Silicon Photonics Market Comprehensive Study Explores Huge Revenue Scope in Future 2027

The Global Silicon Photonics Market is expected to reach USD 2,518.59 Million by 2024 at a CAGR of 22.93% during the forecast period. Market Research Future (MRFR), in its report, envelops segmentations and drivers to provide a better glimpse of the market in the coming years.


The Global Silicon Photonics Market is expected to reach USD 2,518.59 Million by 2024 at a CAGR of 22.93% during the forecast period. Market Research Future (MRFR), in its report, envelops segmentations and drivers to provide a better glimpse of the market in the coming years.

Silicon photonics uses various components in conjunction to increase the processing speed and power of computers. The data is transferred using light pulses (laser) and is multiplex at the transmitter end using a multiplexer. The data traverses through a fiber optic channel and is demultiplexed at the receiver end. A photodetector then converts the light pulses into data. Silicon photonics has observed major applications in optical communication, optical routers, and signal processors, long-range telecommunications, and light-field displays. Silicon photonics is thus widely used in data centers and 5G communications. However, it has started developing its usage in commercial security, consumer electronics, and military sectors.

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Competitive Analysis

The Key Players of the Global Silicon Photonics Market are Infinera Corporation (US), Cisco Systems Inc. (US), Intel Corporation (US), IBM Corporation(US), Mellanox Technologies Ltd (Israel), Hamamatsu Photonics KK (Japan), STMicroelectronics NV (Switzerland), Finisar Corporation (US), FLIR Systems (US), IPG Photonics Corporation (US), NKT Photonics (Denmark), SICOYA (Germany), AIO Core Co. Ltd (Japan) and DAS Photonics (Spain).

  • In June 2019, NKT photonics partnered with Oxide Corporation to develop and manufacture deep ultraviolet and violet ultrafast lasers. This partnership is focused on growing micromachining in the semiconductor and healthcare industries.
  • In November 2018, IPG Photonics launched a new generation of high-power fiber lasers for industrial applications. These new generation lasers consist of three innovations: adjustable mode beam capability, integrated weld monitoring technology, and QCW 2x Peak Power mode on CW lasers.

Segmental Analysis

The Global Silicon Photonics Market has been segmented based on Product, Component, End User, and Region.

Based on the product, the market has been classified as transceivers, active optical cable, optical multiplexers, variable optical attenuators, optical engines, and others. The transceivers segment accounted for the largest market share in 2018, while the optical multiplexers segment is expected to register the highest CAGR during the forecast period. A transceiver is a combination of transmitter and receiver included in the same package. The transmitter portion of the silicon photonics takes many high-speed electrical channels and converts them into a suitable high-speed optical signal. An active optical cable converts the electrical signal into the optical signal over short and long distances. AOC’s are mainly deployed in data centers and high-performance computing applications where the combination of value and distance is required. Optical multiplexers consist of combiners, filters, tap couplers, splitters, and optical fibers. There are mainly three different techniques in multiplexing light signals onto a single optical fiber link, namely code division multiplexing (CDM), wavelength division multiplexing (WDM), and optical time-division multiplexing (OTDM). A variable optical attenuator is a type of passive component that reduces the amplitude of the light signal without changing the waveform. An optical engine is a setup that contains electronics and controls. Optical engines do not include heat removal interface and pumping sources of a fiber laser.

Based on component, the market has been classified as laser, photodetector, modulator, micro-optics (microlens, micromirror, light diffuser, beam shapers, and others) and passive optic components (silicon lens, optical receptacles, AWG terminals, optical isolators, mux/demux modules, micro-optical filters). The laser segment accounted for the largest market share in 2018, photodetector segment is expected to register the highest CAGR during the forecast period. In optical fiber communication, a laser (source of light) is used to emit electromagnetic radiation in order to detect faults, microbeads and breaks, and characterizing link-loss. Lasers add a mechanism for optical feedback such as mirrors, to stimulate further emission and create a high-intensity beam of radiation. A photodetector is a device that absorbs the light and converts the optical energy into measurable electric current. The two main types of photodetectors are thermal and photon. An optical modulator is a device that is used for deploying a property of light. Acousto-optic modulators, electro-optic modulators, electroabsorption modulators, interferometric modulators, fiber-optic modulators, liquid crystal modulators, and micromechanical modulators are a few types of optical modulators. Microlens is also referred to as a micro lenticular array which is used to increase the optical fill factor in charged coupled devices (CCD) such as interline-transfer devices that suffer from reduced aperture due to metal shielding. Micromirrors are microscopic size mirrors that are structured in matrix combinations to form a digital micromirror device (DMD). Diffusers are optical components used to allocate light from a source while removing bright spots equally. Beam shaper is a type of optical device that reshapes a light beam. Silicon lenses are mainly used for infrared LED applications; they also prove beneficial in the silicon photonics transceiver. Receptacles are used to connect optical connectors with optical modules and align the optical module axis. American Wire Gauge (AWG) is the US standard set for non-ferrous wire conductor sizes.  Optical isolators are devices used for transmission of the optical signal. It supports unidirectional mode of transmission hence it is useful in conjunction with lasers and majorly used to avoid unwanted optical reflections in optical systems. Mux/Demux module is a passive device, available in a variety of wavelength combinations generally from 1270nm to 1610nm. An optical filter is a key component in optical networks. Optical fibers are essential to split and combine wavelength channels.

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Based on end-user, the market has been classified as consumer electronics, IT telecommunication, commercial, military defense, healthcare, and others. The IT telecommunication segment accounted for the largest market share in 201; it is expected to register the highest CAGR during the forecast period. Silicon photonics primarily enables high-speed data transfer. Data transfer is applicable for various devices such as smartphones, wearable devices, and tablets and laptops. Silicon photonics is used to create transmitters and receivers for fiber-optic telecommunications. Many companies are switching to silicon photonics from traditional copper cables. With the help of silicon photonics, companies can develop compact, more efficient, and more affordable products in which optical signals are used for precise measuring, laser imaging, and rapid data transfer. The military uses imaging and other information for activity-based intelligence by lightweight, low-power, and low-cost silicon photonics. Silicon photonics is used in DNA sequencing machines, miniaturized diagnostic tests using disposable photonic chips, accurate body monitoring sensors, brain stimulation machines.

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