Silicon photonics technology integrates photonic systems such as lasers, modulators, and detectors on a silicon chip. This technology offers advantages such as compact size, wider bandwidth, lower power consumption, lower cost and ease of integration with electronic ICs. The growing demand for high bandwidth and energy efficient interconnects in data centers, high-performance computing and telecommunication applications is driving the growth of the silicon photonics market. 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 adoption of optical connectors and transceivers in data centers is a major trend that is fueling the growth of the silicon photonics market. Rising deployment of cloud computing services has increased the demand for high-speed data transfer in data centers. Optical interconnects offer advantages such as lower power consumption, higher bandwidth and better performance compared to copper interconnects. Major datacenter operators are replacing copper cables with optical cables for interconnects between servers, switches and storage arrays to cater to the explosive growth in data traffic. This shift towards optical interconnects is driving the demand for optical connectors and transceivers that are used at the endpoints of optical cables. The increasing usage of silicon photonics in manufacturing optical transceivers will support the growth of the silicon photonics market over the forecast period.
Segment Analysis
The global Silicon Photonics market is dominated by the datacenter segment. Datacenters account for over 40% market share due to the bandwidth and capacity needs of data transfer in datacenters. Silicon photonics offer an economical solution by enabling high speed data transfer through optical interconnects. The need for transferring large volumes of data with increased speeds within and between datacenters is driving the adoption of silicon photonics.
Key Takeaways
The Global Silicon Photonics Market Size is expected to witness high growth over the forecast period of 2023 to 2030.
Regional analysis shows that North America currently dominates the global market accounting for over 35% share. However, Asia Pacific is expected to be the fastest growing region due to increasing investments in optical communication infrastructure development in countries like China and India.
Key players operating in the Silicon Photonics market are Knoll Inc., HNI Corporation, Herman Miller, Inc., Teknion Corporation, Kimball International Inc. The global Silicon Photonics market is highly competitive with major players focusing on new product launches and partnerships to gain market share. For instance, in 2022, Knoll Inc. launched new seating solutions integrated with silicon photonics to enable enhanced data connectivity.
For More Insights, Read: https://www.newswirestats.com/silicon-photonics-market-size-share-and-growth-forecast-2023-2030/
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