The silicon photonics market is poised for robust growth on the back of its significant application scope across the telecommunication sector. In recent years, the telecommunications sector has recorded significant growth with the advent of new technologies such as 4G, 5G, social networking, cloud, and smartphone. The burgeoning internet penetration rate demands a greater bandwidth for offering uninterrupted service to the users. This has led to increasing demand for silicon photonics technology for high-speed connectivity and improved customer experience. On this note, it is expected that the market will witness significant growth over the forecast period.

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In terms of applications, the silicon photonics market is majorly classified into medical, telecommunication, and data center & HPC. Among these, the medical sector is estimated to record a compound annual growth rate of more than 30% over the forecast period.

This growth can be contributed to the rising use of photonics biosensors in medical monitoring and diagnostics processes that improves the Point-of-care (POC) diagnostics by providing miniaturization capability and high sensibility in biosensors.

Development of new technologies that utilize silicon photonics and cater to the needs of the medical sector may aid market growth. Taking January 2019 for instance, research and innovation hub in digital technology and nanoelectronics, Imec partnered with Ghent University alongside CARDIS project partners like Medtronic to develop a prototype medical instrument built using silicon photonics. The device would be used for diagnosing cardiovascular diseases like heart failure and arterial stenosis, as well as for screening of arterial stiffness.

Prominent players operating in the silicon photonics market are focusing on developing innovative products by investing in multiple R&D activities geared towards improving the technology’s performance. Companies are also looking to enter into new strategic relationships with an aim to expand their product portfolio and geographical presence. 

In March 2017, Luxtera, one of the leading silicon photonics solution providers, inked a strategic partnership deal with TSMC for the manufacturing of next-generation silicon photonics. Together, both the firms would concentrate on developing an advanced silicon photonics technology platform that would offer unparalleled optical link performance.

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APAC silicon photonics market is anticipated to record prominent growth owing to the growing deployment of cloud technologies in the region. Citing an instance to highlight the same, in April 2020, Alibaba announced its plan to invest USD 28.2 billion in the construction of data centers and cloud technologies over the next three years, as it moves ahead with digital transformation efforts in a post-pandemic world.

Therefore, the burgeoning efforts towards the deployment of data centers coupled with the significant deployment of silicon photonics technology for improved customer experience and high-speed connectivity may accelerate the market growth in the region.

Meanwhile, the LAMEA silicon photonics market recorded growth at a rate of 20% in 2019, owing to increasing 5G deployment in the region.

Currently, companies like Cisco Systems Inc., Intel Corporation, Hamamatsu Photonics K.K., Global Foundries, Juniper Networks Inc., IBM Corporation, Broadcom, NeoPhotonics Corporation and STMicroelectronics are at the forefront of the global market.

Major Key Points from Table of Content:

Chapter 6.   Silicon Photonics Market, By Component

6.1.  Key trends, by component

6.2.  Active

6.2.1. Market estimates and forecast, 2016 – 2026

6.2.2. Laser    Market estimates and forecast, 2016 - 2026

6.2.3. Modulator    Market estimates and forecast, 2016 - 2026

6.2.4. Photodetector    Market estimates and forecast, 2016 - 2026

6.2.5. Others    Market estimates and forecast, 2016 - 2026

6.3.  Passive

6.3.1. Market estimates and forecast, 2016 – 2026

6.3.2. Filter    Market estimates and forecast, 2016 - 2026

6.3.3. Waveguide    Market estimates and forecast, 2016 - 2026

Chapter 7.   Silicon Photonics Market, By Application

7.1.  Key trends, by application

7.2.  Data center and HPC

7.2.1. Market estimates and forecast, 2016 - 2026

7.3.  Telecommunication

7.3.1. Market estimates and forecast, 2016 - 2026

7.4.  Medical

7.4.1. Market estimates and forecast, 2016 – 2026

7.5.  Others

7.5.1. Market estimates and forecast, 2016 - 2026

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