Market Challenges And Opportunities

Global Silicon Photonics Market Drivers:

Reduced power consumption offered by silicon photonics-based transceivers to boost market growth

The use of silicon photonic optical transceivers majorly require the reliability of a laser source. On the other hand integration of reliable light sources is a complicated part of silicon photonic optical transceivers. The three basic alternatives for optical sources are an integrated laser, a board-mounted sources, which is external to the transceiver, and a front-pluggable laser. The laser has to be incorporated onto or into the silicon transceiver device for reducing consumption of power as well as reducing the cost. These benefits of silicon photonics based transceivers are boosting the demand these devices, which in turn is expected to augment growth of the global silicon photonics market over the forecast period.

Increasing need for high-speed connectivity and high data transfer capabilities in data centers to drive the market growth

Due to continuous penetration of the 200GbE and 400GbE switch ports, funds injected into the market are increasing continuously. Major players, such as Microsoft and Amazon are focusing on adoption of 200Gbps technology and 400GbE for adoption of next-generation data center in the U.S. As the use of better switches offers faster speeds of data transfer, network connection technologies, such as Ethernet switches are becoming a priority of market vendors. These factors are therefore anticipated to propel growth of the global silicon photonics market over the forecast period.

Global Silicon Photonics Market Opportunities:

Growing emphasis on healthcare and data communication services is anticipated to create growth opportunities in the global silicon photonics market over the forecast period. The silicon photonics industry is transforming from conventional approaches to focusing on incorporation of innovative and advanced technologies in order for ensuring better operation levels. The product design and manufacturing processes in the industry are thus witnessing continuous innovations as companies are finding newest industrial solutions for attracting consumer as well as to ease business operations.

Increasingly advancing communication technology and need for cross-industrial applications are also expected to generate business opportunities in the global silicon photonics market during the forecast period. Over the past few years, the integration complexity and implementation of photonic component has enhanced as well as broadened majorly. Due to this, the research and commercialization of silicon photonics is increasing. It supports several applications including, telecom, datacom, and sensors such as light detection and ranging (LIDAR), spectrometers, biosensors, and gyroscopes, among others. This is in turn is likely to benefit the players in the global market.

Global Silicon Photonics Market Restraints:

Risk of thermal heat to restrain growth of the market

In applications of silicon photonics, different noise sources and heat can hinder optical communications, which pushes light into frequencies that are generally filtered out. Until these filters are modified, there is a risk of losing data, and the reconstruction could be complicated in the case of streaming data. Moreover, modern data centers have smaller footprints, yet immense computational capabilities. Due to this, keeping the data centers cool becomes a major challenge, which could case higher heat dissipation. Thus, the risk of thermal heat is one of the major factors expected to hamper growth of the global silicon photonics market over the forecast period. However, growing innovation of novel technologies with lesser risk of thermal heating to support the market growth.

Complexity of integrating on-chip laser to limit the market growth

Lasers are capable of creating pure light in terms of color and frequency, due to which lasers are needed for high-performance optical data transmission. Silicon photonics make use of either on-chip or off-chip light sources. However, integration of laser sources on any silicon chip is a complicated process, which adds into the complexity of the whole integration procedure of on-chip lasers. Thus, this factor in turn is likely to hinder growth of the global silicon photonics market over the forecast period.