March 3, 2018

Top Insights on the Silicon Photonics Products Market | Technavio

LONDON–(BUSINESS WIRE)–Technavio market research analysts forecast the global silicon photonics products market to grow at a CAGR of approximately 39% during the period 2018-2022, according to their latest report.

This market research report segments the global silicon photonics products market into the following products (optical cables, transceivers, optical multiplexers, and optical attenuators), end-users (communications, consumer electronics, healthcare, and defense), and key regions (the Americas, APAC, and EMEA).

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In this report, Technavio analysts highlight the reduction in transportation costs and scalability beyond 40G as a key factor contributing to the growth of the global silicon photonics products market:

Reduction in transportation costs and scalability beyond 40G

The adoption of silicon photonics has benefited the carriers substantially. This network structure has permitted them to transport data across several clients on a single wavelength and preserve their specific requirements. The overall cost of transportation has also reduced as this technology does not require separate wavelengths for separate clients, thereby further confirming efficient bandwidth utilization. Carriers can provide high-capacity services at speeds of 100G and above using silicon photonics. The network architecture of silicon photonics is designed and optimized to support massive capacity services such as 400G or even terabit payloads. This will create a demand for silicon photonic devices in the global market.

According to a senior analyst at Technavio, “The silicon photonics technology can support the partitioning of the network into separate private networks. This permits the carriers to provide the clients with a dedicated, specific, and configurable bandwidth that guarantees network capacity and improved performance. This portioning does not affect the existing services or existing users in any way. Therefore, clients can have a dedicated and independent set of network resources.”

The flexibility of the network architecture allows carriers to employ the technology required to support the current transport demands. Furthermore, it also permits the future adoption of innovative technologies as per business requirements. Also, silicon photonics technology permits quicker service, provisioning, and better time-to-revenue.

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Global silicon photonics products market segmentation

In 2017, the optical cables segment had the largest share in the market for silicon photonic products. The increasing need for higher bandwidth has resulted in the demand for optical cables that offer greater speeds and connectivity.

As of 2017, the Americas was the leading revenue contributing region in the global silicon photonics products market. This is because several companies that have already entered or are looking to enter the market are from the US.

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