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Silicon Photonics Market Regional Trend & Analysis | Global Industry Report 2025

01-17-2020 06:55 PM CET | Business, Economy, Finances, Banking & Insurance

Press release from: Global Market Research

Silicon Photonics Market

Silicon Photonics Market

By application segmentation, silicon photonics market includes telecommunications, defense, medical & life sciences, military, data center & high-performance computing, and sensing. The data center & high-performance computing segment is projected to dominate the industry owing to the increase in data traffic and technological advancements in data centers. There is a growth in the implementation of optics using silicon photonics. The increasing investments in the improvement of data transmission technologies and the high funding for the development of advanced defense technologies are driving the demand in the defense and government sector.

The segmentation of the silicon photonics market by component comprises photodetectors, modulators, and lasers. The market for laser components is projected to grow at a high rate owing to their applications in data centers and telecommunications. The use of lasers in silicon photonics ensures high optical power, wide operating temperature range, and spectral purity. Increasing focus of companies, such as Intel on hybrid silicon lasers, on the development of such technologies is anticipated to boost the laser silicon photonics industry.

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Silicon photonics market players are required to develop their own computer-aided design or computer-aided engineering software to develop these components, which escalates the initial manufacturing costs. Thermal effect issues that hamper the performance of devices coupled with high initial costs are further hampering the industry growth. The availability of substitute technologies such as Vertical-Cavity Surface Emitting Laser (VCSEL) that increases the data speed and improves the efficiency is anticipated to hamper silicon photonics market growth.

Rapid industrialization in emerging countries owing to the availability of low-cost resources, such as labor and raw materials, is leading to the strong growth in the number of businesses in emerging economies. This is placing a high focus on silicon photonics market players developing data centers with enhanced features to satisfy the increasing data requirements. Additionally, there is an increasing need for enhanced energy-efficient data storage techniques. Rising need for fast data transfer speeds, the need for enhanced computational and processing capabilities, and the increasing requirements for low-power consumption devices are anticipated to provide attractive growth opportunities for the silicon photonics industry.

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Countries across Europe and North America are the principal markets for silicon photonics market as there is a high level of advanced technology implementation in these countries. For instance, in December 2017, the USD 10 million EU PASSION project was initiated by 12 partners to develop photonic technologies supporting the development of the future metropolitan communications network. Asia Pacific is expected to witness the highest growth over the forecast time span owing to the increase in the number of data centers. Emerging economies in Asia Pacific including China, India, and Japan are concentrating on adopting advanced technologies in electronics for the miniaturization of circuits and the reduction of energy consumption.

Key players in the silicon photonics market include Juniper, Hamamatsu, STMicroelectronics, Intel, Cisco, Acacia, Broadcom, Finisar Corporation, IBM Corporation, Mellanox Technologies, Texas Instruments, Teraxion, Oracle Corporation, and 3S Photonics. The compatibility of the technology with the prevailing fabrication techniques is making major players in the region to adopt silicon photonics technology.

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Arun Hegde
Corporate Sales, USA
Global Market Insights, Inc.
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About Global Market Insights:
Global Market Insights, Inc., headquartered in Delaware, U.S., is a global market research and consulting service provider; offering syndicated and custom research reports along with growth consulting services. Our business intelligence and industry research reports offer clients with penetrative insights and actionable market data specially designed and presented to aid strategic decision making. These exhaustive reports are designed via a proprietary research methodology and are available for key industries such as chemicals, advanced materials, technology, renewable energy and biotechnology.

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