Silicon photonics is an emerging technology which has revolutionized data communication and storage by carrying far more data in less time than electrical conductors. Silicon photonics has been anticipated as a substantial breakthrough in the very-high-speed data communications, telecommunications, and supercomputing. With the combination of silicon integrated circuit and semiconductor laser, silicon photonics technology enabled a huge growth in data center bandwidth. The silicon photonics also exhibits potential for low cost and large-scale production capability which makes it one of the most promising candidates for industrial production in the existing CMOS (complementary metal-oxide-semiconductor) foundries.
In the field of integrated optics, silicon photonics is the most active discipline owing to the increased investment by governments and private sector, and the recent breakthroughs in the technology. The market for silicon photonics is estimated to grow remarkably well in the next five years, fuelled by the constantly declining price of this technology. The demand for this technology has increased extensively in many sectors, including healthcare, telecommunication, and defense, among others. Many established players in the market, such as Intel Corporation, Cisco Systems, Inc., IBM Corporation and Juniper Networks, Inc., etc, are investing huge capital in the research and development of this technology to drive the evolution in speed and optical integration platform.
There are several roadblocks in the silicon photonics market, such as problems in adopting different communication systems, the risk of thermal effects and lack of commercialization in the telecommunication sector. Despite such challenges, developed economies are utilizing this technology to work on smart cities projects. Furthermore, the growing health concerns have driven the technological advancement in the healthcare sector, influencing the demand for silicon photonics in the healthcare in a positive way.
The global silicon photonics market is estimated to reach $1.7 billion by 2022, growing at a CAGR of 20.34% over the forecast period 2016-2022. The driving force for the market is the digitization of various aspects of businesses which require higher bandwidth and huge data transfer. Various governments are vying for this technology and promoting its adoption owing to the rapid increase in mobile adoption and expanding internet connectivity.
Geographically, the market is dominated by North America, which has always been a pioneer in utilizing the latest technology in the market, and Europe, which together accounted for a market share of 70%. The North America dominates the silicon photonics market over other regions due to the heavy demand for new construction in the region, strong economic growth, driven mainly by China, and increasing the affordability of silicon in the region. The U.S. is leading the silicon photonics market in North America, and it accounted for a market share of 63.6% in 2015.
BIS Research has conducted an extensive market research on ‘Global Silicon Photonics Market, Analysis & Forecast, 2017-2022'. The market intelligence report aims to provide an in-depth analysis of the key development strategies, marketing strategies and market trend dynamics which includes drivers, restraints, and opportunities prevailing in the industry.
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