Northbrook, IL -- (SBWIRE) -- 03/09/2022 -- The silicon photonics market is expected to grow from USD 1.1 billion in 2021 to USD 4.6 billion by 2027; it is expected to grow at a CAGR of 26.8 % during the forecast period.
The silicon photonics market has been witnessing significant growth over the past years, mainly owing to the increase in demand for high bandwidth and high data transfer capabilities.
Impact of COVID-19 on Silicon Photonics Market:
The outbreak of COVID-19 has affected the component supply and disrupted manufacturing and global value chains, which is leading to a slowdown in demand and consumer spending. With the outbreak of the COVID-19 pandemic, there has been a spike in internet usage, primarily due to the high acceptance of the work-from-home norm and increased inclination toward television watching and e-learning activities, among many others. However, surging use of digital services has also increased laying off employees or cutting down on expenditure by companies.
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Transceivers to witness highest CAGR in silicon photonics market during the forecast period
Transceivers are used in a variety of applications, such as high-performance computing, data center, and telecommunication. With major technological advancements in silicon photonics, it is possible to transfer data at a speed of up to 400 Gbps. Intel's 100G PSM4 QSFP28 optical transceiver is capable of sending data at a speed of 100 Gbps. The rapid spread of the COVID-19 pandemic led to decreased sales of silicon photonic devices, especially in 2020. However, a quick jump is expected in the sales of silicon photonic products in the coming years, primarily to fulfill the pending requirements of 2020.
Lasers to have the largest market size of silicon photonic components during the forecast period
Hybrid silicon lasers (silicon and group III-V semiconductor) are used to overcome mass-production issues in silicon lasers, and it is one of the key reasons for the growing demand for lasers in the silicon photonics market. The hybrid approach takes advantage of the light-emitting properties of III-V semiconductor materials combined with the process maturity of silicon to fabricate electrically driven lasers on a silicon wafer that can be integrated into other silicon photonic devices. Companies in the silicon photonics market are working on the same. For instance, Intel is working on hybrid silicon lasers with indium phosphide-based materials and other compound semiconductor materials.
APAC is expected to grow with the highest CAGR during the forecast period
The silicon photonics market in APAC is expected to grow at the highest rate, driven by the growing use of silicon photonics in telecommunication, and data center and high-performance computing applications, among others. The silicon photonics market in APAC is also driven by the high number of internet users in China and India, along with the increasing use of high-speed broadband networks and mobile devices, which require developed infrastructure supporting telecommunication and high-speed communication. Hence, APAC seems to provide a massive opportunity for the silicon photonics market.
Key Market Players
Cisco Systems (US), Intel (US), MACOM Technology (US), GlobalFoundries (US), NeoPhotonics (US), InPhi (US), II-VI (US), IBM (US), STMicroelectronics (Switzerland), Rockley Photonics (US) are among the key players operating in the silicon photonics market.