Market Dynamics

The increasing amount of data in telecommunications and data center & high-performance computing is primarily supporting the market growth. The technological advancement in application sectors including military, defense, and aerospace, medical and life sciences, and sensing is boosting the demand for silicon photonics transceiver in the market. The ongoing advancement, research, and development activities, and continued investment by the major players for the innovation in the silicon photonics transceiver sector are further expected to supporting the growth over the forecast period from 2020 to 2027.

Segment Instance

The silicon photonics transceiver market is segmented on the basis of type, application, and geography. Based on type, market is divided into laser, photodetector, and modulator. Silicon photonics transceiver has application across data center & high-performance computing, telecommunications, military, defense, and aerospace, medical and life sciences, and sensing. By geography, the market is divided across North America, Europe, Latin America, Asia Pacific, and Middle East & Africa. Additionally, the aforementioned regions are further segregated into the major countries of the respective regions.

Asia Pacific is projected to exhibit fastest growth in near future

Asia Pacific is projected to lead the market with maximum revenue share (%) in 2027. The rapid technological advancement in the emerging economies of the region including China and India is supporting the regional market value. The ongoing development and expansion in the data center & high-performance computing are supporting the regional market value. The regional expansion of major players in order to take advantage of available opportunities is further boosting the market growth. Hamamatsu Photonics of Japan is also contributing a noticeable share (%) in the global silicon photonics transceiver market. Furthermore, the region collectively including its major economy is anticipated to experience the fastest growth with major CAGR (%) during the forecast period from 2020 to 2027.

Key Market Players

The players profiled in the report include Acacia Communications, Inc. (US), Cisco Systems, Inc (US), Finisar Corporation (US), GlobalFoundries (US), Hamamatsu Photonics (Japan), Intel Corporation (US), International Business Machines Corporation (IBM) (US), Juniper Networks, Inc. (US), Luxtera Inc (US), Mellanox Technologies Ltd. (US), STMicroelectronics (Switzerland), and others. The major market players were involved in mergers and acquisitions, partnerships & collaborations, and new product development for the expansion of market share. For instance, DustPhotonics has launched the QSFP-DD DR4 transceiver module in 2020. The new transceiver module is particularly designed to support high-performance 400 Gbps coherent transmission in a pluggable form factor for high-speed networks and intra-data center interconnect. The new solution is designed to cope up with the increasing bandwidth demands of hyper-scale data centers. The QSFP-DD form factor introduced by supplier enabling next-generation optics provides an 8-lane electrical interface, increasing bandwidth, channel capacity, and port density.

In September 2020, Verizon Media and Inphi have together validated a “seamless upgrade” from 100Gb Ethernet QSFP28 optics, using Inphi’s Colorz silicon photonics platform to 400GbE QSFD-DD over the same production Open Line System. According to both the partners, the demonstration consisted of adding a 400ZR from an Arista 400G switch into a 100GHz DWDM channel without affecting any of the existing 100GbE wavelengths.

Members of a European consortium are involved in the development of silicon photonics technology. They have demonstrated a fully packaged transceiver module with a data transfer rate of 100 Gb/s in 2020. The CmOs Solutions for Mid-board Integrated transceivers with breakthrough connectivity at ultra-low Ccst, in short, COSMICC project team has mentioned that the newly developed optical hardware will meet the communications industry’s demands for high-speed data modules. The COSMICC transceiver multiplexes two wavelengths at 50 Gb/s, and initially aimed at applications in data centers and supercomputers across the industry.

Market Segmentation

Market By Type

Laser

Photodetector

Modulator

Market By Application

Data center & high-performance computing

Telecommunications

Military, defense, and aerospace

Medical and life sciences

Sensing

Market By Geography

North America

• U.S.
• Canada

Europe

• U.K.
• Germany
• France
• Spain
• Rest of Europe

Asia-Pacific

• China
• Japan
• India
• Australia
• South Korea
• Rest of Asia-Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC
• South Africa
• Rest of Middle East & Africa