New York, June 09, 2022 (GLOBE NEWSWIRE) — Reportlinker.com announces the publication of the report “Silicon Photonics Market – Growth, Trends, COVID-19 Impact, and Forecasts (2022 – 2027)” – https://www .reportlinker .com/p06249263/?utm_source=GNW
Silicon photonics is a developing branch of photonics offering a clear advantage over the electrical conductors used in semiconductors used in high-speed transmission systems. This technology is expected to push transmission speeds up to 100Gbps, with companies such as IBM, Intel and Kothura making breakthroughs using the technology. In addition, this technology is revolutionizing the semiconductor industry, enabling high-speed data transfer and processing.
Optical communications have become critical for terrestrial systems over the past decades. Long distance fiber optic communications have seen significant gains in data throughput over long distances. New, more complex technologies have been created to meet the need for global transfer of big data, as these systems continue to push the limits of channel capacity. Silicon photonics is one such technology. Photonic components implemented using established silicon fabrication techniques have shown tremendous possibilities in providing low-cost, high-efficiency, tiny form-factor, and low-power photonic integrated circuits (PICs).
Due to the widespread use of cloud services, the demand for data centers has increased in recent years. According to 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 within the next five years. These trends can pull the market studied over the period.
In January 2022, Qpisemi unveiled silicon photonics-based AI processors to power AI 2.0 and various other applications, such as bioinformatics, drug discovery, AI modeling, optimization, the metaverse and the making. Optical processors, rather than electrons, are used in AI 2.0 processors to perform neural network calculations. For data centers, AI 2.0 processors, codenamed AI20PXX, may be 100 times faster than GPUs.
In silicon photonics applications, heat and various sources of noise can disrupt optical communications, pushing light into frequencies that are typically filtered out. Data may be lost or incomplete until these filters are changed, and reconstruction may be complex in the case of streaming data. However, predicting when and how physical processes modify light is not always easy, making modifications more difficult.
On the production supply front, the global semiconductor shortage coincided with the COVID-19 pandemic and affected the majority of industries, including photonics. According to AIM Photonics, the global shortage of semiconductors has significantly impeded innovation in the field of integrated photonics.
Main market trends
Data Centers Should Hold Maximum Market Share
The demand for silicon photonics, particularly used in high-bandwidth optical transceivers, continues to grow to support the proliferation of high-performance computing (HPC) applications and ever-larger data centers. .
Increase in the number of data centers to 2021, owing to increased business and consumer traffic, could offer a huge scope for the silicon photonics market over the forecast period.
Within the enterprise, IT and collaboration are major contributors to data center workload and compute demand. According to the Data Center World Global Conference, the average number of data centers will be approximately 10.3 per organization in three years (by 2021), which is an increase from the current 8.1 per organization. This scale-up necessitates improved performance, overall removing interconnect bottlenecks and providing opportunities for using silicon photonics.
In addition to the massive growth in data traffic, the infrastructure supporting the Internet of Everything (IoE) emphasizes the need for real-time responsiveness between people and things. Increasingly, data processing and data traffic management require the ability to support cloud computing, cognitive computing, and big data analytics, requiring vendors in the market to offer the speed and the ability to provide a rapid response.
Silicon nanophotonic technology is increasingly being applied to optical communication systems. The silicon optical transceiver market is expected to witness multiple growth over the next few years, driven by demand from large data centers and 5G technology. Technologies based on high-speed silicon photonics enable smaller form factors with higher bandwidth and improved power efficiency.
On the consumer side, video/media streaming is the largest contributor. In light of potential data center traffic, key companies, such as Google, Facebook and Microsoft, are planning to increase their data center volumes in all geographies. Therefore, the need for long distance data transfer over traditional electronics may increase the demand for SiP during the forecast period.
Asia-Pacific will see the fastest growth
China’s silicon photonics market is expected to show significant growth rate among Asia-Pacific countries, owing to its growing economy and high global electronics market share. China is one of the main producers and consumers of electronics. The manufacturing industry is growing rapidly in the region and witnessing the continuous deployment of various manufacturing and telecommunications technologies, which is expected to drive the growth of the market.
Chinese government programs, such as the Made in China 2025 plan, encourage R&D activities and investments in factory automation and technologies. Since most automation equipment is imported from other countries, the “Made in China” initiative aims to expand its domestic production of automation equipment.
Japan holds a large share of the silicon photonics market and is increasingly open to collaborations. Big companies want to stay on top and seek investment to fuel growth. The size of the market, the emerging openness and the dynamic industry can certainly benefit innovative companies in Japan, thus stimulating the growth of the market in Japan.
South Korea is one of the main contributors to the market. Population growth, increasing investment in silicon photonics product development, growing focus of international and domestic players on the development of modern silicon photonics products, and increasing R&D activities to increase the transmission rate of data from the region is also fueling the growth of the market.
Countries included in the rest of Asia Pacific include India, Singapore and Taiwan. With the rapid development of AI, 5G, internet of things, virtual reality and the commercial application of these new technologies, the demand for data processing and information interaction is increasing, which would accelerate the construction of data centers in the region and lead to the explosive growth of the industry.? According to Cloud Scene, some of the top data center markets include China, Japan, Australia, India, and Singapore.
The degree of competition depends on various factors affecting the market, such as strong competitive strategies and the concentration rate of companies. The market includes long-established players who have made significant investments in the product. New players are entering the market and require significant investment. Firms can sustain themselves through powerful competitive strategies. Therefore, competitive rivalry increases moderately in the studied market.
February 2022 – Intel Corporation acquired Tower Semiconductors to enable a globally diversified product portfolio to meet growing demand for semiconductors. This acquisition also enables the company to provide foundry services to a global customer base.
September 2021 – NeoPhotonics Corporation, a developer of silicon photonic lasers, modules and subsystems, and advanced hybrid photonic integrated circuits for high-speed, bandwidth-intensive communication networks, today announced a new high-power tunable FMCW (continuous frequency modulated wave) laser module and high-power solid-state optical amplifier (SOA) chips for high-speed, bandwidth-intensive communication networks.
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