The global silicon photonics market size was US$ 1.08 billion in 2021. The global silicon photonics market size is forecast to reach US$ 9.54 billion by 2030, growing at a compound annual growth rate (CAGR) of 27.4% during the forecast period from 2022 to 2030.

Silicon photonics technology has great potential to harness the power of optical networking inside computers. Further, it facilitates the creation of miniaturized, low-cost photonic components. The technology can apply to a variety of other applications as well. In one potential application, Si-photonic chips could coexist on many boards. The silicon photonics industry has enabled low-cost optoelectronic solutions for various applications ranging from telecommunications to chip-to-chip interconnects. Low operating costs, low environmental impact, low heating of components, high reliability with a low error rate, good spectral efficiency, and high integration are some of the benefits silicon photonics offers over existing technologies. 

Factors Influencing Market Growth 

• Factors including the increasing acceptance of automated manufacturing practices and rising innovative technological advancements drive the global market.
• The primary driver of silicon photonics growth is the growing application of these technology-based products across data centers, high-performance computing, telecommunications, military, defense & aerospace, among many other areas.
• Several factors are forecast to fuel the global market growth, including the implementation of 5G technology for delivering high bandwidth, high-speed data transfers, and the increasing penetration of the Internet of Things, smartphones, and AI-enabled devices.
• A variety of alternative technologies exist, including vertical-cavity surface-emitting lasers (VCSELs), which could slow the market's growth. 

Impact Analysis of COVID-19

Globally, the outbreak of COVID-19 has adversely affected component supplies and disrupted manufacturing. Demand for the market decreased as a result of disruption of the market and a downturn in consumer spending during the COVID-19 pandemic. Due to the acceptance of working from home during the outbreak, internet usage has increased. Nonetheless, the growth in digital services has also caused a reduction in company expenses and the layoff of employees. Consequently, the sale of networking components, including silicon photonics, has declined. The fastest-growing application of this technology is data centers & high-performance computing. In addition, the 5G network is one of the major applications of silicon photonics. The COVID-19 outbreak delayed the deployment of the 5G network, decreasing market growth. 

Regional Insights

The Asia Pacific region accounted for the largest revenue share in the industry. Due to the presence of emerging economies such as India, China, and Japan, the region holds a large market share. In addition, an abundance of cheap labor, coupled with favorable government initiatives, will drive the growth of the industry. 

North America is forecast to grow at the fastest rate in the silicon photonics market over the forecast period. As a result of the increasing use of high-speed broadband networks, the industry in North America has experienced growth. Further, the presence of major industry players in the United States may offer tremendous opportunities for market growth. Increasing demand for high-performance computing and data centers is likely to drive industry growth in the region.

Leading Competitors

The leading prominent companies profiled in the global silicon photonics market are:

• AIO Core Co. Limited
• Cisco Systems Incorporated
• Finisar Corporation
• Hamamatsu Photonics K.K
• IBM Corporation
• Infinera Corporation.
• Intel Corporation
• IPG Photonics Corporation
• Mellanox Technologies Limited
• Sicoya GmbH
• STMicroelectronics NV
• Other Prominent Players

Scope of the Report

The global silicon photonics market segmentation focuses on Product, Component, Waveguide, Application, and Region.

Segmentation based on Product

• Transceivers
• Variable Optical Attenuators
• Switches
• Cables
• Sensors

Segmentation based on Component

• Lasers
• Modulators
• Photo Detectors

Segmentation based on Waveguide

• 400-1,500 NM
• 1,310-1,550 NM
• 900-7000 NM

Segmentation based on Application

• Data Centers and High-performance computing
• Telecommunication
• Military
• Defense & Aerospace
• Medical and Life Science
• Other Applications

Segmentation based on Region

• North America
• The U.S.
• Canada
• Mexico
• Europe
• Western Europe
• The UK
• Germany
• France
• Italy
• Spain
• Rest of Western Europe
• Eastern Europe
• Poland
• Russia
• Rest of Eastern Europe
• Asia Pacific
• China
• India
• Japan
• Australia & New Zealand
• ASEAN
• Rest of Asia Pacific
• Middle East & Africa (MEA)
• UAE
• Saudi Arabia
• South Africa
• Rest of MEA
• South America
• Brazil
• Argentina
• Rest of South America