Silicon Photonics Market Worth $410.78 Million by 2020

According to the new market research report "Silicon Photonics Market by Products (Silicon Optical Interconnects & Wavelength Division Multiplexer Filters & Others), Applications (Telecommunication, Datacom, High Performance Computing & Others) & Geography - Analysis & Forecast (2013-2020)" published by MarketsandMarkets, the total market is expected to reach $410.78 million by 2020, growing at a CAGR of 24.5% for the period from 2013 to 2020.

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The global Silicon Photonics Market revenue is expected to reach $88.6 million by the end of 2013. It is also expected to grow up to $410.78 million in 2020 at a CAGR of 24.5%. This growth is heralded by the telecom and Datacom application markets for silicon Photonics products. The silicon Photonics Datacom applications sector is expected to grow rapidly in the coming seven years.

When geographical markets of North America, Europe, Asia Pacific and the Rest of the World are considered, North Americahas the major share in the market with expected revenue of roughly $47.1 million in 2013. The CAGR of the market's primary based in North America, for the period 2013 to 2020 is calculated to be 22.7%. APAC and Europe are the fastest growing regions, with expected CAGRs of 27.4% and 26.1% respectively from 2013 to 2020, due to the major growth spurts expected in the Datacom application sector.

Silicon Photonics is comparatively new technology which got commercialized in the last decade. Basically Silicon Photonics is the technology which uses optical rays to communicate with other computer chips. This technology has the potential to satisfy ever growing need of bandwidth requirement of the communication and data networks. Silicon photonics will be a key element in future Datacom and telecom network.

With the development in technology and easy availability of the communication devices, data traffic is increasing rapidly and is expected to increase exponentially in coming future. This is creating an extra burden on existing infrastructure as these infrastructures are not designed to handle load of data.

These continuously increasing bandwidth requirements in computing and data processing application and they are seriously threatening the future of the traditional IC industry. Silicon Photonics technology can provide a low cost approach to high data rate communication system by replacing traditional circuits with silicon photonic integrated circuits.

According to our research Silicon Photonics will be the game changer for Datacom applications. As mentioned earlier amount of data being generated is increasing rapidly. Current infrastructures are not enough to cater all of this data. Hence global data centers are concentrating on increasing data processing and reducing carbon footprint. For instance, we can say single silicon Photonics chip will not reduce power consumption at large, but when millions and trillions of such chips used in a large huge amount of power will get saved.

Traditionally, North America and Europe have dominated the silicon Photonics market due to the innovation happening in this region and due to merger of small silicon Photonics companies with big companies in the silicon Photonics domain. However, the Asian region lags far behind its counterparts as far as the silicon Photonics technology is concerned. One of the key factors responsible for it is the lack of knowledge of the silicon Photonics technology. One of the major advantages of using silicon Photonics technology is the reduction in the optical power. Silicon Photonics technology is not matures as of yet, the industry specialist is expecting a few of the packaging standards for Silicon Photonics coming up in near future. This will inform the fabrication processes and silicon Photonics industry well in bloom after that.

Currently the North American region is the largest contributor to silicon Photonics product market. This mainly because of the extensive research and development is going on in this region. With the building management services it is now moving towards the cloud based services, the cost of service will again reduce gradually and; hence, the automation for smaller or less complex residential buildings would be much more affordable. This is a positive sign for the Asian region, which is currently experiencing a heavy growth in infrastructure and construction activities, and where the average income of the common population is not as high as that in Europe. Most of the major global players have a good presence in Europe and North America. However, such companies are far from establishing themselves completely in the Asian region. Local giants, especially in China, are surely expected to make their job tougher to a great extent. Nevertheless, the penetration of this market through mergers and acquisitions with the local players would surely increase the revenue of the global players to a great extent. While all the other regions are expected to grow at less than 20% CAGR, the Asian region is expected to grow at a CAGR of more than 20% during the forecast period.

Mr. Rohan
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