The silicon photonics market for data center and high-performance computing is expected to grow at the highest CAGR during the forecast period. WAN and LAN are used for metro and long-haul applications in the telecommunications sector, and LAN is used for data communications applications. Data centers are experiencing an exponential increase in data traffic due to the rise in cloud computing. Owing to technological advancements in high-performance computing, there would be an increase in the adoption and integration of optics using silicon photonics.

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Driver: Growing focus on reducing power consumption using silicon photonic transceivers
With conventional copper cables, it is difficult to meet the ever-increasing demand for high-speed data transfer. The utilization of optical interconnects and silicon photonic transceivers eliminates this issue of the limited spectral range. Also, components such as transceivers interconnects, and switches used in communication networks based on silicon photonics technology consume less power. Companies such as CISCO and Intel have come up with optical switches that consume low power (i.e., 0.6 mW) and can provide high switching speed of 6 ns. Traditional products are based on board-to-board and computer-to-computer integrations, but silicon photonic products are based on the on-chip integration, which not only reduces the product size but also helps reduce power consumption

North America accounts for the largest share of the silicon photonics market during the forecast period.
North America is dominating the silicon photonics market owing to the presence of major players providing silicon photonics technology-based devices in the US and the high adoption of electronic products. The US is leading the silicon photonics market in North America. There exists huge potential for data center applications in the US owing to the presence of data centers of major technology giants such as Microsoft, Facebook, and Amazon in this country.

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