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News Article

Silicon Photonics Projected to Reach $1B by 2020

Silicon photonics to account for 10 percent of the market

LightCounting has released a report offering an analysis of the potential impact of integration technologies on the market for optical components and modules used in data centers and other networking systems.

"Many in the industry have predicted that Silicon Photonics (SiP) will enable inexpensive, mass produced optical connectivity, radically changing the optical components and modules industry," commented Vladimir Kozlov, CEO and founder of LightCounting. "Our analysis suggests this will not happen in the next five years, but sales of SiP-based optical products may reach $1 billion by 2020, accounting for about 10 percent of the market."

The potential impact of photonic integration on the optical communications market has captivated the imagination of the industry for the last two decades. Recent successes by vendors developing integrated products using Silicon photonics (SiP) has led to several mergers and high-value acquisitions in 2012-2013, and shipments of SiP-based products increased in 2014-2015.

The report presents data on advances made by optical integration technologies during 2010-2015 and offers a forecast for discrete and integrated products based on InP, GaAs and SiP technologies for 2016-2021. The forecast is segmented by primary applications, including Ethernet, WDM, AOC-EOM and a few others. Products are sorted by data rate, reach and form factor into more than 100 categories.

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