Silicon Photonics Market to Witness Five Fold Expansion in Next 5-6 Years
The global silicon photonics market is growing at a high CAGR because of the rising demand for faster data transfer, along with rising technological advancements to boost the processing capabilities of data centers and electronic devices?
A recent study conducted by the strategic consulting and market research firm, BlueWeave Consulting, revealed that the global silicon photonics market was worth USD 1.1 billion in the year 2021. According to the study, the market is poised to grow at a CAGR of over 26%, with revenues reaching USD 5.9 billion by 2028. The growth of the silicon photonics market is attributable to the rising demand for faster data transfer, along with rising technological advancements to boost the processing capabilities of data centers and electronic devices. Furthermore, expanding investment in research and development activities by manufacturers as well as research institutes in silicon photonic technologies is anticipated to present lucrative growth opportunities to the global silicon photonics market during the forecast period.
Expanding Integration Of 5G Technologies Driving the Global Silicon Photonics Market Growth
The rising investment in the adoption of 5G technologies is emerging as a major driving factor for the growth of the global silicon photonics market. The introduction of 5G technologies, coupled with the increasing penetration of smartphones and other devices is projected to boost internet traffic and influence the launch of new services that will require very low latency. This is anticipated to fuel the demand for the application transport network capable of handling such large volumes of data, which is projected to influence the growth of the silicon photonics market during the forecast period.
Global Silicon Photonics Market - By Waveguide
Based on waveguides, the global silicon photonics market is segmented into 400–1,500 NM, 1,310–1,550 NM, and 900–7,000 NM. The 400-1,500 range accounts for the largest market share. This range of wavelength allows “easy integration with silicon electronics, high index contrast, small footprint, and low cost, along with optical transparency in the near-infrared and parts of mid-infrared wavelengths (MIR)”, according to a report published on Optica Publishing. This acts as a favorable factor for the growth of this waveguide range.
Global Silicon Photonics Market - By Application
Based on applications, the global silicon photonics market is categorized into the data center and high-performance computing, telecommunication, military, defense, aerospace, medical and life sciences, and others. Among these, the telecommunication segment accounts for the largest market share. According to a report published in Frontiers Media, silicon photonics are prominently used in fiber optics telecommunications to create transmitters and receivers. Therefore, with the increasing production of communication devices such as smartphones, along with the penetration of new technologies such as 5G, 4G/LTE, etc., the demand for silicon photonics is projected to surge during the forecast period.
Global Silicon Photonics Market - Regional Insights
Geographically, the silicon photonics market is segmented into North America, Europe, Asia-Pacific, Latin America, Middle-East & Africa. The Asia-Pacific region is dominating the silicon photonics market. However, North America is also anticipated to register substantial growth during the forecast period. The high concentration of leading market players is contributing to technological advancements and innovations in silicon photonics in this region. Furthermore, increasing sanction of 5G technologies in developed countries such as the United States is also playing a crucial role in driving the overall market growth.
Impact of COVID-19 on the Global Silicon Photonics Market
The COVID-19 pandemic has had a negative impact on the global silicon photonics market. The restrictions on the manufacturing and production activities of electronic devices, along with disruptions in supply and distribution chains due to lockdown imposition in various countries hindered the operations of the silicon photonics market as well. Furthermore, the social distancing norms also resulted in obstruction in the research and development activities, which is anticipated to impact the market growth in the long run. However, the market is slowly recovering in the post-lockdown period as manufacturing operations are resuming in various regions.
Global Silicon Photonics Market - Competitive Landscape
The leading players in the global silicon photonics market are Thorlabs, Inc., Abrisa Technologies, TOPTICA Photonics AG, Precision Optical, Vescent Photonics, Esco Optics, Advanced Optowave Corporation, Hamamatsu Photonics KK, Carl Zeiss AG (Scantinel Photonics GmbH), Intel Corporation, Schott AG, Polatis Photonics Inc., Philips Photonics, Alcatel-Lucent SA, Molex Inc., IPG Photonics, NEC Corporation, Infinera Corporation, Finisar Corporation, and other prominent players.
The global silicon photonics market is highly fragmented due to the presence of several global as well as regional market players. The companies often launch new products to gain a competitive edge besides significantly investing in research and development activities to improve their innovative offerings. They also constantly adopt market strategies, such as partnerships, mergers, acquisitions, joint ventures, etc., to establish themselves as a leading industry player.
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The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of the global silicon photonics market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends of the global silicon photonics market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the market.