DUBLIN--(BUSINESS WIRE)--The "Silicon Photonics Market with COVID-19 Impact, by Product (Transceivers, Switches, Variable Optical Attenuators, Cables, Sensors), Application (Data Center, Telecommunication, Military & Defense, Life Sciences, Sensing), Component, and Geography - Global Forecast to 2025" report has been added to ResearchAndMarkets.com's offering.
The silicon photonics market was valued at USD 374 million in 2019 and is projected to reach USD 1,132 million by 2025; it is expected to grow at a CAGR of 23.4% during the forecast period.
Factors accelerating the growth of the silicon photonics market are the rising demand for CMOS-integrated silicon photonics technology in data centers, the growing focus on reducing power consumption using silicon photonic transceivers, the increasing requirement for high bandwidth and high data transfer capabilities, and the surging demand for high-speed broadband services. Increasing government and stakeholder funding, growing deployment of 5G networks, emerging applications of silicon photonics, and surging utilization of silicon photonics technology in short-reach communication provide lucrative opportunities to the silicon photonics market.
Silicon photonic transceivers expected to lead the market during the forecast period
Silicon photonic transceivers are expected to lead the silicon photonics market during 2020-2025, primarily due to the reduced power consumption and high integration density of these transceivers, which enable high-speed data transmission. Further, these transceivers can be upgraded to handle higher capacity bandwidth, thereby enabling optical modules to handle the data center network speed of up to 100 Gbps, 400 Gbps, and beyond. Additionally, the growing adoption of silicon photonic transceivers in data centers is another primary factor for the leading position of these transceivers in the silicon photonics market during the forecast period. For instance, Alibaba Cloud will be using 400G DR4 optical transceivers to support its next-generation data center network.
Laser components are expected to witness the highest growth rate during the forecast period
Hybrid silicon lasers (silicon and group III-V semiconductor) are used to overcome mass-production issues in silicon lasers. The hybrid approach takes advantage of the light-emitting properties of III-V semiconductor materials combined with the process maturity of silicon to fabricate electrically driven lasers on a silicon wafer that can be integrated into other silicon photonic devices. Intel is working on hybrid silicon lasers with indium phosphide-based materials and other compound semiconductor materials.
APAC to be the fastest-growing market for silicon photonics during the forecast period
The market in APAC has been segmented into China, Japan, South Korea, and Rest of APAC. The market in Rest of APAC mainly includes Australia, New Zealand, India, Singapore, Malaysia, the Philippines, and Taiwan. China, Japan, and South Korea are the major contributors to the market. Growing population, increasing investments toward the development of silicon photonic products, rising focus of international and domestic players on the development of modern silicon photonic products, and increasing R&D activities to increase the data transmission rate in the region also fuel market growth.
Market Dynamics
Drivers
- Rising Demand for Cmos-Integrated Silicon Photonics Technology in Data Centers
- Growing Focus on Reducing Power Consumption Using Silicon Photonic Transceivers
- Increasing Requirement for High Bandwidth and High Data Transfer Capabilities
- Surging Demand for High-Speed Broadband Services
Restraints
- Risk of Thermal Effect
- Complexity in Integration of On-Chip Laser
Opportunities
- Increasing Government and Stakeholder Funding
- Growing Deployment of 5G Networks
- Emerging Applications of Silicon Photonics
- Surging Utilization of Silicon Photonics Technology in Short-Reach Communication
Challenges
- Embedding Silicon Photonic Components into Small Circuits
- Inefficient Electroluminescence of Bulk Crystalline Silicon
Companies Profiled
- Cisco
- Intel
- Macom
- Globalfoundries
- Neophotonics
- Inphi
- Mellanox
- Ii-Vi Incorporated
- IBM
- STMicroelectronics
- Rockley Photonics
- Sicoya
- Lumentum
- Ranovus
- Broadcom
For more information about this report visit https://www.researchandmarkets.com/r/peb6u7
