by Silicon photonics technology is used for developing photonic integrated circuits and optical interconnects. This technology incorporates photonic components such as waveguides, modulators and detectors on a silicon chip. Silicon photonics offers various advantages such as high bandwidth, low power consumption and compact integration. It is increasingly being used in high performance computing applications such as data centers. The global Silicon Photonics Market is estimated to be valued at US$ 1949.78 Mn in 2023 and is expected to exhibit a CAGR of 4.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The increasing demand from data centers is one of the major trends driving the growth of the silicon photonics market. With the rising volume of data being transmitted across data centers, the demand for high speed data transfer is also increasing. Silicon photonics technology is able to fulfill this demand due to its ability to offer high bandwidth and low power consumption. Data centers are increasingly adopting silicon photonics for applications such as intra and inter data center connectivity. This is expected to boost the demand for silicon photonics significantly over the forecast period.
SWOT Analysis
Strength: Silicon photonics technology allows photonic devices such as receivers, switches and transceivers to be miniaturized and integrated directly onto a silicon chip along with microelectronic circuits. This enables the convergence of electronics and photonics on a single chip for building faster and more powerful communications systems.
Weakness: Development of a robust manufacturing infrastructure for silicon photonics is still in the initial stages. Higher power consumption of photonics components compared to electrical components. Requires initial investment and still faces integration challenges with existing semiconductor manufacturing facilities.
Opportunity: Rising demand for higher bandwidth capacity for data-intensive applications such as cloud, IoT, AI and 5G communications present numerous opportunities. Expanding telecom infrastructure globally offers good scope. Optical interconnects in datacenters and high-performance computing present new application avenues.
Threats: Competition from other hybrid photonic integration platforms such as InP. Ongoing technological developments in existing solutions based on multicore fibers and DWDM transmission systems can potentially limit demand growth for silicon photonics.
Key Takeaways
The Global Silicon Photonics Market Size is expected to witness high growth over the forecast period supported by rising demand for increased network bandwidth.
North America held the largest share of the market in 2023 supported by presence of major players and growing datacenter requirements in the region. The Asia Pacific region is expected to witness fastest growth on account of expanding telecom infrastructure and rising investments in optical communications networks by countries like China and India.
Key players operating in the silicon photonics market are Knoll Inc., LLC., HNI Corporation, Herman Miller, Inc., Teknion Corporation, Kimball International Inc., Berco Designs, Kokuyo Co., Ltd., Haworth Inc., Okamura Corporation, and Steelcase Inc. These players are focusing on developing new products through continuous R&D to gain competitive advantage. For instance, in 2022, Knoll Inc. launched some new partition panels and tops with advanced designs. Major players are also exploring strategic partnerships and acquisitions for technology enhancement and geographical expansion.
*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
