May 29, 2015

Silicon Photonics Market Analysis by Products, Applications & Geography – Analysis & Forecast

Silicon Photonics is a relatively new technology which uses optical rays in order to transfer data between different computer chips and peripherals. New report covers particularly the markets for final products, devices and equipment that function on Silicon Photonics technology for six major application verticals namely: Telecommunications, Data communication, displays and consumer electronics, sensing, metrology, high performance computing and medicines. The silicon photonics market is expected to increase at a compound annual growth rate (CAGR) of 27.74% from 2014 to $497.53m by 2020.

Silicon photonics is being implemented by various companies in their product portfolios due to features such as high-speed data transfer and the integration of large data into a small device. With the help of silicon photonics, products such as optical waveguides, modulators, and photo-detectors can be integrated within a single device, providing a smaller form factor. In particular, wavelength division multiplexer filters (WDMF) and silicon optical modulators (SOM) have the highest share in the North American market currently. Thus, this shows that WDMF and SOM products in the silicon photonics market have great potential to grow over time.

The silicon photonics market is dominated by the North American region in terms of market size. Growing demand to transfer data as well as government funding in silicon photonics are motivating companies to launch silicon photonics products in the North American market, says the market research firm. However, the Asia-Pacific (APAC) region has been growing at the highest CAGR.

In terms of the competitive landscape, the market is witnessing new product launches and large-scale collaborations, as well as agreements and partnerships across the value chain, with a number of tier-one players around the globe, notes the report.

The report lists the major players in the silicon photonics market as Intel (USA), Hamamatsu Photonics, K.K (Japan), Finisar (USA), IBM (USA), Luxtera (USA), ST Microelectronics (Switzerland), 3S Photonics (France), Oclaro (USA), Mellanox Technologies (USA), and Infinera (USA).

The figure below shows the life-cycle analysis of the various silicon Photonics application sectors based on factors like the time-to-market and the key features of the products in the different application sectors.

Silicon Photonics Application Life-Cycle Analysis

Silicon Photonics Market Report

Silicon Photonics Market Analysis

The figure above shows in detail the short-term, medium-term and long-term applications for silicon photonics products, against the different features of the products for each applications. Datacom application revenue will dwarf all the other sectors in the coming future. The low-power consuming feature and the high data transfer rate capabilities achieved using silicon photonics are the main reason for the growth in the Datacom sector in the near future.

In applications like Telecom (Long-haul and Metro/LAN applications), Bio-medical sensors, Fiber-to-the-home (FTTH) and others, the major advantage of using silicon photonics will be the durability of the products as compared to the current conventional substitutes. Thus these applications will emerge in the medium-term (5-7 years).

In the long-term (beyond 10 years), silicon photonics is expected to become a default component of digital communication at the chip-level and board-level. These will open up doors to high volume of production and sales in the future.

Details of the new report, table of contents and ordering information can be found on Electronics.ca Publications’ web site.  View the report: Silicon Photonics Market Analysis by Products, Applications  & Geography – Analysis & Forecast.

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