Silicon Photonics Market with Recession Impact Analysis by Product (Transceivers, Switches, Sensors), Application (Data Centers & High-Performance Computing, Telecommunications), Waveguide, Component and Geography - Global Forecast to 2028

Silicon Photonics Market with Recession Impact Analysis by Product (Transceivers, Switches, Sensors), Application (Data Centers & High-Performance Computing, Telecommunications), Waveguide, Component and Geography - Global Forecast to 2028

The silicon photonics market was valued at USD 1.3 billion in 2022 and is projected to reach USD 5.0 billion by 2028, growing at a CAGR of 28.5% from 2023 to 2028. Increasing government and stakeholder funding, growing deployment of 5G networks, emerging applications of silicon photonics, and surging utilization of silicon photonics technology in short-reach communication provide lucrative opportunities to the silicon photonics market.

Transceivers in product segment are expected to account for largest share of silicon photonics market during forecast period

The Transceivers segment is expected to dominate the silicon photonics market during the forecast period. Owing to the growing need for high-speed data transmission in data centers, transceivers are used in various applications, such as high-performance computing, data centers, and telecommunications. Technological advancements in silicon photonics have made it possible to transfer data at a speed of up to 800 Gbps. Intel Corporation’s 100G Parallel Single Mode 4-lane (PSM4) QSFP28 optical transceiver supports a data transfer rate of up to 100 Gbps over four parallel single-mode fibers, each operating at 25 Gbps.

Military, defense, and aerospace segments to exhibit significant growth in silicon photonics market, by application, during forecast period

Increasing procurement of military communication solutions due to security-related concerns, disputes among countries, and the need to replace legacy communication systems is the primary factor driving the adoption of silicon photonics in the defense industry. Along with it, the rise in the volume of IP-based data, such as remote sensor data and situational awareness video, requires fast connectivity, accelerating the growth of the silicon photonics market for military applications.

Stringent regulatory policies to replace outdated systems, enhanced focus on travel safety and accident aversion, and increased investments to innovate wireless technology are some of the major factors that drive the demand for silicon photonics in the aerospace industry. Additionally, the increasing use of SATCOM for monitoring purposes and antennas for air-to-ground signal transmission drives the demand for silicon photonics in this industry.

China in Asia Pacific is expected to record highest CAGR during forecast period

China is the largest and fastest-growing silicon photonics market in Asia Pacific. This is primarily because data centers and high-performance computing are expected to be one of the country's leading applications for silicon photonics. Many technology giants plan to have their data centers in the country, providing an excellent opportunity for the silicon photonics market in this region.

In determining and verifying the market size for several segments and subsegments gathered through secondary research, extensive primary interviews have been conducted with key officials in the AI sensor market. Following is the breakup of the profiles of the primary participants for the report.

By Company Type: Tier 1 – 40 %, Tier 2 – 40%, and Tier 3 – 20%

By Designation: C-Level Executives –40%, Directors- 40%, and Others – 20%

By Region: North America– 40%, Asia Pacific – 30%, Europe- 20%, and RoW – 10%

The report profiles key players in the silicon photonics market and analyzes their market shares. Players profiled in this report are Cisco Systems, Inc. (US), Intel Corporation (US), MACOM Technology Solutions (US), GlobalFoundries Inc. (US), Lumentum Operations LLC (US), Marvell Technology, Inc. (US), Coherent Corporation (US), International Business Machines Corporation (IBM) (US), STMicroelectronics NV (US), Rockley Photonics Holdings Limited (US), Mellanox Technologies Ltd. (US), Sicoya GmbH (Germany), RANOVUS (Canada), Broadcom Inc. (US), Hamamatsu Photonics KK (Japan), Fujitsu Limited (Japan), EFFECT Photonics (Netherlands), AIO Core Co., Ltd. (Japan), NKT Photonics (Denmark), and so on.

Research Coverage

The report defines, describes, and forecasts the silicon photonics market based on product, component, waveguide, application, and region. It provides detailed information regarding drivers, restraints, opportunities, and challenges influencing the growth of the silicon photonics market. It also analyzes competitive developments such as product launches, acquisitions, expansions, contracts, partnerships, and actions carried out by the key players to grow in the market.

Reasons to Buy This Report

The report will help the market leaders/new entrants in this market with information on the closest approximations of the revenue numbers for the overall silicon photonics market and the subsegments. This report will help stakeholders understand the competitive landscape and gain more insights to position their businesses better and to plan suitable go-to-market strategies. The report also helps stakeholders understand the pulse of the market and provides them with information on key market drivers, restraints, challenges, and opportunities.

The report provides insights on the following pointers:

Analysis of key drivers (Rising demand for CMOS-integrated silicon photonics technology in data centers, growing focus on reducing power consumption using silicon photonic transceivers, increasing requirement for high bandwidth and high data transfer capabilities, and the surging demand for high-speed broadband services), restraints (Risk of thermal effect, complexity in integration of on-chip laser), opportunities (Increasing government and stakeholder funding, growing deployment of 5G networks, emerging applications of silicon photonics, surging utilization of silicon photonics technology in short-reach communication), and challenges (Embedding silicon photonic components into small circuits, inefficient electroluminescence of bulk crystalline silicon) influencing the growth of the silicon photonics market.

Product Development/Innovation: Detailed insights on upcoming technologies, research & development activities, and new product & service launches in the silicon photonics market

Market Development: Comprehensive information about lucrative markets – the report analyses the silicon photonics market across varied regions

Market Diversification: Exhaustive information about new products & services, untapped geographies, recent developments, and investments in the silicon photonics market

Competitive Assessment: In-depth assessment of market shares, growth strategies and service offerings of leading players like Cisco Systems, Inc. (US), Intel Corporation (US), MACOM Technology Solutions (US), GlobalFoundries Inc. (US), and Lumentum Operations LLC (US), among others in the silicon photonics market strategies. The report also helps stakeholders understand the pulse of the automotive airbags & seatbelts market and provides them information on key market drivers, restraints, challenges, and opportunities.