Silicon Photonics Market Size, Share, Growth Analysis, By Component(Lasers, Modulators, Photo Detectors), By End-User(Healthcare, Consumer Electronics, Defense, telecom), By Product(Transceivers, Active Optical Cables, Optical Multiplexers, Variable Optical Attenuators), By Application(Data Centers & High Performance Computing, Telecommunications, Military, Defense & Aerospace), By Waveguide(400-1, 500 NM, 1, 310-1), By Component(Lasers, modulators, photo detectors), By Region - Industry Forecast 2024-2031


Report ID: SQSG45I2024 | Region: Global | Published Date: February, 2024
Pages: 157 |Tables: 181 |Figures: 79

Silicon Photonics Market Insights

Silicon Photonics Market size was valued at USD 1.19 billion in 2019 and is poised to grow from USD 1.9 billion in 2023 to USD 2.5 billion by 2031, growing at a CAGR of 2.6% in the forecast period (2024-2031).

The global silicon photonics market size is projected to grow at a significant CAGR during 2023 and 2030. Rising popularity of semiconductor devices and microchips in communication devices is projected to propel the market growth in the forecast period.

Silicon photonics is increasingly employed to transmit data between microchips using optical rays. Furthermore, when compared to electrical conductors, they are capable of delivering a significant amount of data in less time. According to the third edition of the European Union's Photonics report, the worldwide photonics industry is estimated to surpass US$ 990 billion in 2019, up from roughly US$ 600 billion in 2019.

Furthermore, cloud computing performance requirements for data centers, quickly increasing internet traffic, and shrinking Machinery & E bandwidth are all projected to fuel the silicon photonics market's growth. Moreover, the growing applications of silicon photonics, such as biomedical, autonomous vehicles, data transfer, telecoms, and artificial intelligence, will add to the market's expansion from 2023 to 2030.

US Silicon Photonics Market is poised to grow at a sustainable CAGR for the next forecast year.

Market Snapshot - 2024-2031

Global Market Size

USD 1.19 billion

Largest Segment

Lasers

Fastest Growth

Lasers

Growth Rate

2.6% CAGR

Global Silicon Photonics Market ($ Bn)
Country Share for Asia Pacific Region (%)

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Silicon Photonics Market Segmental Analysis

Global Silicon Photonics Market is segmented based on component, end use, product, application, waveguide, component, and region. Based on type, market is further sub-segmented into lasers, modulators, and photo detectors. Based on end user the market is further sub segmented into healthcare, consumer electronics, defense, telecom, and data communication. 

Based on product, market is segregated into transceivers, active optical cables, optical multiplexers, variable optical attenuators, and optical engines. Based on application, the market is segmented into data centers & high-performance computing, telecommunications, military, defense, & aerospace, medical & life science, and other applications. based on waveguide, the silicon photonics market is segmented into 400-1,500 nm, 1,310-1,550 nm, and 900-7000 nm. 

Based on component, the silicon photonics market is segmented into lasers, modulators, and photo detectors. Based on region the silicon photonics market is segmented into North America, Europe, Asia-Pacific, South America, and MEA.

Silicon Photonics Market Analysis by Component

The lasers segment had the largest market share, and this dominance is expected to continue during the projected period. The increased demand for hybrid silicon lasers which are used to address mass production issues in silicon lasers is related to the rise of segment.
In the forecast period, the modulators segment is likely to increase at a quicker rate. Modulators alter or vary the characteristics of light beams, such as their optical power or phase. A phase, polarization, or amplitude modulator is a type of optical modulator that is used to change various beam properties.

Silicon Photonics Market Analysis by Product

In the Silicon Photonics Market, the transceiver segment has the largest share. These are small devices that are utilized in optical communication systems to achieve high-speed performance. Transceivers are predicted to be employed in a variety of applications, and as a result, they are expected to increase at the fastest rate. They're used in data centers, high-performance computing, and telecommunications here. The leading silicon photonics businesses want to be able to transmit data at 100 gigabits per second. 

Global Silicon Photonics Market By Component

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Silicon Photonics Market Regional Insights

Asia Pacific accounted for the majority of revenue in the global silicon photonics market. The rising demand for high-speed internet networks and a larger prevalence of mobile devices across the region are two significant drivers driving regional growth. The expansion of the silicon photonics market in the region is being aided by recent technological advancements. Furthermore, market growth is likely to be boosted by positive government actions and the predominance of low-cost workforce/labor.

Furthermore, due to the increasing use of high-speed broadband networks, North America is likely to favor the silicon photonics market with a progressive CAGR during the forecasted years. Furthermore, the presence in the United States of prominent market companies such as Intel, IBM, and Cisco, among others, is expected to generate significant market growth potential.

Global Silicon Photonics Market By Region
  • Largest
  • Fastest

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Silicon Photonics Market Dynamics

Silicon Photonics Market Driver

The use of silicon photonics transceivers to reduce power consumption is becoming increasingly popular.

  • It is challenging to accommodate the ever-increasing demand for high-speed data transfer with traditional copper lines. The use of optical interconnects with silicon photonic transceivers solves the problem of spectral range limitations. Furthermore, silicon photonics-based components such as transceivers interconnect, and switches used in communication networks utilize less power. Companies like CISCO and Intel have developed optical switches that use very little power (0.6 mW) and have a switching speed of 6 ns. 
  • Traditional products rely on board-to-board and computer-to-computer integrations, but silicon photonic products rely on on-chip integration, which not only decreases product size but also lowers power consumption. Therefore, the need for high power data transfer semiconductors is expected to propel the market growth.

Silicon Photonics Market Restraint

  • Integration of on-chip lasers is complex : Because lasers produce pure light in terms of frequency and color, they are necessary for high-performance optical data transfer. On-chip or off-chip light sources are used in silicon photonics. An on-chip light source has a higher integration density and a smaller footprint than an off-chip light source, and it performs better in terms of energy efficiency and energy proportionality. 
  • Integrating laser sources on a silicon chip, on the other hand, is difficult because it adds to the complexity. Furthermore, different light sources have distinct light sources, making on-chip laser integration a difficult procedure that stymies market growth.

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Silicon Photonics Market Competitive Landscape

The biggest silicon photonics businesses are concentrating their efforts on technology development and research to minimize power consumption even more. The top players in the market are also involved in information sharing as well as mergers and acquisitions.

Silicon Photonics Market Top Player's Company Profiles

  • Cisco Systems, Inc.
  • Intel Corporation
  • IBM Corporation
  • Mellanox Technologies Ltd.
  • Hamamatsu Photonics K.K.
  • Infinera Corporation
  • NeoPhotonics Corporation
  • Luxtera, Inc.
  • Finisar Corporation
  • STMicroelectronics N.V.
  • Juniper Networks, Inc.
  • Applied Optoelectronics, Inc.
  • Ciena Corporation
  • Huawei Technologies Co., Ltd.
  • Fujitsu Limited
  • Acacia Communications, Inc.
  • Rockley Photonics, Inc.
  • Broadcom Inc.
  • MACOM Technology Solutions Holdings, Inc.
  • Corning Incorporated

Silicon Photonics Market Recent Developments

  • In January 2022, Researchers from Princeton Lightwave Lab and NEC Laboratory America constructed a real-time neural network on an integrated photonic chip using silicon photonics in 2022. This could enable Trans-Pacific transmission link of up to 10,000 km and help overcome fiber nonlinearity's negative impacts. This is a great example of how photonics surpasses electronics in artificial intelligence applications.
  • In December 2021, the world's first open silicon photonics (Sipho) foundry-ready process with integrated III-V lasers, amplifiers, and modulators. The platform was created in collaboration with networking giant Juniper Networks for optical connectivity in data centers and telecom networks, as well as new emergent applications in AI, LiDAR, and other sensors for self-driving cars. III-V lasers, semiconductor optical amplifiers (SOA), electro-absorption modulators (EAM), and photodetectors are all monolithically integrated with silicon photonics devices on the platform. This allows for smaller, higher-channel-count optical designs and solutions with lower power consumption. The availability of foundries will allow a wide range of product developers to produce highly integrated photonic integrated circuits (PICs) for a variety of applications.

Silicon Photonics Key Market Trends

  • Use of Hybrid Silicon Lasers: One of the key trends in the silicon photonics market is the usage of hybrid silicon lasers (silicon and group III-V semiconductor) to solve mass-production problems in silicon lasers. To produce electrically driven lasers on a silicon wafer that can be incorporated into other silicon photonic devices, the hybrid technique takes advantage of the light-emitting capabilities of III-V semiconductor materials combined with the process maturity of silicon.
  • Growing demand for high-speed data transfer: Silicon photonics offer hig-speed data transfer between machines. These are used in communication devices for long-range communication. As communication technologies are advancing, the technology for high-speed data transfers is growing widely.

Silicon Photonics Market SkyQuest Analysis

SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyzes the Data collected utilizing Primary Exploratory Research backed by the robust Secondary Desk research.

According to the global silicon photonics market report analysis, modulators currently dominate the Global Silicon Photonics Market. Asia Pacific is expected to dominate the global silicon photonics market, over the forecast period. Along with this, the increase in demand for silicon photonics transceivers and increased efficiency have emerged as major trends in this market.

Report Metric Details
Market size value in 2019 USD 1.19 billion
Market size value in 2031 USD 2.5 billion
Growth Rate 2.6%
Base year 2023
Forecast period 2024-2031
Forecast Unit (Value) USD Billion
Segments covered
  • Component
    • Lasers, Modulators, Photo Detectors
  • End-User
    • Healthcare, Consumer Electronics, Defense, telecom, Data Communication
  • Product
    • Transceivers, Active Optical Cables, Optical Multiplexers, Variable Optical Attenuators, Optical Engines
  • Application
    • Data Centers & High Performance Computing, Telecommunications, Military, Defense & Aerospace, Medical & Life Science, Other Applications
  • Waveguide
    • 400-1, 500 NM, 1, 310-1, 550 NM, 900-7000 NM
  • Component
    • Lasers, modulators, photo detectors
Regions covered North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA)
Companies covered
  • Cisco Systems, Inc.
  • Intel Corporation
  • IBM Corporation
  • Mellanox Technologies Ltd.
  • Hamamatsu Photonics K.K.
  • Infinera Corporation
  • NeoPhotonics Corporation
  • Luxtera, Inc.
  • Finisar Corporation
  • STMicroelectronics N.V.
  • Juniper Networks, Inc.
  • Applied Optoelectronics, Inc.
  • Ciena Corporation
  • Huawei Technologies Co., Ltd.
  • Fujitsu Limited
  • Acacia Communications, Inc.
  • Rockley Photonics, Inc.
  • Broadcom Inc.
  • MACOM Technology Solutions Holdings, Inc.
  • Corning Incorporated
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Table Of Content

Executive Summary

Market overview

  • Exhibit: Executive Summary – Chart on Market Overview
  • Exhibit: Executive Summary – Data Table on Market Overview
  • Exhibit: Executive Summary – Chart on Silicon Photonics Market Characteristics
  • Exhibit: Executive Summary – Chart on Market by Geography
  • Exhibit: Executive Summary – Chart on Market Segmentation
  • Exhibit: Executive Summary – Chart on Incremental Growth
  • Exhibit: Executive Summary – Data Table on Incremental Growth
  • Exhibit: Executive Summary – Chart on Vendor Market Positioning

Parent Market Analysis

Market overview

Market size

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • SWOT Analysis

KEY MARKET INSIGHTS

  • Technology Analysis
    • (Exhibit: Data Table: Name of technology and details)
  • Pricing Analysis
    • (Exhibit: Data Table: Name of technology and pricing details)
  • Supply Chain Analysis
    • (Exhibit: Detailed Supply Chain Presentation)
  • Value Chain Analysis
    • (Exhibit: Detailed Value Chain Presentation)
  • Ecosystem Of the Market
    • Exhibit: Parent Market Ecosystem Market Analysis
    • Exhibit: Market Characteristics of Parent Market
  • IP Analysis
    • (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
  • Trade Analysis
    • (Exhibit: Data Table: Import and Export data details)
  • Startup Analysis
    • (Exhibit: Data Table: Emerging startups details)
  • Raw Material Analysis
    • (Exhibit: Data Table: Mapping of key raw materials)
  • Innovation Matrix
    • (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
  • Pipeline product Analysis
    • (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
  • Macroeconomic Indicators

COVID IMPACT

  • Introduction
  • Impact On Economy—scenario Assessment
    • Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
  • Revised Market Size
    • Exhibit: Data Table on Silicon Photonics Market size and forecast 2021-2027 ($ million)
  • Impact Of COVID On Key Segments
    • Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
  • COVID Strategies By Company
    • Exhibit: Analysis on key strategies adopted by companies

MARKET DYNAMICS & OUTLOOK

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • Regulatory Landscape
    • Exhibit: Data Table on regulation from different region
  • SWOT Analysis
  • Porters Analysis
    • Competitive rivalry
      • Exhibit: Competitive rivalry Impact of key factors, 2021
    • Threat of substitute products
      • Exhibit: Threat of Substitute Products Impact of key factors, 2021
    • Bargaining power of buyers
      • Exhibit: buyers bargaining power Impact of key factors, 2021
    • Threat of new entrants
      • Exhibit: Threat of new entrants Impact of key factors, 2021
    • Bargaining power of suppliers
      • Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
  • Skyquest special insights on future disruptions
    • Political Impact
    • Economic impact
    • Social Impact
    • Technical Impact
    • Environmental Impact
    • Legal Impact

Market Size by Region

  • Chart on Market share by geography 2021-2027 (%)
  • Data Table on Market share by geography 2021-2027(%)
  • North America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • USA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Canada
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Europe
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Germany
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Spain
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • France
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • UK
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Europe
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Asia Pacific
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • China
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • India
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Japan
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Korea
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Asia Pacific
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Latin America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Brazil
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of South America
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Middle East & Africa (MEA)
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • GCC Countries
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Africa
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of MEA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)

KEY COMPANY PROFILES

  • Competitive Landscape
    • Total number of companies covered
      • Exhibit: companies covered in the report, 2021
    • Top companies market positioning
      • Exhibit: company positioning matrix, 2021
    • Top companies market Share
      • Exhibit: Pie chart analysis on company market share, 2021(%)

Methodology

For the Silicon Photonics Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:

1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.

2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Silicon Photonics Market.

3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.

4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.

Analyst Support

Customization Options

With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Silicon Photonics Market:

Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.

Regional Analysis: Further analysis of the Silicon Photonics Market for additional countries.

Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.

Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.

Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.

Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.

Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.

Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.

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FAQs

Silicon Photonics Market size was valued at USD 1.19 billion in 2019 and is poised to grow from USD 1.9 billion in 2023 to USD 2.5 billion by 2031, growing at a CAGR of 2.6% in the forecast period (2024-2031).

The biggest silicon photonics businesses are concentrating their efforts on technology development and research to minimize power consumption even more. The top players in the market are also involved in information sharing as well as mergers and acquisitions. 'Cisco Systems, Inc.', 'Intel Corporation', 'IBM Corporation', 'Mellanox Technologies Ltd.', 'Hamamatsu Photonics K.K.', 'Infinera Corporation', 'NeoPhotonics Corporation', 'Luxtera, Inc.', 'Finisar Corporation', 'STMicroelectronics N.V.', 'Juniper Networks, Inc.', 'Applied Optoelectronics, Inc.', 'Ciena Corporation', 'Huawei Technologies Co., Ltd.', 'Fujitsu Limited', 'Acacia Communications, Inc.', 'Rockley Photonics, Inc.', 'Broadcom Inc.', 'MACOM Technology Solutions Holdings, Inc.', 'Corning Incorporated'

It is challenging to accommodate the ever-increasing demand for high-speed data transfer with traditional copper lines. The use of optical interconnects with silicon photonic transceivers solves the problem of spectral range limitations. Furthermore, silicon photonics-based components such as transceivers interconnect, and switches used in communication networks utilize less power. Companies like CISCO and Intel have developed optical switches that use very little power (0.6 mW) and have a switching speed of 6 ns. 

Use of Hybrid Silicon Lasers: One of the key trends in the silicon photonics market is the usage of hybrid silicon lasers (silicon and group III-V semiconductor) to solve mass-production problems in silicon lasers. To produce electrically driven lasers on a silicon wafer that can be incorporated into other silicon photonic devices, the hybrid technique takes advantage of the light-emitting capabilities of III-V semiconductor materials combined with the process maturity of silicon.

Asia Pacific accounted for the majority of revenue in the global silicon photonics market. The rising demand for high-speed internet networks and a larger prevalence of mobile devices across the region are two significant drivers driving regional growth. The expansion of the silicon photonics market in the region is being aided by recent technological advancements. Furthermore, market growth is likely to be boosted by positive government actions and the predominance of low-cost workforce/labor.

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