9 April 2018

Silicon photonics market to grow at a CAGR of 20.8% between 2018 and 2023

© Semiconductor Today Magazine / Juno PublishiPicture: Disco’s DAL7440 KABRA laser saw.

The silicon photonics market will grow at a compound annual growth rate (CAGR) of 20.8% between 2018 and 2023, according to a report from Markets and Markets.

Rising demand for silicon photonics in data centers and the growing requirements of high bandwidth and high data transfer capabilities are the key factors contributing to growth. However, the risk of thermal effects remains as a major restraint affecting silicon photonics market growth.

Transceiver sector to grow fastest

The silicon photonics market for transceivers is expected to grow at the highest CAGR between 2018 and 2023. Transceivers are used in applications such as high-performance computing, due to the large demand for high-speed data transmission in data centers. Many tier-1 players are entering this market; for example, Intel began research on silicon photonics in the last decade and launched its first 10Gbps product in partnership with Luxtera. Further, in May 2017 Intel launched a 100G CWDM4 and QSFP28 optical transceiver that has higher bandwidth capabilities and can support speeds up to 100Gbps.

Data-centers and high-performance computing largest sector

Data centers and high-performance computing comprised the largest share of the silicon photonics market in 2017. Due to the rise of cloud computing and several emerging web applications, data centers are experiencing an exponential increase in data traffic. To manage this network load, large data centers are required with thousands of servers interconnected with high-bandwidth switches.

APAC region to grow fastest

The Asia-Pacific (APAC) region is expected to grow at the highest CAGR between 2018 and 2023. China, Japan and South Korea are the major contributors. The increasing requirement of high-speed data communication and the increasing focus of international and domestic IT companies on Big Data analytics and cloud-based services in the region should fuel market growth. Also fueling market growth are increasing investment in the development of silicon photonics products, domestic players on the silicon photonics market, and increasing R&D activities in the region.

Tags: silicon photonics

Visit: www.researchandmarkets.com/publication/m4trtik/4470100