Global Silicon Photonics Market Size, Share & Industry Trends Analysis Report

Global Silicon Photonics Market Size, Share & Industry Trends Analysis Report By Product (Transceivers, Variable Optical Attenuators, Switches, Cables, and Sensors), By Application, By Regional Outlook and Forecast, 2023 - 2030

The Global Silicon Photonics Market size is expected to reach $7.5 billion by 2030, rising at a market growth of 28.8% CAGR during the forecast period.

Transceivers is the majorly utilized product of Silicon Photonics and generated $347.1 million revenue in the market in 2022. The most efficient way to gather data for assessing health status without compromising instrument complexity, low cost, sensitivity, or size is through silicon photonics, which generates new growth potential in the market. It also aids in addressing the problems of cost-effectiveness, data transfer, and reliable protocols, opening market expansion potential. In addition, optical fiber networking has replaced copper-based networking in the current technological era.

The major strategies followed by the market participants are Partnerships as the key developmental strategy in order to keep pace with the changing demands of end users. For instance, In May, 2022, GlobalFoundries teamed up with Siemens to integrate its silicon photonics platform with Siemens' Calibre nm Platform. The fusion of the products of the two companies provides their customers with design solutions for computing, datacentre, and sensing applications. Additionally, MACOM signed a collaboration with STMicroelectronics in May, 2022, to support MACOM's RF power strategy and enhance the company’s market share.

Based on the Analysis presented in the KBV Cardinal matrix; Cisco Systems, Inc. and Broadcom, Inc. are the forerunners in the Market. In August, 2022, Broadcom Inc. came into partnership with Tencent Holdings Ltd. for facilitating the adoption of high bandwidth CPOs across the cloud infrastructure. The partnership aids the company in enhancing its market leadership. Companies such as Intel Corporation, STMicroelectronics N.V., GLOBALFOUNDRIES Inc. are some of the key innovators in the Market.

Market Growth Factors

Growing demand in data centres for CMOS integrated silicon photonics

The use of photonics to meet bandwidth requirements for data centers is encouraged by optics' ability to guarantee high-bandwidth data transfer. Because of this, the demand for next-generation performance in data centers can be satisfied by integrating silicon photonics technology with conventional, complementary metal-oxide semiconductor (CMOS) devices. Because of this, the market is expanding due to the demand for low-cost, high-speed interconnects that can sustain ever-increasing data rates over 100 Gbps.

Rising applications of silicon photonics

Medical diagnosis will undergo a transformation due to silicon photonics. It comes as a result of the numerous potentials uses for silicon photonics in allowing high-speed kits for use in homes, laboratories, and point-of-care diagnostics. This is as a result of silicon photonic biosensors' quickness, precision, adaptability, and size in evaluating a range of analytes. Furthermore, the vast majority of information about global health will come from imaging data produced in hospitals, labs, and imaging facilities. Silicon photonics technology will be able to meet this need for high-speed data transmission routes. As a result, the adoption of silicon photonics is predicted to significantly surge and lead to market growth.

Market Restraining Factors

Potential risk of thermal effects

The market has concerns about thermal effects, particularly as devices get smaller and more complicated. The thermal effect results from silicon's light absorption, which may raise the device's temperature. This temperature rise may result in a decline in device performance or even device failure. In addition, integrating electronic & photonic devices on the same chip is one possible area of concern. The heat produced by such components may affect the performance of the photonic and electrical components. Furthermore, strong laser sources can produce a lot of heat, which could harm the device through thermal expansion.

Product Outlook

Based on product, the market is segmented into transceivers, variable optical attenuators, switches, cables, and sensors. In 2022, the transceivers segment held the highest revenue share in the market. This is due to the usage of optical transceivers to connect computers in a data center and to send messages over long distances. At first, an optical receiver is mostly made up of two parts, which are called modules. Silicon photonics has also been used commercially in things like optical transceiver chips and modules, which are used in things like synchronous optical communications and data centers, which will aid in the segment's growth.

Application Outlook

Based on application, the market is bifurcated into automotive, data centre & high-performance computing, telecommunications, military, defense, & aerospace, medical & life sciences, and others. The military, defense & aerospace segment covered a considerable revenue share in the market in 2022. The main reason influencing the development of silicon photonics in the defense industry is the rising need for military communication solutions brought on by worries about security, international conflicts, and the need to replace outdated communication systems. Additionally, the increase in IP-based data volumes, such as video for situational awareness and remote sensor data, necessitates quick connectivity, propelling the market's expansion in this segment.

Regional Outlook

Region wise, the market is analysed across North America, Europe, Asia Pacific and LAMEA. The North America region led the market by generating the largest revenue share in 2022. The market is growing in the region due to surged usage of high-speed networks. Additionally, the existence of major market players such as IBM, Intel, Cisco and others in United States is predicted to offer growth prospects. The increased demand for technology for high-performance computing and data centers applications are another important factor supporting growth.

The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Cisco Systems, Inc., Intel Corporation, MACOM Technology Solutions Holdings, Inc., IBM Corporation, STMicroelectronics N.V., Fujitsu Limited, Broadcom, Inc., Coherent Corp., GLOBALFOUNDRIES Inc. and Marvell Technology Group Ltd.

Recent Strategies Deployed in Silicon Photonics Market

Partnerships, Collaborations, and Agreements:

Dec-2022: STMicroelectronics announced a partnership with Soitec, a semiconductor material manufacturer. The partnership aims to integrate Soitec’s SmartSiC technology with the upcoming ST's 200mm substrate. The partnership aids the company in enhancing its production yields and quality.

Aug-2022: Broadcom Inc. came into partnership with Tencent Holdings Ltd., an investment firm headquartered in China. The partnership aims at facilitating the adoption of high bandwidth CPOs across the cloud infrastructure. The partnership aids the company in enhancing its market leadership.

Aug-2022: GlobalFoundries announced an extended semiconductor manufacturing partnership with Qualcomm, a semiconductor software developer. The extended partnership allows GlobalFoundries to provide innovative solutions for their customers for mobile and IoT applications.

May-2022: MACOM signed a collaboration with STMicroelectronics, a semiconductor manufacturer to produce radio-frequency Gallium-Nitride-on Silicon (RF GaN-on-Si) prototypes. The collaboration supports MACOM's RF power strategy and enhances the company's market share.

May-2022: GlobalFoundries teamed up with Siemens, a German industrial manufacturing company to integrate its silicon photonics platform with Siemens' Calibre nm Platform. The fusion of the products of the two companies provides their customers with design solutions for computing, data centre, and sensing applications.

Mar-2022: GLOBALFOUNDRIES Inc. signed a partnership with Ansys, a simulation software products developer headquartered in the United States to develop solutions for data centres. The partnership enables GF to level up their photonic chip designs by integrating their Fotonix solution with Ansys' simulation solutions.

Aug-2020: Marvell partnered with TSMC, a Taiwanese semiconductor manufacturing company. The partnership aims at delivering a new silicon-based portfolio for applications in data infrastructure. Partnership with TSMC allows Marvell to develop new solutions and serve their customers in a better way.

Product Launches and Product Expansions:

Mar-2023: Broadcom launched the BCM85812 laser driver for 800G AOC and 800G DR8 module applications. The features of BCM85812 include 5nm 800G PAM-4 PHY, compatibility with OIF 3.2T Co-Packaged Optical Module Specs, and support for optical modules within the range 800G to 3.2T.

Feb-2023: Coherent Corp. unveiled its 1300 nm high-power continuous wave (CW) distributed feedback (DFB) laser diodes for applications in silicon photonics-based transceivers. The features of the product include a power output capacity of 300mW when cooled and 100mW in normal conditions and coarse wavelength availability for FR4 transceivers.

Oct-2022: Marvell Technology introduced a 3nm silicon platform. The new silicon platform features IP building blocks including Gen6 PHY, SerDes, and PCIe, and compatibility with Marvell's Portfolio of PHY, electro-optics, and 5G basebands.

Mar-2022: Marvell released co-packaged optics (CPO) technology platform with a cloud optimization facility. The features of the platform include 2.5D/3D laser-supported silicon photonics and PAM4 DSP. Furthermore, the new platform contains integrated Marvell CPO electro-optics and a Marvell Teralynx switch platform.

Mar-2022: Marvell announced the launch of a 400G DR4 silicon photonics platform solution. 400G DR4 silicon photonics platform solution is used for the integration of electro-optical solutions with cloud optimization and reducing cost by bit. The platform solution features Marvell's silicon photonics transceivers, analog controller IC and Marvell’s Porrima™ 7-nm low-power PAM4 DSP.

Acquisition and Mergers:

Mar-2023: MACOM Technology Solutions took over Linearizer Communications Group, an industrial product manufacturer headquartered in the United States. The acquisition enhances MACOM's subsystem and component device specialty and aids the company in its growth strategy.

Feb-2023: GlobalFoundries completed the acquisition of Renesas Electronics Corporation's Conductive Bridging Random Access Memory (CBRAM) technology. The Conductive Bridging Random Access Memory (CBRAM) technology is a low-powered memory solution used in Industrial IoT and home applications. The acquisition enhances GlobalFoundries' memory solutions offering and allows it to serve the customers in a better way by providing them with design solutions for next-gen devices.

May-2021: STMicroelectronics completed the acquisition of Cartesiam, a French software company. This acquisition enhances STMicroelectronics' technology portfolio and complements its AI Strategy.

Apr-2021: Marvell acquired Inphi Corporation, a semiconductor component manufacturer based in the USA. The acquisition enhances Marvell's market position in 5G and the cloud.

Jan-2021: Cisco announced the acquisition of Acacia Communications, an optical interconnect products manufacturer. The acquisition enhances Cisco's portfolio of coherent optical solutions and thereby enhances their position in the market.

Oct-2020: STMicroelectronics acquired SOMOS Semiconductor, a fabless semiconductor headquartered in France. This acquisition strengthens STMicroelectronics' specialist staff and enhances its Front-End Modules for IoT and 5G applications.

Feb-2019: Cisco took over Luxtera, Inc, a semiconductor company headquartered in the United States. The acquisition enhances Cisco's 100GbE and 400GbE optics offerings and allows the company to serve its customers in a better way.

Geographical Expansions:

Nov-2022: Cisco launched an innovation centre in Barcelona, Spain. The new facility would be used to design next generation semiconductor devices.

Scope of the Study

Market Segments covered in the Report:

By Product

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

By Application

• Data Centre & High-Performance Computing
• Telecommunications
• Military, Defense, & Aerospace
• Medical & Life Sciences
• Others

By Geography

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Singapore
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA

Companies Profiled

• Cisco Systems, Inc.
• Intel Corporation
• MACOM Technology Solutions Holdings, Inc.
• IBM Corporation
• STMicroelectronics N.V.
• Fujitsu Limited
• Broadcom, Inc.
• Coherent Corp.
• GLOBALFOUNDRIES Inc.
• Marvell Technology Group Ltd.

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