Silicon Photonics market Size worth over $55 billion by 2035
Research Nester’s recent market research analysis on “Silicon Photonics Market: Global Demand Analysis & Opportunity Outlook 2035” delivers a detailed competitors analysis and a detailed overview of the in terms of market segmentation by component, product, application and by region.
The global silicon photonics market is estimated to grow majorly on account of the increasing popularity of 5G technology. For instance, silicon photonics play a critical role in 5G networks as they offer high-speed data transmission and meet the speed and low-latency requirements of 5G networks. Besides this, silicon photonics also supports the high bandwidth demand of 5G networks. According to recent data, the world gained over 220 million 5G users in 2020.
The global silicon photonics market is estimated to grow majorly on account of the increasing demand for consumer electronics globally. For instance, silicon photonics will replace more traditional optics technology, allowing for far quicker data transfer by using silicon as a platform to incorporate optical functions into electrical chips. According to estimates, lately, there are over 6 billion cell phones in use worldwide, a figure that is expected to rise in the coming years.
Some of the major growth factors and challenges that are associated with the growth of the global silicon photonics market are:
Growth Drivers:
· Surge in Need for Optical Communications Systems
· Rising Industry 4. O
Challenges:
The exorbitant cost associated with the development, and the challenges faced while integrating photonics with the existing electrical components are some of the major factors anticipated to hamper the global market size of silicon photonics. For instance, the cost of materials and specialized manufacturing process for developing silicon photonics technology can be expensive which makes it challenging for several small businesses to enter the market.
By component, the global silicon photonics market is segmented into optical waveguides, modulators, photodetectors, and lasers. The laser segment is to garner the highest revenue by the end of 2035 by growing at a significant CAGR over the forecast period. The growth can be attributed to the rising popularity of optical interconnects. A laser is an active component of silicon photonics that supplies the light source for optical data transport, allowing for cost-effective and energy-efficient optical connectivity solutions.
In addition, by product, the transceivers segment is estimated to gain a significant market share on the account of increasing need for data centers. A pair of transmitters and receivers is an essential component of any data center since they are crucial to the use of big data in data centers and assist organizations with accessing data. Data centers must convey data in a reliable, secure, and timely manner, thus transceiver technology aids in speedy data transfer in data centers.
By region, the Asia Pacific silicon photonics market is to generate the highest revenue by the end of 2035. This growth is anticipated by the surging need for high-speed internet connections. Owing to the region's expanding use of 5G technology and rapid digitalization, there is a growing demand for high-speed internet connections. To accommodate huge data volumes, 5G networks require advanced optical solutions, which involve the usage of silicon photonic to enable the transmission and routing of massive amounts of data traffic at a reasonable cost and meet the demand for faster internet access.
In addition, the market in North America is expected to gain significant revenue owing to the growing defense & security industry. These industries entail the use and storage of massive amounts of data that must be kept secure. Since data security is critical in these businesses, the need for silicon photonics is increasing as it aids in keeping data safe from hackers owing to the nature of optical transmission, which is difficult to intercept.
Further, the market in Europe is projected to hold a notable share on the account of increasing need from the healthcare industry. For instance, silicon photonics is widely used in the healthcare industry and medical point-of-care diagnosis in the region.
