USD 1.19 billion
Silicon Photonics Market Size, Share, Growth Analysis, By Component(Lasers, Modulators, Photodetectors), By Waveguide(400–1, 500 NM, 1, 310–1), By Product(Transceivers, Active Optical Cables, Optical Multiplexers, Variable Optical Attenuators), By Application(Data Centers & High-performance Computing, Telecommunications, Military, Defense), By Region - Industry Forecast 2025-2032
Report ID:
SQMIG45I2203 |
Region:
Global |
Published Date: September, 2024
Pages:
157
|Tables:
181
|Figures:
79
Silicon Photonics Market Insights
Silicon Photonics Market size was valued at USD 1.5 Billion in 2023 and is poised to grow from USD 1.92 Billion in 2024 to USD 14.5 Billion by 2032, growing at a CAGR of 28.30% during the forecast period (2025-2032).
Surging demand for high-speed data transmission and growing deployment of 5G network technologies around the world are forecasted to drive the demand for silicon photonics over the coming years. Increasing investments in device miniaturization and the growing use of silicon photonics in life sciences and biotechnology are also projected to create a new business scope for silicon photonics providers going forward. Rising use of internet of things (IoT) devices, advancements in semiconductor technologies, and surging use of energy efficient semiconductors are also anticipated to favor sales of silicon photonics in the future. The Asia-Pacific region is estimated to spearhead the global silicon photonics demand outlook in the long run. On the contrary, limited standardization, complexity in manufacturing, and thermal management issues are estimated to slow down silicon photonics sales through 2031.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
Lasers
Fastest Growth
Lasers
Growth Rate
2.6% CAGR
Global Silicon Photonics Market ($ Bn)
Country Share for Asia Pacific Region (%)
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Silicon Photonics Market Segmental Analysis
Global Silicon Photonics Market is segmented by Component, Waveguide, Application, Product, and region. Based on Component, the market is segmented into Lasers, Modulators, and Photodetectors. Based on Waveguide, the market is segmented into 400–1,500 NM, 1,310–1,550 NM, and 900–7,000 NM. Based on Application, the market is segmented into Data Centers and High-performance Computing, Telecommunications, Military, Defense, and Aerospace, Medical and Life Sciences, and Other Applications. Based on Product, the market is segmented into Transceivers, Variable Optical Attenuators, Switches, Cables, Sensors. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & and Africa.
Based on product, market is segregated into transceivers, active optical cables, optical multiplexers, variable optical attenuators, and optical engines. Based on application, the market is segmented into data centers & high-performance computing, telecommunications, military, defense, & aerospace, medical & life science, and other applications. based on waveguide, the silicon photonics market is segmented into 400-1,500 nm, 1,310-1,550 nm, and 900-7000 nm.
Based on component, the silicon photonics market is segmented into lasers, modulators, and photo detectors. Based on region the silicon photonics market is segmented into North America, Europe, Asia-Pacific, South America, and MEA.
Silicon Photonics Market Analysis by Component
Laser components are estimated to account for a dominant share of the global silicon photonics market. Advancements in laser technologies are estimated to help this segment maintain its high market share. Lasers have a better thermal performance as compared to other components and are also widely preferred by users owing to their low energy consumption characteristics as well. High emphasis on development of low-power electronics will surely benefit the demand for laser components in the future.
However, the demand for modulators is forecasted to increase rapidly across the study period and beyond. Modulators play a crucial role in regulating light beams for optical waveguides in silicon photonics. Modulators are highly important in facilitating faster communication between circuits and as demand for low-latency products increases it will also benefit silicon photonics market development via this segment in the long run. Use of advanced modulators in combination with other components could help improve the performance of silicon photonics in the future.
Silicon Photonics Market Analysis by Application
Data center and high-performance computing is estimated to spearhead the demand for silicon photonics around the world. Rapidly increasing volume of data and increasing digital transformation around the world are forecasted to help the dominance of this segment. Growing investments in the development of new data centers and rising use of advanced computing for novel technologies will also further cement the high market share of this segment. A rising number of hyperscale data centers are also projected to promote the use of silicon photonics in this segment.
Meanwhile, the demand for silicon photonics in telecommunication applications is projected to surge at an impressive pace over the coming years. Rising use of advanced communication technologies to satisfy the demand for faster seamless communication will also help this segment boost market growth. Growing deployment of 5G technology around the world and rising investments in the development of novel 5G products are also key factors promoting sales of silicon photonics in telecommunication applications through 2031 and beyond.
Global Silicon Photonics Market By Component
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Silicon Photonics Market Regional Insights
India, China, Japan, and South Korea are home to some of the biggest semiconductor manufacturing companies in the world and this is why Asia Pacific is the largest market for silicon photonics. Rapid digitization and growing investments in semiconductor manufacturing technologies are helping this region maintain its high market share. Growing urbanization and industrialization are also expected to play a crucial role in promoting the sales of silicon photonics across the study period and beyond. Increasing deployment of 5G networks in this region will also create new opportunities in the future.
Meanwhile, the demand for silicon photonics in the North America region is slated to increase at a notable pace over the coming years. Growing use of advanced digital technologies, high demand for performance computing, and growing trend of device miniaturization are key factors that push silicon photonics demand in this region. Canada and the United States are slated to be the most opportune markets for silicon photonics companies looking to make a mark in the North American region going forward.
Global Silicon Photonics Market By Region
- Largest
- Fastest
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Silicon Photonics Market Dynamics
Silicon Photonics Market Driver
Demand for High-speed Data Transmission
- Rapidly increasing digitization has created a high demand for faster data transfer speeds, and this is where silicon photonics come into play. Silicon photonics are playing a crucial role in reducing latency in data transmission technologies owing to their low energy consumption and advanced features.
Emphasis on Device Miniaturization
- Miniaturization of devices and technology has become a prominent trend across the world, and this is projected to boost sales of silicon photonics over the coming years. Silicon photonics are highly energy efficient and can be fitted into a very small form factor making it suitable for all kinds of device miniaturization applications.
Restraints
Complexity in Manufacturing and Integration
- Manufacturing silicon photonics is a highly complex process and requires specialized equipment. Moreover, integration of this advanced equipment is also a challenge that could add up to the complexity of the silicon photonics manufacturing process in the long run.
Lack of Standardization
- Silicon photonics used across different industry verticals are vastly different in their characteristics and functions. There are no standard regulations for silicon photonics, which makes it extremely difficult for silicon photonics companies to create products that can be used for multiple applications thereby impeding market growth.
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Silicon Photonics Market Competitive Landscape
Companies' silicon photonics market should invest in the research and development of novel technologies to maximize their business scope. Targeting the automotive industry could offer some lucrative business scope for all silicon photonics providers in the long run. Launching new products, collaborations, and acquisitions are estimated to be popular strategies for new as well as leading silicon photonics companies.
Silicon Photonics Market Top Player's Company Profiles
- 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 (US)
- STMicroelectronics N.V. (Switzerland)
- Rockley Photonics, Inc (UK)
- Sicoya GmbH (Germany)
- Ranovus (Canada)
- Broadcom Inc. (US)
- Hamamatsu Photonics K.K. (Japan)
- Molex LLC (US)
- Fujitsu Limited (Japan)
- Chiral Photonics, Inc. (US)
- Effect Photonics (Netherlands)
- AIO Core Co., Ltd. (South Korea)
- NKT Photonics (Denmark)
- IPG Photonics Corporation (US)
- DAS Photonics (Spain)
- TDK Corporation (Japan)
- Scintil Photonics (France)
Silicon Photonics Market Recent Developments
- A new silicon photonics engine was launched for data centers and artificial intelligence applications in September 2024. DustPhotonics, a renowned provider of photonics technology, was behind the launch of this new engine with 8 channel support.
- A new company from the United States announced that it had raised £4.5 million in June 2024. Wave Photonics raised this capital to further advance its research and find more applications for photonics integrated circuits.
- The world’s first open silicon photonics platform was launched back in 2022. OpenLight, a new name in the silicon photonics business, was behind this launch as it focuses on maximizing performance of chips while keeping energy consumption low.
Silicon Photonics Key Market Trends
- Use in Autonomous Vehicles: Investments in autonomous vehicle research and development have increased rapidly around the world and this is a key opportunity for silicon photonics companies. Use of silicon photonics for faster communication in autonomous vehicles is projected to offer highly rewarding opportunities for all companies in the long run.
- Growing Demand for Quantum Computing: Silicon photonics also finds robust application in quantum computing as it can enable faster communication between qubits that are responsible for quantum technology functioning. High demand for quantum computers will also boost sales of silicon photonics going forward.
Silicon Photonics Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, advancements in semiconductor technologies and high demand for energy-efficient electronics are projected to drive sales of silicon photonics over the coming years. On the contrary, complexity in manufacturing and lack of standardization are expected to impede silicon photonics demand outlook going forward. Asia Pacific region is estimated to spearhead the global silicon photonics market growth owing to the presence of a strong semiconductor manufacturing industry in countries such as China and Japan. Use of silicon photonics in autonomous vehicles and quantum computing will also offer rewarding opportunities for silicon photonics companies across the study period and beyond.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 1.20 billion |
| Market size value in 2031 | USD 11.30 billion |
| Growth Rate | 28.30% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Silicon Photonics Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Silicon Photonics Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Silicon Photonics Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Silicon Photonics Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Silicon Photonics Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Silicon Photonics Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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