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Global Silicon Photonics Market Forecast 2017-2025

Global Silicon Photonics Market Forecast 2017-2025

  • September 2017
  • ID: 4976581


Table of Contents

Silicon photonics technology is a combination of silicon electronics and photonics and has an immense potential to fulfill the growing demands of optical communication systems. The Global Silicon Photonics market is expected to grow at a CAGR of 22.26 % between the forecast periods of 2017-2025. The revenue generated by the global market is predicted to increase from $155 million in 2016 to $945 million by 2025. Low power consumption, compact size, lower cost, high-speed data transfer and processing and a surge in data transfer capacity are some of the major drivers for this market.

The market is segmented on the basis of components, products, and application. The components can be further classified into silicon photonic waveguides, optical modulators and silicon optical interconnects. By product type, the market constitutes of silicon optical transceivers, silicon optical switches, silicon photonic IC, silicon photonic sensors and silicon photonic photovoltaic cells/solar cells. The Optical Switcher market had the largest market share of 45.57% in 2016 whereas it is the Solar Cells market which is expected to grow fast at an anticipated CAGR of 40.92%. At present, silicon photonics is widely applied in the telecommunication field. Thus, the telecommunication application is anticipated to dominate the silicon photonics market. The Sensing market application is also expected to grow at a CAGR of 23.48% during the forecast period, but it is the spectroscopy application which is predicted to exhibit the fastest growth in the coming years.

The North America Silicon photonics market generated a revenue of $79932 thousand in 2016 and is anticipated to hold the largest share of the global market by the year 2025, because of the early commercialization of wavelength division multiplexer filters. The photodetector market is expanding in Europe due to an increase in the usage and absorption rate of such products in this region, and the market is expected to generate a revenue of $40623 thousand by 2025. However, it is the Asia-Pacific market which is expected to show the highest growth with a CAGR of 25.46%. Japan is predicted to be the market leader by 2025 whereas the Indian and the Chinese market are anticipated to grow at a CAGR of 26.59% and 25.87% respectively over the forecasted years.

Leading global companies such as HP, Intel, and Cisco consider silicon photonics to be a breakthrough technology with tremendous potential. In fact, Intel is on the verge of completing the transition from the R&D development stage to the production stage for silicon photonics chips and will be launching them by the end of 2017. Infinera Corporation is also developing a silicon photonic platform by integrating materials into the silicon process flow to manufacture optimum optical solutions using a cost-effective process. If the outcome is successful, the silicon photonics platform will be able to increase the industry-wide production on a global scale. Likewise, other pioneer company who are diving into this market are STMicroelectronics N.V, Adva Optical Networking Se, Cisco Systems, Inc., Chiral Photonics Inc., Enablence Technologies Inc., Hamamatsu Photonics K.K., Finisar Corporation, Hewlett-Packard Co., Intel Corporation, Mellanox Technologies, Infinera Corporation, Ltd., Okmetic Oy and Molex Llc, Neophotonics Corporation.

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