Silicon Photonics Market with COVID-19 Impact Anlaysis 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
[155 Pages] The silicon photonics market is projected to grow from USD 1.0 billion in 2020 to USD 3.0 billion by 2025, growing at a CAGR of 23.4%. The increasing requirement for high bandwidth and high data transfer capabilities is the major factor propelling the growth of the silicon photonics market.
Silicon photonic transceivers expected to witness highest growth rate during forecast period
Silicon photonic transceivers are likely to exhibit the highest CAGR during 2020–2025, primarily due to their high integration density, which enables high-speed data transmission, as well as their ability to consume low power. 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.
Data center and high-performance computing application is expected to be fastest-growing market for silicon photonics during forecast period
Data centers are experiencing an exponential increase in data traffic due to the rise of cloud computing. Owing to technological advancements in high-performance computing, there would be an increasing adoption and integration of optics using silicon photonics. Microsoft Azure is using Intel’s silicon photonics for silicon photonics-based optical I/O modules that would target data communication at high speeds.
North America to lead silicon photonics market during forecast period
The market in North America is further segmented into the US, Canada, and Mexico. North America is expected to continue to command the silicon photonics market in the coming years by accounting for the largest market share because it is the hub of many technology companies and R&D establishments, thereby leading to prominent innovations and technological advancements; also, there is a huge and steady flow of monetary investment available for research-related activities from governments and venture capitalists.
Key market players
In 2019, CISCO (US), Intel (US), MACOM (US) dominated the global silicon photonics market.
Founded in 1984 and headquartered in California, US, CISCO is a global provider of networking products and solutions. The company is publicly listed on the NASDAQ Stock Exchange as CSCO. Its core business is designing, manufacturing, and selling Internet Protocol (IP)-based network products and services related to communication technologies and IT industries. CISCO operates through Infrastructure Platforms, Service, Applications, Security, and Other Products business segments. Its silicon photonic products are sold under the Infrastructure Platforms business segment. CISCO has earned a leadership position in the silicon photonics market with the acquisition of Acacia and Luxtera.
Intel was incorporated in 1968. The company is in the business of designing and developing technologies powering the cloud and the rapidly growing smart and connected world. The company has 9 manufacturing sites, of which 6 are wafer fabrication plants, and 3 are assembly/test facilities are located across the US, Ireland, Israel, China, Malaysia, and Vietnam. The company sells its silicon photonic products through its Data Center Group business segment. It primarily serves original equipment manufacturers, original design manufacturers, industrial and communication equipment manufacturers, and cloud service providers.
Other companies involved in the silicon photonics market are GlobalFoundries (US), NeoPhotonics (US), InPhi (US), Mellanox (US), II-VI Incorporated (US), and Rockley Photonics (US).
Report Scope:
|
Report Metric |
Details |
|
Years considered |
2020–2025 |
|
Base year |
2019 |
|
Forecast period |
2020–2025 |
|
Forecast value |
Value in USD |
|
Segments covered |
Product, component, application, and geography |
|
Regions covered |
North America, APAC, Europe, and RoW |
|
Companies covered |
CISCO (US), Intel (US), MACOM (US), GlobalFoundries (US), NeoPhotonics (US), InPhi (US), Mellanox (US), II-VI Incorporated (US), and Rockley Photonics (US), etc. |
In this report, the overall silicon photonics market has been segmented into products, components, applications, and geographies.
By Product:
- Transceivers
- Variable Optical Attenuators
- Switches
- Cables
- Sensors
By Component:
- Lasers
- Modulators
- Photo Detectors
By Application:
- Data Center and High-performance Computing
- Telecommunication
- Military, Defense, and Aerospace
- Medical and Life Science
- Sensing
Geographic Analysis
- North America
- US
- Canada
- Mexico
- Europe
- Germany
- UK
- France
- Italy
- Rest of Europe
- APAC
- China
- Japan
- South Korea
- Rest of APAC
- RoW
- South America
- Middle East and Africa
Recent Developments
- In July 2019, CISCO agreed to acquire Acacia, a provider of high-speed, optical interconnect technologies, for USD 2.6 billion, to fuel innovations across software, silicon, and optics, which will make networks simpler, smarter, and more secure.
- In February 2019, CISCO acquired Luxtera, a privately held semiconductor company, for USD 660 million to incorporate Luxtera’s technology into its networking products designed for enterprise, data center, and service provider markets.
- In September 2018, Intel expanded its portfolio of silicon photonic products by diversifying its applications from data centers to network edge. The new 100G silicon photonic transceivers offered by the company are optimized to meet the bandwidth requests of 5G infrastructure.
Critical questions:
- For which application silicon photonics technology will be in demand in the near future?
- Who are the top 3 players in the silicon photonics market?
- What would be the growth opportunities for manufacturers in various industries?
- What are the key industry trends in the market?
- How can key players tap high-growth opportunities in the silicon photonics application market?
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Four major activities have been conducted to estimate the size of the global silicon photonics market. Exhaustive secondary research has been conducted to collect information on the market. The findings, assumptions, and sizing have been validated with industry experts across the value chain through primary research. Both top-down and bottom-up approaches have been employed to estimate the overall market size. After that, the market breakdown and data triangulation techniques have been used to estimate the market size of segments and subsegments.
Secondary Research
In the secondary research process, various secondary sources have been referred to for identifying and collecting information important for this study. Secondary sources such as corporate filings (such as annual reports, investor presentations, and financial statements); trade, business, and professional associations; white papers and silicon photonics -related journals and certified publications; articles of recognized authors; gold- and silver-standard websites; directories; and databases have been used to identify and collect information for an extensive technical and commercial study of the silicon photonics market.
Primary Research
In the primary research process, primary sources from both the supply and demand sides have been interviewed to obtain qualitative and quantitative information relevant to this report. Primary sources, such as experts from related industries and suppliers, have been interviewed to obtain and verify critical information and assess prospects. Key players in the silicon photonics market have been identified through secondary research, and their respective market rankings have been determined through primary and secondary research. This research included studying annual reports of top market players and interviewing key opinion leaders such as CEOs, directors, and marketing personnel.
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
In the complete market engineering process, both top-down and bottom-up approaches have been implemented, along with several data triangulation methods, to estimate and validate the size of the silicon photonics market and other dependent submarkets listed in this report.
- Key players in the industry and markets have been identified through extensive secondary research.
- The industry’s supply chain and market size, in terms of value, have been determined through primary and secondary research.
- All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources.
Data Triangulation
After arriving at the overall market size, the total market has been split into several segments. To complete the overall market engineering process and arrive at the exact statistics for all segments, market breakdown and data triangulation procedures have been employed, wherever applicable. The data has been triangulated by studying various factors and trends from both the demand and supply sides. The market has also been validated using both top-down and bottom-up approaches.
Study Objectives:
- To define, describe, and forecast the silicon photonics market, by product, component, application, and region, in terms of value
- To forecast the market for various segments with regard to the following regions: North America, Europe, Asia Pacific (APAC), and Rest of the World (RoW), in terms of value
- To describe silicon photonic waveguide range
- To provide detailed information regarding drivers, restraints, opportunities, and industry-specific challenges influencing the growth of the silicon photonics market
- To strategically analyze micromarkets with respect to individual growth trends, prospects, and contributions to the overall market
- To strategically profile key players and comprehensively analyze their market position in terms of ranking and core competencies, and detail the competitive landscape for market leaders
- To analyze competitive developments such as investments, product launches, collaborations, agreements, joint ventures, partnerships, and acquisitions in the silicon photonics market
Available Customizations:
With the given market data, MarketsandMarkets offers customizations according to a company’s specific needs. The following customization options are available for the silicon photonics market report.
Company information:
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