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Silicon Photonics Market - Forecast (2020 - 2025)

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  • 116 Pages
  • March 2020
  • Region: Global
  • IndustryARC
  • ID: 3820803
Silicon Photonics Market Overview:

Silicon photonics is one of the major technologies in the telecommunication industry. The main logic behind advancements in the silicon photonics is the dire need to obtain the final goal in terms of high-density data communication which is reliable, cheaper, and less energy consuming. Various manufacturers from different regions are investing in developing integration capability that will elevate their business and will also lead to the silicon photonics market demand growth. Owing to the increasing demand for better high bandwidth and power efficiency, the global silicon market value had ballooned to $774.15 million in 2020, and the opportunities will increment at a compound annual growth rate (CAGR) of 20.90% during the forecast period of 2020 to 2025.

North America is positioned as the leading region in the silicon photonics market. As per a report by Cisco, North America leads all regions in network speeds and latency segment, with an average mobile download speed of 34.3 Mbps and upload speed of 15.5 Mbps. The growing demand for constant and increased network data and information transfer speed are influencing the North America silicon photonics market that had a regional market share of 29.24% in 2020.

Silicon Photonics Market Outlook:

Silicon photonics is the application of photonic systems which use silicon as the optical medium for transfer of data in fiber optic telecommunication systems. Semiconductor fabrication techniques are used to make silicon photonics devices. Silicon is used as the substrate in the integrated circuits, and due to this functionality, the hybrid devices optical and electronic components can be integrated into a single microchip. The components used in the bulk silicon layer require to be independent in order to improve the performance and reduce parasitic capacitance. The method used to achieve the functionalities is known as silicon on insulator (SoI). The propagation of light through silicon is managed by two-photon absorption (TPA). Many electronics manufacturers such as IBM and Intel have been doing a thorough research on silicone photonic for a decade.

Data centers were found to be the largest application in the silicon photonics market. As per the report by the Cisco, the hyper scale data centers will grow from 338 in 2016 to 628 in 2021 which represents an increase in 53% of all the installed data center servers by 2021. The increased installments of data centers owing to the increased traffic from consumers provide huge opportunities for the silicon photonics market players that can provide services to improve the performance by addressing the interconnection issues and therefore, the scope for silicon photonics market is augmented in the application segment. The data centers application is projected to upsurge in the silicon photonics market with a substantial CAGR of 28.37% through to 2025.

Silicon Photonics Market Growth Drivers

  • The consistent rise in the use of smartphones and the internet facilities has led to an augmented adoption of silicon photonics transceivers for the telecommunication application, and it is anticipated to drive a demand influx in the silicon photonics market.

  • The use of social networking sites and consumer-based applications are giving rise to load of data on an everyday basis. The increasing demand for storage space is attributed to the growth in demand for silicon photonics.

  • Government influencing the population to move forward towards e-banking and internet-based money bank operations is also significantly driving the silicon photonics market.

  • Due to increase in the traffic, many valuable data center vendors are planning to spread the data centers volume across the possible sites. The need for long distance data transfers is poised to increase the demand for silicon photonics in the near future.

Silicon Photonics Market Trends:

  • The advancement in silicon photonics with the use of optical interconnects helps to provide faster data transfer with and within microchips.

  • Due to the growth of cloud computing technology, various enterprises are shifting towards Software as a Service (SaaS) application which increases the data centers activities. The cloud-based applications manage the data center loads, and the demand for such applications are influencing the demand for silicon photonics.

  • The trend of on board silicon photonics with 2.5D integration is massively adopted by several large scale data centers. This is positively impacting the silicon photonics market.

  • The organization named as Luxtera collaborated with TSMC to develop the silicon photonics platform in TSMC’s 300mm CMOS wafer foundry. The platform will help to serve cloud, enterprise, and 5G mobile infrastructure customers with high performance and low-cost transceivers.

Silicon Photonics Market Challenges:

The packaging and reliability of silicon photonics components are creating challenges for the vendors in the silicon photonics market. Also, silicon pattering & process control and coupling & temperature dependence are some major challenges faced by the manufacturers in the silicon photonics market. Many manufactures are adopting codesign and cosimulation of complex circuits and photonics. The gaining verification and variability algorithms can help overcome the challenges and handle photonics circuits.

Silicon photonics Market Key players Perspective:

Some of the major players in the silicon photonics market are Acacia, Luxtera, Intel, Cisco, Mellanox, Finisar, STMicroelectronics, Hamamatsu, IBM, Juniper, Global Foundries, Broadcom, Oclaro, NeoPhotonics, and Ciena.

Silicon Photonics Market Research Scope:

The base year of the study is 2020, with forecast done up to 2025. The study presents a thorough analysis of the competitive landscape, taking into account the market shares of the leading companies. It also provides information on unit shipments. These provide the key market participants with the necessary business intelligence and help them understand the future of the Silicon Photonics Market. The assessment includes the forecast, an overview of the competitive structure, the market shares of the competitors, as well as the market trends, market demands, market drivers, market challenges, and product analysis. The market drivers and restraints have been assessed to fathom their impact over the forecast period. This report further identifies the key opportunities for growth while also detailing the key challenges and possible threats. The key areas of focus include the types of Silicon Photonics market, and its segmentation on the basis of product type that includes switch, cable sensor, and transceiver.

Silicon Photonics Market Report: Industry Coverage

The report analyses the product demands by the Silicon Photonics Market on the basis of application that includes data centers, healthcare, military & defence.

The Silicon Photonics market report also analyzes the major geographic regions as well as the major countries in these regions.

The regions and countries covered in the study include:

  • North America: The U.S., Canada, Mexico

  • South America: Brazil, Venezuela, Argentina, Ecuador, Peru, Colombia, Costa Rica

  • Europe: The U.K., Germany, Italy, France, the Netherlands, Belgium, Spain, Denmark

  • APAC: China, Japan, Australia, South Korea, India, Taiwan, Malaysia, Hong Kong

  • Middle East and Africa: Israel, South Africa, Saudi Arabia

Table of Contents

1. Silicon Photonics Market - Overview
1.1. Definitions and Scope
2. Silicon Photonics Market - Executive summary
2.1. Market Revenue, Market Size and Key Trends by Company
2.2. Key Trends by type of Application
2.3. Key Trends segmented by Geography
3. Silicon Photonics Market
3.1. Comparative analysis
3.1.1. Product Benchmarking - Top 10 companies
3.1.2. Top 5 Financials Analysis
3.1.3. Market Value split by Top 10 companies
3.1.4. Patent Analysis - Top 10 companies
3.1.5. Pricing Analysis
4. Silicon Photonics Market Forces
4.1. Drivers
4.2. Constraints
4.3. Challenges
4.4. Porters five force model
4.4.1. Bargaining power of suppliers
4.4.2. Bargaining powers of customers
4.4.3. Threat of new entrants
4.4.4. Rivalry among existing players
4.4.5. Threat of substitutes
5. Silicon Photonics Market - Strategic analysis
5.1. Value chain analysis
5.2. Opportunities analysis
5.3. Product life cycle
5.4. Suppliers and distributors Market Share
6. Silicon Photonics Market – By Applications (Market Size -$Million / $Billion)
6.1. Market Size and Market Share Analysis
6.2. Application Revenue and Trend Research
6.3. Product Segment Analysis
6.3.1. Telecommunications High Speed Modulation Fiber to The Home (FTTH) Signal Routers Optical Switching Point to Point (PTP) Free Space Applications Active Optical Cables (AOCs) Metro and Long Haul Applications
6.3.2. High Performance Computing Aggregate Bandwidth Energy per bit Size and Costs Parallel Optic Transceivers Embedded Optical Modules
7. Silicon Photonics Market – By Product Types (Market Size -$Million / $Billion)
7.1. Optical Modulators
7.2. Multiplexers
7.3. WDM Filters
7.4. Photonic IC
7.5. Waveguides
7.6. Photodetectors
7.7. Optical Interconnects
7.8. DFB Integrated Laser
7.9. Microring laser
7.10. Others
8. Silicon Photonics Market – By Materials (Market Size -$Million / $Billion)
8.1. Silicon Photonics
8.1.1. Silicon
8.1.2. Indium-Phosphide (InP) based Alloys
8.1.3. Silicon-Germanium Alloys
8.1.4. Other III-V Alloys
8.2. Photonic ICs
8.2.1. Lithium Niobate
8.2.2. Gallium Arsenide
8.2.3. Indium Phosphide
8.2.4. Silica on Silicon
8.2.5. Silicon on Insulator
8.2.6. Others
9. Silicon Photonics - By Geography (Market Size -$Million / $Billion)
9.1. Silicon Photonics Market - North America Segment Research
9.2. North America Market Research (Million / $Billion)
9.2.1. Segment type Size and Market Size Analysis
9.2.2. Revenue and Trends
9.2.3. Application Revenue and Trends by type of Application
9.2.4. Company Revenue and Product Analysis
9.2.5. North America Product type and Application Market Size U.S. Canada Mexico Rest of North America
9.3. Silicon Photonics - South America Segment Research
9.4. South America Market Research (Market Size -$Million / $Billion)
9.4.1. Segment type Size and Market Size Analysis
9.4.2. Revenue and Trends
9.4.3. Application Revenue and Trends by type of Application
9.4.4. Company Revenue and Product Analysis
9.4.5. South America Product type and Application Market Size Brazil Venezuela Argentina Ecuador Peru Colombia Costa Rica Rest of South America
9.5. Silicon Photonics - Europe Segment Research
9.6. Europe Market Research (Market Size -$Million / $Billion)
9.6.1. Segment type Size and Market Size Analysis
9.6.2. Revenue and Trends
9.6.3. Application Revenue and Trends by type of Application
9.6.4. Company Revenue and Product Analysis
9.6.5. Europe Segment Product type and Application Market Size U.K Germany Italy France Netherlands Belgium Spain Denmark Rest of Europe
9.7. Silicon Photonics – APAC Segment Research
9.8. APAC Market Research (Market Size -$Million / $Billion)
9.8.1. Segment type Size and Market Size Analysis
9.8.2. Revenue and Trends
9.8.3. Application Revenue and Trends by type of Application
9.8.4. Company Revenue and Product Analysis
9.8.5. APAC Segment – Product type and Application Market Size China Australia Japan South Korea India Taiwan Malaysia
10. Silicon Photonics Market - Entropy
10.1. New product launches
10.2. M&A's, collaborations, JVs and partnerships
11. Silicon Photonics Market Company Analysis
11.1. Market Share, Company Revenue, Products, M&A, Developments
11.2. Bell Labs
11.3. Oracle Labs
11.4. Lightwire
11.5. Fujitsu
11.6. Huawei
11.7. Compass-EOS
11.8. Chiral Photonics
11.9. IBM Corp
11.10. Translucent Inc
11.11. DAS Photonics
11.12. Effect Photonics
11.13. SUSS MicroTec
11.14. Oclaro
11.15. OneChip Photonics
11.16. Intel
11.17. Cisco
11.18. IHP Microelectronics
11.19. Sandia
11.20. Mellanox Technologies
11.21. Company 21
11.22. Company 22
11.23. Company 23
11.24. Company 24
12. Silicon Photonics Market - Appendix
12.1. Abbreviations
12.2. Sources
13. Silicon Photonics Market - Methodology
13.1. Research Methodology
13.1.1. Company Expert Interviews
13.1.2. Industry Databases
13.1.3. Associations
13.1.4. Company News
13.1.5. Company Annual Reports
13.1.6. Application Trends
13.1.7. New Products and Product database
13.1.8. Company Transcripts
13.1.9. R&D Trends
13.1.10. Key Opinion Leaders Interviews
13.1.11. Supply and Demand Trends