Market Trends of Silicon Photonics Industry
Automotive Segment to Witness Major Growth
- Silicon photonics is an emerging technology in the automotive sector that helps advance sensors like event-based sensors (EBS) and neuromorphic cameras and improves LIDAR. Some automotive products being upgraded to incorporate silicon photonics technology include Advanced Driver Assistance Systems (ADAS), face recognition systems, sensors & detection technology, LiDAR systems, and many other systems used in vehicles. Silicon photonics-enabled systems enhance a vehicle's safety, functionality, and performance. Moreover, silicon photonics-enabled systems in cruise control offer several benefits, such as enhanced accuracy, speed, and efficiency.
- In recent years, photonics has revolutionized the automotive industry, transitioning from mere lighting functions to providing cutting-edge technology for imaging, sensing, smart displaying, and media communication networks. Consequently, photonics has taken on new dimensions far beyond lighting in cars and automotive manufacturing and quality control. Unsurprisingly, the automotive industry is showing an increased interest in innovative, photonics-based technologies such as silicon photonics.
- The increasing production of buses is likely to offer lucrative opportunities for market growth. For instance, according to OICA, around 75 thousand buses and coaches were produced across India in 2022, an increase from 34.7 thousand buses and coaches in 2021. Furthermore, according to the International Energy Agency (IEA), between 2016 and 2022, China consistently registered the most significant number of electric buses. In 2021 and 2022, the number of electric bus registrations in China amounted to 50 and 54 thousand, respectively.
- The increasing adoption of self-driving or autonomous vehicles is a primary growth factor for the ADAS market. For instance, according to the National Safety Council, by 2026, approximately 71% of registered vehicles will be equipped with rear cameras, while 60% will have rear parking sensors. Such increasing adoption of ADAS would aid the growth of the market studied. Various manufacturers of personal and commercial vehicles are establishing their facilities globally, which is also driving the market studied.
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North America Holds Significant Market Share
- The United States is one of the prominent countries in the data center market. Multi-tenant data center leasing activities in the country have been rising owing to expansion activities by some of the major companies in the country.
- The growing data center traffic, along with rapid technological advancements in emerging areas, such as AI and IoT, is leading to increased data traffic across the country. According to the forecasts by Cisco, there will be 4.6 billion networked devices by 2023, rising from 2.7 billion in 2018. In addition, smartphones are expected to account for 7% of all networked devices by 2023.
- The digitization of enterprises, be they small or large, and the resulting digital services rapidly develop a need for larger technology stacks in order to store, compute, connect, and analyze data. It also leads to the adoption of cloud services. The adoption of digitization of enterprises creates new opportunities for the silicon photonics market in the region.
- It is expected that wireless operators in Canada will invest approximately USD 25.8 billion in deploying 5G infrastructure between 2020 and 2026; as a result, the government is also encouraging telecom equipment manufacturing. These initiatives will broaden the scope of the country's 5G infrastructure and provide a massive opportunity for market study vendors.
- As per Ericsson, in Canada, 4 million smartphone users plan to upgrade to 5G over the next 12-15 months; 8 in 10 current 5G users don't want to return to 4G. The 5G user base has increased six-fold over the past two years. However, consumer awareness is low; 15% of users claim they are on 5G but use a 4G handset in Canada, while another 18% own a 5G capable device but have not upgraded to a 5G subscription.
- The Canadian region is also expected to exhibit a significant adoption rate of silicon photonics technology due to technological advancements across its end-user industries. Also, the increasing research and development activities, coupled with several investments in technology, are expected to act as major drivers for the growth in adoption.
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