The silicon photonics market generated a value of USD 1,212.5 million in 2022, and it will advance at a 27.5% compound annual growth rate, to touch USD 8,475.1 million, by 2030.
The growth of the silicon photonics industry is primarily attributed to the increasing requirement for high-performance computing and data centers along with the subsequent requirement for high-speed transmission of data.
The transceivers category, based on product, will observe the fastest growth, growing at a 30% compound annual growth rate, in the years to come. This is credited to the fact that advanced network architecture necessitates advanced optical transceivers, and these are produced by using photonic integrated circuit technology and are mainly implemented in data centers.
The switches category, on the other hand, will hold a significant share of the silicon photonics industry in the years to come, advancing at a 27% compound annual growth rate. This is primarily credited to their mounting requirement in data centers.
Based on application, the telecommunication category is expected to hold a substantial share of the silicon photonics market in the years to come. This is ascribed to the 5G network technologies deployment across numerous regions for enhanced connectivity and effective data transfer requirements. Additionally, in the years to come, the requirement for 5G connections will rise because of the increasing acceptance of 5G smartphones.
North America will hold the largest silicon photonics industry revenue share, of approximately 40%. This is credited to the existence of advanced facilities of manufacturing and the rigorous R&D activities to enhance manufacturing and the overall silicon photonics effectiveness.
In North America, the U.S. silicon photonics industry holds the majority of the share. This is credited to the fact that the U.S. is a developed country and has numerous advantages in technology as compared to other nations all over the world. The nation also has a sophisticated system of defense in which silicon photonics is considered a key technology.
Additionally, the Canadian silicon photonics industry is advancing significantly because of the increasing investments. For example, in 2022, an investment worth approximately USD 184.0 million was announced to boost the semiconductor design and manufacturing sector, as a result creating advantageous conditions in the industry for silicon photonics also.
Governments of nations, including India, are investing in the semiconductor sector to ultimately boost electronic goods production within the nation itself.
It is because of the increasing emphasis on decreasing the consumption of power for electronic devices, the mounting requirement for high-speed data transmission, and the rising necessity for data centers, the global silicon photonics industry will continue to advance significantly in the years to come.
