According to the Market Statsville Group (MSG), the global silicon photonics market size is expected to grow from USD 1,089.2 million in 2021 to USD 7,999.1 million by 2030, at a CAGR of 24.8% from 2022 to 2030. Silicon photonics is a developing technology that uses optical rays to transfer data between computer chips. Optical rays can carry a lot more information in a short amount of time than electrical conductors. Since silicon is already a substrate for integrated circuits, it is conceivable to create hybrid devices using current semiconductor fabrication methods in which the optical and electronic components are combined onto a single microchip.

Furthermore, the effective implementation of silicon photonics technology will significantly increase computer processing speed and power, which will drive market growth in the forecast period.

COVID-19 Impact on the Global Silicon Photonics Market

During the COVID, many factories were closed, which affected the global semiconductor shortage and virtually all industries, including the photonics industry, but things stabilized after the post-pandemic.

Despite this, small and medium-sized enterprises were facing difficulties after the pandemic. This is because they had already lost revenues, and adopting silicon photonics was quite expensive for them, which also restricted the market's growth.

Scope of the Global Silicon Photonics Market

The study categorizes the silicon photonics market based on component, product, and application at the regional and global levels.

By Component Outlook (Sales, USD Million, 2017-2030)

• Lasers
• Modulators
• Photo Detectors

By Product Outlook (Sales, USD Million, 2017-2030)

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

By Application Outlook (Sales, USD Million, 2017-2030)

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

By Region Outlook (Sales, USD Million, 2017-2030)

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Italy
  • France
  • UK
  • Spain
  • Poland
  • Russia
  • The Netherlands
  • Norway
  • Czech Republic
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Indonesia
  • Malaysia
  • Thailand
  • Singapore
  • Australia & New Zealand
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Colombia
  • Rest of South America
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • South Africa
  • Northern Africa
  • Rest of MEA

Transceivers segment is projected to account for the largest market share, by product outlook

Based on type, the global silicon photonics market is divided into transceivers, variable optical attenuators,  switches, cables, and sensors. In 2021, the transceivers segment accounted for the largest market share in the global silicon photonics market. It is a circuit that transmits and receives analog or digital signals, either wired or wireless. Transceivers come in multiple forms; for instance, a satellite transponder is a transceiver. Ethernet adapters and cellphones likewise contain transceivers. It has various usages like high-performance computing, data centers, and telecommunication.

Asia Pacific accounts for the highest CAGR during the forecast period

Based on the regions, the global silicon photonics market has been segmented across North America, Asia-Pacific, Europe, South America, and the Middle East & Africa. Globally, Asia Pacific is estimated to hold the highest CAGR in the global silicon photonics market during the forecast period. The region includes the countries such as China, India, Japan, South Korea, Australia, Southeast Asia, and Rest of Asia-Pacific. The region's growth is primarily due to strong economic growth in emerging domestic countries such as China, Indonesia, Malaysia, and India.

With the rapid evolution of AI, 5G, the internet of things, virtual reality, and the commercial application of these new technologies, high-speed broadband networks, and mobile devices need to develop infrastructure supporting telecommunication and high-speed communication. The need for data processing and information exchange is rising, accelerating the construction of data centers in the region and leading to market growth in the forecast period.?

Key Market Players in the Global Silicon Photonics Market

The global silicon photonics market is highly competitive, with key industry players adopting strategies such as product development, partnerships, acquisitions, agreements, and expansion to strengthen their market positions. Most companies in the market are indulged in expanding business across regions, enhancing their capabilities, and molding strong partner relations.

Major players in the global silicon photonics market are:

• Intel Corporation
• Cisco Systems, Inc.
• Juniper Networks, Inc
• International Business Machines Corporation
• Sicoya GMBH
• Global Foundries
• Fujitsu
• Chiral Photonics
• EFFECT Photonics
• AIO Core

Recent Developments

• In March 2022, GlobalFoundries announced it is collaborating with companies like Broadcom, Cisco Systems, Inc., Marvell, and NVIDIA, along with breakthrough photonics companies like Lightmatter, PsiQuantum, Ranovus, and Xanadu, to provide innovative, unusual, and feature-rich solutions that tackle the most complex data center challenges.
• In February 2022, Intel Corporation acquired Tower Semiconductors to promote a diversified product portfolio to meet the growing semiconductor demand. This acquisition also allows the company to provide foundry services to customers worldwide.
• In March 2020, Intel launched the successful integration of a Tbps (Terabytes per second) silicon photonics machine with a 12.8 Tbps programmable ethernet switch. The co-packaged switch is optimized for hyper scale data centers, where the demand for cost-effective interconnect and bandwidth is limitless.

Key Issues Addressed

• What is the market size by various segmentation of the silicon photonics by region and its respective countries?
• What are the customer buying behavior, key takeaways, and Porter's 5 forces of the silicon photonics market?
• What are the key opportunities and trends for manufacturers involved in the silicon photonics supply chain?
• What are the fundamental dynamics (drivers, restraints, opportunities, and challenges) of the market?
• What and how regulations, schemes, patents, and policies are impacting the growth of the market?
• What are the upcoming technological solutions influencing market trends? How will existing companies adapt to the new change in technology?
• The market player positioning, top winning strategies by years, company product developments, and launches will be?
• How has COVID-19 impacted the demand and sales of silicon photonics in the global market? Also, the expected BPS drop or rise count of the market and market predicted recovery period.
• Detailed analysis of the competitors and their latest launch, and what are the prominent startups introduced in the target market? Also, detailed company profiling of 25+ leading and prominent companies in the market