The silicon photonics market has been earmarked to record a remunerative period of growth in the coming years owing to its applications across a number of high-revenue industries like telecommunication, data center, commercial, and medical among others. Silicon photonics is a growing technology wherein data is generally transferred between computer chips through the optical rays.

These rays are capable of carrying significantly more amount of data in a less amount of time than the conventional electrical conductors. The use of optical fiber is increasing to overcome the restriction of copper in networking and SANs and support faster connections among datacenters.

The next performance threshold is the connectedness between processors and chips. The concept comprises of integrating the silicon technology and laser on the same chip. The more effectual application of technology might boost the power of computers and the processing speed significantly.

The silicon photonics technology utilizes lasers so as to transfer the data into light pulses. Usually, a multiplexer incorporates the pulses into a single signal, further travelling throughout a optic fiber to a silicon receiver wherein the de-multiplexers would divide the signal back into different channels. Following which photodetectors can then turn the light back into data.

Integrating the silicon-based photonic devices, may electrically pump silicon amplifiers and lasers, and is likely to lead to much cheaper and smaller devices, thus making available a range of applications which might have not been possible due to high cost.

Silicon photonics market is bifurcated in terms of product, component, application, and regional landscape.

Based on product, the market is classified into sensor, cable, switch, variable optical attenuator, and transceivers. The switch product segment will witness growth owing to the growing adoption in data centers for high bisection bandwidth.

In terms of component, the market is segmented into photodetector, waveguide, filter, passive, photodetector, modulator, laser, active, and others. The photodetector component segment is likely to witness growth over the projected time period with the growing adoption in photonics integrated circuit for low dark current, high efficiency, and bandwidth.

With respect to application, the market is categorized into telecommunication, data center & HPC, medical, and others. The others segment observed a market growth share of nearly 5% in 2019 due to the increasing R&D activities to integrate silicon photonics in automotive applications.

From a regional frame of reference, the LAMEA silicon photonics market witnessed a market growth rate of nearly 20% in 2019 due to rising 5G deployment in the region.