Boosting a 40%+ CAGR, the silicon photonics market is surging, with TFLN breakthroughs poised to further unlock its potential.
- Silicon PIC market (1): from $95 million in 2023 to more than $863 million in 2029, with a 45% CAGR (2).
- The competitive landscape is forming around diverse players: major vertically integrated players, startups/design houses, research institutions, foundries, and equipment suppliers.
- The future of high-speed optical communication lies in three main material platforms: SOI, LNOI, and InP.
- China has made notable strides in silicon photonics and is aiming for global leadership..
Silicon photonics continues to evolve rapidly, with its diverse applications signaling significant opportunities ahead. Over the next decade, key players are expected to emerge, driving industry consolidation, according to Yole Group’s analysts. However, the wide range of use cases will provide ample room for growth and innovation.
Data centers are the primary application for silicon photonics, with new Chinese leaders emerging daily. Telecommunications is another key area that leverages silicon’s superior performance. Optical LiDAR systems also show promise but face cost and beam-scanning hurdles.
In healthcare, advanced photonic components could revolutionize diagnostics, treatment, and monitoring, though regulatory challenges must be addressed. Silicon photonics holds strong potential across these fields. Yole Group has released its annual report: Silicon Photonics 2024 – Focus on SOI (5), SiN, and LNOI platforms. This edition explores the photonics landscape, emphasizing materials for PICs, optical interconnects, and other applications. The report provides a comprehensive analysis of data center networks, with detailed market forecasts between 2023 and 2029 for datacom, telecom, and sensing applications. It also examines the supply chain and market shares of the datacom and telecom sectors.
A special focus on technologies and innovations addresses challenges in CMOS-foundry-compatible devices, circuits, integration, packaging, and more. Additionally, the report features a dedicated chapter on the Chinese photonics ecosystem.
Yole Group’s 2024 report highlights key technologies shaping the photonics landscape, including LNOI/TFLN (6) and InP (7) with an in-depth analysis of their market impact.