Northbrook, IL -- (SBWIRE) -- 05/02/2021 -- The silicon photonics market is projected to grow from USD 1.0 billion in 2020 to USD 3.0 billion by 2025, growing at a CAGR of 23.4%. The increasing requirement for high bandwidth and high data transfer capabilities is the major factor propelling the growth of the silicon photonics market.

Silicon photonic transceivers expected to witness highest growth rate during forecast period

Silicon photonic transceivers are likely to exhibit the highest CAGR during 2020–2025, primarily due to their high integration density, which enables high-speed data transmission, as well as their ability to consume low power. Further, these transceivers can be upgraded to handle higher capacity bandwidth, thereby enabling optical modules to handle the data center network speed of up to 100 Gbps, 400 Gbps, and beyond.

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Data center and high-performance computing application is expected to be fastest-growing market for silicon photonics during forecast period

Data centers are experiencing an exponential increase in data traffic due to the rise of cloud computing. Owing to technological advancements in high-performance computing, there would be an increasing adoption and integration of optics using silicon photonics. Microsoft Azure is using Intel's silicon photonics for silicon photonics-based optical I/O modules that would target data communication at high speeds.

North America to lead silicon photonics market during forecast period

The market in North America is further segmented into the US, Canada, and Mexico. North America is expected to continue to command the silicon photonics market in the coming years by accounting for the largest market share because it is the hub of many technology companies and R&D establishments, thereby leading to prominent innovations and technological advancements; also, there is a huge and steady flow of monetary investment available for research-related activities from governments and venture capitalists.