Silicon Photonics Market Size, Share, Growth Analysis, By Component(Lasers, Modulators), By End-User(Healthcare, Consumer Electronics), By Product(Transceivers, Active Optical Cables), By Application(Data Centers & High Performance Computing, Telecommunications), By Waveguide(400-1, 500 NM), By Component(Lasers, modulators) - Industry Forecast 2024-2031

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 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.

Silicon Photonics Market size was valued at USD 1.19 billion in 2021 and is poised to grow from USD 1.9 billion in 2022 to USD 2.5 billion by 2030, growing at a CAGR of 2.6% in the forecast period (2023-2030).

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 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.