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Brandessence Market Research recently conducted a study in which the Silicon Photonics Market Value is expected to record a valuation of USD 7253.6 Million by 2028, registering to accelerate at a 25.8% CAGR. The Global Silicon Photonics Market size was valued at USD 1454.8 Million in 2021. Silicon Photonics Market Size, Share & Trends Analysis Report By Product (Transceivers, Variable Optical Attenuators, Switches, Cables, Sensors) By Component (Lasers, Modulators, Photo Detectors) By Waveguide (400-1,500 NM, 1,310-1,550 NM, 900-7000 NM) By Applications (Data Centers And High-Performance Computing, Telecommunication, Military, Defense And Aerospace, Medical, And Life Science, Other Applications) Based On Region, And Segment Forecasts, 2022 – 2028.
The global silicon photonics market has been expected to grow at a good rate in the coming decade. The silicon photonics market CAGR will be really high considering the demand that is increasing for the data transfer capabilities and higher bandwidth. The COVID outbreak has made work from home and school from home a norm and that has created the need to transfer information at a faster rate. This has opened doors to multiple application opportunities for the global silicon photonics market.
Silicon Photonics Market Drivers
The need for silicon photonics arises because it is difficult for conventional copper cables to cater to the high-speed transfer demand of the current times. This issue of the spectral range being limited is eliminated by the usage of optical interconnects along with silicon photonics transceivers. Further, the components like the transceivers, switches, and interconnects which are used in the communication networks consume a lot less power and over a cost-benefit and offer a more environment-friendly option.
Lasers are needed for the optical data transmission at a higher speed since they make pure light in frequency as well as color terms. Silicon photonics has the option of using either the off-chip or on-chip light sources. The on-chip source has the ability to achieve a higher density of integration as it has a compact size and also offers better performance in energy proportionality and energy-efficiency terms. It is however a complex process. Further, the different sources of light increase the complexity levels as they hinder the growth of the global silicon photonics market.
Short-reach communication can link the optical interconnects and that creates a huge scope for the global silicon photonics market in developing the communication market. The technology has the ability to optimize the performance of short-reach communication systems. Data can be transferred at a faster speed due to this. The silicon photonics market leaders have been making efforts to increase the speed of transmission and do it over a bigger distance. A critical task for the global market is the implanting of various different types of integrated circuits. It is a big challenge because of the thermal effect. Great difficulties are faced in embedding components on a nanometer scale. These silicon photonic devices have higher sensitivity toward the waveguide dimensions. Therefore, they require a non-meter scale control and need to have a decent amount of variation in the silicon-refractive index. This is a major challenge as it can be controlled only by increasing power consumption.
Silicon Photonics Market report covers prominent players like
The major silicon photonics companies are focused on investing in technology development and research through which they can further reduce power consumption. The major companies which are operating in the market are engaged in the exchange of information too and mergers and acquisitions.
Silicon Photonics Market: Segmentation analysis
In terms of application, the transceivers are expected to be used in multiple applications and therefore it is expected that they will grow the fastest. This is where they are used for data centers, high-performance computing, and telecommunication. The top silicon photonics companies look to enable data at 100 Gbps. The sales saw a bit of a dip during the covid pandemic but as the covid pandemic is heading towards its end, we can expect the sales to jump quickly and make up for all the losses and deficits that have been incurred recently.
The hybrid silicon lasers are also going to grow as it is used for the mass production issues of production of silicon lasers. This hybrid approach uses the benefits of the light-emitting properties and combines it with the process of silicon maturity for fabricating electrically driven lasers. These lasers are fabricated on a silicon wafer which may be integrated into the other silicon photonic devices.
Silicon photonics market: Market Trends
The global silicon photonics market forecast is extremely positive in the modern world as the pandemic has disrupted value chains all over the world and the manufacturing sector has also been affected leading to a slowdown in consumer spending and demand. The pandemic however has been fruitful for internet usage as there has been a spike in employees working from home when the lockdowns were imposed in order to curb the spread of coronavirus. This pandemic also brought a higher inclination of the consumer towards watching television and learning through the internet.
The surge though has also seen people laid off and their expenditures cut down. This has been impacting the sales of networking components directly like silicon photonic devices to a large extent. Data centers and high-performance computing is touted to be among the fastest-growing applications of these solutions. The world has seen the first phase of 5G network deployment begin but the pandemic has halted the progress. This is going to affect the growth of the global market. The recent silicon photonics market trends though suggest that as the pandemic heads towards its final stages, the market will keep growing.
Regional Analysis:
The region of Asia Pacific is expected to register the maximum growth in the coming few years as the global silicon photonics market sees application in the telecommunication sector and data center along with the higher performance applications in computing among others. The market in the Asia Pacific region has further been driven by the population being high. The two most populated countries, China and India, are in the region and are seeing a wave of technology outreach. High-speed networks and mobile devices are being used increasingly and the infrastructure, therefore, is growing rapidly for this market. Both the countries saw a massive COVID pandemic period where people adapted to the work from home norms and that has driven the market significantly.
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