Silicon Photonics Market To Generate $8,475.1 Million Revenue by 2030

The silicon photonics market size is expected to advance at a CAGR of 27.5% during 2022–2030, to reach USD 8,475.1 million by 2030. This can be attributed to the increasing requirement for complementary metal-oxide semiconductor (CMOS)-integrated silicon photonics technology in data centers, the ever-rising demand for high-speed data transmission, and the surging focus on reducing power consumption of electronic devices.

Silicon is one of the most abundant elements, which is quite economical and also has applications in various integrated circuits (ICs) as well as transistors. Since silicon photonics aid in enabling, extending, and increasing data transmission whilst generating lesser heat than conventional electric-based circuits, their demand is on the rise.

Rising Deployment of High-Speed Network Technologies Drives the Industry

Globally, the need for transmitting data at a faster pace has risen significantly. Data in varied forms, such as image, audio, and video, is being generated in huge volume and users need an optimal infrastructure to store and transfer these data for running various applications and availing various services over the web itself. To transfer such data at a very high speed, the deployment of the latest network technologies such as 5G has picked up pace already.

China, South Korea, the U.K., and the U.S. are some of the major countries that are leading the 5G deployment. Telecommunication operators in these countries and some others have already started offering 5G network services and they are also working on the architectural and overall infrastructure development to support the efficient rollout of these services. The high-speed network services are being made available at no significant additional cost to users.

The rise in the demand for 5G network services is also indicative of the increasing need for data centers for data storage and other related high-computing services. Silicon photonics technology supports data transmission at a higher speed whilst consuming less power as compared to conventional electric circuits. Hence, the deployment of the latest high-speed network technologies is likely to propel the growth of the silicon photonics market in the coming years.

Lasers Category To Exhibit the Fastest Growth

The lasers category, based on component, is expected to exhibit the highest CAGR during the projection period. This can be because lasers form an important component of silicon photonic integrated circuits and aid in improving the overall utilization of photonic devices for data transmission. Also, lasers integrated with silicon photonics help in developing advanced technologies such as light detection and ranging (LiDAR), which has varied applications such as autonomous vehicles (self-driving cars, airplanes, and helicopters).

APAC Market To Exhibit Substantial Growth

The APAC market is expected to exhibit significant growth, progressing at a CAGR of 31%, during the projection period. This can be attributed to the rising adoption of 5G networks and the surging number of government schemes for supporting the semiconductor manufacturing industry by providing monetary aid, in the region. For instance, the Chinese government has lined up incentives for companies involved in semiconductor design as well as manufacturing, whereas the country’s first line for the production of multi-material as well as cross-size photonic chips is expected to be completed by this year.

Some of the major companies operating in the silicon photonics market are AIO Core Co Ltd., Broadcom Inc., Cisco Systems Inc., Coherent Corp, GlobalFoundries Inc., Hamamatsu Photonics K.K., Intel Corporation, MACOM Technology Solutions Inc., Marvell Technology Inc., NTT Advanced Technology Corporation, and Sicoya GmbH.