Summary

The silicon photonics market was valued at USD 2.16 billion in 2024 and is projected to reach USD 7.52 billion by 2029, growing at a CAGR of 28.3% from 2024 to 2029.
The demand for high-speed broadband service is one of the major drivers in the market. The rising demand for new broadband connections and high-speed internet plans has prompted telecom service providers to invest in developing new network technologies, including silicon photonics. These technologies enable high-speed broadband connections and offer more broadband services over the existing network infrastructure.The increasing complexity of integrating on-chip lasers is one of the major restraints in the market. Lasers are required for high-performance optical data transmission because they create pure light in frequency and colors. Silicon photonics either uses an on-chip or off-chip light source. An on-chip light source refers to a light-emitting component integrated directly onto a semiconductor chip that is typically small and has lower power consumption than the off-chip light source. However, incorporating laser sources on a silicon chip is difficult as it increases the complexity. Also, different light sources have different spectral compositions; therefore, integrating on-chip laser is a complex process, hindering market growth.
Transceivers to account for the largest share of silicon photonics market during the forecast period
The Transceivers segment is expected to dominate the silicon photonics market during the forecast period. The transceivers sector is likely to dominate the silicon photonics market over the forecast period. Transceivers are utilized in a variety of applications, including high-performance computing, data centers, and telecommunications. A transceiver combines a transmitter and a receiver on a single platform. It is a bidirectional gadget that transmits and receives data. This gadget is generally utilized in cables or optical fiber networks. Multiple devices can connect to the same bus, making them ideal for parallel backplane applications like telephony and industrial infrastructure. An electronic switch connects the transmitter and receiver to the same antenna, preventing the transmitter's output from hurting the receiver.
The laser component in silicon photonics to account for largest market size during the forecast period.
Silicon lasers are fabricated using silicon and other materials, including indium phosphide and gallium arsenide. Silicon lasers are crucial to achieving integrated silicon photonics.
Ge-on-Si lasers and III-V-based Si lasers are two types of lasers. III-V-based Si laser is currently the most practical way of obtaining on-chip light sources in silicon photonics. III-V-based silicon lasers formed via bonding techniques demonstrate the best performance and display the best opportunity for use in silicon photonic manufacturing processes. However, in the long term, direct heteroepitaxial growth of III-V materials on Si seems more promising for low-cost, high-yield fabrication.
North America is expected to have the largest market during the forecast period.
North America is one of the leading markets for networking-based services and has many data centers. The region is expected to command the silicon photonics market in the coming years by accounting for the largest market share. It is the hub of many technology companies and R&D establishments, leading to prominent innovations and technological advancements. Also, there is a huge and steady flow of monetary investment available for research-related activities from governments and venture capitalists. End User such as military, defense, and aerospace; telecommunications; and data communication are highly demanded for silicon photonics technology-based products in the region.
In determining and verifying the market size for several segments and subsegments gathered through secondary research, extensive primary interviews have been conducted with key officials in the silicon photonics market. Following is the breakup of the profiles of the primary participants for the report.

• By Company Type: Tier 1 – 40 %, Tier 2 – 40%, and Tier 3 – 20%
• By Designation: Directors –40%, Managers- 40%, and Others – 20%
• By Region: North America– 40%, Asia Pacific – 30%, Europe- 20%, and RoW – 10%
The report profiles key players in the silicon photonics market and analyzes their market shares. Players profiled in this report are Cisco Systems, Inc. (US), Intel Corporation (US), MACOM (US), GlobalFoundries Inc. (US), Lumentum Operations LLC (US), Marvell (US), Coherent Corporation (US), IBM (US), STMicroelectronics (Switzerland), Rockley Photonics Holdings Limited (US), Mellanox Technologies Ltd. (US), Sicoya GmbH (Germany), RANOVUS (Canada), Broadcom Inc. (US), Hamamatsu Photonics KK (Japan), Molex LLC (US), Fujitsu Limited (Japan), Chiral Photonics, Inc. (US), EFFECT Photonics (Netherlands), AIO Core Co., Ltd. (Japan), NKT Photonics (Denmark), IPG Photonics Corporation (US), DAS Photonics (Spain), TDK Corporation (Japan), SCINTIL Photonics (France), Teem Photonics (France), Lightwave Logic, Inc. (US), Source Photonics (US), Accelink Technologies Co., LTD, (China), and Infinera (US).
Research Coverage
The report defines, describes, and forecasts the silicon photonics market based on product, component, waveguide, end user, and region. It provides detailed information regarding drivers, restraints, opportunities, and challenges influencing its growth. It also analyzes competitive developments such as product launches, acquisitions, expansions, contracts, partnerships, and actions carried out by the key players to grow in the market.
Reasons to Buy This Report
The report will help the market leaders/new entrants with information on the closest approximations of the revenue numbers for the overall silicon photonics market and the subsegments. This report will help stakeholders understand the competitive landscape and gain more insights to position their businesses better and to plan suitable go-to-market strategies. The report also helps stakeholders understand the market pulse and provides information on key market drivers, restraints, challenges, and opportunities.
The report provides insights on the following pointers:

• Analysis of key drivers (Rising demand for CMOS-integrated silicon photonics technology in data centers, growing focus on reducing power consumption using silicon photonic transceivers, increasing requirement for high bandwidth and high data transfer capabilities, and the surging demand for high-speed broadband services), restraints (Risk of thermal effect, complexity in integration of on-chip laser), opportunities (Increasing government and stakeholder funding, growing deployment of 5G networks, emerging applications of silicon photonics, surging utilization of silicon photonics technology in short-reach communication), and challenges (Embedding silicon photonic components into small circuits, inefficient electroluminescence of bulk crystalline silicon) influencing the growth of the silicon photonics market.

• Product Development/Innovation: Detailed insights on upcoming technologies, research & development activities, and new product & service launches in the silicon photonics market

• Market Development: Comprehensive information about lucrative markets – the report analyses the silicon photonics market across varied regions

• Market Diversification: Exhaustive information about new products & services, untapped geographies, recent developments, and investments in the silicon photonics market

• Competitive Assessment: In-depth assessment of market shares, growth strategies, and service offerings of leading players like Cisco Systems, Inc. (US), Intel Corporation (US), MACOM (US), GlobalFoundries Inc. (US), and Lumentum Operations LLC (US), among others in the silicon photonics market strategies. The report also helps stakeholders understand the pulse of the automotive airbags & seatbelts market and provides them with information on key market drivers, restraints, challenges, and opportunities.

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Table of Contents

1 INTRODUCTION 23
1.1 STUDY OBJECTIVES 23
1.2 MARKET DEFINITION 23
1.3 STUDY SCOPE 24
1.3.1 MARKETS COVERED AND REGIONAL SCOPE 24
1.3.2 INCLUSIONS AND EXCLUSIONS 25
1.3.3 YEARS CONSIDERED 25
1.4 CURRENCY CONSIDERED 26
1.5 UNIT CONSIDERED 26
1.6 STAKEHOLDERS 26
1.7 SUMMARY OF CHANGES 26
2 RESEARCH METHODOLOGY 28
2.1 RESEARCH DATA 28
2.1.1 SECONDARY AND PRIMARY RESEARCH 30
2.1.2 SECONDARY DATA 31
2.1.2.1 Major secondary sources 31
2.1.2.2 Key data from secondary sources 31
2.1.3 PRIMARY DATA 32
2.1.3.1 Key data from primary sources 32
2.1.3.2 Primary interviews with experts 33
2.2 MARKET SIZE ESTIMATION 34
2.2.1 BOTTOM-UP APPROACH 35
2.2.1.1 Approach to arrive at market size using top-down analysis
(supply side) 35
2.2.2 TOP-DOWN APPROACH 36
2.2.2.1 Approach to arrive at market size using bottom-up analysis
(demand side) 36
2.3 DATA TRIANGULATION 37
2.4 RESEARCH ASSUMPTIONS 38
2.5 RESEARCH LIMITATIONS 38
2.6 RISK ANALYSIS 39
3 EXECUTIVE SUMMARY 40
4 PREMIUM INSIGHTS 44
4.1 ATTRACTIVE OPPORTUNITIES FOR PLAYERS IN SILICON PHOTONICS MARKET 44
4.2 SILICON PHOTONICS MARKET, BY END USER 44
4.3 SILICON PHOTONICS MARKET IN NORTH AMERICA, BY PRODUCT AND COUNTRY 45
4.4 SILICON PHOTONICS MARKET, BY COMPONENT 45
4.5 SILICON PHOTONICS MARKET, BY COUNTRY 46
5 MARKET OVERVIEW 47
5.1 INTRODUCTION 47
5.2 MARKET DYNAMICS 47
5.2.1 DRIVERS 48
5.2.1.1 Surging demand for CMOS-integrated silicon photonics 48
5.2.1.2 Growing focus on energy efficiency and lower power costs 48
5.2.1.3 Rising demand for high bandwidth and fast data transfer 49
5.2.1.4 Expansion of broadband services 49
5.2.2 RESTRAINTS 50
5.2.2.1 Complexities integrating laser sources on silicon chips 50
5.2.3 OPPORTUNITIES 50
5.2.3.1 Government funding to develop advanced products based on silicon photonics 50
5.2.3.2 Expansion of 5G networks 51
5.2.3.3 Expanding applications of silicon photonics 51
5.2.3.4 Increasing use of silicon photonics in short-distance communication 51
5.2.4 CHALLENGES 52
5.2.4.1 Inefficient electroluminescence of bulk crystalline silicon 52
5.2.4.2 Thermal challenges in device miniaturization and complexity 52
5.3 TECHNOLOGY ANALYSIS 53
5.3.1 KEY TECHNOLOGIES 53
5.3.1.1 Silicon photonics technology 53
5.3.2 COMPLEMENTARY TECHNOLOGIES 53
5.3.2.1 Al- and loT-integrated 5G networks 53
5.3.3 ADJACENT TECHNOLOGIES 53
5.3.3.1 Laser technologies 53
5.4 TRENDS/DISRUPTIONS IMPACTING CUSTOMER BUSINESS 54
5.5 PRICING ANALYSIS 54
5.5.1 AVERAGE SELLING PRICE TREND OF TRANSCEIVER PRODUCTS, BY DATA RATE, 2018–2023 55
5.5.2 AVERAGE SELLING PRICE TREND OF TRANSCEIVERS, BY REGION, 2018–2023 56
5.6 VALUE CHAIN ANALYSIS 57
5.7 ECOSYSTEM ANALYSIS 58
5.8 INVESTMENT AND FUNDING SCENARIO 60
5.9 PATENT ANALYSIS 62
5.10 TRADE ANALYSIS 66
5.10.1 IMPORT SCENARIO (HS CODE 851769) 66
5.10.2 EXPORT SCENARIO (HS CODE 851769) 67

5.11 TARIFF AND REGULATORY LANDSCAPE 68
5.11.1 TARIFF ANALYSIS 68
5.11.2 REGULATORY BODIES, GOVERNMENT AGENCIES, AND OTHER ORGANIZATIONS 69
5.11.3 STANDARDS 70
5.11.3.1 International Organization for Standardization Standards 70
5.11.3.2 European Union Directives 70
5.11.3.3 Federal Communication Commission (FCC) 70
5.11.3.4 National Institutes of Standard Technology Guidelines 71
5.12 KEY CONFERENCES AND EVENTS, 2024–2025 71
5.13 CASE STUDY ANALYSIS 72
5.13.1 COHERENT PLUGGABLE TRANSCEIVER HELPS TELIA CARRIER (SWEDEN) ACHIEVE HIGH-SPEED TRANSMISSION 72
5.13.2 MOLEX DATA CABLES SOLUTION IMPROVES DATA TRANSMISSION ISSUES OF KALINGA GROUP 72
5.13.3 QSFPTEK'S 100G QSFP28 TRANSCEIVERS HELP EMPOWER CRITICAL BUSINESSES 73
5.14 PORTER'S FIVE FORCES ANALYSIS 73
5.14.1 INTENSITY OF COMPETITIVE RIVALRY 74
5.14.2 BARGAINING POWER OF SUPPLIERS 74
5.14.3 BARGAINING POWER OF BUYERS 75
5.14.4 THREAT OF SUBSTITUTES 75
5.14.5 THREAT OF NEW ENTRANTS 75
5.15 KEY STAKEHOLDERS AND BUYING CRITERIA 76
5.15.1 KEY STAKEHOLDERS IN BUYING PROCESS 76
5.15.2 BUYING CRITERIA 77
5.16 IMPACT OF AI ON SILICON PHOTONICS MARKET 78
6 SILICON PHOTONIC WAVEGUIDES 79
6.1 INTRODUCTION 79
6.2 400–1,500 NM 79
6.3 1,310–1,550 NM 79
6.4 900–7,000 NM 80
7 SILICON PHOTONICS MARKET, BY COMPONENT 81
7.1 INTRODUCTION 82
7.2 LASERS 84
7.2.1 SURGING UTILIZATION IN PHOTONIC DEVICES TO ENSURE HIGH-SPEED DATA TRANSMISSION TO SPUR DEMAND 84
7.3 MODULATORS 85
7.3.1 GROWING REQUIREMENT FOR HIGH-SPEED NETWORKS TO ACCELERATE MARKET GROWTH 85

7.4 PHOTODETECTORS 86
7.4.1 STRONG ABSORPTION IN NIR WAVELENGTH RANGE TO SUPPORT MARKET GROWTH 86
7.5 OPTICAL WAVEGUIDES 87
7.5.1 INCREASING STRATEGIC DEVELOPMENT BY KEY PLAYERS TO FAVOR MARKET GROWTH 87
7.6 OPTICAL INTERCONNECTS 88
7.6.1 HIGH AND MORE EFFICIENT DATA TRANSFER RATE AND HIGH INTERCONNECTION DENSITIES TO AUGMENT MARKET GROWTH 88
7.7 OTHER COMPONENTS 89
8 SILICON PHOTONICS MARKET, BY PRODUCT 91
8.1 INTRODUCTION 92
8.2 TRANSCEIVERS 93
8.2.1 DATA RATES 94
8.2.1.1 Less than 10 Gbps 94
8.2.1.1.1 Widening use in diverse set of applications to boost demand 94
8.2.1.2 Up to 100 Gbps 94
8.2.1.2.1 Growing need for high-speed transceivers to fuel market growth 94
8.2.1.3 More than 100 Gbps 95
8.2.1.3.1 Increasing deployment of 5G networks to foster demand 95
8.3 VARIABLE OPTICAL ATTENUATORS 99
8.3.1 GROWING ADOPTION OF BROADBAND INTERNET AND DEPLOYMENT OF 5G TO FUEL MARKET GROWTH 99
8.4 SWITCHES 103
8.4.1 SURGING USE OF OPTICAL SWITCHES TO ENSURE TRANSMISSION OF LARGE VOLUMES OF DATA IN MINIMAL TIME TO PROPEL MARKET 103
8.5 CABLES 107
8.5.1 RISING DEMAND FOR HIGHER BANDWIDTH CAPACITY TO AUGMENT MARKET GROWTH 107
8.6 SENSORS 110
8.6.1 ELEVATING DEMAND FOR PORTABLE AND WEARABLE DEVICES TO PROPEL MARKET GROWTH 110
9 SILICON PHOTONICS MARKET, BY END USER 114
9.1 INTRODUCTION 115
9.2 DATA CENTERS AND HPC 117
9.2.1 RAPID GROWTH OF AI AND OTHER MODERN TECHNOLOGIES TO BOOST DEMAND 117
9.3 TELECOMMUNICATIONS 119
9.3.1 GROWING NEED TO ACCOMMODATE BANDWIDTH-INTENSIVE PRODUCTS AND SERVICES TO FUEL SEGMENTAL GROWTH 119

9.4 MILITARY, DEFENSE, AND AEROSPACE 122
9.4.1 BOOSTING DEFENSE CAPABILITIES WITH CO-PACKAGED OPTICAL INTERCONNECTS TO AUGMENT MARKET GROWTH 122
9.5 MEDICAL AND LIFE SCIENCES 124
9.5.1 RISING DEPLOYMENT OF SILICON PHOTONICS IN LAB-ON-CHIP SOLUTIONS TO FUEL DEMAND 124
9.6 OTHER END USERS 126
10 SILICON PHOTONICS MARKET, BY REGION 128
10.1 INTRODUCTION 129
10.2 NORTH AMERICA 130
10.2.1 MACROECONOMIC OUTLOOK FOR NORTH AMERICA 131
10.2.2 US 134
10.2.2.1 Rigorous R&D activities by key industry players to drive market 134
10.2.3 CANADA 136
10.2.3.1 Accelerated demand for high-speed networking to fuel market growth 136
10.2.4 MEXICO 137
10.2.4.1 Government-led initiatives to ensure connectivity within urban centers to boost demand 137
10.3 EUROPE 138
10.3.1 MACROECONOMIC OUTLOOK FOR EUROPE 138
10.3.2 GERMANY 142
10.3.2.1 Government-led funding and initiatives by various research institutes to fuel market growth 142
10.3.3 UK 143
10.3.3.1 Growing adoption of data centers and HPC by various verticals to favor market growth 143
10.3.4 FRANCE 145
10.3.4.1 Federal support to promote use of silicon photonics to augment market growth 145
10.3.5 ITALY 146
10.3.5.1 Rising number of data centers to support market growth 146
10.3.6 REST OF EUROPE 147
10.4 ASIA PACIFIC 148
10.4.1 MACROECONOMIC OUTLOOK FOR ASIA PACIFIC 149
10.4.2 CHINA 153
10.4.2.1 Rising demand for smartphones and internet users to accelerate market growth 153
10.4.3 JAPAN 154
10.4.3.1 Early adoption of silicon photonics in medical equipment to support market growth 154
10.4.4 SOUTH KOREA 156
10.4.4.1 Technological innovations in silicon photonics to spur market growth 156
10.4.5 REST OF ASIA PACIFIC 157
10.5 ROW 158
10.5.1 MACROECONOMIC OUTLOOK FOR ROW 158
10.5.2 SOUTH AMERICA 161
10.5.2.1 Strong government support to develop network infrastructure to boost demand 161
10.5.3 MIDDLE EAST & AFRICA 162
10.5.3.1 Increasing need for advanced silicon photonics-based transceivers to fuel market growth 162
10.5.3.2 GCC countries 162
10.5.3.3 Rest of Middle East & Africa 162
11 COMPETITIVE LANDSCAPE 166
11.1 OVERVIEW 166
11.2 KEY STRENGTHS/RIGHT TO WIN, 2020–2024 166
11.3 REVENUE ANALYSIS, 2019–2023 168
11.4 MARKET SHARE ANALYSIS, 2023 169
11.5 COMPANY VALUATION AND FINANCIAL METRICS 172
11.6 PRODUCT/APPLICATION COMPARISON 173
11.7 COMPANY EVALUATION MATRIX: KEY PLAYERS, 2023 173
11.7.1 STARS 173
11.7.2 EMERGING LEADERS 173
11.7.3 PERVASIVE PLAYERS 173
11.7.4 PARTICIPANTS 174
11.7.5 COMPANY FOOTPRINT: KEY PLAYERS, 2023 175
11.7.5.1 Company footprint 175
11.7.5.2 Region footprint 176
11.7.5.3 Component footprint 177
11.7.5.4 Product footprint 178
11.7.5.5 End user footprint 179
11.8 COMPANY EVALUATION MATRIX: STARTUPS/SMES, 2023 180
11.8.1 PROGRESSIVE COMPANIES 180
11.8.2 RESPONSIVE COMPANIES 180
11.8.3 DYNAMIC COMPANIES 180
11.8.4 STARTING BLOCKS 180
11.8.5 COMPETITIVE BENCHMARKING: STARTUPS/SMES, 2023 182
11.8.5.1 Detailed list of key startups/SMEs 182
11.8.5.2 Competitive benchmarking of key startups/SMEs 183
11.9 COMPETITIVE SCENARIO 184
11.9.1 PRODUCT LAUNCHES 184
11.9.2 DEALS 185
11.9.3 EXPANSIONS 186
11.9.4 OTHER DEVELOPMENTS 186
12 COMPANY PROFILES 187
12.1 KEY PLAYERS 187
12.1.1 CISCO SYSTEMS, INC. 187
12.1.1.1 Business overview 187
12.1.1.2 Products offered 188
12.1.1.3 Recent developments 189
12.1.1.3.1 Deals 189
12.1.1.4 MnM view 190
12.1.1.4.1 Key strengths 190
12.1.1.4.2 Strategic choices 190
12.1.1.4.3 Weaknesses and competitive threats 190
12.1.2 INTEL CORPORATION 191
12.1.2.1 Business overview 191
12.1.2.2 Products offered 192
12.1.2.3 Recent developments 193
12.1.2.3.1 Product launches 193
12.1.2.3.2 Deals 194
12.1.2.4 MnM view 194
12.1.2.4.1 Key strengths 194
12.1.2.4.2 Strategic choices 194
12.1.2.4.3 Weaknesses and competitive threats 195
12.1.3 MACOM 196
12.1.3.1 Business overview 196
12.1.3.2 Products offered 197
12.1.3.3 Recent developments 198
12.1.3.3.1 Product launches 198
12.1.3.3.2 Deals 199
12.1.3.4 MnM view 199
12.1.3.4.1 Key strengths 199
12.1.3.4.2 Strategic choices 199
12.1.3.4.3 Weaknesses and competitive threats 199
12.1.4 GLOBAL FOUNDRIES INC. 200
12.1.4.1 Business overview 200
12.1.4.2 Products offered 201
12.1.4.3 Recent developments 202
12.1.4.3.1 Product launches 202
12.1.4.3.2 Deals 203
12.1.4.3.3 Other developments 204
12.1.4.4 MnM view 204
12.1.4.4.1 Key strengths 204
12.1.4.4.2 Strategic choices 204
12.1.4.4.3 Weaknesses and competitive threats 204
12.1.5 LUMENTUM OPERATIONS LLC 205
12.1.5.1 Business overview 205
12.1.5.2 Products offered 206
12.1.5.3 Recent developments 208
12.1.5.3.1 Product launches 208
12.1.5.3.2 Deals 209
12.1.5.3.3 Expansions 210
12.1.5.4 MnM view 211
12.1.5.4.1 Key strengths 211
12.1.5.4.2 Strategic choices 211
12.1.5.4.3 Weaknesses and competitive threats 211
12.1.6 MARVELL 212
12.1.6.1 Business overview 212
12.1.6.2 Products offered 213
12.1.6.3 Recent developments 214
12.1.6.3.1 Product launches 214
12.1.6.3.2 Deals 214
12.1.6.3.3 Expansions 214
12.1.7 COHERENT CORPORATION 215
12.1.7.1 Business overview 215
12.1.7.2 Products offered 216
12.1.7.3 Recent developments 217
12.1.7.3.1 Product launches 217
12.1.7.3.2 Deals 218
12.1.8 IBM 219
12.1.8.1 Business overview 219
12.1.8.2 Products offered 221
12.1.9 STMICROELECTRONICS 222
12.1.9.1 Business overview 222
12.1.9.2 Products offered 223
12.1.10 ROCKLEY PHOTONICS HOLDINGS LIMITED 224
12.1.10.1 Business overview 224
12.1.10.2 Products offered 225
12.1.10.3 Recent developments 225
12.1.10.3.1 Product launches 225
12.1.10.3.2 Deals 226
12.2 OTHER PLAYERS 227
12.2.1 MELLANOX TECHNOLOGIES LTD. 227
12.2.2 SICOYA GMBH 228
12.2.3 RANOVUS 229
12.2.4 BROADCOM INC. 230
12.2.5 HAMAMATSU PHOTONICS K.K. 231
12.2.6 MOLEX LLC 232
12.2.7 FUJITSU LIMITED 232
12.2.8 CHIRAL PHOTONICS, INC. 233
12.2.9 EFFECT PHOTONICS 233
12.2.10 AIO CORE CO., LTD. 234
12.2.11 NKT PHOTONICS 234
12.2.12 IPG PHOTONICS CORPORATION 235
12.2.13 DAS PHOTONICS 236
12.2.14 TDK CORPORATION 237
12.2.15 SCINTIL PHOTONICS 238
12.2.16 TEEM PHOTONICS 238
12.2.17 LIGHTWAVE LOGIC, INC. 239
12.2.18 SOURCE PHOTONICS 240
12.2.19 ACCELINK TECHNOLOGIES CO., LTD. 241
12.2.20 INFINERA 242
13 APPENDIX 243
13.1 DISCUSSION GUIDE 243
13.2 KNOWLEDGESTORE: MARKETSANDMARKETS’ SUBSCRIPTION PORTAL 246
13.3 CUSTOMIZATION OPTIONS 248
13.4 RELATED REPORTS 248
13.5 AUTHOR DETAILS 249