Silicon Photonics Market worth $9.65 Billion by 2030, at a CAGR of 29.5%

The global Silicon Photonics Market Size in terms of revenue is estimated to be worth $2.65 billion in 2025 and is poised to reach $9.65 billion by 2030, growing at a CAGR of 29.5% during the forecast period.
The report "Silicon Photonics Market [https://www.marketsandmarkets.com/Market-Reports/silicon-photonics-116.html?utm_source=abnewswire.com&utm_medium=PaidPR&utm_campaign=SiliconPhotonicsmarket] by Product (Transceivers, Variable Optical Attenuators, Switches, Sensors and Cables), Components (Lasers, Modulators, Optical Waveguides, Optical Interconnects, Photodetectors) - Global Forecast to 2030" The global silicon photonics industry was valued at USD 2.65 billion in 2025 and is projected to reach USD 9.65 billion by 2030, growing at a CAGR of 29.5% from 2025 to 2030. One of the rising market drivers for silicon photonics is building quantum communication and computing systems that demand ultra-high-speed, ultra-secure transmission of optical data-making scalable photonic integrated circuits a prerequisite and photonic circuits precise for achieving this requirement. Another frontier driver is increasing wearables-based medical diagnostics in which silicon photonics facilitates wearable, non-invasive biosensors to monitor the patient's condition on a constant basis, triggering widespread adoption of personalized healthcare devices. Both industries unlock new frontiers beyond the legacy data and telecom markets and extend silicon photonics into leading-edge applications.

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Browse 221 market data Tables and 67 Figures spread through 251 Pages and in-depth TOC on "Silicon Photonics Market"

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Data Center and HPC segment are expected to have the largest market share during the forecast period.

The HPC and data center segment is likely to hold the highest market size in the [https://www.marketsandmarkets.com/PressReleases/silicon-photonics.asp?utm_source=abnewswire.com&utm_medium=PaidPR&utm_campaign=SiliconPhotonicsmarket] due to the growing demand for high-speed, energy-efficient data transmission on the back of cloud computing, AI, and big data analytics. Silicon photonics technology allows faster processing and lower latency in hyperscale data centers, addressing the need to process high volumes of data. Market participants can ride this growth by creating high-technology optical interconnects and transceivers designed for high-bandwidth applications. In addition, progress in photonic integrated circuits (PICs) and co-packaged optics can enhance scalability and performance. Investment in edge computing and 5G infrastructure solutions allows firms to benefit further from the increasing demand for dynamic bandwidth allocation and low-latency systems. Strategic partnerships with cloud providers and telecommunication operators will also allow market participants to acquire a significant portion of this rapidly growing segment.

The optical waveguide segment is expected to witness the highest CAGR during the forecast period.

The segment of optical waveguides is likely to have the highest CAGR over the forecast period due to growing demand for high-speed data transmission and developments in photonic technology. Optical waveguides play a very important role in facilitating the efficient carrying of signals in telecom networks, data centers, AR/VR devices, and medical imaging devices. Industry participants will be able to surf on this wave by developing new waveguide solutions tailored to 5G networks, edge computing, and PICs with advanced photonic integrated circuits. The encouragement of quantum communications technologies and optical computing with AI-based technology also provides a rich area for better waveguide solutions in consumer electronics, and thin and light infrastructure designs can also ride on the increased need for high-speed optical components with smaller sizes. Strategic partnerships with telecom companies and technology leaders will also contribute to gaining market share in this fast-growing sector.

The US is projected to hold the largest market share in North America during the forecast period.

The US will lead the North American silicon photonics industry in terms of the highest market value by 2030 on account of its very superior technological infrastructure and heavy research and development expenditures. Its availability of key industry giants such as Intel, IBM, and Cisco, in addition to favorable government policies such as collaborations with AIM Photonics, stimulates innovation in high-speed optical communication equipment for data centers, HPC, and 5G networks market players will be able to leverage this dominance by making sure they focus on the development of innovative photonic integrated circuits (PICs) and co-packaged optics that will be for high-bandwidth applications. Also, collaboration with cloud service providers and telecom companies in the US will enable companies to tap into hyperscale data centers and newer communication technologies. By aligning with government-supported programs and investing in state-of-the-art manufacturing plants, companies can further make their place within this burgeoning market sector.

The major players in the [https://www.marketsandmarkets.com/ResearchInsight/silicon-photonics-market.asp?utm_source=abnewswire.com&utm_medium=PaidPR&utm_campaign=SiliconPhotonicsmarket] are Cisco Systems, Inc. (US), Intel Corporation (US), MACOM (US), GlobalFoundries Inc. (US), Lumentum Operations LLC (US), Marvell (US), Coherent Corporation (US), IBM (US), and STMicroelectronics (Switzerland).

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