Silicon photics: accelerating growth in high-speed optical interconnects

The silicon PIC (Photonic Integrated Circuits) (die) market is projected to exceed $863 million by 2029, reflecting a robust 45% CAGR over this 2023–2029 period.

Martin ValloSenior Technology and Market Analyst, Photonics at Yole Group: “This growth will be driven mainly by high-data-rate pluggable modules for increased fibre-optic network capacity. Additionally, projections of rapidly growing training dataset sizes show that data will need to use light for scaling ML (Machine Learning) models, using optical I/O in ML servers.”

Data centres 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 revolutionise 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, emphasising materials for PICs, optical interconnects, and other applications. The report provides a comprehensive analysis of data centre 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 (Lithium Niobate on Insulator / Thin-Film Lithium Niobate) and InP (Indium Phosphide) with an in-depth analysis of their market impact.

Eric MounierChief Analyst, Photonics & Sensing at Yole Group: “For instance, the LNOI market is projected to reach nearly $1 billion by 2029, with an impressive 98% CAGR. TFLN and LNOI stand out for their low optical loss and high bandwidth. The InP PIC market is expected to grow at a 22% CAGR, while the SiN segment shows strong potential with a 43% CAGR during the same period.”

Silicon photonics plays a pivotal role in the semiconductor industry. While it is widely used in communication and sensing applications, the photonics market remains challenging for both established players and new entrants. Leveraging deep expertise in semiconductors and photonics, Yole Group provides valuable insights into the market’s technical hurdles and critical business challenges through its dedicated analysts and comprehensive reports.