Photonic devices are components for generating, manipulating, or detecting light. It includes light-emitting diodes, solar and photovoltaic cells, laser diodes, optical amplifiers, and displays.
The silicon photonics market (global) in 2019 was valued to be USD 520 million, and it is growing at a significant speed. The market valuation is predicted to be reaching USD 3.07 billion by 2025, though the market faced a slowdown because of the pandemic.
The supply chain and production of photonic equipment were affected due to the lockdowns, but the market is getting back to normal condition. Soon, the market will be back to normal, and their (photonic devices) trade will increase gradually.
The development of photonic technologies has helped assist many industries, including medical/healthcare, manufacturing, R&D, etc. It has also evolved the OPV (organic photovoltaics) and OLED (organic light-emitting devices) technologies.
So, what are the highlights in this market, and what are the main key factors that could change the market in the future? What can you expect from the recent decline in the covid-19 cases and institutions opening up all around the world?
This article will list the key trends/highlights of the photonics market. Read on to understand the key trends and observe the significant changes in this market.
Highlights and trends
Silicon photonics is gaining market share in data communication.
- It is an evolving and growing branch in photonics that offers an edge over electric conductors that are utilized with semiconductors. These semiconductors are used in devices with high-speed transmissions.
- In data center applications, optical interconnects (fiber-based) can be used to give point-to-point links, enabling high-bandwidth, inter-rack, data communications.
- There're new developments in the photonic market, such as the integration of silicon devices. Integrating silicon devices can be utilized for multi-channel, high-bandwidth, wavelength division multiplexed with efficient optical communications.
- The 100G silicon photonic transceiver has gained more market share than other devices, and it is because of its high data speed (data communication) with coming integration in technologies like 5G.
The market situation in the Asia Pacific
- This region occupies the most significant market because of emerging economies such as India and China. The abundance of the workforce in these regions, favorable business policies by the government, and other initiatives are driving the market growth.
- China is planning to become a global leader in manufacturing by the year 2025. The government introduced a new initiative such as "Made in China 2025" to increase and improve the country's manufacturing ability. China is bringing many other initiatives to become the world's "factory," which would positively impact the market.
- The rising young workforce in India means more disposable income, which is the primary reason the market will thrive in the future. Major companies are investing in this country, and many mergers and acquisitions are happening right now to gain a competitive advantage.
Competition and developments in the market
- The photonics market is very fragmented. The leading players have used various strategies such as partnerships, agreements, expansions, new product launches, joint ventures, and acquisitions to increase their footprints in this market.
- IBM Corporation, II-VI Incorporated, Infinera Corporation, Intel Corporation, and Juniper Networks, Inc. are some of the leading players in the global silicon photonics market. The industry landscape is quite competitive because of the large number of players in the market.
These developments in the market show how thriving the market is going to be in the future. Also, the production and distribution of these products/equipment will increase after the lockdown, and the supply will meet the demand.
