Report Overview

Global Silicon Photonics Market- Industry Trends & Forecast Report 2028

The global silicon photonics market was worth USD 1.1 billion in 2021 and is further projected to reach USD 5.9 billion by the year 2028, growing at a CAGR of 26.80% during the forecast period 2022-2028. The growth of the silicon photonics market can be attributed to various factors, such as increasing data volume, which is propelling the demand for higher data transfer capabilities. Furthermore, rapid technological advancements and research and development activities by manufacturers are also providing lucrative growth opportunities to the market.

Silicon Photonics – A Brief Overview

Silicon photonics is the use of silicon in the photonic system as an optical medium. The silicon used here is mainly laid upon a layer of silica in Silicon on Insulator (SOI). These systems are most prominently used by fiber-optic telecommunication systems. The silicon photonics devices are made using existing semiconductor fabrication technology. They are very useful in hybrid devices with both optical and electronic components integrated into a single microchip since silicon is already used as a substrate for most integrated circuits.

Silicon Photonics Market Forecast and Trends

Growth Drivers

Increasing Application of Silicon Photonics

Silicon photonics is used for a wide range of applications in various industries, which acts as a major driving factor for its market growth. For instance, silicon photonics is prominently used for optical communications for data transfer. The developments in computercom are also anticipated to play a crucial role in proliferating the market growth owing to the rising demand and dependence on faster data transfer between and within microchips. Moreover, several types of research are also going around the use of silicon photonics in the light-field chip for the purpose of augmented reality display.

Expanding Research and Development Activities

Companies and research institutes are investing heavily in R&D activities to further develop silicon photonics as its applications are expanding and benefits are attributed to it. For instance, IBM Zurich is working on a project that involves the integration of III-V material in an optical cavity to achieve optical amplification and lasing. The main focus of this project has been stated as developing fully CMOS-embedded lasers on silicon combined with electrical and optical functions.

Restraints

Complications Surrounding Integration of On-Chip Laser

The research failures surrounding the integration of silicon photonics devices on complex systems may act as a huge restraining factor for the overall market growth. Although the R&D activities in this market are expanding at a high rate, the silicon photonics market still remains an under-explored domain, which is limiting its applications to a great extent. Furthermore, “silicon also has relatively small waveguides which make it tricky to couple light in and out of the chip”, according to an article published on Gazettabyte.

Impact of COVID-19 on the Global Silicon Photonics Market

The COVID-19 pandemic outbreak significantly halted the growth of the global silicon photonics market. The complete lockdown in different parts of the world to mitigate the spread of the virus resulted in restrictions on the manufacturing and production operations of electronic devices. This resulted in a sharp decline in the demand for silicon photonics, incurring huge losses to the market. Furthermore, the research and development activities were also obstructed due to social distancing protocols and a shift in focus on healthcare research and virus development. This also negatively impacted the growth of the silicon photonics market.

Silicon Photonics Market - By Product Type

Based on product types, the global silicon photonics market is segmented into transceivers, variable optical attenuators, switches, cables, and sensors. The transceivers segment accounts for the largest market share. These products are capable of bringing optic communications into the fabrication space of the semiconductor industry. It also helps in keeping the cost low along with providing high-volume assembly. Therefore, several manufacturers such as Intel launch optical transceiver products, which act as a major factor driving market growth.

Global Silicon Photonics Market - By Component

Based on components, the global silicon photonics market is categorized into lasers, modulators, and photodetectors. Among these, the lasers segment holds the largest market share owing to the rising demand for hybrid silicon lasers. The high dependence on external lasers as a light source in most silicon photonics technologies also plays a crucial factor in driving market growth. Moreover, the use of integrated lasers with silicon will lead to qualitative changes in the market, including an increase in laser density and a reduction of coupling losses.

Global Silicon Photonics Market - Regional Insights

Geographically, the silicon photonics market is segmented into North America, Europe, Asia-Pacific, Latin America, Middle-East & Africa. The Asia-Pacific region is dominating the silicon photonics market owing to the high production of electronic devices in emerging economies, such as China, India, Japan, etc. China is among the leading markets for silicon photonics due to the flourishing electronic manufacturing industry and the availability of cheap labor. Moreover, India also covers a substantial market share owing to the expanding investment and establishment of silicon photonics device manufacturing plants.

Global Silicon Photonics Market- Competitive Landscape

The leading players in the silicon photonics market are Thorlabs, Inc., Abrisa Technologies, TOPTICA Photonics AG, Precision Optical, Vescent Photonics, Esco Optics, Advanced Optowave Corporation, Hamamatsu Photonics KK, Carl Zeiss AG (Sentinel Photonics GmbH), Intel Corporation, Schott AG, Polatis Photonics Inc., Philips Photonics, Alcatel-Lucent SA, Molex Inc., IPG Photonics, NEC Corporation, Infinera Corporation, Finisar Corporation, and other prominent players.

The silicon photonics market is highly fragmented due to the presence of several global as well as regional market players. The companies often launch new products to gain a competitive edge and significantly invest in research and development activities to improve their innovative offerings. They also constantly adopt market strategies, such as partnerships, mergers, acquisitions, joint ventures, etc., to establish themselves as a leading industry player.

Recent Development

• In February 2022, NeoPhotonics Corporation, an American silicon photonics and hybrid photonic developer, announced a merger agreement under which Lumentum Holdings Inc., will acquire NoePhotonics.
• In October 2021, DustPhotonics Ltd., an Israeli silicon photonics technology and solutions provider, announced to have raised a USD 33 million investment, which is led by Greenfield Partners.

Scope of the Report:

By Product Type

• Transceivers
• Variable Optical Attenuators
• Switches
• Cables
• Sensors

By Component

• Lasers
• Modulators
• Photo Detectors

By Waveguide

• 400–1,500 NM
• 1,310–1,550 NM
• 900–7,000 NM

By Application

• Data Center and High-Performance Computing
• Telecommunication
• Military, Defense, And Aerospace
• Medical and Life Sciences
• Other Applications

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Key Market Segments
2. Research Methodology
   1. Qualitative Research
   2. Methodology
   3. Regional Split of Primary & Secondary Research
   4. Secondary Research
   5. Primary Research
      1. Breakdown of Primary Research Respondents, By Region
      2. Breakdown of Primary Research Respondents, By Industry Participants
   6. Market Size Estimation
   7. Assumptions for the Study
   8. Market Breakdown & Data Triangulation
3. Executive Summary
4. Industry Insight and Growth Strategy
   1. Value Chain Analysis
   2. DROC Analysis
      1. Market Drivers
         1. Increasing Application of Silicon Photonics
         2. Expanding Research and Development Activities
      2. Market Restraints
         1. Complications Surrounding Integration of On-Chip Laser
      3. Market Challenges
         1. Negative Impact of the COVID-19 Pandemic
      4. Market Opportunity
         1. Expanding Integration Of 5G Technologies
         2. Rising Demand for Silicon Photonics in Telecommunications Sector
   3. Recent Developments
   4. Porter’s Five Forces Analysis
      1. Bargaining Power of Buyers
      2. Bargaining Power of Suppliers
      3. Intensity of Rivalry
      4. Threat of New Entrants
      5. Threat of Substitutes
5. Silicon Photonics Market Overview
   1. Market Size & Forecast by Value, 2018-2028
   2. Market Size and Forecast, By Segment
      1. By Product Type
         1. Transceivers
         2. Variable Optical Attenuators
         3. Switches
         4. Cables
         5. Sensors
      2. By Component
         1. Lasers
         2. Modulators
         3. Photo Detectors
      3. By Waveguide
         1. 400–1,500 NM
         2. 1,310–1,550 NM
         3. 900–7,000 NM
      4. By Application
         1. Data Center and High-Performance Computing
         2. Telecommunication
         3. Military, Defense, And Aerospace
         4. Medical and Life Sciences
         5. Other Applications
      5. By Region
         1. North America
         2. Europe
         3. Asia-Pacific
         4. Latin America
         5. Middle East & Africa
6. North America Silicon Photonics Market Overview
   1. Market Size and Forecast
      1. By Value (USD Billion), 2018-2028
   2. Market Share and Forecast
      1. By Product Type
      2. By Component
      3. By Waveguide
      4. By Application
      5. By Country
         1. U.S.
         2. Canada
7. Europe Silicon Photonics Market Overview
   1. Market Size and Forecast
      1. By Value (USD Billion), 2018-2028
   2. Market Share and Forecast
      1. By Product Type
      2. By Component
      3. By Waveguide
      4. By Application
      5. By Country
         1. Germany
         2. U.K.
         3. Russia
         4. France
         5. Italy
         6. Spain
         7. Rest of Europe
8. APAC Silicon Photonics Market Overview
   1. Market Size and Forecast
      1. By Value (USD Billion), 2018-2028
   2. Market Share and Forecast
      1. By Product Type
      2. By Component
      3. By Waveguide
      4. By Application
      5. By Country
         1. China
         2. India
         3. Japan
         4. South Korea
         5. Rest of APAC
9. LATAM Silicon Photonics Market Overview
   1. Market Size and Forecast
      1. By Value (USD Billion), 2018-2028
   2. Market Share and Forecast
      1. By Product Type
      2. By Component
      3. By Waveguide
      4. By Application
      5. By Country
         1. Mexico
         2. Brazil
         3. Rest of LATAM
10. MEA Silicon Photonics Market Overview
    1. Market Size and Forecast
       1. By Value (USD Billion), 2018-2028
    2. Market Share and Forecast
    3. By Product Type
    4. By Component
    5. By Waveguide
    6. By Application
    7. By Country
       1. Saudi Arabia
       2. UAE
       3. South Africa
       4. Rest of MEA
11. Competitive Landscape
    1. List of Key Players and Their Offerings
    2. Market Share Analysis (2021)
    3. Competitive Benchmarking by Operating Parameters
12. Impact of COVID-19 on Silicon Photonics Market
13. Company Profiles (Company Overview, Financial Matrix, Key Product landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) *
    1. Thorlabs, Inc.
    2. Abrisa Technologies
    3. TOPTICA Photonics AG
    4. Precision Optical
    5. Vescent Photonics
    6. Esco Optics
    7. Advanced Optowave Corporation
    8. Hamamatsu Photonics KK
    9. Carl Zeiss AG (Scantinel Photonics GmbH)
    10. Intel Corporation
    11. Schott AG
    12. Polatis Photonics Inc.
    13. Philips Photonics
    14. Alcatel-Lucent SA
    15. Molex Inc.
    16. IPG Photonics
    17. NEC Corporation
    18. Infinera Corporation
    19. Finisar Corporation
    20. Other Prominent Players
14. Key Strategic Recommendations

List of Figures

Figure 1: Silicon Photonics Market Segmentation

Figure 2: Silicon Photonics Market Value Chain Analysis,

Figure 3: Company Market Share Analysis, 2021

Figure 4: Silicon Photonics Market Size, By Value (USD Billion), 2018-2028

Figure 5: Silicon Photonics Market Share (%), By Product Type, By Value, 2018-2028

Figure 6: Silicon Photonics Market Share (%), By Component, By Value, 2018-2028

Figure 7: Silicon Photonics Market Share (%), By Waveguide, By Value, 2018-2028

Figure 8: Silicon Photonics Market Share (%), By Application, By Value, 2018-2028

Figure 9: Silicon Photonics Market Share (%), By Region, By Value, 2018-2028

Figure 10: North America Silicon Photonics Market Size, By Value (USD Billion), 2018-2028

Figure 11: North America Silicon Photonics Market Share (%), By Product Type, By Value, 2018-2028

Figure 12: North America Silicon Photonics Market Share (%), By Component, By Value, 2018-2028

Figure 13: North America Silicon Photonics Market Share (%), By Waveguide, By Value, 2018-2028

Figure 14: North America Silicon Photonics Market Share (%), By Application, By Value, 2018-2028

Figure 15: North America Silicon Photonics Market Share (%), By Country, By Value, 2018-2028

Figure 16: Europe Silicon Photonics Market Size, By Value (USD Billion), 2018-2028

Figure 17: Europe Silicon Photonics Market Share (%), By Product Type, By Value, 2018-2028

Figure 18: Europe Silicon Photonics Market Share (%), By Component, By Value, 2018-2028

Figure 19: Europe Silicon Photonics Market Share (%), By Waveguide, By Value, 2018-2028

Figure 20: Europe Silicon Photonics Market Share (%), by Application, By Value, 2018-2028

Figure 21: Europe Silicon Photonics Market Share (%), By Country, By Value, 2018-2028

Figure 22: Asia-Pacific Silicon Photonics Market Size, By Value (USD Billion), 2018-2028

Figure 23: Asia-Pacific Silicon Photonics Market Share (%), By Product Type, By Value, 2018-2028

Figure 24: Asia-Pacific Silicon Photonics Market Share (%), By Component, By Value, 2018-2028

Figure 25: Asia-Pacific Silicon Photonics Market Share (%), By Waveguide, By Value, 2018-2028

Figure 26: Asia-Pacific Silicon Photonics Market Share (%), By Application, By Value, 2018-2028

Figure 27: Asia-Pacific Silicon Photonics Market Share (%), By Country, By Value, 2018-2028

Figure 28: Latin America Silicon Photonics Market Size, By Value (USD Billion), 2018-2028

Figure 29: Latin America Silicon Photonics Market Share (%), By Product Type, By Value, 2018-2028

Figure 30: Latin America Silicon Photonics Market Share (%), By Component, By Value, 2018-2028

Figure 31: Latin America Silicon Photonics Market Share (%), By Waveguide, By Value, 2018-2028

Figure 32: Latin America Silicon Photonics Market Share (%), By Application, By Value, 2018-2028

Figure 33: Latin America Silicon Photonics Market Share (%), By Country, By Value, 2018-2028

Figure 34: Middle East & Africa Silicon Photonics Market Size, By Value (USD Billion), 2018-2028

Figure 35: Middle East & Africa Silicon Photonics Market Share (%), By Product Type, By Value, 2018-2028

Figure 36: Middle East & Africa Silicon Photonics Market Share (%), By Component, By Value, 2018-2028

Figure 37: Middle East & Africa Silicon Photonics Market Share (%), By Waveguide, By Value, 2018-2028

Figure 38: Middle East & Africa Silicon Photonics Market Share (%), By Application, By Value, 2018-2028

Figure 39: Middle East & Africa Silicon Photonics Market Share (%), By Region, By Value, 2018-2028

List of Tables

Table 1: Silicon Photonics Market Size, By Product Type, By Value, 2018-2028

Table 2: Silicon Photonics Market Size, By Component, By Value (USD Billion), 2018-2028

Table 3: Silicon Photonics Market Size, By Waveguide, By Value (USD Billion), 2018-2028

Table 4: Silicon Photonics Market Size, By Application, By Value (USD Billion), 2018-2028

Table 5: Silicon Photonics Market Size, By Region, By Value (USD Billion), 2018-2028

Table 6: North America Silicon Photonics Market Size, By Product Type, By Value (USD Billion), 2018-2028

Table 7: North America Silicon Photonics Market Size, By Component, By Value (USD Billion), 2018-2028

Table 8: North America Silicon Photonics Market Size, By Waveguide, By Value (USD Billion), 2018-2028

Table 9: North America Silicon Photonics Market Size, By Application, By Value (USD Billion), 2018-2028,

Table 10: Europe Silicon Photonics Market Size, By Product Type, By Value (USD Billion), 2018-2028

Table 11: Europe Silicon Photonics Market Size, By Component, By Value (USD Billion), 2018-2028

Table 12: Europe Silicon Photonics Market Size, By Waveguide, By Value (USD Billion), 2018-2028

Table 13: Europe Silicon Photonics Market Size, By Application, By Value (USD Billion), 2018-2028

Table 14: Asia-Pacific Silicon Photonics Market Size, By Product Type, By Value (USD Billion), 2018-2028

Table 15: Asia-Pacific Silicon Photonics Market Size, By Component, By Value (USD Billion), 2018-2028

Table 16: Asia-Pacific Silicon Photonics Market Size, By Waveguide, By Value (USD Billion), 2018-2028

Table 17: Asia-Pacific Silicon Photonics Market Size, By Application, By Value (USD Billion), 2018-2028

Table 18: Latin America Silicon Photonics Market Size, By Product Type, By Value (USD Billion), 2018-2028

Table 19: Latin America Silicon Photonics Market Size, By Component, By Value (USD Billion), 2018-2028

Table 20: Latin America Silicon Photonics Market Size, By Waveguide, By Value (USD Billion), 2018-2028

Table 21: Latin America Silicon Photonics Market Size, By Application, By Value (USD Billion), 2018-2028

Table 22: The Middle-East & Africa Silicon Photonics Market Size, By Product Type, By Value (USD Billion), 2018-2028

Table 23: The Middle-East & Africa Silicon Photonics Market Size, By Component, By Value (USD Billion), 2018-2028

Table 24: The Middle-East & Africa Silicon Photonics Market Size, By Waveguide, By Value (USD Billion), 2018-2028

Table 25: The Middle-East & Africa Silicon Photonics Market Size, By Application, By Value (USD Billion), 2018-2028

Table 26: Thorlabs, Inc. Financial Analysis

Table 27: Thorlabs, Inc. Business Overview

Table 28: Abrisa Technologies Financial Analysis

Table 29: Abrisa Technologies Business Overview

Table 30: TOPTICA Photonics AG Corporation Financial Analysis

Table 31: TOPTICA Photonics AG Corporation Business Overview

Table 32: Precision Optical Financial Analysis

Table 33: Precision Optical Business Overview

Table 34: Vescent Photonics Financial Analysis

Table 35: Vescent Photonics Business Overview

Table 36: Esco Optics Financial Analysis

Table 37: Esco Optics Business Overview

Table 38: Advanced Optowave Corporation Financial Analysis

Table 39: Advanced Optowave Corporation Business Overview

Table 40: Hamamatsu Photonics KK Financial Analysis

Table 41: Hamamatsu Photonics KK Business Overview

Table 42: Carl Zeiss AG (Scantinel Photonics GmbH) Financial Analysis

Table 43: Carl Zeiss AG (Scantinel Photonics GmbH) Business Overview

Table 44: Intel Corporation Financial Analysis

Table 45: Intel Corporation Business Overview

Table 46: Schott AG Financial Analysis

Table 47: Schott AG Financial Analysis

Table 48: Polatis Photonics Inc. Financial Analysis

Table 49: Polatis Photonics Inc. Business Overview

Table 50: Philips Photonics Financial Analysis

Table 51: Philips Photonics Business Overview

Table 52: Alcatel-Lucent SA Financial Analysis

Table 53: Alcatel-Lucent SA Business Overview

Table 54: Molex Inc. Financial Analysis

Table 55: Molex Inc. Business Overview

Table 56: IPG Photonics Financial Analysis

Table 57: IPG Photonics Business Overview

Table 58: NEC Corporation Financial Analysis

Table 59: NEC Corporation Business Overview

Table 60: Infinera Corporation Financial Analysis

Table 61: Infinera Corporation Business Overview

Table 62: Finisar Corporation Financial Analysis

Table 63: Finisar Corporation Business Overview