SILICON PHOTONICS MARKET ANALYSIS

Silicon Photonics MarketSize and Trends

The global silicon photonics market size was valued at US$ 1,584.8 million in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 23.03% from 2023 to 2030. One of the drivers driving the growth of global Silicon Photonics market is the increased use of cloud-based services, which require a high-speed data transmission. Moreover, the increasing adoption of 5G technologies is also a major factor driving growth of the market. The rising demand for miniaturized electronic devices also drives the market for silicon photonics. 

Figure 1: Global Silicon Photonics Market Share (%), By Region, 2022

Global Silicon Photonics Market Segmentation:

The global silicon photonics market report is segmented into Application

Based on Application, the market is segmented into Data Center, Telecommunications, and Other Applications. Out of which, Data Center is expected to dominate the global market over the forecast period and this is attributed to the various benefits of using silicon photonics in data centers, such as, reduction in cost, passive components that offer low consumption of energy, and increased capacity. Silicon photonics are mainly utilized in high-bandwidth optical transceivers, and their demand in this application is increasing for gaining impetus in order to support increasing high-performance computing applications as well as larger size of data centers. Thus, the segment is likely to show substantial growth in the global market, over the forecast future.

Telecommunications segment is also expected to witness significant growth in the near future and this is owing to the rise in demand for smartphone products penetrating the global telecommunication sector. Novel technologies in silicon photonics are driving the demand for telecommunication industries, and are enhancing the performance of existing fixed and mobile infrastructures. Hence, the segment is likely to grow with rapid pace in the global silicon photonics market.

*Definition: Silicon Photonics combines the elements of optics with those of electronic circuits. Photons (light particles) are coupled to electrons in a semiconductor, and the resulting quantum-mechanical interactions generate electric signals. These can be amplified and used for data transmission, signal processing, and control.