The Silicon photonics market has been expected to increase at a CAGR of 20.71%, with a value of USD 2518.59 million within the estimated forecasting year of 2020-2027.
Due to the widespread use of cloud services, the rising demand for data centers has surged in recent years. According to the information stated by the Cloud Infrastructure Report 2021, 57% of respondents said more than half of their infrastructure is in the cloud, and 64% expect to be entirely in the public cloud in the next five years. These global market trends may drive the market studied over the period.
Silicon photonics can be understood as a developing branch of photonics offering a clear advantage over electric conductors used in semiconductors used in high-speed transmission systems. The technology is expected to push the transmission speeds up to 100 Gbps, with companies like IBM, Intel, and Kothura, achieving breakthroughs. Optical communications have grown to be critical for terrestrial systems for the past several decades. Vast-haul fiber communications have seen significant gains in need for data speeds over long distances. Silicon photonics is one of these technologies.
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Market segmentation
Silicon photonics is a growing technology that uses optical rays to transfer data within computer chips. The silicon photonics may assist to transmit more data while consuming less power and without any degradation in the signal, due to which there is a huge opportunity in the future.
The market is segmented to include analysis of applications in data center telecommunications across the world.
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Regional analysis
China’s Silicon Photonic market is expected to exhibit a significant growth rate among the Asia-Pacific regional countries, owing to its growing economy and high global electronics market share. The Chinese region is one of the prominent electronics producers and consumers. The manufacturing industry belonging to the market is rapidly growing in the region and is witnessing the continuous deployment of various manufacturing and telecommunications technologies, which is expected to drive the market’s growth. The Chinese government is initiating plans and programs, such as the Made in China 2025 plan, promoting R&D activities in factory automation and technologies and investments in them. As most of the automation equipment is imported from other countries, the ‘Made in China’ initiative aims to expand its domestic automation equipment production.
The Japanese region holds a significant share in the silicon photonics market and is becoming more open to collaborations. The global market size and other factors like emerging openness and dynamic industry can surely benefit innovative companies in Japan, driving the market’s growth. South Korea is emerging as one of the major contributors to the market. The growing population, increasing investments toward the development of silicon photonic products, the rising focus of international and domestic players on modern silicon photonic products, and increasing R&D activities to increase the region’s data transmission rate are also fueling the region’s data transmission rate market’s growth.
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Industry news
In January 2022, Qpisemi unveiled AI processors based on silicon photonics to power AI 2.0 and other applications, such as bioinformatics, drug discovery, AI modeling, optimization, metaverse, and others like manufacturing. Optical processors, rather than electrons, are used in AI 2.0 processors to perform neural-network calculations. AI 2.0 processors, codenamed AI20PXX, maybe 100 times quicker than GPUs for data centers.
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1 EXECUTIVE SUMMARY
1.1 OVERVIEW
1.1.1 MARKET SYNOPSIS
1.1.2 SILICON PHOTONICS MARKET, BY REGION (CAGR)
2 MARKET INTRODUCTION
2.1 DEFINITION
2.2 SCOPE OF THE STUDY
2.3 MARKET STRUCTURE
3 RESEARCH METHODOLOGY
3.1 RESEARCH PROCESS
3.2 PRIMARY RESEARCH
3.3 SECONDARY RESEARCH
3.4 MARKET SIZE ESTIMATION
3.5 FORECAST MODEL
3.6 LIST OF ASSUMPTIONS
4 MARKET DYNAMICS
4.1 DRIVER, RESTRAINT, AND OPPORTUNITY OVERVIEW
4.2 DRIVERS
4.2.1 INCREASING ADOPTION OF SILICON PHOTONICS-BASED PRODUCTS IN DATA CENTERS
4.2.2 NEED FOR HIGH BANDWIDTH AND HIGH DATA TRANSFER CAPABILITIES
4.2.3 DRIVER IMPACT ANALYSIS
4.3 CHALLENGE
4.3.1 INEFFICIENT ELECTROLUMINESCENCE
4.4 OPPORTUNITY
4.4.1 EMERGING APPLICATIONS OF SILICON PHOTONICS
4.4.2 INCREASED SUPPORT FROM GOVERNMENT AND STAKEHOLDERS
5 MARKET FACTOR ANALYSIS
Continued…
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