The Global Silicon Photonic Market is expected to reach USD 4.62 Billion by 2027, according to a new report by Emergen Research. The rapid growth in the usage of smartphones and internet services has led to the increased use of silicon photonics transceivers for telecommunications applications and is anticipated to fuel demand for the silicon photonics market. The government's influence on the population to shift towards e-banking and internet-based money banking is also expected to drive the silicon photonics market.
Moreover, characteristics such as low environmental impact, high interconnectivity capacity, low operating costs, low failure rate, and spectral performance are expected to propel the silicon photonics market demand.
The introduction of 5G technology and growing demand for bandwidth will provide an option for corporations to expand their R&D initiatives in the photonics sector. In 5G connectivity, this modern system will help to channel a large volume of data traffic at a low cost and to transform the radio access network efficiently. With the acceptance of cloud services, there is an increased rate of data traffic, which has directed to a rise in the demand for data centers. The rising demand for high-speed data transmission in data centers is projected to boost the demand for silicon photonics.
However, the increasing risk of thermal effect, which may affect the performance of the systems, and the complexity of On-Chip Laser integration are expected to hinder the market growth in the forecast timeframe.