Data Communication Application Segment is Expected to Dominate the Silicon Photonics Market

12 Mar 2021

The traditional methods of transmitting data involve the use of copper wires. Over the years, fiber optic technology replaced the copper interconnects and became the new norm in the data center environment to facilitate faster data transmission. However, the distance-cost crossover from copper to an optic solution has been a debatable subject for a long time.

To further improve the transmission of heavy datasets (>100 Gigabytes) which has always posed major limitations to the traditional methods owing to the low bandwidth and high attenuation of copper wires, is still a challenge. The silicon photonic technology has emerged as a potential solution to overcome the limitations of traditional methods. Due to this several companies have started investing in the technology in order to develop passive optical alignment and effective integration at a lower cost. The silicon photonics technology uses silicon as an optical medium for data transmission.

Silicon photonics technology has the potential to transform the communication industry into a very-large-scale integrated (VLSI) electronics with the integration of digital electronic chips. Since silicon is a semiconductor, it is helpful in performing various functions, such as optical modulation. Moreover, silicon-based devices are highly reliable and can be mass-produced cost-efficiently.

Recently, a team of researchers lead by Vanderbilt engineers has successfully being able to transmit two different signals through a single chip that too at the same time. This development has the potential to enhance the volume of data that a silicon chip transmits over a period of time. 

According to the market intelligence published by BIS Research, global silicon photonics market is expected to reach $3702.1 million by 2025. The silicon photonics market is expected to show a remarkable growth in the next five years. The need for advanced data transmission technologies is driving the silicon photonics devices market. Developed economies are heading up with upcoming projects on smart cities.

Moreover, with the growing awareness toward health, various technological advancements have already been initiated in the healthcare sector, which is expected to increase the demand for the silicon photonics technology in healthcare and many other end-user segments.

The global market for silicon photonics, based on application types, can be categorized into data communication, telecommunication, healthcare, defense and security, consumer electronics, and others. Silicon photonics devices find commercial applications in high-performance computers and data center applications.

The data communication application segment is expected to dominate the market over the forecast period because of the rising application of silicon photonics devices in high-performance computers and data center applications due to its cost-effectiveness and reliability for commercial applications.

The telecommunication segment has been the second-largest contributor to the overall revenues of the global silicon photonics market. The rising consumer demand would propel the improvement in performance of existing fixed and mobile infrastructures, in which silicon photonics is expected to play an important role.


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