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Key Emerging Trends In Silicon Photonics Market

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By Author: Marketsandmarkets
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According to the new market research report on the "Silicon Photonics Market with COVID-19 Impact, by Product (Transceivers, Switches, Variable Optical Attenuators, Cables, Sensors), Application (Data Center, Telecommunication, Military & Defense, Life Sciences, Sensing), Component, and Geography - Global Forecast to 2025", The silicon photonics market is projected to grow from USD 1.0 billion in 2020 to USD 3.0 billion by 2025, growing at a CAGR of 23.4%. The growing requirement for high bandwidth and high data transfer capabilities is the key factor that drives the growth of the silicon photonics market.

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“Silicon photonic transceivers are expected to lead market during forecast period”

Transceivers are used in a variety of applications, such as high-performance computing, data centers, and telecommunications, with the growing demand for high-speed data rate transmission in data centers.
With major technological advancements in silicon photonics, it is possible to transfer the data at a speed of up to 400 Gbps. Intel’s 100G PSM4 QSFP28 optical transceiver is capable of sending data at a speed of 100 Gbps. The rapid spread of the COVID-19 pandemic will lead to a decrease in the sales of silicon photonic devices in 2020. However, a quick jump is expected in the sales of silicon photonic products in 2021, primarily to fulfill the pending requirements of 2020.

“Data center and high-performance computing application is expected to witness highest growth rate during forecast period”

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.

“North America to be largest market for silicon photonics during forecast period”

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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Major companies involved in the development and supply of silicon photonics include CISCO (US), Intel (US), MACOM (US), GlobalFoundries (US), NeoPhotonics (US), InPhi (US), Mellanox (US), II-VI Incorporated (US), and Rockley Photonics (US).

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