In 2015, the global Silicon Photonics Market size was valued at USD 123 million and is predicted to grow due to increasing uses of photonic technology. Silicon photonics has applications in telecommunication and data infrastructure as they have huge impact on energy efficiencies of communication Network. The need of silicon photonics in application areas such as consumer electronics, IT and increasing demand for optical multiplexers, optical attenuators and optical cables will drive the market in forecasted period.
Silicon photonics technology uses silicon as platform for photonic circuits to create highly integrated optical communication systems. The key elements of value chain include raw material suppliers, components manufacturers, Original equipment manufacturers, distributors and end users.
The distributors stage consist of channel partners, resellers, direct sales partners and vendors that are involved with sales and distribution of photonic systems. Ibsen Photonics A/S of Denmark make efficient use of Distributors spread across Russia, Singapore, China, India, Taiwan and Israel to meet Customers evolving requirement.
Optical component vendor have witnessed massive price reduction in their market. The manufacturers have incurred loss due to high fabrication cost and low selling price. Besides, the market is also competitive.
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Component Insights
The market can be segmented based on use of different components such as Optical waveguides, lasers, optical modulators, Wavelength-Division multiplexing and photodetectors. Among these, the WDM segment is expected to dominate the component arena in terms of size by 2025. WDM filter is used in current electronics and current fibers.
The excess use of Internet worldwide, where WDM filter plays vital role will push the growth in data communication segment.
Product Insights
The market subdivision on the types of products includes Optical waveguides, lasers, optical modulators, WDM and photodetectors. In 2015, the Active optical Cables (AOC) was largest segment in terms of size. The use of AOC enables user to transfer data at a high rate over a long distance through photonics technology.
AOC are cost effective as compared to traditional optical modules and provide smooth installation for high-performance computing. In terms of CAGR the optical multiplexer segment can be fastest growing segment from 2016 to 2025.
Application Insights
Based on applications, the market can be fragmented into IT & telecommunication, consumer electronics, commercial, defense and security and healthcare & life science. The IT & telecommunication segment would dominate the application field in terms of size in 2015.
Increase in number of smartphones and its penetration is expected to lead to high growth of Global telecommunication sector over the forecasted period. Technological advancements in silicon photonics will maximize performance and propel the IT & telecommunication industry. Commercial application segment will dominate in terms of CAGR in next seven years.
Regional Insights
Asia Pacific region is predicted to grow at a highest CAGR from 2016 to 2025. A strong demand and growth in consumer electronics manufacturers, transportation network as led to adoption of Silicon photonics technology.
In 2015, North American market dominated industry in terms of revenue. The key features of silicon photonics product such as low power consumption, small size and high efficiency are important reasons for adoption of this technology. The firms are investing in R&D for continuous development of advance photonic products that will lower the cost of high-speed internet access and will boost efficiency of Communication networks.
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Competitive Insights
Cisco Systems Inc., Mellanox Technologies, Molex Corporation, Intel Corporation, and Finisar Corporation are major players in Silicon photonics market. These firms are striving hard for market share through innovative product launches and upgraded transmission capabilities.
Avago technologies, Infinera, OneChip photonics, Luxtera are some identified players in global silicon photonic market.
Market Segment:
Silicon Photonics Component Outlook (Revenue, USD Million, 2014 - 2025)
• Optical Waveguides
• Optical Modulators
• Photodetectors
• Wavelength-Division Multiplexing (WDM) Filters
• Laser
Silicon Photonics Product Outlook (Revenue, USD Million, 2014 - 2025)
• Transceivers
• Active Optical Cables
• Optical Multiplexers
• Optical Attenuators
• Others
Silicon Photonics Application Outlook (Revenue, USD Million, 2014 - 2025)
• IT & Telecommunications
• Consumer Electronics
• Healthcare & Life Sciences
• Commercial
• Defense and Security
• Others (Media & Advertising)
Silicon Photonics Regional Outlook (Revenue, USD Million, 2014 - 2025)
• North America
• U.S.
• Canada
• Europe
• Germany
• UK
• France
• Asia Pacific
• China
• India
• Japan
• Latin America
• Mexico
• Brazil
• The Middle East & Africa
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