Silicon Photonics Market Research Report - Forecast till 2027

Silicon Photonics Market Research Report: By Product (Transceivers, Active Optical Cable, Optical Multiplexers, Variable Optical Attenuators, Optical Engines and others), By Component (Laser, Photodetector, Modulator, Micro-Optics (Micro Lens, Micromirror, Light Diffuser, Beam Shapers and others) and Passive Optic Components (Silicon Lens (Hemispherical, Plano-Convex and others), Optical Receptacles, AWG Terminals, Optical Isolators, Mux/Demux Modules, Micro-Optical Filters)), By End Users ( Consumer Electronics, IT & Telecommunication, Commercial, Military And Defense, Healthcare and Others), By Region (North America, Europe, Asia-Pacific, South America and the Middle East & Africa) - Forecast till 2027

ID: MRFR/SEM/2092-CR | November 2019 | Region: Global | 204 pages

Silicon Photonics Market Overview


The silicon photonics market is valued at USD 742.48 million in 2018, and it is expected to grow at a higher CAGR of 20.71% in the global market to account for a higher market share value of approximately USD 2518.59 million by the end of the forecasted period.


The technology in which data is transferred using light rays as a medium between different computer chips is called silicon photonics. This is because light carries more volumes of data as compared to conventional copper electrical conductors in less time. Moreover, for faster transmission of data over storage area networks (SANs), interconnections of optical fibers (in silicon photonics) in different datacenters are done. Semiconductor fabrication techniques are used for carrying silicon photonics.


COVID 19 Analysis


The global pandemic of COVID 19 has affected a large section of society. Most people have lost their livelihood because of this global pandemic. It has affected the growth and dynamics of several industries. Owing to the shortage of vaccines, everyone is concerned about their immunity and follows social distancing. The impact of COVID 19 was more or less neutral in silicon photonics as during the lockdown period production of various non-essential services were not in operation which resulted in the loss of sales revenue. Whereas during the lockdown situation most of the organizations switched towards online working and work from home which enabled them to use more technology-related software and applications. Silicon photonics being one of them created market demand.


However, the silicon photonics market is expected to recover from this global pandemic loss by the end of the third quarter of the coming year by properly strategizing according to the needs of the market.


Market Dynamics


Drivers


Various factors drive the demand for the silicon photonics market in the global market. This is an integration of electronics and photonics using silicon platform which fuels the capabilities of various microprocessors enabling them to run at low power and thus helps in saving the electricity cost. Moreover, it consists of data interconnect technology coupled with a next-generation communication system as it provides transmission over long distances with high data densities. For renewal of the electronics industry, it helps in accelerating the commercialization and development of silicon photonics.


Opportunities


The rise in demand for silicon photonics market in the global market. This is the most effective solution for acquiring data for measuring health status without actually hampering the complexity, sensitivity, low cost, and size of instrumentation which creates more growth opportunities in the global market. It also helps in solving the issue of reliable protocols, cost-effectiveness, and data transmission provides growth opportunities in the global market. In this modern technological era, optical fiber communication has replaced copper-based networking.


Restraints


Though the silicon photonics market is increasing at an incredible rate in the global market some factors restrict its growth. Lack of awareness regarding the technology coupled with a lack of expertise in technical departments in various emerging countries hampers the growth in the global market. Also, adopting silicon photonics for transmission of large becomes expensive for small and medium-sized enterprises which also restricts the market growth.


Value Chain Analysis


The silicon photonics market is increasing at an increasing rate in the global market owing to various benefits associated with it. Semiconductor fabrication techniques are used for carrying silicon photonics. It enables high-volume assembly, is low cost and enables the user transmission of 100 gigabits per second. Various nanophotonic components like filters and ring resonators are present in silicon photonics.


Market Segmentation


The silicon photonics market has been divided all across the globe based on product, component, end-users, and region.


Based on the Product


The silicon photonics market has been divided all across the globe based on the product into optical engines, variable optical attenuators, optical multiplexers, active optical cable, transceivers, and others.


Based on the Component


The silicon photonics market has been divided all across the globe based on the component into passive optic components (like micro-optical filters, mux/demux modules, optical isolators, AWG Terminals, optical receptacles, silicon lens such as plano-convex, and hemispherical), micro-optics (beam shapers, light diffuser, micromirror, microlens, and others), modulator, photodetector, and laser.


Based on the End-Users


The silicon photonics market has been divided all across the globe based on the end-users into the healthcare industry, military and defense industry, commercial industry, IT and Telecommunications industry, consumer electronics industry, and many others.


Based on the region


The silicon photonics market has been divided all across the globe based on the region into the North American region, European region, Asia-Pacific region, Latin American region, and the Middle East and African region.


Regional Analysis


The silicon photonics market has been divided all across the globe based on the region into North American region, European region, Asia-Pacific region, Latin American region, and the Middle East and African region. The largest market share in the silicon photonics market all across the globe is held by the North American region owing to the presence of well-established network infrastructure which drives the market demand in this region. Moreover, it is expected that this region will grow at a CAGR of 20.71% and it accounted for the higher market value of USD 272.69 million in 2018.


The second-largest market share in the silicon photonics market is held by the Asia-Pacific region owing to a sudden increase in remote surgeries and increasing development in the medical and healthcare industries. The presence of highly populated countries also acts as a contributing factor.


The third-largest market share in the silicon photonics market is held by the European region due to the presence of good infrastructure facilities. The high demand for optical fiber communication for faster transmission of data also drives the market demand.


The least market share in the silicon photonics market is held by the Latin American region and the Middle East and African region owing to low infrastructure in both these regions. Low per capita disposable income is another factor that restricts the market growth in these regions.


Competitive Landscape


The most prominent major key players in the silicon photonics market all across the globe are mentioned below:



  • DAS Photonics (Spain)

  • AIO Core Co. Ltd (Japan)

  • SICOYA (Germany)

  • NKT Photonics (Denmark)

  • IPG Photonics Corporation (US)

  • FLIR Systems (US)

  • Finisar Corporation (US)

  • STMicroelectronics NV (Switzerland)

  • Hamamatsu Photonics K.K (Japan)

  • Mellanox Technologies Ltd (Israel)

  • IBM Corporation (US)

  • Intel Corporation (US)

  • Cisco Systems Inc. (US)

  • Infinera Corporation (US)


These major key players use various strategies to sustain their market position in the silicon photonics market in the global market by going for mergers, and acquisitions, by collaborating, setting up a new joint venture, establishing a partnership, developing a new production process, developing a new product line, innovation in the existing product, and many others to expand their customer base in the untapped market of the silicon photonics all across the globe.


Recent Developments



  • In February 2018, a leader in optical transceivers and silicon photonics, Luxtera, Inc., has been acquired by Cisco Systems Inc. (US). It will help the company to cater to the increasing requirements for the webscale companies, service providers, enterprise data centers, and others.

  • In March 2018, the Input/Output (I/O) core commercial product line has been launched by AIO core Co. Ltd. This is an innovative optical engine silicon photonics specially designed for ultra-low transceivers and small-size

  • In September 2018, for meeting the increasing demand and requirements of new IoT applications coupled with new 5G use, Intel Corporation (US) has been increasing its silicon photonics transceivers portfolio.

  • In March 2019, a new facility has been set up and started whose extreme focus is towards testing of optical transceivers coupled with an assembly of optical transceivers and engines in China by Sicoya (Germany).


Report Overview


This global silicon photonics market research report consists of the following elements mentioned below:



  • Market Overview

  • COVID 19 Analysis

  • Market Dynamics

  • Value Chain Analysis

  • Market Segmentation

  • Regional Analysis

  • Competitive Landscape

  • Recent Developments


This market research report contains factors that drive the growth of the silicon photonics market in the global market along with the factors that restrict its growth in the global market. The technical analysis for the growth estimation during the forecasted period is mentioned. The impact of COVID 19 on the sales revenue of the silicon photonics market all across the globe is mentioned. The future growth rate in the silicon photonics market during the forecasted period is estimated and mentioned.



Report Scope:
Report Attribute/Metric Details
  Market Size   USD 2,518.59 Million
  CAGR   22.93%
  Base Year   2019
  Forecast Period   2020-2027
  Historical Data   2018
  Forecast Units   Value (USD Million)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   Product, Component, End Users
  Geographies Covered   North America, Europe, Asia-Pacific, and Rest of the World (RoW)
  Key Vendors   Infinera Corporation (US), Cisco Systems Inc. (US), Intel Corporation (US), IBM Corporation(US), Mellanox Technologies Ltd (Israel), Hamamatsu Photonics K.K (Japan), STMicroelectronics NV (Switzerland), Finisar Corporation (US), FLIR Systems (US), IPG Photonics Corporation (US), NKT Photonics (Denmark), SICOYA (Germany), AIO Core Co. Ltd (Japan), and DAS Photonics (Spain)
  Key Market Opportunities   Several companies are accelerating the development and commercialization of silicon photonics products for renewal of the electronics industry.
  Key Market Drivers

  • Rapidly growing internet traffic.
  • Declining bandwidth.


  • Frequently Asked Questions (FAQ) :


    The global silicon photonics market is slated to acquire a substantial market valuation of USD 1 billion by 2023.

    The global silicon photonics market is poised to mature at a striking CAGR of 22% over the review period (2017 to 2023).

    The noteworthy factors influencing the market growth of silicon photonics are the rapidly growing internet traffic and declining bandwidth is expected to fuel the growth of the market over the assessment period.

    One of the major restraining factors of the global silicon photonics market is the high consumption of power by external laser devices deployed for the production of photonic computers using silicon chips.

    North America region is estimated to lead the silicon photonics market over the review period with the largest market share.

    Asia-Pacific in the silicon photonics market is expected to acquire the fastest CAGR and significant market valuation over the review period.

    The major market players operatingg in the silicon photonics market are STMicroelectronics N.V. (Switzerland), Cisco Systems, Inc. (U.S.), Intel Corporation (U.S.), Das Photonics (Spain), IBM Corporation (U.S.), Luxtera Inc. (U.S.), among others.