds. The silicon photonics market is growing at a faster rate because the technology finds several applications in the computing industry across several countries. This market is expected to witness high growth owing to the increasing R&D investment by silicon photonic companies toward the development of this technology and the growing demand for MXC connectors, photonic-integrated circuits, silicon optics, etc. across the world.

Silicon photonic transceivers are expected to be the fastest-growing products during 2020–2025, primarily due to the reduced power consumption and high integration density of these transceivers, which enable high-speed data transmission. Further, these transceivers can be upgraded to handle higher capacity bandwidth, thereby enabling optical modules to handle the data center network speed of up to 100 Gbps, 400 Gbps, and beyond.

Optical interconnects developed using silicon photonics technology have been widely recognized as potential solutions to transmit data at high rates. Higher data transfer rates and higher interconnection densities with lower system-level power dissipations could be obtained using photons as the medium to detect, process, and transmit information. This high data transfer rate and high interconnection densities of lasers in silicon photonics are propelling the growth of the market for laser components.

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The market in North America is further segmented into the US, Canada, and Mexico. North America is expected to continue to command the silicon photonics market in the coming years by accounting for the largest market share because it is the hub of many technology companies and R&D establishments, thereby leading to prominent innovations and technological advancements; also, there is a huge and steady flow of monetary investment available for research-related activities from governments and venture capitalists.

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