Silicon Photonics Market Opportunities In Telecommunications And Beyond

Silicon Photonics Industry Overview

The global silicon photonics market size was valued at USD 1.29 billion in 2022 and is expected to grow at a CAGR of 25.8% from 2023 to 2030. Silicon photonics is an emerging technology experiencing growing demand due to the need for higher data transfer rates and bandwidth-intensive applications. It has found significant traction in data centers and telecommunications, where it offers high-speed data transmission, reduced power consumption, and integration with existing silicon-based electronic systems. Silicon photonics has also been explored as a solution for optical interconnects, replacing traditional copper-based interconnects in data centers and high-performance computing systems.

A key advantage of silicon photonics is its compatibility with existing silicon-based electronic technologies, enabling the integration of photonic components with electronic circuits on a single silicon chip. This compatibility results in more efficient and cost-effective systems. Extensive research and development have focused on improving performance, enhancing manufacturing processes, and reducing costs to drive silicon photonics advancement further. Researchers are exploring new materials, fabrication techniques, and design methodologies to push the boundaries of the technology.

Collaborations and partnerships have played a crucial role in the commercialization of silicon photonics. Semiconductor companies, telecommunications providers, data center operators, and research institutions have come together to develop standardized solutions, overcome technical challenges, and bring silicon photonics products to the market. These partnerships aim to accelerate the adoption of silicon photonics and drive its widespread use in various applications.

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• The global semiconductor laser market was valued at USD 8.08 billion in 2023 and is projected to grow at a CAGR of 9.5% from 2024 to 2030. With the advent of the 5G network and the expansion of fiber optic communication systems, there is a growing need for advanced optical components that can handle vast amounts of data at incredibly high speeds.

• The global next generation non-volatile memory market size was valued at USD 6.15 billion in 2023 and is projected to grow at a CAGR of 17.8% from 2024 to 2030. Next-generation non-volatile memory (NVM) technologies are emerging storage solutions that enable high-speed data access and maintain data integrity during power loss.

Silicon Photonics Market Segmentation

Grand View Research has segmented the global silicon photonics market based on component, product, application, and region:

Silicon Photonics Technology Component Outlook (Revenue in USD Million, 2017 - 2030)
• Optical Waveguides
• Optical Modulators
• Photodetectors
• Wavelength-Division Multiplexing (WDM) Filters
• Laser

Silicon Photonics Technology Product Outlook (Revenue in USD Million, 2017 - 2030)
• Transceivers
• Active Optical Cables
• Optical Multiplexers
• Optical Attenuators
• Others

Silicon Photonics Technology Application Outlook (Revenue in USD Million, 2017 - 2030)
• IT & Telecommunications
• Consumer Electronics
• Healthcare & Life Sciences
• Commercial
• Defense and Security
• Others

Silicon Photonics Technology Regional Outlook (Revenue in USD Million, 2017 - 2030)
• North America
o U.S.
o Canada
• Europe
o UK
o Germany
o France
• Asia Pacific
o China
o Japan
o India
o Australia
o South Korea
• Latin America
o Brazil
o Mexico
• Middle East and Africa
o United Arab Emirates (UAE)
o Saudi Arabia
o South Africa

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Key Companies profiled:
• Intel Corporation
• Cisco Systems, Inc.
• DAS Photonics
• Hamamatsu Photonics K.K.
• IBM Corporation
• STMicroelectronics N.V.
• Adtran Networks
• Finisar Corporation
• Molex, LLC
• Mellanox Technologies (NVIDIA Corporation)
• Infinera Corporation

Recent Developments

• In May 2023, SkyWater Technology collaborated with PsiQuantum to develop silicon photonic chips deployed in future quantum computing devices. The firms collaborated to produce the chips in SkyWater's semiconductor production facility in Minnesota, U.S. This collaboration advances PsiQuantum's objective of developing a financially feasible, error-corrected multipurpose quantum computing system that extends beyond 1,000,000 qubits using silicon photonics. The collaboration between the two firms is a crucial step towards achieving this aim, bringing together the skills of leading companies to develop a quantum computer capable of driving modifications across various sectors.

• In December 2022, Altair Engineering Inc. announced an investment of USD 10 million in Xscape, a company that has developed an innovative platform. Xscape developed a platform that sustainably connects numerous computer aspects while providing the best efficiency accessible. Xscape's unique approach utilizes photonics to minimize power consumption and heat generation while simultaneously enhancing the speed and efficiency of communications. With Altair's investment, Xscape further advanced its platform and integrated it with leading simulation, high-performance computing, and artificial intelligence software that benefits clients across various industries.

• In August 2022, DustPhotonics Ltd and MaxLinear collaborated to showcase a silicon photonics chipset incorporating lasers directly driven from a digital signal processor (DSP), eliminating the need for external driver chips. The partnership between MaxLinear's Keystone DSP and DustPhotonics' Carmel Silicon Photonics chip enables the development of cost-effective and low-power optical transceivers for data communication. This advancement allows for the design of 400Gb/s transceivers with power consumption below 7W.

• In March 2022, GlobalFoundries Inc partnered with Broadcom, Cisco Systems, Inc., NVIDIA Corporation, and Marvell to introduce GF Fotonix, an advanced silicon photonics platform that promises to revolutionize the industry. GlobalFoundries Inc holds a significant market share and has secured design contracts with major customers. The company foresees its growth in this field surpassing the overall market growth. GlobalFoundries Inc and Cisco Systems, Inc., a leading industry player, are collaborating on a customized silicon photonics solution for data center interconnect, data communication, and computer network applications.

• In October 2021, The New York State Government announced that the American Institute of Manufacturing Photonics awarded a new seven-year collaborative contract with the Air Force Research Laboratory and the State University of New York Research Foundation, totaling more than USD 321 million in investment. The investment is utilized to develop advanced photonics readiness. This technology is vital to developing high-performance microelectronics and is essential for the nation's safety.